VA awards $3.7M lease for surgical equipment to Beacon Point Associates LLC

Contract Overview

Contract Amount: $3,720,505 ($3.7M)

Contractor: Beacon Point Associates LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-27

End Date: 2027-02-26

Contract Duration: 882 days

Daily Burn Rate: $4.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL EQUIPMENT LEASE

Place of Performance

Location: CAPE CORAL, LEE County, FLORIDA, 33991

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to BEACON POINT ASSOCIATES LLC for work described as: SURGICAL EQUIPMENT LEASE Key points: 1. Lease agreement for surgical equipment valued at $3.7 million. 2. Contract awarded to Beacon Point Associates LLC by the Department of Veterans Affairs. 3. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but structured process. 4. The sector involves rental and leasing of commercial and industrial machinery and equipment.

Value Assessment

Rating: fair

The firm fixed price contract for surgical equipment lease appears reasonable given the duration and scope. Benchmarking against similar long-term equipment leases would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this lease. The efficiency of the procurement process under SAP will influence the overall value for money.

Public Impact

Ensures VA facilities have necessary surgical equipment. Supports healthcare delivery for veterans. Potential for equipment obsolescence over the lease term. Impact on VA's capital expenditure vs. operational budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for equipment obsolescence
Lease vs. purchase cost-benefit analysis

Positive Signals

Ensures access to critical equipment
Fixed price provides budget certainty

Sector Analysis

The surgical equipment leasing sector is crucial for healthcare providers, enabling access to advanced technology without large upfront capital investment. Spending benchmarks vary widely based on equipment type and lease duration.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract type (firm fixed price) and duration suggest a need for regular performance monitoring to ensure equipment functionality and adherence to lease terms.

Related Government Programs

Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may have resulted in a higher price.
Risk of equipment obsolescence during the lease term.
Dependence on a single vendor for critical equipment.
Potential for unforeseen maintenance or repair costs not covered by the lease.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to BEACON POINT ASSOCIATES LLC. SURGICAL EQUIPMENT LEASE

Who is the contractor on this award?

The obligated recipient is BEACON POINT ASSOCIATES 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 $3.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2027-02-26.

What is the total cost of ownership if the VA were to purchase similar equipment outright versus leasing it over the contract period?

Calculating the total cost of ownership for purchasing involves upfront capital expenditure, maintenance, potential depreciation, and eventual disposal costs. Leasing spreads costs over time, avoiding large initial outlays but potentially incurring higher overall expenses. A detailed comparison of lease payments against amortized purchase costs, including maintenance and residual value, is necessary to determine the most cost-effective option for the VA.

What are the specific types of surgical equipment being leased, and how critical are they to current VA healthcare operations?

The provided data does not specify the exact types of surgical equipment. Understanding the specific equipment (e.g., imaging devices, surgical robots, specialized instruments) is crucial for assessing operational criticality and potential risks associated with equipment failure or obsolescence. This information would also inform a more precise value assessment against market alternatives.

How does the lease agreement address equipment upgrades or technological advancements during the contract term?

The current data does not detail provisions for equipment upgrades or technological advancements. In a rapidly evolving field like surgical technology, a lease agreement without upgrade clauses could leave the VA with outdated equipment. Clarification on whether Beacon Point Associates LLC offers upgrade options or if the VA can transition to newer models is essential for long-term effectiveness.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26224Q1817

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1216 SW 4TH ST, CAPE CORAL, FL, 33991

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,301,263

Exercised Options: $3,720,505

Current Obligation: $3,720,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline