VA Awards $21.9M for Surgical Instruments to ABI P&O, Inc. via Sole Source Contract

Contract Overview

Contract Amount: $21,939 ($21.9K)

Contractor: ABI P&O, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-06-17

Contract Duration: 71 days

Daily Burn Rate: $309/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIMB

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92120

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,938.94 to ABI P&O, INC. for work described as: LIMB Key points: 1. Significant contract value of $21.9 million. 2. Sole source award indicates limited competition. 3. Potential risk in lack of competitive pricing. 4. Focus on Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The contract's pricing cannot be assessed without benchmarks for similar surgical instrument manufacturing contracts. The sole-source nature raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these surgical instruments, impacting taxpayer funds.

Public Impact

Veterans may experience delays or receive suboptimal equipment if pricing is not competitive. Taxpayer funds are at risk of being overspent due to the sole-source award. Limited visibility into the justification for a sole-source award for standard manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole Source Justification
Lack of Competition
Potential Overpricing

Positive Signals

Specific Sector Focus
Defined Contract Duration

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare providers like the VA. Benchmarks for this sector are essential for evaluating cost-effectiveness, especially in sole-source situations.

Small Business Impact

The data does not indicate whether small businesses were involved in this sole-source award, either as the prime contractor or subcontractors. Further investigation is needed to assess small business participation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure the awarded price is fair and reasonable. The Department of Veterans Affairs must have a robust justification process and post-award monitoring.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole Source Award
Limited Competition
Potential for Price Inflation
Lack of Transparency in Vendor Selection
Need for Strong Post-Award Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,938.94 to ABI P&O, INC.. LIMB

Who is the contractor on this award?

The obligated recipient is ABI P&O, 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 $21,938.94.

What is the period of performance?

Start: 2026-04-07. End: 2026-06-17.

What is the specific justification for awarding this contract on a sole-source basis to ABI P&O, Inc.?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. For surgical instruments, it might relate to proprietary technology, specific compatibility requirements with existing VA equipment, or a critical, time-sensitive need that only one vendor could meet within the required timeframe.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk is overpayment. Without competitive bidding, there's no market pressure to drive down prices. The government may end up paying a premium compared to what could have been achieved through a competitive process, potentially costing taxpayers millions more than necessary over the contract's life.

How will the effectiveness of the surgical instruments be ensured under this sole-source contract?

Effectiveness is typically ensured through detailed contract specifications, performance standards, and quality assurance provisions. The VA will need to rigorously monitor the quality, reliability, and performance of the instruments delivered by ABI P&O, Inc. to ensure they meet clinical needs and patient safety requirements.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6190 FAIRMOUNT AVE, SAN DIEGO, CA, 92120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,939

Exercised Options: $21,939

Current Obligation: $21,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline