VA awards $3M for mobile operating room trailers, with 4 bids received

Contract Overview

Contract Amount: $2,986,339 ($3.0M)

Contractor: Gerling & Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-01

End Date: 2026-03-31

Contract Duration: 1,672 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 3 EACH MOBILE OPERATING ROOM TRAILERS

Place of Performance

Location: SUNBURY, DELAWARE County, OHIO, 43074

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to GERLING & ASSOCIATES, INC. for work described as: 3 EACH MOBILE OPERATING ROOM TRAILERS Key points: 1. Contract value appears reasonable given the specialized nature of mobile operating room trailers. 2. Competition was moderate, with four bids indicating some market interest but potential for better price discovery. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Delivery is spread over several years, suggesting a phased rollout or long-term need. 5. The contract falls within the manufactured home manufacturing sector, which is distinct from typical medical equipment procurement. 6. Potential for future contract modifications or extensions exists given the long performance period.

Value Assessment

Rating: good

The contract value of approximately $3 million for four mobile operating room trailers seems within a reasonable range for highly specialized, custom-built units. Benchmarking against similar custom mobile medical facilities suggests that pricing for such niche equipment can vary significantly based on features and customization. Without specific details on the trailer specifications, a direct per-unit cost comparison is difficult, but the overall award amount does not immediately raise red flags for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. With four bids received, this indicates a degree of competition, but it is not considered full and open competition. The limited competition may have resulted in a higher price than if the contract had been broadly advertised to a wider range of potential suppliers.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a more extensive bidding process.

Public Impact

Veterans will benefit from increased access to surgical services through the deployment of these mobile operating rooms. The trailers will provide on-demand surgical capabilities, potentially reducing wait times and improving patient care. Services will be delivered across various VA facilities, enhancing healthcare infrastructure. The contract supports manufacturing jobs within the mobile home industry, though not directly in healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during manufacturing.
Risk of delivery delays impacting the VA's operational readiness.
Dependence on a single contractor for specialized manufacturing could lead to supply chain vulnerabilities.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Multiple bids suggest a viable market exists for this type of specialized equipment.
Long contract duration allows for phased implementation and potential learning curve efficiencies.

Sector Analysis

The procurement of mobile operating room trailers falls under the broader category of manufactured housing and specialized vehicle construction, rather than direct medical device manufacturing. The market for custom mobile medical facilities is niche, often involving specialized builders who can meet stringent regulatory and functional requirements. Comparable spending benchmarks are difficult to establish due to the unique nature of these units, but the overall value suggests a significant investment in flexible healthcare infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the limited information. The primary contractor, GERLING & ASSOCIATES, INC., is likely a larger entity capable of manufacturing these specialized units. Further analysis would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would 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 units by a certain date. Transparency is facilitated by the public nature of federal contract awards, though detailed manufacturing specifications and oversight reports may not be publicly accessible.

Related Government Programs

VA Medical Equipment Procurement
Mobile Healthcare Facilities
Emergency Preparedness Infrastructure
Veterans Health Administration Services

Risk Flags

Limited competition may lead to suboptimal pricing.
Specialized manufacturing carries inherent production risks.
Long performance period increases exposure to changing requirements or market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to GERLING & ASSOCIATES, INC.. 3 EACH MOBILE OPERATING ROOM TRAILERS

Who is the contractor on this award?

The obligated recipient is GERLING & ASSOCIATES, 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 $3.0 million.

What is the period of performance?

Start: 2021-09-01. End: 2026-03-31.

What are the specific technical specifications and capabilities of the mobile operating room trailers being procured?

The provided data does not detail the specific technical specifications or capabilities of the mobile operating room trailers. These would typically include dimensions, internal layout, types of surgical procedures they are equipped to handle, life support systems, sterilization capabilities, power generation, and HVAC systems. Understanding these specifications is crucial for assessing the value for money and ensuring the trailers meet the VA's operational needs for patient care. Without this information, it's challenging to benchmark the $3 million award against industry standards for similar mobile surgical units.

How does the per-unit cost of these mobile operating room trailers compare to similar custom-built mobile medical units or traditional operating room construction?

A direct per-unit cost comparison is difficult without knowing the exact specifications and features of the four trailers. However, custom-built mobile medical units can range widely in price, often from several hundred thousand to over a million dollars per unit, depending on complexity and equipment. If these trailers are highly sophisticated, the approximate $750,000 per unit ($3M / 4 units) could be competitive. This figure should be compared against the cost of building or renovating traditional operating rooms, which can also be substantial, and against the cost of other mobile medical solutions like modular units or retrofitted buses, to fully assess value for money.

What is the track record of GERLING & ASSOCIATES, INC. in manufacturing specialized mobile units or fulfilling government contracts?

Information regarding GERLING & ASSOCIATES, INC.'s specific track record in manufacturing specialized mobile units or fulfilling government contracts is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar projects, including any history of on-time delivery, quality of work, and adherence to budget. Examining their experience with Department of Veterans Affairs or other federal agency contracts would provide further insight into their reliability and capability to execute this $3 million purchase order successfully.

What is the anticipated impact of these mobile operating room trailers on patient wait times and access to care within the VA system?

The anticipated impact of these mobile operating room trailers is to significantly improve patient wait times and enhance access to surgical care for veterans. By providing deployable, on-demand surgical capacity, these units can alleviate pressure on existing brick-and-mortar operating rooms, allowing for more procedures to be scheduled and performed. This is particularly beneficial in situations where existing facilities are at capacity, undergoing renovation, or in remote locations. The long-term effectiveness will depend on strategic deployment and integration into the VA's overall healthcare delivery network.

What are the historical spending patterns for mobile operating room trailers or similar mobile medical infrastructure by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for mobile operating room trailers or similar mobile medical infrastructure by the Department of Veterans Affairs. To assess this contract's context, one would need to analyze past VA procurements of mobile surgical units, temporary medical facilities, or other deployable healthcare assets. Understanding the frequency, value, and nature of previous investments in such infrastructure would help determine if this $3 million award represents a new strategic direction, an expansion of existing capabilities, or a recurring need.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract and the utilization of the mobile operating room trailers?

Key performance indicators (KPIs) for this contract would likely focus on the successful delivery of the four mobile operating room trailers according to specifications and schedule. Post-delivery, KPIs would shift to operational metrics such as the number of procedures performed, patient throughput, reduction in surgical wait times, equipment uptime and reliability, and user satisfaction from clinical staff. The VA contracting officer and program managers would establish these KPIs to ensure the trailers are effectively utilized and contribute to improved veteran healthcare outcomes.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26121Q0615

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 KINTNER PKWY, SUNBURY, OH, 43074

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

Financial Breakdown

Contract Ceiling: $2,986,339

Exercised Options: $2,986,339

Current Obligation: $2,986,339

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline