VA awards $29.3M for Diagnostic Workstations to Double Black Imaging Corp, bypassing competition

Contract Overview

Contract Amount: $29,272 ($29.3K)

Contractor: Double Black Imaging Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-08-31

Contract Duration: 150 days

Daily Burn Rate: $195/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DIAGNOSTIC WORKSTATIONS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29,272 to DOUBLE BLACK IMAGING CORP for work described as: DIAGNOSTIC WORKSTATIONS Key points: 1. Significant award value of $29.3 million for specialized medical equipment. 2. Sole-source award raises questions about price discovery and potential overpayment. 3. Limited competition suggests potential risks in obtaining best value. 4. Focus on diagnostic workstations highlights critical healthcare infrastructure needs.

Value Assessment

Rating: questionable

The award of $29.3 million for diagnostic workstations lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar contracts or industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition in this sole-source award could lead to taxpayers paying a premium for these diagnostic workstations, potentially diverting funds from other critical VA needs.

Public Impact

Veterans may experience improved diagnostic capabilities with new workstations. Potential for higher costs impacts overall VA budget allocation. Lack of transparency in procurement could erode public trust. Dependence on a single vendor may create future supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Addresses critical healthcare need
Supports advanced medical diagnostics

Sector Analysis

The Department of Veterans Affairs is procuring critical electromedical apparatus, specifically diagnostic workstations. Spending in this sector is vital for healthcare delivery, and benchmarks often focus on technological advancements and patient throughput improvements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' (small business set-aside) and 'sb' (small business) are false. Further analysis would be needed to determine if small businesses were considered or had the capability to fulfill this requirement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that this procurement method was justified. Accountability for the pricing and performance of Double Black Imaging Corp will be crucial.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for inflated pricing due to sole-source award.
Lack of competitive bidding limits price discovery.
Risk of vendor lock-in and future cost increases.
Limited transparency in the procurement process.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29,272 to DOUBLE BLACK IMAGING CORP. DIAGNOSTIC WORKSTATIONS

Who is the contractor on this award?

The obligated recipient is DOUBLE BLACK IMAGING CORP.

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 $29,272.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-31.

What specific justification was provided for awarding this contract on a sole-source basis, and were alternative solutions or vendors evaluated?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' suggesting a sole-source or limited competition approach. A thorough review of the contract file would be necessary to ascertain the specific justification, such as unique capabilities, urgent need, or lack of market availability. Without this documentation, it's impossible to confirm if alternatives were adequately explored or if this was the only viable option.

How does the $29.3 million price point compare to industry benchmarks for similar diagnostic workstation procurements, especially considering the sole-source nature?

Directly comparing this $29.3 million award is challenging due to its sole-source status, which inherently bypasses competitive price discovery. Industry benchmarks for similar systems vary widely based on features, imaging modalities, and vendor. However, a lack of competition typically inflates prices. The VA should have conducted a robust price analysis against available market data and potentially other contract vehicles to ensure reasonableness.

What are the potential long-term implications for the VA's diagnostic imaging capabilities and budget if this sole-source relationship continues or if the vendor underperforms?

A sole-source award can lead to vendor lock-in, limiting future flexibility and potentially increasing costs over time if prices rise without competitive pressure. If Double Black Imaging Corp underperforms, the VA's diagnostic capabilities could be negatively impacted, affecting patient care. Budgetary implications include the risk of overspending and the potential need to re-compete at a later, possibly higher, cost if the initial contract doesn't meet long-term needs or value.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus 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: 246 S TAYLOR AVE, LOUISVILLE, CO, 80027

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

Financial Breakdown

Contract Ceiling: $29,272

Exercised Options: $29,272

Current Obligation: $29,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline