VA awards $12.3M contract for semi-automated packers and installation to Quality Manufacturing Systems, Inc
Contract Overview
Contract Amount: $12,333,378 ($12.3M)
Contractor: Quality Manufacturing Systems, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-04-01
End Date: 2026-09-30
Contract Duration: 1,643 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SEMI-AUTOMATED PACKERS AND INSTALL
Place of Performance
Location: LA VERGNE, RUTHERFORD County, TENNESSEE, 37086
Plain-Language Summary
Department of Veterans Affairs obligated $12.3 million to QUALITY MANUFACTURING SYSTEMS, INC. for work described as: SEMI-AUTOMATED PACKERS AND INSTALL Key points: 1. Contract awarded to Quality Manufacturing Systems, Inc. for specialized fabrication. 2. The contract value is $12,333,377.90. 3. Competition method was 'Full and Open Competition'. 4. The sector is 'All Other Miscellaneous Fabricated Metal Product Manufacturing'.
Value Assessment
Rating: fair
The contract is a firm fixed price definitive contract. Pricing is difficult to assess without specific unit details or historical benchmarks for this specialized equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by soliciting the best value from the market.
Public Impact
Veterans will benefit from improved healthcare delivery through enhanced operational efficiency. The contract supports domestic manufacturing within the fabricated metal products sector. This investment in equipment could lead to long-term cost savings for the VA.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if installation is complex.
- Dependence on a single vendor for specialized equipment.
Positive Signals
- Competitive award process.
- Clear contract end date.
- Firm fixed price contract type.
Sector Analysis
The contract falls under the Miscellaneous Fabricated Metal Product Manufacturing sector, which includes a wide range of specialized equipment. Benchmarks for this specific type of semi-automated packing system are not readily available.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award, as the vendor is Quality Manufacturing Systems, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight of this contract. The definitive contract structure with a set end date provides a framework for accountability.
Related Government Programs
- All Other Miscellaneous Fabricated Metal Product Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for vendor lock-in for maintenance.
- Specialized equipment may have limited market comparables.
- Installation complexity risk.
Tags
all-other-miscellaneous-fabricated-metal, department-of-veterans-affairs, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $12.3 million to QUALITY MANUFACTURING SYSTEMS, INC.. SEMI-AUTOMATED PACKERS AND INSTALL
Who is the contractor on this award?
The obligated recipient is QUALITY MANUFACTURING SYSTEMS, 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 $12.3 million.
What is the period of performance?
Start: 2022-04-01. End: 2026-09-30.
What is the expected improvement in operational efficiency or cost savings for the VA resulting from these semi-automated packers?
The provided data does not specify the expected improvements in operational efficiency or cost savings. A detailed analysis of the contract's performance metrics and the specific capabilities of the semi-automated packers would be required to quantify these benefits. This information is crucial for assessing the true value of the $12.3 million investment.
What are the key risks associated with the installation and long-term maintenance of this specialized equipment?
Key risks include potential delays or cost overruns during installation due to the specialized nature of the equipment, and the possibility of unforeseen maintenance issues. Dependence on the original manufacturer, Quality Manufacturing Systems, Inc., for parts and service could also pose a risk if their support is inadequate or costly over the contract's lifespan.
How effectively does this contract leverage competition to ensure the best value for taxpayer dollars?
The contract was awarded under 'Full and Open Competition,' which is a positive indicator for price discovery and achieving best value. However, the effectiveness is contingent on the number and quality of bids received. Without knowing the competitive landscape and the final negotiated price relative to market value, the ultimate effectiveness remains partially unknown.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C77021Q0586
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5395 MURFREESBORO RD STE A, LA VERGNE, TN, 37086
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,333,378
Exercised Options: $12,333,378
Current Obligation: $12,333,378
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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