VA awards $40.5M for patient lifts, raising questions about competition and value

Contract Overview

Contract Amount: $40,529 ($40.5K)

Contractor: 101 Mobility LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $111/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CUSTOM PATIENT LIFTS

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28403

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40,528.95 to 101 MOBILITY LLC for work described as: CUSTOM PATIENT LIFTS Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. Sole-source award for essential medical equipment warrants scrutiny of pricing and alternatives. 3. Long-term contract duration (364 days) suggests ongoing need, but initial award lacks competitive benchmark. 4. Focus on surgical appliance manufacturing sector, with potential implications for specialized suppliers. 5. Limited transparency in the award process due to non-competitive nature. 6. Potential for better value through competitive bidding on future requirements.

Value Assessment

Rating: questionable

The contract value of $40.5 million for patient lifts over one year is substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition raises concerns about whether the government secured the best possible value for this essential medical equipment. Further analysis would be needed to compare unit costs to industry averages or historical VA pricing for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' (Small Purchase Procedures), indicating it was not openly competed. The data specifies '101 MOBILITY LLC' as the sole awardee. The absence of a competitive process means there were likely no other bidders considered, which can lead to higher prices and reduced innovation. The rationale for not competing this requirement is not provided, but it limits the government's ability to leverage market forces for cost savings.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without multiple bids, there's no guarantee that the selected vendor's pricing reflects the most economical option available.

Public Impact

Veterans will benefit from the provision of essential patient lifts, improving their care and mobility. Services delivered include the supply of custom patient lifts, a critical component of medical care. The contract's geographic impact is focused on North Carolina, where the vendor is located. Workforce implications are likely within the surgical appliance manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Sole-source award limits transparency and oversight opportunities.
No clear justification provided for foregoing competition.
Potential for vendor lock-in if not re-competed in the future.
Limited data available to assess the true value for money.

Positive Signals

Ensures a consistent supply of critical patient lift equipment for veterans.
Award to a specific vendor suggests a potentially established relationship or specialized capability.
Fixed-price contract provides some cost certainty for the government.

Sector Analysis

The contract falls within the Surgical Appliance and Supplies Manufacturing (NAICS 339113) sector. This industry is characterized by the production of medical devices and equipment used for patient care and surgical procedures. The market size for patient lifts is significant, driven by an aging population and increasing healthcare needs. This contract represents a direct procurement of such equipment by a major federal healthcare provider, the Department of Veterans Affairs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to '101 MOBILITY LLC' does not provide information on whether they are a small or large business, but the lack of a set-aside suggests it was not prioritized for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). Given it's a purchase order, standard procurement regulations and contract administration processes would apply. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is limited due to the non-competitive nature of the award.

Related Government Programs

VA Medical Equipment Procurement
Durable Medical Equipment Contracts
Surgical Supplies and Devices
Veteran Healthcare Services

Risk Flags

Non-competitive award
Lack of price benchmark
Potential for inflated costs
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40,528.95 to 101 MOBILITY LLC. CUSTOM PATIENT LIFTS

Who is the contractor on this award?

The obligated recipient is 101 MOBILITY 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 $40,528.95.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the track record of 101 MOBILITY LLC with the federal government?

Information regarding the specific track record of 101 MOBILITY LLC with the federal government is not detailed in the provided data. However, the award of a significant purchase order by the Department of Veterans Affairs suggests some level of prior engagement or capability assessment. To fully understand their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to review past contract awards, performance evaluations, and any reported issues. This would help ascertain their reliability, past performance quality, and history of compliance with federal acquisition regulations.

How does the $40.5 million value compare to similar patient lift contracts?

Direct comparison of the $40.5 million value is challenging without knowing the specific types and quantities of patient lifts included, as well as the contract duration and service level agreements. However, for a single-year contract, this amount is substantial for patient lifts. Typically, federal agencies aim to achieve competitive pricing through open solicitations. A non-competed award like this raises a red flag, as it bypasses the opportunity to benchmark against multiple vendor proposals. To assess value, one would need to compare the implied unit costs against industry benchmarks for similar equipment and services, considering factors like maintenance, delivery, and installation.

What are the primary risks associated with a sole-source award for medical equipment?

The primary risks associated with a sole-source award for medical equipment include inflated pricing due to the lack of competition, potential for reduced quality or innovation if the vendor faces no pressure to improve, and limited transparency in the procurement process. Taxpayers may bear higher costs without a clear justification for the non-competitive award. Furthermore, reliance on a single vendor can create supply chain vulnerabilities and make it difficult to switch providers if performance issues arise or if better alternatives become available. The government also misses out on potential cost savings and service enhancements that competitive bidding often fosters.

What is the expected effectiveness of this contract in meeting veteran needs?

The effectiveness of this contract hinges on 101 MOBILITY LLC's ability to deliver high-quality patient lifts that meet the specific needs of veterans. Assuming the equipment is appropriate and reliable, it should significantly enhance patient care, improve mobility, and reduce the physical strain on caregivers. The fixed-price nature of the contract provides cost certainty. However, the lack of competition means the VA did not explicitly test the market to ensure this award represents the most effective solution in terms of both cost and performance compared to potential alternatives. Long-term effectiveness will also depend on maintenance, support, and the durability of the supplied equipment.

What are historical spending patterns for patient lifts by the Department of Veterans Affairs?

Historical spending patterns for patient lifts by the Department of Veterans Affairs are not detailed in the provided data. To analyze this, one would need to examine past VA procurements for similar items, looking at contract values, award types (competed vs. sole-source), and the number of bidders. Significant year-over-year spending, especially if dominated by non-competitive awards, could indicate a systemic issue with how this equipment is procured. Conversely, a history of competitive bidding and cost reductions would suggest this current sole-source award is an anomaly requiring specific justification.

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

The provided data does not specify any performance metrics or service level agreements (SLAs) associated with this purchase order. Typically, for significant contracts, especially those involving medical equipment, performance expectations regarding delivery timelines, equipment reliability, maintenance response times, and user satisfaction are crucial. The absence of this information in the summary data makes it difficult to assess how the VA will ensure the contractor meets its obligations beyond the basic terms of the purchase order. A thorough review of the full contract document would be necessary to identify any such clauses and their enforceability.

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: 5221 OLEANDER DR, WILMINGTON, NC, 28403

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,529

Exercised Options: $40,529

Current Obligation: $40,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline