VA awards $3.68M contract for electromyography equipment maintenance to Cadwell Laboratories Inc

Contract Overview

Contract Amount: $3,676 ($3.7K)

Contractor: Cadwell Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-07-01

End Date: 2027-06-30

Contract Duration: 364 days

Daily Burn Rate: $10/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ELECTROMYOGRAPHY

Place of Performance

Location: HARLINGEN, CAMERON County, TEXAS, 78550

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3,676.3 to CADWELL LABORATORIES INC for work described as: ELECTROMYOGRAPHY Key points: 1. Contract ensures continued availability of critical diagnostic equipment for veterans. 2. The award was made via a competitive process, suggesting potential for fair pricing. 3. Fixed-price contract type limits the government's exposure to cost overruns. 4. The duration of the contract is one year, allowing for periodic reassessment of needs. 5. The contractor, Cadwell Laboratories Inc., is likely a specialized provider in this niche. 6. Geographic focus on Texas indicates a specific regional need for these services.

Value Assessment

Rating: good

The contract value of $3.68 million for a one-year maintenance agreement for electromyography equipment appears reasonable given the specialized nature of the equipment and services. Benchmarking against similar contracts for medical equipment maintenance is challenging without more specific details on the scope of services and equipment models. However, the firm fixed-price structure provides cost certainty for the Department of Veterans Affairs. The single award suggests Cadwell Laboratories Inc. may be a primary or sole authorized service provider for this specific equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized for this award. While the specific number of bidders is not provided, the use of SAP suggests that multiple offers were solicited and considered. This level of competition, even within SAP, generally supports price discovery and ensures the government receives a fair market price for the services rendered. The award to a single contractor implies they offered the best value among the competing proposals.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it helps ensure that the price paid for electromyography equipment maintenance is aligned with market rates and not inflated due to a lack of alternatives.

Public Impact

Veterans in Texas will benefit from the continued availability and proper functioning of electromyography equipment for diagnostic purposes. Services include maintenance and repair of specialized medical equipment essential for neurological assessments. The contract's geographic impact is focused on the state of Texas, serving VA facilities within that region. This contract supports specialized technical roles within the healthcare sector, potentially involving skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders and the evaluation criteria used in the competitive process.
Potential for vendor lock-in if Cadwell Laboratories Inc. is the sole authorized servicer for specific equipment models.
The contract duration is relatively short (one year), which may necessitate frequent re-competition and associated administrative effort.

Positive Signals

The contract was awarded through a competitive process, indicating multiple vendors had the opportunity to bid.
The firm fixed-price contract type provides cost predictability for the government.
The award supports the maintenance of critical medical equipment, directly benefiting veteran healthcare.

Sector Analysis

The healthcare equipment maintenance sector is a critical component of the broader healthcare industry, ensuring the operational readiness of diagnostic and therapeutic devices. This contract falls within the Electronic and Precision Equipment Repair and Maintenance industry (NAICS 811210). Spending in this area is driven by the need to maintain complex medical technology, with significant government spending directed towards supporting military and veteran healthcare systems. Comparable spending benchmarks are difficult to establish without detailed service scope, but the overall market for medical equipment maintenance is substantial.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As it was competed under SAP, it's possible that small businesses were encouraged to participate. However, the award to a single entity, Cadwell Laboratories Inc., suggests they were the most competitive offeror. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, and the extent of small business participation in the overall contract value.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and the program office responsible for medical equipment maintenance. The firm fixed-price nature of the award simplifies financial oversight by providing cost certainty. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed service reports may be internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Medical Equipment Maintenance Contracts
Veterans Affairs Healthcare Services
Diagnostic Equipment Support
Federal Purchase Orders

Risk Flags

Potential for sole-source dependency if contractor is the only authorized servicer.
Risk of service disruptions impacting veteran healthcare delivery.
Need for clear performance metrics and oversight to ensure quality of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3,676.3 to CADWELL LABORATORIES INC. ELECTROMYOGRAPHY

Who is the contractor on this award?

The obligated recipient is CADWELL LABORATORIES 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 $3,676.3.

What is the period of performance?

Start: 2026-07-01. End: 2027-06-30.

What is the track record of Cadwell Laboratories Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that Cadwell Laboratories Inc. has a history of receiving contracts, primarily for medical equipment and services. While specific details on the volume and value of past federal awards are not fully detailed here, their presence suggests experience in serving government entities. Further investigation into their performance history with the VA, including any past performance evaluations or reported issues, would provide a more comprehensive understanding of their reliability and capability. Analyzing their award history across different agencies could also reveal patterns in the types of equipment and services they provide, offering context for this specific electromyography contract.

How does the awarded price of $3.68 million for one year of electromyography equipment maintenance compare to market rates for similar services?

Benchmarking this contract's value requires detailed information on the specific electromyography equipment models, the scope of maintenance (e.g., preventive, corrective, parts included), and the geographic coverage within Texas. However, for specialized medical equipment maintenance, annual costs can range significantly. A single-year contract for a substantial amount like $3.68 million suggests either a large fleet of equipment, highly complex systems, or a comprehensive service agreement. Without access to proprietary pricing databases or direct comparisons of similar VA or other federal contracts for identical services, a precise market rate comparison is difficult. The competitive nature of the award under SAP provides some assurance that the price is fair, but a deeper dive into service level agreements and equipment inventory would be needed for a definitive value assessment.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential equipment downtime if maintenance is inadequate, leading to delayed diagnoses for veterans. Another risk is the contractor's ability to provide timely and effective service across the specified region in Texas. Mitigation strategies are embedded in the contract structure: the firm fixed-price (FFP) nature limits financial risk for the government. Performance standards and service level agreements (SLAs) within the contract, though not detailed here, would outline expectations for response times and repair quality. The VA's oversight mechanisms, including potential inspections and performance reviews, also serve to mitigate risks. Furthermore, the competitive award process suggests a selection of a capable vendor, reducing the risk of contractor underperformance.

How effective is the Department of Veterans Affairs in managing contracts for specialized medical equipment maintenance?

The effectiveness of the VA in managing specialized medical equipment maintenance contracts can vary. The VA manages a vast and complex portfolio of medical equipment across numerous facilities, requiring robust procurement and contract management capabilities. Awards like this one, using competitive procedures and FFP contracts, indicate adherence to sound acquisition principles. However, challenges can arise from the specialized nature of the equipment, the need for highly skilled technicians, and ensuring consistent service delivery across diverse geographic locations. The VA's internal oversight, performance metrics, and feedback mechanisms are crucial for ensuring contract effectiveness. Analyzing trends in contract renewals, disputes, and overall equipment uptime would provide a clearer picture of their management effectiveness.

What are the historical spending patterns for electromyography equipment maintenance by the Department of Veterans Affairs?

Historical spending patterns for electromyography (EMG) equipment maintenance by the VA would reveal the frequency and value of previous contracts for these services. This specific award of $3.68 million for a one-year period suggests a significant ongoing need. Analyzing prior years' spending could indicate whether this is a new or expanded requirement, if spending has been consistent, or if there have been fluctuations. Understanding historical spending helps in assessing the long-term budget implications and identifying potential trends in equipment utilization or technological shifts that might influence future maintenance needs and costs. A consistent or increasing spending trend might signal growing demand for EMG diagnostics among veterans.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cadwell Industries, Inc.

Address: 909 N KELLOGG ST, KENNEWICK, WA, 99336

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,382

Exercised Options: $3,676

Current Obligation: $3,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline