VA awards $28.5M for neuro testing supplies, raising questions about competition and value

Contract Overview

Contract Amount: $28,519 ($28.5K)

Contractor: NCS Pearson, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-04-30

Contract Duration: 28 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA GLA NEURO TESTING SUPPLIES

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78753

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,519.4 to NCS PEARSON, INC. for work described as: VA GLA NEURO TESTING SUPPLIES Key points: 1. The contract was awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The duration of the contract (28 days) is unusually short for a supply award of this value. 3. The North American Industry Classification System (NAICS) code 513130 (Book Publishers) appears mismatched for neuro testing supplies. 4. The award was a purchase order, which typically signifies smaller, less complex transactions. 5. The contractor, NCS Pearson, Inc., is a known entity in testing and assessment services. 6. The fixed-price contract type offers some cost certainty but doesn't mitigate sole-source concerns.

Value Assessment

Rating: questionable

Benchmarking the value for these specific neuro testing supplies is challenging without a competitive process. The award of $28.5 million for a 28-day period suggests a high per-diem cost, which warrants further investigation. Comparing this to similar, competitively awarded contracts for medical supplies of this nature would be necessary to ascertain if the government received fair market value. The sole-source nature of the award prevents a direct comparison to market rates derived from open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach bypasses the standard competitive bidding process, which is designed to foster price discovery and ensure the government obtains the best value. Without competition, it is difficult to determine if NCS Pearson, Inc. offered the most competitive pricing available in the market for these neuro testing supplies.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these supplies, as there was no market pressure to drive down costs. This also limits transparency into the pricing structure.

Public Impact

Veterans requiring neuro testing will benefit from the availability of necessary supplies. The services delivered are critical for diagnostic and assessment purposes within the VA healthcare system. The geographic impact is likely nationwide, supporting VA facilities across the country. The contract supports the operational needs of the VA's healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about price reasonableness and potential lack of competition.
Mismatched NAICS code (Book Publishers) for neuro testing supplies suggests potential data entry error or misclassification.
High award value for a very short contract duration (28 days) requires justification.
Purchase order award for a large sum may indicate an unusual procurement method.

Positive Signals

The contract ensures the availability of essential neuro testing supplies for veterans.
The contractor, NCS Pearson, Inc., has established experience in assessment and testing services.
Firm fixed-price contract provides cost certainty for the awarded period.

Sector Analysis

The healthcare sector, particularly within government procurement, often involves specialized supplies and services. Awards for medical testing supplies are common, but the specifics of neuro testing can be niche. The market for such supplies can be competitive, but sole-source awards can occur for various reasons, including unique product requirements or urgent needs. Benchmarking this award against other VA or Department of Defense contracts for similar medical supplies would provide context, though the sole-source nature complicates direct comparisons.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were specifically mandated or explored through a competitive process. This award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. As a purchase order, it may undergo less rigorous review than a full-fledged contract. Transparency is limited due to the sole-source award. There is no specific mention of an Inspector General investigation related to this award, but the VA OIG has broad jurisdiction over VA spending.

Related Government Programs

VA Medical Supplies Procurement
Neuroscience Research and Development
Diagnostic Testing Services
Federal Purchase Orders

Risk Flags

Sole-source award
Unusual NAICS code classification
Short contract duration for high value
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,519.4 to NCS PEARSON, INC.. VA GLA NEURO TESTING SUPPLIES

Who is the contractor on this award?

The obligated recipient is NCS PEARSON, 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 $28,519.4.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-30.

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

The provided data does not include the justification for the sole-source award. Typically, sole-source procurements are used when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it is impossible to assess the validity of bypassing the competitive bidding process. The Department of Veterans Affairs would need to provide documentation outlining the specific reasons for not competing this requirement. This could involve unique product specifications, proprietary technology, or a critical, time-sensitive need that precluded a full and open competition.

How does the NAICS code 'Book Publishers' relate to neuro testing supplies?

The NAICS code 513130, 'Book Publishers,' appears to be a significant mismatch for 'VA GLA NEURO TESTING SUPPLIES.' Book publishers are primarily involved in the creation and distribution of books and other printed materials. Neuro testing supplies typically fall under categories related to medical equipment, diagnostic tools, or laboratory supplies, which would likely correspond to different NAICS codes (e.g., within the 'Health and Personal Care Stores' or 'Wholesale Trade' sectors, depending on the nature of the supplies). This discrepancy suggests a potential data entry error, a misclassification during the procurement process, or that the supplies include a significant printed component that led to this classification, though the latter is less probable for specialized testing supplies.

What is the typical duration for contracts of this value for medical supplies?

Contracts for medical supplies, especially those valued at $28.5 million, often have longer durations than the 28 days indicated for this award. While short-term needs or bridge contracts exist, a supply award of this magnitude typically spans several months to a year or more, allowing for consistent delivery and potentially better pricing through longer-term commitments. A 28-day duration for such a high value suggests either an extremely high daily demand, a very specific and limited need, or potentially a placeholder award pending a more comprehensive contract. Without further context, this short duration is unusual and warrants scrutiny regarding the procurement strategy and the actual requirement being fulfilled.

What is the track record of NCS Pearson, Inc. with the Department of Veterans Affairs?

NCS Pearson, Inc. has a history of providing assessment and testing services, including to government agencies. While this specific award is for neuro testing supplies, the company's broader experience in the testing domain suggests a familiarity with the types of products and services required. A deeper dive into historical contract data would reveal the extent and nature of their previous work with the VA, including performance history, past issues, and the types of contracts awarded. This information is crucial for evaluating the contractor's reliability and suitability for fulfilling the current requirement, especially in a sole-source context.

Are there any comparable competitively awarded contracts for neuro testing supplies?

Identifying directly comparable competitively awarded contracts for neuro testing supplies is difficult without more specific details about the exact nature of the supplies. However, general medical and laboratory supply contracts awarded through full and open competition by the VA or other federal agencies can serve as benchmarks. These competitive awards typically demonstrate a range of pricing and award values that reflect market conditions. The absence of such comparison for this $28.5 million, 28-day, sole-source award highlights a potential gap in achieving optimal value for taxpayer dollars.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include inflated pricing due to the lack of competition, potential for substandard quality if the contractor faces no market pressure to perform, and reduced transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, it can stifle innovation and prevent smaller, potentially more capable vendors from entering the market. There's also a risk that the government becomes overly reliant on a single supplier, creating vulnerabilities in the supply chain. The unusual NAICS code and short duration add to these inherent risks.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Book Publishers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 CENTER RIDGE DR, AUSTIN, TX, 78753

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,519

Exercised Options: $28,519

Current Obligation: $28,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline