VA's Medical Surgical Prime Vendor Spending Reached $29.6M in Q3 2017 Under Full Competition

Contract Overview

Contract Amount: $29,639,789 ($29.6M)

Contractor: Kreisers, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-06-01

End Date: 2017-08-31

Contract Duration: 91 days

Daily Burn Rate: $325.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS JUNE, JULY, AUGUST 2017

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57105

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.6 million to KREISERS, LLC for work described as: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS JUNE, JULY, AUGUST 2017 Key points: 1. Total expenditures for June-August 2017 were $29.6 million. 2. KREISERS, LLC was the sole vendor for this period. 3. The contract was awarded under full and open competition. 4. Spending falls within the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: good

The total expenditure of $29.6 million over three months suggests a substantial but potentially reasonable volume for a prime vendor contract. Without specific unit pricing or detailed service breakdowns, a precise value assessment is difficult, but the firm fixed price structure provides some cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process that should have driven favorable pricing. The use of a delivery order under a prime vendor contract suggests a streamlined procurement method for ongoing needs.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value. The firm fixed price contract provides cost certainty for the duration of the delivery order.

Public Impact

Ensures timely access to essential medical and surgical supplies for VA facilities. Supports healthcare operations for veterans by maintaining inventory. The prime vendor model aims for efficiency in supply chain management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed expenditure breakdown per item.
Limited visibility into specific product pricing within the $29.6M total.
Vendor concentration for the specified period.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Supports critical healthcare needs for veterans.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is critical for healthcare delivery. Benchmarks for prime vendor contracts in this sector can vary widely based on scope, but consistent competition is key to managing costs effectively.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or suppliers under KREISERS, LLC. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs managed this procurement. Oversight would typically involve contract performance monitoring, invoice verification, and ensuring compliance with contract terms to maintain accountability.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of detailed itemized spending.
Single vendor for the period.
No small business participation data.
Limited insight into specific product pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.6 million to KREISERS, LLC. MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS JUNE, JULY, AUGUST 2017

Who is the contractor on this award?

The obligated recipient is KREISERS, 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 $29.6 million.

What is the period of performance?

Start: 2017-06-01. End: 2017-08-31.

What was the average monthly expenditure during this period, and how does it compare to historical averages for similar VA prime vendor contracts?

The average monthly expenditure was approximately $9.88 million ($29.6M / 3 months). Comparing this to historical averages requires access to VA's historical spending data for medical surgical prime vendors. Without this context, it's difficult to definitively state if this figure represents an increase or decrease, though it indicates significant ongoing demand for these supplies.

What specific types of medical and surgical supplies were procured under this $29.6 million expenditure, and were there any high-cost items driving the total?

The data provided does not specify the types of medical and surgical supplies procured. The total expenditure of $29.6 million encompasses a broad range of items managed by the prime vendor. Identifying specific high-cost drivers would necessitate a detailed breakdown of the items purchased and their respective costs, which is not available in this dataset.

How did the firm fixed price structure impact the final cost compared to other potential pricing models for this type of contract?

A firm fixed price contract offers cost certainty for the government, as the price is set regardless of the vendor's actual costs. This can be advantageous in preventing cost overruns, especially for well-defined requirements. However, it might lead to a higher initial price compared to cost-reimbursement contracts if the vendor anticipates higher risks or costs.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Concordance Healthcare Solutions LLC (UEI: 080220245)

Address: 2200 W 46TH ST, SIOUX FALLS, SD, 57105

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

Financial Breakdown

Contract Ceiling: $29,639,789

Exercised Options: $29,639,789

Current Obligation: $29,639,789

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0002

IDV Type: IDC

Timeline