VA Awards $1.23M for TPN Management System to B. Braun Medical Inc

Contract Overview

Contract Amount: $12,300 ($12.3K)

Contractor: B. Braun Medical Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-02

End Date: 2027-04-30

Contract Duration: 728 days

Daily Burn Rate: $17/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TPN MANAGEMENT SYSTEM.

Place of Performance

Location: BETHLEHEM, LEHIGH County, PENNSYLVANIA, 18018

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12,300 to B. BRAUN MEDICAL INC for work described as: TPN MANAGEMENT SYSTEM. Key points: 1. Contract awarded for a TPN Management System, a critical medical device. 2. B. Braun Medical Inc. is a significant player in the medical device market. 3. Potential risk associated with a sole-source or limited competition award. 4. Spending falls within the Medical, Dental, and Hospital Equipment sector.

Value Assessment

Rating: fair

The contract value of $1.23M over 728 days (approx. $1,690 per day) needs comparison to similar TPN management systems. Without specific unit details, a precise benchmark is difficult, but this appears moderate for specialized medical equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED,' indicating a limited competition or sole-source award. This method may limit price discovery and potentially lead to higher costs compared to a fully competed process.

Taxpayer Impact: The lack of full competition raises concerns about maximizing taxpayer value. Further justification for the limited competition is needed to ensure fair pricing.

Public Impact

Ensures access to essential TPN management technology for veterans. Supports a key medical supply chain for the Department of Veterans Affairs. Potential for increased costs due to limited competition impacts overall healthcare budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition award
Lack of detailed cost breakdown
Potential for price inflation

Positive Signals

Award to established medical supplier
Addresses critical VA need
Firm fixed price contract limits cost overrun risk

Sector Analysis

This contract falls under the Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers sector. Spending in this area is consistently high due to the essential nature of medical supplies and equipment for government healthcare providers.

Small Business Impact

The data indicates this contract was not awarded to a small business. Analysis should explore if small businesses could have provided similar TPN management systems or components.

Oversight & Accountability

The 'NOT COMPETED' status warrants scrutiny. Oversight should focus on the justification for limited competition and ensure the VA obtained fair and reasonable pricing through negotiation.

Related Government Programs

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition award
Potential for inflated pricing
Lack of small business participation
Single supplier dependency risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12,300 to B. BRAUN MEDICAL INC. TPN MANAGEMENT SYSTEM.

Who is the contractor on this award?

The obligated recipient is B. BRAUN MEDICAL 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 $12,300.

What is the period of performance?

Start: 2025-05-02. End: 2027-04-30.

What is the specific justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for limited competition is crucial for understanding why a full and open process was not pursued. Agencies typically cite reasons such as urgent and compelling needs, or that only one responsible source can provide the required supplies or services. The VA should have documented these reasons and demonstrated efforts to obtain the best possible price through negotiation, market research, or comparison to similar contracts.

How does the per-unit cost or overall value of this TPN management system compare to similar systems procured by other federal agencies or the private sector?

Benchmarking the cost is essential for assessing value. Without specific unit details or features, a direct comparison is challenging. However, the VA should have conducted market research to compare pricing against similar TPN management systems. If this contract's pricing is significantly higher than benchmarks, it could indicate a lack of effective price negotiation or an unfavorable limited competition award.

What is the long-term impact of relying on a single supplier for critical TPN management systems, particularly concerning supply chain resilience and potential future price increases?

Long-term reliance on a single supplier can create vulnerabilities in the supply chain, especially during emergencies or disruptions. It also reduces leverage for future price negotiations. The VA should consider strategies to foster competition or explore alternative solutions over time to mitigate these risks and ensure sustained access to necessary medical equipment at competitive prices.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

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

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

Parent Company: Ludwig G. Braun Gmbh U. CO. KG

Address: 824 12TH AVE, BETHLEHEM, PA, 18018

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: $36,900

Exercised Options: $12,300

Current Obligation: $12,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline