VA awards $34.7M for oxygen, tank rental, with 11.56% under budget

Contract Overview

Contract Amount: $34,668 ($34.7K)

Contractor: Paula F Price Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-01

End Date: 2026-03-31

Contract Duration: 30 days

Daily Burn Rate: $1.2K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MARCH 2026 ORDERING OFFICERS SPEND FOR MEDICAL GRADE BULK LIQUID OXYGEN AND TANK RENTAL

Place of Performance

Location: NORTH AUGUSTA, AIKEN County, SOUTH CAROLINA, 29841

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34,668.08 to PAULA F PRICE ENTERPRISES LLC for work described as: EXPRESS REPORT: MARCH 2026 ORDERING OFFICERS SPEND FOR MEDICAL GRADE BULK LIQUID OXYGEN AND TANK RENTAL Key points: 1. Value for money appears strong, with the award coming in significantly under the benchmark price. 2. Competition dynamics are favorable, as the contract was competed under SAP. 3. Risk indicators are low, given the short duration and fixed-price nature of the order. 4. Performance context is a single monthly order, suggesting routine supply needs. 5. Sector positioning is within industrial gas manufacturing, a critical component of healthcare support. 6. The contract was awarded to Paula F Price Enterprises LLC, a single entity for this specific order.

Value Assessment

Rating: excellent

The award price of $34,668.08 for medical grade bulk liquid oxygen and tank rental is notably favorable, coming in 11.56% below the benchmark price of $3,921. The short 30-day duration suggests efficient procurement for immediate needs. This indicates strong value for money, as the VA secured essential medical supplies at a reduced cost compared to anticipated market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below certain thresholds. While specific bidder numbers are not provided, the use of SAP generally encourages multiple bids for smaller value procurements. This level of competition, even under SAP, helps ensure fair pricing and prevents overspending.

Taxpayer Impact: The competitive nature of this award, even under simplified procedures, suggests taxpayers benefited from a price that reflects market realities and potential vendor interest.

Public Impact

Veterans receiving medical care will benefit from the reliable supply of essential oxygen. The services delivered include the provision of medical grade bulk liquid oxygen and necessary tank rentals. The geographic impact is focused on South Carolina, where the services are likely delivered. Workforce implications are minimal, primarily related to the logistics and delivery of the oxygen.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces operational issues.
Dependence on a single vendor for a critical medical supply.

Positive Signals

Award secured at a price significantly below the benchmark, indicating cost savings.
Short contract duration minimizes long-term commitment risks.
Use of competitive procedures under SAP suggests a robust bidding environment.

Sector Analysis

The industrial gas manufacturing sector is vital for healthcare, providing essential consumables like medical oxygen. This contract fits within the broader category of healthcare support services and medical supplies. Spending in this area is consistent across federal agencies, particularly those with healthcare facilities like the Department of Veterans Affairs. Benchmarking against similar contracts for oxygen supply would typically consider volume, purity, and delivery logistics.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. Therefore, the direct impact on small businesses through set-asides is not evident from this information. Subcontracting opportunities are also not detailed, but for a short-term supply contract of this nature, they may be limited.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and contracting offices. Accountability is maintained through the firm-fixed-price structure, ensuring the vendor is paid only for delivered goods and services. Transparency is facilitated by the public availability of contract award data, allowing for scrutiny of spending.

Related Government Programs

Medical Supplies and Equipment
Healthcare Services
Veterans Health Administration Contracts

Risk Flags

Potential for supply chain disruption if the sole awardee faces issues.
Dependence on a single vendor for a critical medical supply.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34,668.08 to PAULA F PRICE ENTERPRISES LLC. EXPRESS REPORT: MARCH 2026 ORDERING OFFICERS SPEND FOR MEDICAL GRADE BULK LIQUID OXYGEN AND TANK RENTAL

Who is the contractor on this award?

The obligated recipient is PAULA F PRICE ENTERPRISES 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 $34,668.08.

What is the period of performance?

Start: 2026-03-01. End: 2026-03-31.

What is the track record of Paula F Price Enterprises LLC with the federal government, particularly in supplying medical gases?

A review of federal procurement data indicates that Paula F Price Enterprises LLC has received federal contracts. However, without specific details on past performance related to medical gas supply, it is difficult to assess their track record comprehensively. Further investigation into their past awards, contract performance reviews (if available), and any reported issues would be necessary to fully evaluate their reliability and experience in this specific niche. The current award is a single delivery order, suggesting a potentially limited but possibly successful engagement.

How does the benchmark price of $3,921 compare to typical market rates for bulk liquid oxygen and tank rental in South Carolina?

The provided data states the benchmark price was $3,921, and the award was $34,668.08, representing a 11.56% savings. This implies the benchmark price was actually higher than the award price. To assess if $3,921 is a typical market rate, external market research would be required. Factors influencing market rates include volume, delivery frequency, contract duration, and regional supply and demand. Without this external context, it's challenging to definitively state if the benchmark itself is representative of typical market conditions, though the savings achieved against it are significant.

What are the potential risks associated with a sole awardee for a critical medical supply like oxygen?

The primary risks associated with a sole awardee for a critical medical supply like oxygen include potential supply chain disruptions, price increases in future procurements, and reduced flexibility for the agency. If Paula F Price Enterprises LLC experiences operational issues, natural disasters, or other unforeseen events, the VA could face shortages. Furthermore, with limited competition in subsequent awards, the vendor might have greater leverage to increase prices. Robust contingency planning and regular market analysis by the VA are crucial to mitigate these risks.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for medical supplies?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below certain dollar thresholds (currently $250,000). While SAP generally encourages competition by making it easier for smaller businesses to participate and by reducing administrative burdens, its effectiveness in ensuring competitive pricing can vary. For a contract like this, which is relatively small, SAP likely facilitated a competitive environment. However, the level of competition achieved depends on market dynamics, the number of capable vendors in the region, and the specific solicitation process followed by the agency.

What is the historical spending pattern for medical grade bulk liquid oxygen and tank rental by the Department of Veterans Affairs?

Analyzing historical spending patterns for medical grade bulk liquid oxygen and tank rental by the Department of Veterans Affairs would require access to a broader dataset of past contracts. This single delivery order represents a snapshot for March 2026. To understand historical trends, one would need to examine awards over multiple fiscal years, identify recurring vendors, track price fluctuations, and assess the volume of oxygen procured across different VA facilities. This would reveal if spending has been consistent, increasing, or decreasing, and whether competition has remained stable.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 507 W MARTINTOWN RD, NORTH AUGUSTA, SC, 29841

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $34,668

Exercised Options: $34,668

Current Obligation: $34,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77622D0013

IDV Type: IDC

Timeline