VA awards $45M for custom power wheelchairs, raising questions on competition and value

Contract Overview

Contract Amount: $45,005 ($45.0K)

Contractor: 21ST Century Scientific Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2027-04-02

Contract Duration: 364 days

Daily Burn Rate: $124/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM POWER WHEELCHAIRS

Place of Performance

Location: COEUR D ALENE, KOOTENAI County, IDAHO, 83815

State: Idaho Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45,004.9 to 21ST CENTURY SCIENTIFIC INC for work described as: CUSTOM POWER WHEELCHAIRS Key points: 1. Contract awarded via purchase order, indicating a non-competitive process. 2. Significant investment in specialized medical equipment for veterans. 3. Potential for higher costs due to lack of competitive bidding. 4. Long-term commitment with a 3-year duration. 5. Focus on a specific manufacturing sector for medical supplies. 6. Geographic concentration of award in Idaho.

Value Assessment

Rating: questionable

The award of $45,004.90 for custom power wheelchairs warrants scrutiny due to the lack of a competitive bidding process. Without comparison to other offers or market benchmarks, it is difficult to ascertain if this price represents fair value for the government. The fixed-price nature of the contract provides some cost certainty, but the absence of competition could lead to inflated pricing. Further analysis would require benchmarking against similar contracts for custom power wheelchairs awarded through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a purchase order, suggesting a sole-source or limited competition scenario. The data indicates 'NOT COMPETED UNDER SAP,' which typically implies a direct award without soliciting multiple bids. The lack of open competition means there was no opportunity for multiple vendors to offer their products and pricing, potentially limiting price discovery and leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these custom power wheelchairs due to the absence of a competitive bidding process. Without multiple offers, the government may not have secured the most cost-effective solution available in the market.

Public Impact

Veterans requiring custom power wheelchairs will receive essential mobility assistance. The contract supports the manufacturing of specialized medical equipment. Services are likely delivered to veterans across various locations, with a specific award noted in Idaho. The award impacts the workforce within the surgical appliance and supplies manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Award mechanism (purchase order) suggests limited transparency in vendor selection.
No indication of small business participation or subcontracting goals.

Positive Signals

Addresses a critical need for specialized medical equipment for veterans.
Firm fixed-price contract provides cost certainty for the duration.
Long-term award (3 years) ensures continuity of supply.

Sector Analysis

The contract falls within the Surgical Appliance and Supplies Manufacturing sector (NAICS 339113), a segment of the broader healthcare and medical device industry. This sector involves the production of a wide range of medical products, including durable medical equipment like power wheelchairs. Spending in this area is driven by healthcare needs, particularly for aging populations and individuals with disabilities. Benchmarking this specific award would require comparing it to other government contracts for similar custom-manufactured mobility devices, ideally those awarded through competitive processes.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor is there information on subcontracting plans. As the contract was not competed under SAP and awarded via a purchase order, it is unclear if opportunities for small businesses were considered or pursued. Further investigation would be needed to determine the extent of small business involvement, if any, in the fulfillment of this requirement.

Oversight & Accountability

The award was made by the Department of Veterans Affairs (VA). Oversight would typically involve contract administration to ensure timely delivery and adherence to specifications. As a purchase order, the level of detailed public oversight might be less than for a large, competed contract. Transparency regarding the justification for the sole-source award and the pricing structure would be key areas for oversight assessment.

Related Government Programs

Durable Medical Equipment (DME) Contracts
Veterans Health Administration Procurement
Customized Medical Device Manufacturing
Mobility Assistance Devices

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45,004.9 to 21ST CENTURY SCIENTIFIC INC. CUSTOM POWER WHEELCHAIRS

Who is the contractor on this award?

The obligated recipient is 21ST CENTURY SCIENTIFIC 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 $45,004.9.

What is the period of performance?

Start: 2026-04-03. End: 2027-04-02.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'PURCHASE ORDER.' This suggests a non-competitive award, often justified by factors such as urgency, unique capabilities of a single source, or specific requirements that only one vendor can meet. Without further documentation from the agency, the precise justification remains unknown. Typically, sole-source awards require a formal justification and approval process to ensure they are in the government's best interest and that competition was appropriately considered and deemed not feasible or advantageous.

How does the awarded price compare to market rates for similar custom power wheelchairs?

Direct comparison of the awarded price ($45,004.90) to market rates for similar custom power wheelchairs is challenging without more specific product details and a benchmark of competitively awarded contracts. Customization significantly impacts price, making direct comparisons difficult. However, given the lack of competition, there is a risk that the price may be higher than what could have been achieved through a competitive bidding process. To assess value for money, one would need to identify comparable contracts awarded through full and open competition or consult industry pricing data for similar configurations.

What are the potential risks associated with awarding a contract of this value without competition?

The primary risk associated with awarding a contract of this value ($45,004.90) without competition is the potential for paying an inflated price. Without the pressure of competing bids, the contractor may not have an incentive to offer the lowest possible price. Other risks include a lack of innovation, potentially inferior product quality if the vendor is not incentivized to excel, and reduced transparency in the procurement process. Furthermore, it limits opportunities for other qualified vendors to participate in government contracting.

What is the expected performance period and delivery timeline for these custom power wheelchairs?

The contract has a duration of 364 days, with a start date of April 3, 2026, and an end date of April 2, 2027. This indicates a one-year performance period. While the total award amount is $45,004.90, the specific delivery timeline for individual custom power wheelchairs would typically be detailed in the purchase order's terms and conditions. Given the 'custom' nature of the product, lead times for manufacturing and delivery after order placement are expected.

What is the historical spending pattern for custom power wheelchairs by the Department of Veterans Affairs?

Analyzing historical spending patterns for custom power wheelchairs by the Department of Veterans Affairs (VA) would require access to historical contract databases. This specific award of $45,004.90 is for a 364-day period. To understand historical trends, one would need to examine VA's procurement history for similar items over several fiscal years, noting the award amounts, number of contracts, and whether they were competed or sole-sourced. This would help determine if this award is consistent with past spending or represents an increase/decrease in demand or cost.

Does the contract specify any quality assurance or acceptance criteria for the custom power wheelchairs?

While the data indicates a 'FIRM FIXED PRICE' contract type, specific quality assurance and acceptance criteria are not detailed in the provided summary. Typically, government contracts, especially for medical equipment, include detailed specifications, inspection requirements, and acceptance procedures outlined in the contract's statement of work or attached clauses. The VA would have established procedures to ensure the custom power wheelchairs meet the required standards for safety, functionality, and patient needs before final acceptance and payment.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4931 N MANUFACTURING WAY, COEUR D ALENE, ID, 83815

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

Financial Breakdown

Contract Ceiling: $45,005

Exercised Options: $45,005

Current Obligation: $45,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline