VA awards $2.58M for CPAP program poly bags to NGA3 SERVICES LLC

Contract Overview

Contract Amount: $2,577,561 ($2.6M)

Contractor: NGA3 Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-08

End Date: 2027-02-10

Contract Duration: 1,160 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: POLY BAGS FOR CPAP PROGRAM

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to NGA3 SERVICES LLC for work described as: POLY BAGS FOR CPAP PROGRAM Key points: 1. Contract awarded for essential medical supplies, indicating a need for ongoing patient support. 2. Sole-source award raises questions about potential lack of competition and price optimization. 3. Contract duration of nearly four years suggests a long-term requirement for these supplies. 4. The specific product category, poly bags for CPAP, points to a niche but critical component of respiratory care. 5. Geographic location of performance in Illinois may influence local economic impact and logistics.

Value Assessment

Rating: fair

Benchmarking the value for specialized poly bags is challenging without more specific product details and market data. The award amount of $2.58 million over approximately three years suggests a consistent demand for these items within the VA's CPAP program. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value for money. However, the absence of competition could lead to less favorable pricing than a more open process might yield.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, NGA3 SERVICES LLC, was solicited. This approach is typically used when only one source is capable of fulfilling the requirement, often due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The limited competition means there was no opportunity to compare offers from multiple vendors, potentially impacting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from competitive pricing pressures. This necessitates careful justification and oversight to ensure the price paid is fair and reasonable.

Public Impact

Patients using CPAP machines for sleep apnea and other respiratory conditions will benefit from the continued availability of necessary supplies. The Department of Veterans Affairs (VA) will ensure the continuity of its CPAP program, providing essential medical equipment to veterans. The contract's performance in Illinois may provide some localized economic benefit through NGA3 SERVICES LLC's operations or supply chain. The contract supports the healthcare sector by ensuring the supply chain for critical respiratory medical devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process could mask inefficiencies.
Dependence on a single supplier for critical medical supplies poses a supply chain risk.

Positive Signals

Ensures continuity of care for veterans relying on CPAP therapy.
Addresses a specific and essential need within the VA's healthcare services.
Award to a single vendor may streamline delivery and management for this specific item.

Sector Analysis

The market for medical supplies, particularly those related to respiratory therapy, is substantial and driven by an aging population and increasing prevalence of conditions like sleep apnea. This contract for CPAP program poly bags fits within the broader healthcare supplies sector. While specific market size data for CPAP poly bags is not readily available, the overall medical device and supplies market is valued in the hundreds of billions globally. The VA's significant spending power in this area makes its contracts influential.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this sole-source award. Typically, sole-source contracts are awarded when a specific capability is required that may not be readily available from small businesses, or the justification for sole-sourcing overrides set-aside considerations. Further analysis would be needed to determine if NGA3 SERVICES LLC is a small business and if any subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency regarding the specific reasons for the sole-source designation and the process for determining fair and reasonable pricing would be key areas for oversight. Inspector General involvement would typically occur if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

VA CPAP Supplies
Medical Equipment Procurement
Respiratory Therapy Devices
Federal Healthcare Contracts

Risk Flags

Sole-source justification requires scrutiny.
Potential for non-competitive pricing.
Supply chain risk due to single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to NGA3 SERVICES LLC. POLY BAGS FOR CPAP PROGRAM

Who is the contractor on this award?

The obligated recipient is NGA3 SERVICES 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 $2.6 million.

What is the period of performance?

Start: 2023-12-08. End: 2027-02-10.

What is the track record of NGA3 SERVICES LLC in fulfilling government contracts, particularly for medical supplies?

Information on NGA3 SERVICES LLC's specific track record with government contracts, especially for medical supplies like CPAP poly bags, is not detailed in the provided data. As this is a sole-source award, it implies the VA has identified NGA3 SERVICES LLC as capable of meeting the requirement. Further investigation into the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to ascertain their past performance, contract history, and any reported performance issues or successes. Without this external data, assessing their reliability and experience is speculative.

How does the pricing of these poly bags compare to similar contracts or market rates, given the sole-source nature of the award?

The provided data does not include specific pricing details or unit costs, making a direct comparison difficult. For sole-source contracts, agencies are required to perform a price analysis to ensure the price is fair and reasonable. This often involves reviewing historical pricing, catalog prices, or comparing to similar commercial items. However, the absence of competition inherently limits the ability to benchmark against multiple vendor bids. The VA would have conducted internal analysis, but without access to that justification, it's hard to definitively state if the price is optimal. The $2.58 million award over approximately three years suggests a consistent, albeit potentially non-competitive, price point.

What are the primary risks associated with a sole-source award for essential medical supplies like CPAP poly bags?

The primary risks associated with a sole-source award for essential medical supplies include potential overpayment due to lack of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and supply chain vulnerability if the sole source experiences production issues or goes out of business. For critical items like CPAP supplies, a disruption could directly impact patient care. Additionally, the justification for sole-sourcing must be robust to prevent potential misuse of the procurement process and ensure taxpayer funds are used efficiently.

How effective is the VA's CPAP program, and how critical are these poly bags to its overall success?

The effectiveness of the VA's CPAP program is generally considered high, as it addresses a significant health need among veterans, particularly those with sleep apnea. Continuous Positive Airway Pressure (CPAP) therapy is a standard and effective treatment. Poly bags, while seemingly a minor component, are essential for maintaining the hygiene and functionality of CPAP equipment, ensuring patient safety and treatment efficacy. Consistent availability of these supplies is critical for the program's operational success and for providing uninterrupted care to veterans.

What are the historical spending patterns for CPAP program supplies within the VA, and does this award align with them?

Historical spending patterns for CPAP program supplies within the VA are not detailed in the provided data. However, the award amount of $2.58 million over approximately three years suggests a sustained and significant need for these poly bags. To assess alignment, one would need to compare this award's total value and duration against previous contracts for similar items or the overall budget allocated to CPAP supplies over past fiscal years. A consistent award size might indicate stable demand and pricing, while significant deviations could warrant further investigation into market changes or program adjustments.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing

Product/Service Code: SERVICE AND TRADE EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1317 CATAWISSA CREEK RD, ZION GROVE, PA, 17985

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,779,710

Exercised Options: $5,779,710

Current Obligation: $2,577,561

Actual Outlays: $1,618,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline