VA Awards $610K for Logistics Consulting to Universal Robotics, Inc. via Sole Source Contract

Contract Overview

Contract Amount: $6,100,000 ($6.1M)

Contractor: Universal Robotics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-24

End Date: 2026-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTEGRATION SERVICES

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37217

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to UNIVERSAL ROBOTICS, INC. for work described as: INTEGRATION SERVICES Key points: 1. Contract awarded for integration services, focusing on process, physical distribution, and logistics. 2. Universal Robotics, Inc. is the sole awardee, raising questions about competition. 3. The contract duration is 5 years, ending in September 2026. 4. The total award value is $610,000, with a firm fixed price structure.

Value Assessment

Rating: fair

The contract value of $610,000 over five years appears moderate for specialized logistics consulting. Benchmarking against similar government contracts for process, physical distribution, and logistics consulting services is difficult without more specific scope details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the opportunity for competitive pricing, which could lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.

Public Impact

Veterans Affairs logistics and distribution processes may be directly impacted by these consulting services. Potential for improved efficiency in VA's supply chain and physical distribution. Taxpayers may be paying a premium due to the sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.

Positive Signals

Focus on critical logistics and distribution services.
Long-term contract provides stability for service delivery.

Sector Analysis

The IT and professional services sector sees significant government spending. Logistics consulting is crucial for agencies like the VA to optimize supply chains and distribution networks, especially given the scale of operations.

Small Business Impact

The contract was awarded to Universal Robotics, Inc. and there is no indication of small business participation or subcontracting requirements. Further analysis would be needed to determine if small businesses were excluded or had an opportunity to participate.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the services provided deliver value for money.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency on sole-source justification
No clear indication of small business involvement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to UNIVERSAL ROBOTICS, INC.. INTEGRATION SERVICES

Who is the contractor on this award?

The obligated recipient is UNIVERSAL ROBOTICS, 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 $6.1 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-09-23.

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

The provided data does not include the justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can provide the required services. This could be due to unique capabilities, urgent needs, or specific technical requirements that only one vendor can meet. Without this documentation, it's difficult to assess the validity of the sole-source decision.

How will the effectiveness of the logistics consulting services be measured?

The effectiveness of the logistics consulting services should be measured against clearly defined Key Performance Indicators (KPIs) tied to the specific objectives of the contract. These could include improvements in delivery times, reduction in shipping costs, enhanced inventory management accuracy, or streamlined distribution processes. Regular performance reviews and reporting by Universal Robotics, Inc. against these KPIs will be crucial for assessing value.

What is the potential impact on VA's operational efficiency from these services?

These integration services are intended to improve the VA's process, physical distribution, and logistics. If executed effectively, they could lead to significant gains in operational efficiency, such as faster delivery of medical supplies, reduced waste in the supply chain, and better resource allocation. The success hinges on the quality of the consulting and the VA's implementation of the recommendations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2518 SMITH SPRINGS RD, NASHVILLE, TN, 37217

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

Financial Breakdown

Contract Ceiling: $6,100,000

Exercised Options: $6,100,000

Current Obligation: $6,100,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77021D0026

IDV Type: IDC

Timeline