VA awards $4.99M contract for Elite Gait Walker System maintenance to Bioness Inc

Contract Overview

Contract Amount: $4,995 ($5.0K)

Contractor: Bioness Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-01

End Date: 2024-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $3/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE AND REPAIR OF ELITE GAIT WALKER SYSTEM

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4,995 to BIONESS INC. for work described as: MAINTENANCE AND REPAIR OF ELITE GAIT WALKER SYSTEM Key points: 1. The contract is for maintenance and repair of specialized medical equipment. 2. Bioness Inc. is the sole provider for this specific system. 3. The contract duration is 5 years, with a total value of $4.99M. 4. This is a sole-source award, raising potential competition concerns.

Value Assessment

Rating: fair

The contract value of $4.99M over 5 years for maintenance of a specialized walker system appears reasonable given the likely proprietary nature of the equipment. Benchmarking is difficult without specific details on the system's complexity and the scope of maintenance required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.

Taxpayer Impact: The sole-source nature of this award may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Veterans relying on the Elite Gait Walker System will have continued access to maintenance and repair services. The Department of Veterans Affairs ensures the functionality of critical medical equipment for patient care. The lack of competition could impact the long-term affordability of maintaining this equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing due to lack of competition
Long contract duration without competitive review

Positive Signals

Ensures continued support for critical veteran medical equipment
Bioness Inc. is the likely only qualified provider

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code. Spending in this sector is driven by the need to maintain specialized and often proprietary equipment across various government agencies, particularly in healthcare and defense.

Small Business Impact

This contract was awarded to Bioness Inc., a large business. There is no indication that small businesses were involved in the subcontracting opportunities for this sole-source award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The sole-source nature warrants close monitoring to ensure fair pricing and adequate service delivery.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in pricing
Long-term reliance on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4,995 to BIONESS INC.. MAINTENANCE AND REPAIR OF ELITE GAIT WALKER SYSTEM

Who is the contractor on this award?

The obligated recipient is BIONESS 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 $4,995.

What is the period of performance?

Start: 2020-01-01. End: 2024-12-31.

What is the justification for the sole-source award, and has the VA explored all possible avenues for competition?

The justification for a sole-source award typically stems from a unique capability or proprietary technology held by a single vendor. For the Elite Gait Walker System, Bioness Inc. is likely the only entity with the necessary technical knowledge, proprietary data, and parts to perform maintenance and repair. The VA should have documented efforts to determine if any other sources could meet the requirement, even if less ideal, before proceeding with a sole-source designation.

How does the VA ensure fair and reasonable pricing for this sole-source maintenance contract?

Ensuring fair and reasonable pricing for sole-source contracts requires robust cost analysis and negotiation by the contracting officer. The VA should scrutinize Bioness Inc.'s proposed costs, including labor rates, material markups, and overhead. They may request detailed cost breakdowns and compare them to historical data or industry benchmarks for similar services, if available. Price negotiation should aim to achieve terms comparable to what might be expected in a competitive environment.

What is the long-term strategy for managing the costs associated with maintaining the Elite Gait Walker System, especially given the sole-source nature?

The long-term strategy should involve periodic re-evaluation of the sole-source justification and exploring potential alternatives. The VA could consider developing in-house repair capabilities if feasible, or working with Bioness Inc. to identify potential second-source providers for certain components or services. Additionally, negotiating longer-term agreements with built-in price escalators tied to objective metrics, or exploring options for technology transfer, could help manage costs over time.

Industry Classification

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

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25820Q0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25103 RYE CANYON LOOP, VALENCIA, CA, 91355

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

Financial Breakdown

Contract Ceiling: $4,995

Exercised Options: $4,995

Current Obligation: $4,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline