VA awards $22M contract for surgical appliances, highlighting a sole-source approach for specialized needs

Contract Overview

Contract Amount: $22,013 ($22.0K)

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: $60/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 $22,012.5 to CENTER SPAN LLC for work described as: CUSTOM LIFT Key points: 1. The contract's value of $22 million over one year suggests a significant demand for specialized surgical supplies. 2. A sole-source award indicates potential market limitations or unique capabilities required from the contractor. 3. The firm-fixed-price structure aims to provide cost certainty for the Department of Veterans Affairs. 4. The duration of one year with a potential for extension warrants monitoring for long-term cost-effectiveness. 5. The absence of small business set-aside considerations may limit opportunities for smaller specialized suppliers. 6. This award falls within the broader category of medical supplies and equipment procurement for federal healthcare.

Value Assessment

Rating: fair

Benchmarking the value of this $22 million, one-year contract for surgical appliances is challenging without specific product details or comparable sole-source awards. However, the price appears substantial, suggesting either high-volume needs or specialized, high-cost items. The firm-fixed-price contract type offers some cost control, but the lack of competition means the VA did not benefit from potential price reductions through a competitive bidding process. Further analysis would require understanding the specific items procured and their market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs identified a specific contractor, CENTER SPAN LLC, deemed uniquely capable of meeting the requirement. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not yield the best value for taxpayers compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available in the market, as the usual pressure of multiple bids is absent.

Public Impact

Veterans will benefit from access to necessary surgical appliances and supplies, supporting their medical treatment and recovery. The contract ensures the availability of critical medical equipment for VA healthcare facilities. The primary geographic impact is within the New York region, where the contractor is located and supplies are likely distributed. This contract supports the workforce within the surgical appliance manufacturing sector, specifically at CENTER SPAN LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
Sole-source awards can limit market entry for other qualified small or large businesses.
The contract's duration and value warrant close monitoring to ensure continued performance and cost-effectiveness.

Positive Signals

The firm-fixed-price contract provides cost certainty for the VA.
The award ensures a critical supply chain for essential surgical appliances for veterans.
CENTER SPAN LLC is identified as the sole provider, suggesting specialized expertise or established relationship.

Sector Analysis

The procurement of surgical appliances falls under the broader healthcare and medical supplies sector. This sector is characterized by significant government spending, driven by agencies like the VA and Department of Defense serving military personnel and veterans. The market includes a wide range of manufacturers, from large corporations to specialized small businesses. Government contracts often focus on specific product categories, requiring adherence to strict quality and regulatory standards. Benchmarking this $22 million award would involve comparing it to other large-scale procurements of similar medical equipment and supplies within the federal healthcare landscape.

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 potentially as subcontractors, unless they are specifically engaged by CENTER SPAN LLC. This approach may not foster the growth or utilization of the small business ecosystem within the surgical appliance manufacturing industry for this specific requirement.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source nature, with less public information available compared to competed contracts. The VA's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

VA Medical Equipment Procurement
Surgical Supplies Contracts
Federal Healthcare Services
Department of Veterans Affairs Supply Chain

Risk Flags

Sole-source award may limit price competition.
Lack of small business participation.
Contract value requires monitoring for cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,012.5 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 $22,012.5.

What is the period of performance?

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

What specific types of surgical appliances are included in this $22 million contract?

The provided data indicates the contract is for 'Surgical Appliance and Supplies Manufacturing' (NAICS 339113) but does not specify the exact types of appliances. These could range from orthopedic braces, prosthetic devices, surgical dressings, to specialized instruments. Understanding the specific items is crucial for a detailed value assessment, as prices can vary dramatically. Without this detail, it's difficult to benchmark against market rates or similar contracts for specific product categories. The broad NAICS code suggests a wide array of potential products within the surgical supply domain.

Why was this contract awarded on a sole-source basis to CENTER SPAN LLC?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the requirement. This could be due to unique proprietary technology, specialized expertise, extensive experience with VA systems, or a critical urgency that precludes a competitive process. The Department of Veterans Affairs would have documented the specific justification for this sole-source determination. Without access to that justification, it's presumed that CENTER SPAN LLC possesses capabilities or fulfills conditions that prevent competition under the Federal Acquisition Regulation (FAR) Part 6.

How does the $22 million value compare to historical spending on similar surgical appliances by the VA?

To compare this $22 million award, one would need to analyze historical VA spending data for surgical appliances, specifically looking at contracts with similar scope and duration. The provided data is for a single one-year contract. If this is an annual recurring need, comparing it to previous years' spending on the same or comparable items would reveal trends in cost and volume. A significant increase or decrease could indicate changes in demand, pricing, or contracting strategy. Without historical data specific to these appliances, a direct comparison is not possible from the given information.

What are the performance expectations and key performance indicators (KPIs) for CENTER SPAN LLC under this contract?

The contract is a firm-fixed-price purchase order, implying that CENTER SPAN LLC is expected to deliver the specified surgical appliances according to the terms and schedule outlined. Key performance indicators would likely focus on on-time delivery, product quality (meeting specifications), and potentially responsiveness to VA requests. While specific KPIs are not detailed in the provided summary, the VA contracting office would monitor these aspects. Failure to meet performance standards could lead to contract remedies, including termination or withholding of payment.

Are there any known performance issues or concerns with CENTER SPAN LLC from previous contracts?

Information regarding past performance issues or concerns with CENTER SPAN LLC is not included in the provided data summary. A thorough assessment would require accessing contract performance databases (like the Contractor Performance Assessment Reporting System - CPARS) or conducting a deeper search of federal procurement records. For sole-source awards, agencies often rely on existing relationships and past positive performance. However, the absence of this information in the summary means potential risks related to past performance cannot be assessed here.

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: $22,013

Exercised Options: $22,013

Current Obligation: $22,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline