HHS awards $172K purchase order for Da Vinci robot maintenance to SDV Office Systems, LLC

Contract Overview

Contract Amount: $172,200 ($172.2K)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-03-31

End Date: 2027-03-30

Contract Duration: 364 days

Daily Burn Rate: $473/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 1 YEAR PMA TO COVER DA VINCI ROBOT WITH SN:SK3828 SDV OFFICE SYSTEMS, LLC:1339020 [26-003778]

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $172,200 to SDV OFFICE SYSTEMS LLC for work described as: 1 YEAR PMA TO COVER DA VINCI ROBOT WITH SN:SK3828 SDV OFFICE SYSTEMS, LLC:1339020 [26-003778] Key points: 1. Value for money is difficult to assess without competitive bids. 2. The contract was not competed under SAP, raising questions about price discovery. 3. Risk indicators are moderate due to the sole-source nature of the award. 4. Performance context is limited to a one-year period for maintenance. 5. The contract falls within the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: fair

The award of $172,200 for a one-year period of performance for Da Vinci robot maintenance is difficult to benchmark without competitive pricing. As a sole-source award, there is no direct comparison to similar contracts. The pricing is accepted as is, but the lack of competition prevents an assessment of whether it represents the best value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP). The award was made directly to SDV Office Systems LLC without soliciting offers from other potential vendors. This sole-source approach limits the government's ability to explore alternative pricing and service providers.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution for this maintenance service.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by ensuring the operational readiness of its Da Vinci robot. The service delivered is maintenance for a specific Da Vinci robot model. The geographic impact is localized to the facility where the robot is housed. There are no immediate workforce implications directly tied to this maintenance contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit access to innovative solutions from other vendors.

Positive Signals

Ensures continued operation of critical medical equipment.
Award to a single vendor can streamline the procurement process for essential services.

Sector Analysis

This contract falls within the Surgical and Medical Instrument Manufacturing sector, specifically focusing on the maintenance of advanced robotic surgical systems. The market for such specialized maintenance can be limited, often dominated by the original equipment manufacturers or authorized service providers. Benchmarking spending in this niche requires comparison to similar service contracts for high-value medical equipment.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses. The award was made directly to SDV Office Systems LLC, and there is no indication of specific provisions to engage the small business ecosystem.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Health and Human Services' internal procurement and financial management systems. Accountability measures are inherent in the purchase order process, requiring delivery of services as specified. Transparency is limited due to the sole-source nature of the award, with details primarily available through federal procurement databases.

Related Government Programs

Medical Equipment Maintenance Contracts
Surgical Robotics Procurement
Department of Health and Human Services Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $172,200 to SDV OFFICE SYSTEMS LLC. 1 YEAR PMA TO COVER DA VINCI ROBOT WITH SN:SK3828 SDV OFFICE SYSTEMS, LLC:1339020 [26-003778]

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $172,200.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-30.

What is the track record of SDV Office Systems LLC in providing maintenance for Da Vinci robots?

Information regarding SDV Office Systems LLC's specific track record in providing maintenance for Da Vinci robots is not readily available within the provided data. The award notice indicates this is a purchase order for a one-year period. Further investigation into the contractor's past performance, particularly with similar medical equipment or robotic systems, would be necessary to fully assess their capabilities and reliability. Federal procurement databases and contractor performance systems would be the primary sources for this information. Without this context, it's difficult to gauge their experience beyond this single award.

How does the $172,200 price compare to market rates for similar Da Vinci robot maintenance?

Direct comparison of the $172,200 price to market rates for similar Da Vinci robot maintenance is challenging due to the sole-source nature of this award. Typically, competitive bidding allows for price discovery and benchmarking against multiple offers. Without competitive data, it's difficult to ascertain if this price represents optimal value. To assess this, one would need to research service contracts for comparable Da Vinci models from other healthcare providers or government agencies, or consult industry reports on robotic surgery maintenance costs. The specific model and service level agreement (SLA) details would also be crucial for an accurate comparison.

What are the primary risks associated with a sole-source award for critical medical equipment maintenance?

The primary risks associated with a sole-source award for critical medical equipment maintenance include potential overpricing, lack of service innovation, and vendor lock-in. Without competition, the contractor may not feel pressured to offer the most competitive pricing, potentially leading to higher costs for the government. Furthermore, a sole-source award can limit the government's access to potentially more advanced or cost-effective maintenance solutions offered by other vendors. This can also create a dependency on a single provider, making it difficult to switch vendors in the future if performance or pricing becomes unsatisfactory. Ensuring robust contract terms and performance metrics is crucial to mitigate these risks.

How effective is the National Institutes of Health (NIH) in managing its medical equipment maintenance contracts?

Assessing the overall effectiveness of the NIH in managing its medical equipment maintenance contracts requires a broader analysis of their procurement practices, contract performance data, and asset management strategies. This specific award to SDV Office Systems LLC for Da Vinci robot maintenance is a single data point. While the purchase order is for a defined period and includes a specific service, its effectiveness in ensuring optimal uptime and cost-efficiency cannot be determined from this isolated instance. A comprehensive review would involve examining trends in maintenance costs, equipment reliability, and user satisfaction across their portfolio of medical equipment.

What is the historical spending pattern for Da Vinci robot maintenance at the NIH?

Historical spending patterns for Da Vinci robot maintenance at the NIH are not detailed in the provided data. This award represents a single purchase order for one year. To understand historical spending, one would need to analyze procurement records over several fiscal years, identifying all contracts and purchase orders related to Da Vinci robot maintenance, including the specific models, service providers, contract values, and periods of performance. This would reveal trends in spending, identify key vendors, and highlight any fluctuations in cost or volume of maintenance services procured.

What is the significance of the 'NC' status for 'st' (State) in this contract?

The 'NC' status for 'st' (State) in this contract likely indicates that the vendor, SDV Office Systems LLC, is located in North Carolina. Federal procurement data often uses abbreviations for state names. Therefore, 'NC' would stand for North Carolina. This information is relevant for understanding the geographic distribution of federal contractors and the potential economic impact of contract awards within specific states. It helps in tracking where government funds are being spent and which businesses are receiving federal contracts.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 REDMOND DR UNIT C, FLETCHER, NC, 28732

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $172,200

Exercised Options: $172,200

Current Obligation: $172,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline