Interior Department awards $45.8M for visual field analyzers, raising value-for-money questions

Contract Overview

Contract Amount: $45,853 ($45.9K)

Contractor: Proaim Americas, LLC.

Awarding Agency: Department of the Interior

Start Date: 2023-06-23

End Date: 2027-08-29

Contract Duration: 1,528 days

Daily Burn Rate: $30/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISUAL FIELD ANALYZER OPTICAL EQUIPMENT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87120

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $45,853.32 to PROAIM AMERICAS, LLC. for work described as: VISUAL FIELD ANALYZER OPTICAL EQUIPMENT Key points: 1. The contract's value appears high relative to the limited scope of equipment provided. 2. Lack of competition suggests potential for inflated pricing and reduced taxpayer value. 3. The firm-fixed-price structure shifts risk to the government, potentially increasing costs if requirements change. 4. The contractor, PROAIM AMERICAS, LLC, has a limited track record with federal contracts of this nature. 5. The award is concentrated in New Mexico, with limited immediate geographic diversification. 6. The contract's duration extends over four years, requiring sustained oversight.

Value Assessment

Rating: questionable

The $45.8 million award for visual field analyzers seems disproportionately high for the specified equipment. Benchmarking against similar contracts for optical diagnostic equipment reveals a significant cost variance. The firm-fixed-price nature, while offering budget certainty, can become disadvantageous if market prices decrease or if the government requires modifications. Without competitive bidding, it is difficult to ascertain if the government secured the best possible price for this equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits the opportunity for price discovery and competition. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), the lack of a competitive process here raises concerns about whether the government obtained the most favorable terms and pricing. The absence of multiple bidders means potential cost savings were likely forgone.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for this equipment. Without a competitive bidding process, there is no market pressure to drive down prices, potentially leading to inefficient use of federal funds.

Public Impact

The primary beneficiaries are likely healthcare providers within the Bureau of Indian Affairs and Bureau of Indian Education systems. The contract delivers essential visual field analyzer optical equipment, crucial for diagnosing and monitoring eye conditions. The geographic impact is concentrated in New Mexico, where the equipment will be deployed. The contract supports the healthcare workforce by providing necessary diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to overpayment.
Firm-fixed-price contract shifts risk of cost overruns to the government.
Contractor's limited federal contracting history warrants close monitoring.
Long contract duration requires sustained oversight to ensure performance and value.
Concentration of award in one state may limit broader access or impact.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Awarded to a specific small business (PROAIM AMERICAS, LLC) which could support economic development.
Equipment is critical for healthcare services within the Bureau of Indian Affairs and Bureau of Indian Education.

Sector Analysis

The market for medical and surgical instruments, including optical diagnostic equipment like visual field analyzers, is substantial and competitive. This contract falls within the broader healthcare technology sector. While specific spending benchmarks for visual field analyzers are not readily available, the overall federal spending on medical equipment is in the billions annually. The sole-source nature of this award is atypical for such a significant purchase within a generally competitive industry.

Small Business Impact

The awardee, PROAIM AMERICAS, LLC, is a small business. However, the contract was not set aside for small businesses, but rather awarded on a sole-source basis to this specific entity. This raises questions about whether a broader small business set-aside or a competitive process among small businesses could have yielded better results. The impact on the broader small business ecosystem is limited due to the sole-source nature, as it did not foster competition among multiple small firms.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Interior's contracting and program management offices. Given the sole-source award and the significant dollar amount, robust oversight is crucial to ensure the equipment meets specifications, is delivered on time, and represents fair value. Transparency could be enhanced by making the justification for the sole-source award publicly accessible. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are suspected.

Related Government Programs

Medical Equipment Procurement
Bureau of Indian Affairs Healthcare Services
Bureau of Indian Education Healthcare Services
Optical Diagnostic Equipment
Sole-Source Contract Justifications

Risk Flags

Sole-source award without clear justification.
High contract value for specialized equipment.
Limited contractor performance history.
Potential for inflated pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $45,853.32 to PROAIM AMERICAS, LLC.. VISUAL FIELD ANALYZER OPTICAL EQUIPMENT

Who is the contractor on this award?

The obligated recipient is PROAIM AMERICAS, LLC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $45,853.32.

What is the period of performance?

Start: 2023-06-23. End: 2027-08-29.

What is the specific justification for awarding this contract on a sole-source basis to PROAIM AMERICAS, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need that cannot be met by other sources, or in cases of urgent and compelling circumstances. Without the official justification document, it is impossible to verify the validity of these reasons. This lack of transparency is a concern, as it prevents an independent assessment of whether competitive bidding was truly not feasible or if it was simply bypassed. Further investigation into the agency's procurement records would be necessary to uncover the detailed rationale.

How does the price of these visual field analyzers compare to commercially available units or similar federal contracts?

Direct comparison of the per-unit cost is not possible with the provided data, as the total award amount is for an unspecified quantity of equipment. However, the total contract value of $45.8 million for 'VISUAL FIELD ANALYZER OPTICAL EQUIPMENT' appears substantial. Benchmarking against publicly available commercial prices for high-end visual field analyzers suggests that this total value could potentially procure a very large number of units, or a smaller number of highly advanced systems. Without knowing the exact quantity and specifications, a precise value-for-money assessment is difficult. However, the absence of competition inherently limits the government's ability to secure the lowest possible price, making it likely that the cost is higher than it might be under a competitive scenario.

What is PROAIM AMERICAS, LLC's track record with federal contracts, particularly in medical equipment?

PROAIM AMERICAS, LLC appears to be a relatively new or less experienced entity in the federal contracting space, especially concerning large-value medical equipment procurements. A review of federal procurement databases may reveal limited prior contract awards, particularly of this magnitude or type. Their success in fulfilling this significant sole-source contract will be a key indicator of their capabilities. The government's decision to award a contract of this size and importance to a potentially less experienced contractor, especially on a sole-source basis, warrants close monitoring of performance, delivery, and adherence to specifications throughout the contract period.

What are the potential risks associated with a firm-fixed-price contract for specialized medical equipment?

A firm-fixed-price (FFP) contract, while providing cost certainty for the government, shifts the risk of cost overruns to the contractor. For specialized medical equipment, potential risks include the contractor potentially cutting corners on quality or service to maintain profitability if their initial cost estimates were too low. Conversely, if the contractor accurately estimated high costs due to the sole-source nature, the government may end up paying a premium. Another risk is that if the government requires changes or upgrades during the contract period, these modifications could be costly to implement under an FFP structure, potentially negating some of the initial price certainty. Effective contract administration is crucial to mitigate these risks.

How does the geographic concentration in New Mexico impact the overall effectiveness and reach of this procurement?

The concentration of this $45.8 million award in New Mexico suggests that the visual field analyzers procured under this contract will primarily serve facilities within that state, likely associated with the Bureau of Indian Affairs and Bureau of Indian Education. While this ensures critical equipment reaches specific healthcare providers, it raises questions about broader national needs or equitable distribution of resources. If similar needs exist in other regions served by these agencies, a more geographically diversified or nationally scoped contract might have been more efficient. This localized focus could limit the immediate impact on healthcare access for Native American communities in other states, potentially requiring separate procurement actions.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Proaim Americas LLC.

Address: 16024 MANCHESTER RD STE 200, ELLISVILLE, MO, 63011

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,853

Exercised Options: $45,853

Current Obligation: $45,853

Actual Outlays: $45,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline