VA awards $24M for custom wheelchairs, highlighting need for specialized medical supplies

Contract Overview

Contract Amount: $24,081 ($24.1K)

Contractor: Sunrise Medical (US) LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-17

End Date: 2024-03-17

Contract Duration: 366 days

Daily Burn Rate: $66/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM WHEELCHAIR

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,080.64 to SUNRISE MEDICAL (US) LLC for work described as: CUSTOM WHEELCHAIR Key points: 1. Contract awarded through full and open competition, suggesting a competitive market for custom wheelchairs. 2. The fixed-price contract structure aims to control costs and provide predictable spending. 3. Delivery order mechanism allows for flexible procurement of specific needs. 4. Focus on custom wheelchairs indicates a specialized segment within the broader medical supply market. 5. The single award suggests a specific vendor met the requirements, but further analysis is needed on the competitive landscape. 6. Duration of one year with a single delivery order implies ongoing, but potentially episodic, demand.

Value Assessment

Rating: good

The $24.1 million award for custom wheelchairs appears reasonable given the specialized nature of the product. Without specific per-unit cost data or benchmarks for comparable custom wheelchair contracts, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty for the Department of Veterans Affairs. The contract's value is significant, reflecting the high cost associated with customized medical equipment designed to meet individual patient needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the competitive nature of the award suggests that multiple companies likely vied for this contract. This process is designed to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for these specialized medical devices, preventing potential overspending.

Public Impact

Veterans requiring custom-fitted wheelchairs will receive essential mobility and quality-of-life improvements. The contract supports the delivery of specialized medical equipment to beneficiaries of the Department of Veterans Affairs. Services are likely delivered across various VA facilities or directly to veterans' residences within the United States. The contract supports the manufacturing and supply chain for specialized medical devices, potentially impacting jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed per-unit cost data makes it difficult to benchmark value effectively.
The single award, while competitive, doesn't reveal the full extent of market competition or potential for further price reduction.
Limited information on the specific customization requirements makes it hard to assess if the price reflects true complexity.

Positive Signals

Awarded through full and open competition, indicating a healthy market for these supplies.
Firm fixed-price contract provides cost certainty and protects against cost overruns.
The contract addresses a critical need for specialized medical equipment for veterans.

Sector Analysis

The market for surgical appliances and supplies is a significant segment within the broader healthcare industry. This contract falls under the manufacturing of specialized medical equipment, specifically custom wheelchairs, which require precise engineering and patient-specific fitting. The total addressable market for durable medical equipment, including wheelchairs, is substantial, driven by an aging population and increasing prevalence of mobility-related conditions. This award represents a portion of the federal government's spending on such essential medical devices for its veteran population.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As it was awarded under full and open competition, it's possible that small businesses could have participated if they met the requirements. Further investigation into the award details and any associated subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle, it likely adheres to established procurement regulations and reporting requirements. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Durable Medical Equipment (DME) Procurement
Veterans Health Administration Medical Supplies
Customized Mobility Devices
Surgical Appliance Manufacturing

Risk Flags

Lack of detailed cost breakdown per unit.
Limited information on the number of bidders.
Potential for high unit costs due to customization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,080.64 to SUNRISE MEDICAL (US) LLC. CUSTOM WHEELCHAIR

Who is the contractor on this award?

The obligated recipient is SUNRISE MEDICAL (US) LLC.

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 $24,080.64.

What is the period of performance?

Start: 2023-03-17. End: 2024-03-17.

What is the typical cost range for custom wheelchairs procured by the federal government?

The cost range for custom wheelchairs can vary significantly based on the level of customization, materials used, and specific features required. For federal procurements, a single custom wheelchair can range from a few thousand dollars for basic customization to upwards of $10,000-$20,000 or more for highly specialized, power-assisted, or complex configurations. The $24.1 million award for 'CUSTOM WHEELCHAIR' suggests a substantial quantity or a very high average cost per unit, potentially indicating advanced features or comprehensive service packages included. Benchmarking requires detailed specifications of the wheelchairs procured in this award against similar federal contracts or commercial price lists for comparable models.

How does the firm fixed-price contract type benefit the VA in this scenario?

A firm fixed-price (FFP) contract type is highly beneficial for the VA in this scenario because it shifts the risk of cost overruns to the contractor, Sunrise Medical (US) LLC. The price is set at the time of award and does not change, regardless of the contractor's actual costs incurred. This provides the VA with budget certainty and predictability, making financial planning easier. For specialized items like custom wheelchairs, where costs can fluctuate due to material prices or manufacturing complexities, the FFP structure protects the VA from unexpected increases, ensuring the total expenditure remains within the $24.1 million ceiling.

What does 'delivery order' signify in the context of this contract?

A 'delivery order' indicates that this contract is likely a task order or delivery order issued against a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. Instead of procuring all items at once, the VA issues individual orders for specific quantities or services as needed. This allows for flexibility in timing and quantity, enabling the VA to procure custom wheelchairs precisely when and in the amounts required by veterans. The '2023-03-17' award date and '2024-03-17' end date suggest this specific delivery order covers a one-year period, likely encompassing multiple individual wheelchair deliveries within that timeframe.

What are the implications of 'Surgical Appliance and Supplies Manufacturing' (NAICS 339113) for this contract?

The North American Industry Classification System (NAICS) code 339113, 'Surgical Appliance and Supplies Manufacturing,' directly classifies the industry in which Sunrise Medical (US) LLC operates for this contract. This code encompasses establishments primarily engaged in manufacturing medical, surgical, and personal healthcare devices and supplies. For this specific contract, it confirms the focus is on the production of custom wheelchairs, which fall under the category of specialized medical appliances. This classification helps in understanding the supply chain, potential competitors, and the technical expertise required from the contractor.

How does the 'full and open competition' impact the pricing and availability of custom wheelchairs for the VA?

Awarding the contract under 'full and open competition' means that the Department of Veterans Affairs solicited bids from all interested and capable sources. This competitive environment typically drives down prices as contractors vie to offer the most attractive bid to win the contract. It also ensures a broader range of options and potentially higher quality products become available to the VA, as multiple manufacturers can present their solutions. While the specific number of bidders isn't detailed, the process itself suggests that the VA aimed to leverage market forces to secure favorable terms and ensure adequate supply for the custom wheelchairs needed by veterans.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2842 N BUSINESS PARK AVE, FRESNO, CA, 93727

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

Financial Breakdown

Contract Ceiling: $24,081

Exercised Options: $24,081

Current Obligation: $24,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0063

IDV Type: FSS

Timeline