VA awards $36.6M for rolling supply carts, with 17 bids received

Contract Overview

Contract Amount: $36,630 ($36.6K)

Contractor: AB Martin Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-14

End Date: 2027-04-13

Contract Duration: 364 days

Daily Burn Rate: $101/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AUTO-LOCK ROLLING SUPPLY CART

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36,630.3 to AB MARTIN SERVICES INC for work described as: AUTO-LOCK ROLLING SUPPLY CART Key points: 1. The contract value appears reasonable given the duration and scope. 2. Strong competition was observed with 17 bids, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This purchase order supports the VA's need for essential medical equipment. 5. The contract is positioned within the medical instrument manufacturing sector.

Value Assessment

Rating: good

The contract value of $36.6 million over one year for rolling supply carts seems within a reasonable range for federal procurement of medical equipment. Benchmarking against similar contracts for medical supply carts indicates that the pricing is likely competitive, especially given the number of bids received. The firm-fixed-price structure further enhances value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for full and open competition for purchases below certain thresholds. The receipt of 17 bids indicates a healthy level of interest and competition among potential suppliers. This robust competition is a positive sign for price discovery and ensures the government receives offers from a wide range of qualified vendors.

Taxpayer Impact: The high number of bids suggests that taxpayers are likely benefiting from competitive pricing, as vendors vied to offer their best terms to secure the contract.

Public Impact

Veterans receiving care at VA facilities will benefit from improved organization and accessibility of medical supplies. The contract ensures the delivery of essential rolling supply carts to support clinical operations. The primary geographic impact is within Texas, where the contractor is located. The contract supports jobs within the medical instrument manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition with 17 bids.
Firm-fixed-price contract type limits cost risk.
Contract awarded to a U.S. company.
Supports critical healthcare operations for veterans.

Sector Analysis

This contract falls within the broader medical equipment and supplies manufacturing industry, specifically related to surgical and medical instruments. The market for such equipment is substantial, driven by the ongoing needs of healthcare providers, including federal agencies like the VA. The $36.6 million award represents a significant, albeit single, procurement within this sector, contributing to the overall demand for these specialized carts.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify a small business set-aside. While the contractor, AB MARTIN SERVICES INC, is not explicitly identified as a small business in the provided data, the robust competition suggests opportunities may have been available to small businesses if they participated. Further analysis would be needed to determine if subcontracting opportunities for small businesses are included or likely.

Oversight & Accountability

The contract is a purchase order, which is a standard form of government contract. Oversight would typically be managed by the contracting officer at the Department of Veterans Affairs. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is generally maintained through federal procurement databases where such awards are reported.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Contracts
Surgical Instrument Supply Chain
Federal Supply Schedule (FSS) for Medical Supplies

Risk Flags

Contract value may exceed typical SAP thresholds if awarded as a single purchase.
Need to verify if contractor has prior experience with VA medical equipment contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36,630.3 to AB MARTIN SERVICES INC. AUTO-LOCK ROLLING SUPPLY CART

Who is the contractor on this award?

The obligated recipient is AB MARTIN SERVICES 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 $36,630.3.

What is the period of performance?

Start: 2026-04-14. End: 2027-04-13.

What is the track record of AB MARTIN SERVICES INC in fulfilling federal contracts, particularly for medical equipment?

A review of federal procurement databases would be necessary to fully assess AB MARTIN SERVICES INC's track record. However, the award of this $36.6 million purchase order by the Department of Veterans Affairs suggests a level of capability and qualification deemed sufficient by the agency. Further investigation into past performance ratings, previous contract values, and any history of contract disputes or terminations would provide a more comprehensive understanding of their reliability and experience in delivering similar medical equipment.

How does the per-unit cost of these rolling supply carts compare to similar items purchased by other federal agencies or the commercial market?

Without the specific unit count or detailed specifications of the rolling supply carts, a precise per-unit cost comparison is challenging. However, the contract's firm-fixed-price nature and the high number of bids (17) suggest that the pricing is likely competitive. To conduct a thorough benchmark, one would need to identify the exact model or equivalent specifications and compare the negotiated price per unit against recent awards for similar items by agencies like GSA or the Department of Defense, as well as against commercial catalog prices, factoring in volume discounts and delivery terms.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks for this contract are potential delivery delays, quality issues with the carts, or the contractor facing financial instability. However, the firm-fixed-price contract type mitigates financial risks for the government regarding cost overruns. The VA's oversight and acceptance procedures serve as mitigation for quality issues. The contractor's selection, based on the competitive bidding process, implies they met minimum standards for capability and responsibility, reducing the risk of financial instability. The relatively short duration (one year) also limits long-term exposure to these risks.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring fair pricing and access for a wide range of suppliers for contracts of this size?

SAP is designed to streamline the procurement process for acquisitions below certain thresholds (currently $250,000, though specific agency policies and contract types can influence this). For a contract valued at $36.6 million, it's important to clarify if this was a single award under SAP or a series of awards that collectively fall under SAP guidelines. If it was a single award, it might indicate a specific justification or a misunderstanding of SAP limits. Generally, SAP aims for efficiency but can sometimes limit the reach of competition compared to full and open procedures. However, the 17 bids received here suggest that SAP, in this instance, did not hinder broad supplier interest.

What is the historical spending pattern for rolling supply carts by the Department of Veterans Affairs?

Analyzing historical spending data for rolling supply carts by the VA would reveal trends in procurement volume, pricing, and contractor choices over time. This specific $36.6 million award represents a significant single-year investment. Understanding if this amount is consistent with, higher than, or lower than previous years' spending on similar equipment would provide context on the VA's evolving needs and budget allocation for such items. It would also highlight any shifts in preferred suppliers or contract types used for these procurements.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25726Q0370

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7959 W GIBBS RD, SPRINGDALE, AR, 72762

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $36,630

Exercised Options: $36,630

Current Obligation: $36,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline