VA awards $3.6M for surgical packs to GEO-MED, LLC, a sole-source purchase order

Contract Overview

Contract Amount: $3,637,441 ($3.6M)

Contractor: Geo-Med, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-18

End Date: 2025-12-31

Contract Duration: 316 days

Daily Burn Rate: $11.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL CUSTOM PACKS

Place of Performance

Location: LAKE MARY, SEMINOLE County, FLORIDA, 32746

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to GEO-MED, LLC for work described as: SURGICAL CUSTOM PACKS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Purchase order structure suggests a need for immediate or specific supply. 3. The contract duration of approximately 10 months indicates a short-term requirement. 4. Focus on surgical and medical instruments highlights a critical healthcare supply chain component. 5. Geographic focus on Florida may indicate regional supply chain considerations.

Value Assessment

Rating: fair

Benchmarking the value of this $3.6M award for surgical custom packs is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The fixed-price nature of the contract provides some cost certainty, but the lack of competition means the VA may not have secured the lowest possible price. Further analysis would require understanding the specific components of the custom packs and their market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was awarded sole-source. This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The absence of multiple bidders means the VA did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not leverage competitive market forces to drive down prices.

Public Impact

Veterans Affairs healthcare facilities will receive essential surgical and medical instruments. The contract supports the delivery of surgical services within VA hospitals. The primary beneficiaries are medical professionals and patients requiring these specialized packs. The contract has a geographic impact primarily in Florida, where the supplier is located and likely deliveries will be made.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can indicate potential single points of failure in supply chains if not managed carefully.
Limited transparency into the justification for sole-source award.

Positive Signals

Ensures availability of critical surgical supplies for VA facilities.
Fixed-price contract provides cost predictability for the awarded amount.
Specific focus on custom packs suggests tailored solutions for medical needs.

Sector Analysis

The market for surgical and medical instruments is a significant segment within the broader healthcare industry. This contract falls under the Manufacturing sector, specifically NAICS code 339112 (Surgical and Medical Instrument Manufacturing). The demand for custom surgical packs is driven by the need for sterile, pre-assembled kits that streamline operating room procedures and reduce waste. Comparable spending benchmarks would typically involve analyzing other VA or Department of Defense contracts for similar custom surgical kits, as well as private sector hospital procurement data.

Small Business Impact

This contract was awarded to GEO-MED, LLC and there is no indication of a small business set-aside. The contract details do not specify any subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) and the agency's procurement system. The Department of Veterans Affairs has established procurement regulations and oversight mechanisms to ensure contract compliance. However, the sole-source nature of this award warrants scrutiny to ensure the justification for not competing was valid and that the pricing is fair and reasonable.

Related Government Programs

VA Medical Supplies
Surgical Instrument Procurement
Healthcare Manufacturing Contracts
Sole-Source Medical Device Awards

Risk Flags

Sole-source award lacks competitive pricing.
Potential for supply chain disruption due to single supplier reliance.
Limited transparency on justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to GEO-MED, LLC. SURGICAL CUSTOM PACKS

Who is the contractor on this award?

The obligated recipient is GEO-MED, 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 $3.6 million.

What is the period of performance?

Start: 2025-02-18. End: 2025-12-31.

What is the specific justification for awarding this contract sole-source?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). This suggests that the award was made without soliciting bids from multiple vendors. Common justifications for sole-source awards include urgent and compelling needs, unique capabilities of a single source, or when only one responsible source is available. Without further documentation from the Department of Veterans Affairs, the precise reason for bypassing competition remains unclear. A thorough review would involve examining the Justification for Other Than Full and Open Competition (JOFOC) or similar documentation that the agency is required to produce for sole-source procurements.

How does the pricing of these surgical custom packs compare to market rates for similar items?

Directly comparing the pricing for these surgical custom packs is difficult with the information provided. The total award amount is $3,637,441 for a period of approximately 10 months. To assess value for money, one would need to break down the cost per pack or per component and compare it against industry benchmarks for similar custom surgical kits. Factors such as the specific instruments included, sterilization costs, packaging, and delivery logistics all influence the final price. Given the sole-source nature, it is possible that the price is higher than what could have been achieved through a competitive bidding process.

What is the track record of GEO-MED, LLC in fulfilling federal contracts, particularly for the VA?

Information on GEO-MED, LLC's track record with federal contracts is not detailed in the provided data. To assess their performance, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive performance history would indicate a lower risk for this current award. Conversely, any past issues could raise concerns about GEO-MED's ability to deliver on time and to specification, potentially impacting the VA's supply chain for critical surgical items.

What are the potential risks associated with a sole-source award for essential surgical supplies?

Sole-source awards for essential surgical supplies carry several risks. Firstly, the lack of competition can lead to inflated prices, meaning the government may overpay for these critical items. Secondly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or delivery delays. This dependency can disrupt the supply chain for VA healthcare facilities, potentially impacting patient care. Finally, without competitive pressure, there may be less incentive for the sole-source provider to innovate or improve product quality over time.

How does this contract fit into the VA's overall spending on surgical and medical instruments?

This $3.6 million award represents a specific procurement for surgical custom packs within the VA's vast healthcare spending. To understand its place in the broader context, one would need to analyze historical VA spending data for similar categories (e.g., surgical supplies, medical instruments, operating room kits) over multiple fiscal years. This would reveal trends, identify major suppliers, and highlight areas of significant investment. Comparing this award's value to the total VA medical supply budget would indicate its relative importance and whether it represents a substantial portion of spending in this niche.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument 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: 1525 INTERNATIONAL PKWY STE 3071, LAKE MARY, FL, 32746

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,316,601

Exercised Options: $4,316,601

Current Obligation: $3,637,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline