VA awards $6.5M contract for preventative maintenance on specialized equipment, raising value-for-money questions

Contract Overview

Contract Amount: $6,538 ($6.5K)

Contractor: Scandidos Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $18/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCANDIDOS DELTA4 PHANTOM PREVENTATIVE MAINTENANCE PLAN

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78240

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6,538 to SCANDIDOS INC. for work described as: SCANDIDOS DELTA4 PHANTOM PREVENTATIVE MAINTENANCE PLAN Key points: 1. The contract's value-for-money is questionable given the lack of competition and the specific nature of the service. 2. Competition dynamics are absent, as this was a sole-source award, potentially limiting price discovery. 3. Risk indicators include the sole-source nature and the potential for overpayment without competitive benchmarking. 4. Performance context is limited to preventative maintenance, suggesting a focus on asset upkeep rather than new capabilities. 5. Sector positioning is within the specialized equipment maintenance sub-sector, critical for maintaining operational readiness of VA medical facilities.

Value Assessment

Rating: questionable

The $6.5 million award for preventative maintenance over one year lacks a clear competitive benchmark. Without a competitive process, it is difficult to assess if the pricing is fair market value. The absence of multiple bids means there's no direct comparison to gauge cost-effectiveness against other potential providers or service levels. This award warrants further scrutiny to ensure the VA is receiving optimal value for its investment in maintaining critical medical equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SCANDIDOS INC., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition limits the government's ability to explore a range of pricing options and service innovations that might be available from a broader pool of qualified suppliers. Consequently, the government may not achieve the most advantageous pricing or terms.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of securing the best possible price. Without competitive pressure, the awarded price may be higher than what could have been achieved through an open competition, potentially leading to inefficient use of public funds.

Public Impact

Veterans will benefit from the continued operational readiness of medical equipment through preventative maintenance. Essential services include the upkeep of specialized electronic and precision equipment used in VA healthcare facilities. The geographic impact is concentrated in Texas, where the services are likely to be performed. Workforce implications are minimal, as this contract focuses on maintenance services rather than new personnel hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition raises concerns about fair market value and potential overpayment.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Contract ensures continued maintenance of critical medical equipment, supporting veteran care.
Firm fixed-price contract provides cost certainty for the VA.
Awardee has a specific focus on this type of equipment maintenance.

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector, a critical component of the healthcare industry's infrastructure. The market for specialized medical equipment maintenance is often characterized by proprietary technology and manufacturer-specific expertise, which can sometimes lead to limited competition. Comparable spending benchmarks are difficult to establish without more detailed service scope and equipment specifics, but maintenance contracts for high-value medical assets typically represent a significant portion of a healthcare provider's operational budget.

Small Business Impact

This contract does not appear to involve any small business set-asides, nor is there information suggesting subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation. This contract is likely to be performed by the prime contractor, SCANDIDOS INC., with minimal direct impact on the broader small business ecosystem in this specialized maintenance sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the performance standards outlined in the purchase order and the firm fixed-price terms. Transparency is limited due to the sole-source nature, but the VA's internal procurement regulations and potentially the Inspector General's office could provide oversight if performance issues or improprieties are suspected.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Preventative Maintenance Services
Sole-Source Healthcare Equipment Support
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding the specific equipment and maintenance scope.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6,538 to SCANDIDOS INC.. SCANDIDOS DELTA4 PHANTOM PREVENTATIVE MAINTENANCE PLAN

Who is the contractor on this award?

The obligated recipient is SCANDIDOS INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6,538.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis to SCANDIDOS INC.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or when a unique capability is required. For this contract, the VA would need to document why SCANDIDOS INC. is the only viable option for providing preventative maintenance on the specified 'SCANDIDOS DELTA4 PHANTOM' equipment. This could be due to proprietary technology, specialized training, or unique parts availability that only SCANDIDOS INC. possesses. Without this documentation, the rationale remains unclear, and the award is subject to scrutiny regarding competition.

How does the $6.5 million contract value compare to historical spending on similar preventative maintenance services for this type of equipment by the VA or other federal agencies?

Historical spending data for this specific 'SCANDIDOS DELTA4 PHANTOM PREVENTATIVE MAINTENANCE PLAN' is not provided in the dataset. To conduct a meaningful comparison, one would need to access historical contract databases (like FPDS or USASpending) to identify previous awards for the maintenance of this particular equipment or similar specialized diagnostic/phantom systems. Factors such as the number of units requiring maintenance, the scope of services included (e.g., response time, parts coverage), and the duration of previous contracts would be crucial for an accurate benchmark. Without this comparative data, assessing whether $6.5 million represents a fair market price or an anomaly is challenging.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this preventative maintenance contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a preventative maintenance contract of this nature, typical KPIs and SLAs would likely include metrics such as equipment uptime percentage, response time for service calls, completion rate of scheduled maintenance tasks, availability of spare parts, and technician qualifications. The firm fixed-price nature suggests that SCANDIDOS INC. is obligated to perform the defined maintenance services within the contract period. The VA would monitor these aspects to ensure the equipment remains operational and reliable, thereby supporting patient care.

What is the track record of SCANDIDOS INC. in performing similar maintenance contracts for the Department of Veterans Affairs or other federal agencies?

The provided data indicates that SCANDIDOS INC. is the awardee for this contract. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving maintenance of specialized electronic and precision equipment. This would involve searching contract databases for previous awards to SCANDIDOS INC., reviewing past performance evaluations (if publicly available), and checking for any history of contract disputes or terminations. A positive track record with the VA or other agencies would suggest a higher likelihood of successful contract performance, while a history of issues might indicate potential risks.

Are there any potential risks associated with the firm fixed-price contract type for this specific service?

The firm fixed-price (FFP) contract type generally offers cost certainty for the buyer, as the price is set and not subject to adjustment based on the contractor's cost experience. For preventative maintenance, an FFP contract can be suitable if the scope of work is well-defined and the risks of unforeseen costs are manageable. However, a potential risk with FFP in this context could arise if the scope of 'preventative maintenance' is not precisely delineated, or if unforeseen issues with the 'SCANDIDOS DELTA4 PHANTOM' equipment require more extensive or costly interventions than anticipated. In such scenarios, the contractor might be incentivized to cut corners to maintain profitability, or conversely, the government might be overpaying if the work proves less intensive than estimated. The sole-source nature exacerbates this risk, as there's no competitive baseline to validate the FFP amount.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7202 COUNTRYWOOD LN, MADISON, WI, 53719

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,430

Exercised Options: $6,538

Current Obligation: $6,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline