VA awards $21.9M contract for ARIA repair to Becton, Dickinson and Company

Contract Overview

Contract Amount: $21,936 ($21.9K)

Contractor: Becton, Dickinson and Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-01

End Date: 2025-07-31

Contract Duration: 364 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: ARIA REPAIR

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,935.61 to BECTON, DICKINSON AND COMPANY for work described as: ARIA REPAIR Key points: 1. Contract value of $21.9M for ARIA repair services. 2. Sole-source award to Becton, Dickinson and Company. 3. Potential risk due to lack of competition. 4. Services fall under Electronic and Precision Equipment Repair and Maintenance sector.

Value Assessment

Rating: questionable

The contract value of $21.9M for ARIA repair appears high without a competitive benchmark. Pricing assessment is difficult due to the sole-source nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. The lack of competition limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: Taxpayer funds may be used inefficiently due to the absence of competitive bidding.

Public Impact

Veterans may experience delays or suboptimal repair services if pricing is not optimized. Limited transparency in the procurement process raises concerns about fairness. Potential for higher costs impacting the VA's overall budget for medical equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Definitive contract awarded
Firm fixed price contract type

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector is critical for maintaining operational readiness of medical devices. Spending benchmarks vary widely based on equipment complexity and service scope.

Small Business Impact

The contract was awarded to Becton, Dickinson and Company, a large business. There is no indication that small businesses were involved in this procurement, missing an opportunity for small business participation.

Oversight & Accountability

Oversight is needed to ensure the VA received fair pricing and adequate service levels given the sole-source nature of this award. Accountability for the procurement decision should be established.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition may lead to higher costs.
Potential for vendor lock-in.
Limited transparency in the procurement process.
Risk of inadequate service if performance is not closely monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,935.61 to BECTON, DICKINSON AND COMPANY. ARIA REPAIR

Who is the contractor on this award?

The obligated recipient is BECTON, DICKINSON AND COMPANY.

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 $21,935.61.

What is the period of performance?

Start: 2024-08-01. End: 2025-07-31.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details on the ARIA system and Becton, Dickinson and Company's specific role, it's difficult to assess the validity of this justification and ensure it aligns with federal procurement regulations.

How does the $21.9M contract value compare to historical spending on similar ARIA repair services?

Comparing this $21.9M contract value to historical spending on similar ARIA repair services is crucial for assessing value for money. If historical data shows significantly lower costs for comparable services, it raises concerns about potential overpricing in this sole-source award. A detailed cost analysis against benchmarks is recommended.

What mechanisms are in place to ensure the quality and timeliness of repairs under this sole-source contract?

Given the sole-source nature, robust performance monitoring and quality assurance mechanisms are essential. The VA should have clear metrics for repair turnaround time, success rates, and customer satisfaction. Regular performance reviews with Becton, Dickinson and Company are critical to ensure effective service delivery and taxpayer value.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

Parent Company: Becton, Dickinson and CO

Address: 2350 QUME DR, SAN JOSE, CA, 95131

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

Financial Breakdown

Contract Ceiling: $21,936

Exercised Options: $21,936

Current Obligation: $21,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline