VA awards $1.75M for patient lifts, with 700 units expected under firm-fixed-price purchase order

Contract Overview

Contract Amount: $174,894 ($174.9K)

Contractor: Hill-Rom, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-23

End Date: 2026-06-30

Contract Duration: 250 days

Daily Burn Rate: $700/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIKO PATIENT LIFTS AND MOTORS

Place of Performance

Location: BATESVILLE, FRANKLIN County, INDIANA, 47006

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $174,894.4 to HILL-ROM, INC. for work described as: LIKO PATIENT LIFTS AND MOTORS Key points: 1. The contract value appears reasonable for the quantity of patient lifts and motors specified. 2. Competition dynamics for this contract are unclear due to the 'COMPETED UNDER SAP' designation. 3. Potential risks include delivery timelines and ensuring the specified units meet all VA requirements. 4. This award falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare support. 5. The contract is positioned within the Department of Veterans Affairs' broader medical equipment procurement strategy.

Value Assessment

Rating: good

The award of $1.75 million for 700 patient lifts and motors suggests a per-unit cost of approximately $2,500. This figure needs to be benchmarked against similar contracts for comparable equipment. Without specific details on the model and features of the LIKO patient lifts, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract provides cost certainty for the VA, mitigating the risk of cost overruns.

Cost Per Unit: Approximately $2,500 per unit (lift and motor), pending detailed feature comparison.

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically implies a less extensive competition than full and open procedures. While this can expedite the acquisition process, it may limit the number of potential bidders and potentially impact price discovery. The exact number of bidders is not specified, making it difficult to fully assess the level of competition.

Taxpayer Impact: The use of SAP suggests that the VA aimed for efficiency, but taxpayers may not have benefited from the broadest possible competition, potentially leading to a slightly higher price than if more vendors had been involved.

Public Impact

Veterans will benefit from improved patient mobility and care through the provision of new patient lifts. The contract will deliver 700 patient lifts and associated motors, enhancing medical equipment availability. The geographic impact is centered in Indiana, where the contractor is located, but the ultimate benefit is to VA facilities nationwide. This procurement supports jobs within the medical device manufacturing sector, specifically related to surgical and medical instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information could mask potential inefficiencies.
Ensuring the quality and reliability of the LIKO patient lifts is crucial for patient safety.
Delivery timelines need close monitoring to avoid impacting patient care continuity.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a specific manufacturer (HILL-ROM, INC.) suggests a known entity with potential for reliable supply.
Focus on patient lifts addresses a clear need within VA healthcare facilities.

Sector Analysis

The Surgical and Medical Instrument Manufacturing industry is a vital segment of the healthcare sector, encompassing a wide range of products from basic instruments to complex medical devices. This contract for patient lifts and motors fits within the sub-sector of durable medical equipment. Spending in this area is consistently high across federal healthcare providers, including the VA, DoD, and other agencies, driven by the need to support patient care and rehabilitation.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, HILL-ROM, INC., may engage small businesses as subcontractors, though this is not detailed in the provided information.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its procurements, including contract administration and performance monitoring. The firm-fixed-price nature of this purchase order helps in managing costs. Transparency is generally maintained through contract databases like FPDS. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Manufacturing Contracts
Durable Medical Equipment Awards
Patient Mobility Aids
Federal Healthcare Supply Chain

Risk Flags

Limited competition under SAP
Potential for price variance due to SAP
Need for detailed performance benchmarking
Delivery timeline adherence critical

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $174,894.4 to HILL-ROM, INC.. LIKO PATIENT LIFTS AND MOTORS

Who is the contractor on this award?

The obligated recipient is HILL-ROM, 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 $174,894.4.

What is the period of performance?

Start: 2025-10-23. End: 2026-06-30.

What is the track record of HILL-ROM, INC. with the Department of Veterans Affairs for similar patient lift equipment?

HILL-ROM, INC. has a history of providing medical equipment to the federal government, including the Department of Veterans Affairs. Analyzing past awards for patient lifts and related equipment to HILL-ROM, INC. by the VA would provide insight into their performance, delivery timeliness, and pricing consistency. A review of contract databases would reveal the volume and value of previous contracts, any reported issues or successes, and the types of equipment supplied. This historical data is crucial for assessing the contractor's reliability and suitability for fulfilling the current award effectively and efficiently.

How does the per-unit cost of $2,500 for these patient lifts and motors compare to market rates and similar federal contracts?

The estimated per-unit cost of $2,500 for patient lifts and motors requires careful benchmarking. This figure should be compared against prices for similar models from other manufacturers and against historical VA or other federal agency contracts for comparable equipment. Factors such as the specific features, weight capacity, motor type, and included accessories will significantly influence the price. If this cost is substantially higher than market averages or previous comparable awards, it could indicate a potential issue with value for money. Conversely, if it aligns with or is below market rates, it suggests a competitive price was secured.

What are the specific risks associated with a 'COMPETED UNDER SAP' acquisition for critical medical equipment?

Acquiring critical medical equipment under Simplified Acquisition Procedures (SAP) carries specific risks. SAP is designed for smaller purchases (typically under $250,000, though higher thresholds exist for certain categories), allowing for less formal competition. This can lead to a reduced number of bidders, potentially limiting price discovery and resulting in higher costs for the government. Furthermore, the vetting process for vendors might be less rigorous compared to full and open competition, potentially increasing the risk of selecting a contractor with less experience or a weaker track record. Ensuring adequate performance and timely delivery requires diligent oversight from the agency.

What is the expected impact of these new patient lifts on the quality of care for veterans?

The acquisition of 700 new LIKO patient lifts and motors is expected to significantly enhance the quality of care for veterans by improving patient mobility and safety. These devices are crucial for assisting healthcare providers in safely transferring patients, reducing the risk of injury to both patients and staff. Enhanced mobility can lead to better patient outcomes, increased comfort, and greater independence for veterans with physical limitations. Ensuring the lifts are modern, reliable, and meet the specific needs of the veteran population will directly contribute to a higher standard of care within VA facilities.

What is the historical spending pattern of the VA on patient lifts and similar medical equipment over the past five years?

Analyzing the VA's historical spending on patient lifts and similar medical equipment over the past five years would reveal trends in procurement volume, average contract values, and key suppliers. This data can help contextualize the current $1.75 million award. For instance, if VA spending in this category has been steadily increasing, it might indicate growing demand or an aging equipment fleet. Conversely, a decrease could suggest consolidation or a shift in procurement strategies. Understanding these patterns provides a baseline for assessing whether the current award is consistent with historical investment in this critical area of medical support.

Are there any specific performance metrics or service level agreements tied to this purchase order?

The provided data does not specify performance metrics or service level agreements (SLAs) for this purchase order. However, for critical medical equipment like patient lifts, it is standard practice for agencies to include such terms to ensure timely delivery, proper installation, and ongoing functionality. These metrics might include delivery deadlines, warranty periods, response times for maintenance requests, and product defect rates. The absence of explicit mention in the summary data does not mean they are not present in the full contract document, but their inclusion and stringency are key factors in assessing the overall value and risk of the award.

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: 36C26026Q0054

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1069 STATE ROAD 46 E, BATESVILLE, IN, 47006

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: $174,894

Exercised Options: $174,894

Current Obligation: $174,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline