VA awards $40.8M for electrosurgical generators, with 6 bidders competing for firm-fixed-price purchase orders

Contract Overview

Contract Amount: $40,809 ($40.8K)

Contractor: Covidien Sales LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-09-08

Contract Duration: 152 days

Daily Burn Rate: $268/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ELECTROSURGICAL GENERATOR AND EQUIPMENT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40,809.24 to COVIDIEN SALES LLC for work described as: ELECTROSURGICAL GENERATOR AND EQUIPMENT Key points: 1. The contract leverages a competitive bidding process, suggesting potential for favorable pricing. 2. The firm-fixed-price structure shifts cost risk to the contractor, benefiting the government. 3. A 152-day duration indicates a focused, short-term need for these critical medical devices. 4. The award falls under the Simplified Acquisition Procedures (SAP), typically for smaller procurements. 5. The Department of Veterans Affairs is the primary agency procuring these essential surgical supplies.

Value Assessment

Rating: good

The total award of $40.8 million for electrosurgical generators and equipment appears reasonable given the nature of the product and the competitive environment. While specific per-unit costs are not provided, the presence of six bidders in a competed solicitation suggests that pricing was likely benchmarked against market rates. The firm-fixed-price contract type further supports value for money by locking in costs and reducing the government's exposure to cost overruns. This award is likely in line with similar procurements for medical equipment by federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition among eligible vendors. Six bidders participated in the solicitation process. The level of competition suggests that multiple suppliers were aware of and interested in providing these electrosurgical generators and equipment, which generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: The robust competition among six bidders for this purchase order is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential medical equipment.

Public Impact

Veterans receiving care at VA facilities will benefit from access to modern electrosurgical equipment. The contract supports the delivery of surgical services within the Department of Veterans Affairs healthcare system. The geographic impact is primarily within the United States, serving VA medical centers nationwide. The contract supports the medical device manufacturing and supply chain industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specific electrosurgical generator models, requiring robust supply chain management.
Ensuring compatibility and integration with existing VA medical equipment infrastructure.
Monitoring contractor performance to ensure timely delivery and adherence to specifications.

Positive Signals

Firm-fixed-price contract protects against cost escalation.
Competitive bidding process likely secured favorable pricing.
Award to a known supplier (COVIDIEN SALES LLC) suggests established relationship and product familiarity.

Sector Analysis

The market for electrosurgical generators and related equipment is a significant segment within the broader medical device industry. This sector is characterized by technological innovation, stringent regulatory requirements, and substantial government procurement. Federal agencies, particularly the Department of Defense and the Department of Veterans Affairs, are major purchasers of such equipment to support healthcare services for military personnel and veterans. Spending benchmarks for similar medical equipment can vary widely based on features, brand, and volume, but consistent procurement by agencies like the VA indicates a sustained need for these devices.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and does not specify any small business set-aside. While COVIDIEN SALES LLC is a large business, the competitive nature of the SAP process allows for broad participation. There is no explicit information regarding subcontracting plans for small businesses within this award. Further analysis would be needed to determine if opportunities exist for small businesses within the supply chain for these electrosurgical generators.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a purchase order issued under SAP, it is subject to standard procurement regulations and internal VA oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Medical Equipment Procurement
Surgical Supplies
Veterans Health Administration Contracts
Department of Veterans Affairs Purchases
Electrosurgical Devices

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Need for robust quality assurance to ensure device efficacy and patient safety.
Ensuring interoperability with existing VA medical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40,809.24 to COVIDIEN SALES LLC. ELECTROSURGICAL GENERATOR AND EQUIPMENT

Who is the contractor on this award?

The obligated recipient is COVIDIEN SALES 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 $40,809.24.

What is the period of performance?

Start: 2026-04-09. End: 2026-09-08.

What is the historical spending pattern for electrosurgical generators and equipment by the Department of Veterans Affairs?

Analyzing historical spending for electrosurgical generators and equipment by the Department of Veterans Affairs (VA) reveals a consistent and significant investment in these critical medical devices. Over the past several fiscal years, the VA has awarded numerous contracts for such items, reflecting the ongoing need to equip its medical facilities nationwide. While specific figures fluctuate annually based on equipment upgrades, new facility openings, and changing medical technologies, the overall trend indicates a sustained demand. For instance, prior to this $40.8 million award, the VA likely spent tens of millions of dollars annually on similar equipment through various contract vehicles, including prime contracts and potentially through group purchasing organizations. Understanding these patterns helps in forecasting future needs and assessing the value of current awards against historical investment levels.

How does the number of bidders (6) compare to similar procurements for electrosurgical equipment by federal agencies?

A competition with six bidders, as seen in this $40.8 million award for electrosurgical generators and equipment, generally indicates a healthy level of market interest and engagement. For procurements falling under Simplified Acquisition Procedures (SAP), which this contract does, six bidders is a solid number. In larger, more complex procurements (above the SAP threshold), the number of bidders can sometimes be higher, but it also depends heavily on the specificity of the requirement and the number of capable vendors. For medical equipment like electrosurgical generators, where the market may have a moderate number of specialized manufacturers and distributors, six bidders suggests that the solicitation was well-publicized and attracted a good cross-section of the available market. This level of competition is typically sufficient to drive competitive pricing and ensure a reasonable selection of qualified sources.

What are the potential risks associated with a firm-fixed-price contract for medical equipment?

While firm-fixed-price (FFP) contracts are generally favored for their cost certainty, there are potential risks, particularly in the dynamic medical equipment market. The primary risk for the contractor is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise during production or delivery. For the government, the risk is that the contractor may build a higher contingency into their price to account for potential risks, potentially leading to a higher initial cost compared to a cost-reimbursement contract where risk is shared. Additionally, if the FFP price is set too low due to intense competition, the contractor might be incentivized to cut corners on quality or service, although this is mitigated by performance clauses and specifications. For this specific contract, the relatively short duration (152 days) and the nature of electrosurgical generators likely minimize some of these risks compared to long-term, complex system procurements.

What is the track record of COVIDIEN SALES LLC as a federal contractor, particularly for medical equipment?

COVIDIEN SALES LLC, now part of Medtronic, has a substantial track record as a federal contractor, particularly within the healthcare and medical equipment sectors. Historically, the company has secured numerous contracts across various federal agencies, including the Department of Veterans Affairs, Department of Defense, and others, for a wide range of medical devices, surgical supplies, and related equipment. Their awards often encompass products related to minimally invasive surgery, patient monitoring, and critical care. Analyzing their past performance typically shows a pattern of successful contract fulfillment, though like any large contractor, there may be instances of minor performance issues or contract modifications. Their long-standing presence and consistent awards suggest a strong understanding of federal procurement processes and a capability to meet the demanding requirements of government healthcare providers.

How does the $40.8 million award compare to the total federal spending on electrosurgical generators and equipment annually?

The $40.8 million award represents a significant, but not overwhelming, portion of the total federal spending on electrosurgical generators and equipment. Federal agencies, primarily the VA and DoD, procure these devices regularly to maintain and upgrade their healthcare facilities. Annual spending across the entire federal government for this specific category of equipment can easily reach hundreds of millions of dollars when considering all agencies, all contract types, and all contract vehicles (including large IDIQs and GSA schedules). Therefore, this single award, while substantial for a purchase order, is likely one of many such awards made throughout a fiscal year. It contributes to the overall federal investment but does not represent the entirety of it, highlighting the ongoing need and market size for these essential medical devices within the government.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26226Q0505

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Public Limited Company

Address: 15 HAMPSHIRE ST, MANSFIELD, MA, 02048

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: $40,809

Exercised Options: $40,809

Current Obligation: $40,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline