VA awards $21.3M contract for surgical appliances to Center Span LLC, bypassing competition

Contract Overview

Contract Amount: $21,270 ($21.3K)

Contractor: Center Span LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-04

End Date: 2027-03-04

Contract Duration: 365 days

Daily Burn Rate: $58/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM LIFT

Place of Performance

Location: DEER PARK, SUFFOLK County, NEW YORK, 11729

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,270 to CENTER SPAN LLC for work described as: CUSTOM LIFT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. The fixed-price contract structure aims to control costs, but the lack of competition may hinder optimal value. 3. Performance period of one year with options for extension suggests a need for ongoing supply. 4. The award to Center Span LLC warrants scrutiny regarding their capacity and past performance in this specialized sector. 5. Focus on surgical appliances indicates a critical need within VA healthcare services, impacting patient care. 6. The absence of small business set-asides or subcontracting plans needs further investigation for broader economic impact.

Value Assessment

Rating: questionable

Benchmarking the value of this $21.3 million contract is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if Center Span LLC's pricing reflects fair market value or if taxpayers are receiving optimal value for surgical appliances. Comparisons to similar VA contracts for these specific supplies would be necessary to establish a more robust benchmark. The fixed-price nature provides some cost certainty, but the lack of competition is a significant risk factor for value for money.

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 on a sole-source basis. This means that only one vendor, Center Span LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore various pricing structures and potentially secure more favorable terms through a bidding process. It also suggests that the VA may have determined that only this specific contractor could meet the requirement, which warrants further justification.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to leverage market forces for better value.

Public Impact

Veterans receiving care through the Department of Veterans Affairs will benefit from the timely availability of essential surgical appliances. The contract ensures the supply of surgical appliance and supplies manufacturing products, crucial for various medical procedures and patient recovery. The geographic impact is primarily centered around the facilities served by the VA, with potential distribution across New York where the contractor is located. The contract supports the healthcare workforce by ensuring they have the necessary equipment to provide quality patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing and reduced value for taxpayer funds.
Sole-source awards can indicate potential market failures or inadequate planning for competitive procurements.
The specific capabilities and past performance of Center Span LLC in fulfilling this sole-source requirement need thorough vetting.
Absence of small business participation raises concerns about equitable distribution of federal contracting opportunities.

Positive Signals

The fixed-price contract type offers cost certainty for the duration of the base period.
The contract directly addresses a critical need for surgical appliances within the VA healthcare system.
The award ensures continuity of essential supplies for patient care.

Sector Analysis

The market for surgical appliances and supplies is a critical segment within the broader healthcare industry. This sector involves the manufacturing and distribution of a wide range of medical devices and consumables used in surgical procedures and patient care. Spending in this area is consistently high due to the essential nature of these products. The VA's procurement of these items is a significant component of its healthcare spending, aiming to ensure veterans have access to necessary medical equipment. Comparable spending benchmarks would typically be derived from other large healthcare providers or government agencies procuring similar medical supplies.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included by the prime. An analysis of subcontracting plans would be necessary to determine if any portion of this award is intended to benefit the small business ecosystem. The lack of explicit small business consideration in this sole-source award warrants attention.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures will be tied to the delivery of goods and services as per the contract terms and conditions. Transparency may be limited due to the sole-source nature, making public scrutiny of the procurement process more challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or identified during the contract's performance.

Related Government Programs

VA Medical Equipment Procurement
Surgical Supplies Contracts
Federal Healthcare Supply Chain
Sole-Source Medical Device Awards

Risk Flags

Sole-source award bypasses competitive bidding process.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement decision.
Need for thorough vetting of contractor's capabilities and past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,270 to CENTER SPAN LLC. CUSTOM LIFT

Who is the contractor on this award?

The obligated recipient is CENTER SPAN 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 $21,270.

What is the period of performance?

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

What is the track record of Center Span LLC in fulfilling federal contracts, particularly for surgical appliances?

Information regarding Center Span LLC's specific track record with federal contracts, especially for surgical appliances, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to examine past performance evaluations, contract history, and any reported issues or successes. Understanding their experience with similar products, delivery timelines, and quality control measures is crucial for assessing their capability to meet the VA's needs under this sole-source award. Without this data, the assessment of their reliability and suitability remains incomplete.

How does the $21.3 million value of this contract compare to similar procurements for surgical appliances by the VA or other federal agencies?

Direct comparison of the $21.3 million value is difficult without specific details on the exact types and quantities of surgical appliances included in this contract. However, for a one-year duration, this represents a substantial investment. To benchmark effectively, one would need to identify comparable contracts for similar product categories (e.g., orthopedic supplies, wound care, surgical instruments) awarded by the VA or other agencies like the Department of Defense or GSA. Analyzing the per-unit costs and total contract values of these comparable awards would reveal whether Center Span LLC's pricing is within an expected range, considering the sole-source nature might inflate it compared to competitively bid contracts.

What are the primary risks associated with awarding a sole-source contract for essential medical supplies like surgical appliances?

The primary risks of a sole-source award for essential medical supplies include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve service, and a lack of market validation for the chosen solution. Taxpayers may bear a higher cost than necessary. Furthermore, it limits the government's ability to leverage the broader market for potentially better quality products or more efficient delivery methods. Dependence on a single supplier can also create supply chain vulnerabilities if the contractor faces production issues or financial instability.

How effective is the fixed-price contract type in ensuring value for money when awarded on a sole-source basis for medical supplies?

The fixed-price contract type aims to provide cost certainty by establishing a set price for the goods or services. This is generally beneficial for the government as it shifts the risk of cost overruns to the contractor. However, when awarded on a sole-source basis, the effectiveness of ensuring 'value for money' is diminished. While the price is fixed, that fixed price itself may be higher than it would be under competitive conditions. Therefore, while the contract type controls cost predictability, the overall value proposition is compromised by the absence of competition, which is a key driver of competitive pricing and innovation.

What is the historical spending pattern of the VA on surgical appliances, and how does this award fit within that trend?

Historical spending data for surgical appliances by the VA is not provided. To assess this, one would need to analyze multi-year spending reports from the VA on this specific product category. This would reveal whether $21.3 million represents an increase, decrease, or consistent level of spending compared to previous years. Understanding the trend would help determine if this award is part of a strategic shift, a response to increased demand, or simply a continuation of established procurement practices. The sole-source nature of this particular award might deviate from historical competitive patterns, if any existed.

Are there any specific performance metrics or deliverables outlined in the contract that will be used to measure Center Span LLC's performance?

The provided data does not detail specific performance metrics or deliverables for this contract. Typically, federal contracts include clauses related to delivery schedules, quality standards, and reporting requirements. For surgical appliances, key performance indicators might include on-time delivery rates, product defect rates, and compliance with VA specifications. The effectiveness of the contract in delivering value will depend on how rigorously these, or similar, metrics are defined, monitored, and enforced by the VA contracting officers throughout the contract period.

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: 100 E JEFRYN BLVD STE L, DEER PARK, NY, 11729

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,270

Exercised Options: $21,270

Current Obligation: $21,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline