VA's Medical Surgical Prime Vendor Spending Reached $33.5M in Q3 2017 with American Purchasing Services

Contract Overview

Contract Amount: $33,568,208 ($33.6M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-06-01

End Date: 2017-08-31

Contract Duration: 91 days

Daily Burn Rate: $368.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: MIRAMAR, BROWARD County, FLORIDA, 33025

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.6 million to AMERICAN PURCHASING SERVICES, LLC for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS JUNE, JULY, AUGUST 2017. Key points: 1. The Department of Veterans Affairs (VA) spent over $33.5 million on medical surgical supplies through its prime vendor program in Q3 2017. 2. American Purchasing Services, LLC was the sole awardee for this period, highlighting potential concentration in this critical supply chain. 3. The contract utilized a Firm Fixed Price structure, offering cost predictability for the VA. 4. The spending falls within the Surgical and Medical Instrument Manufacturing sector, crucial for healthcare delivery.

Value Assessment

Rating: good

The total award value of $33.5M over 91 days suggests a substantial but potentially reasonable expenditure for a prime vendor supporting medical surgical needs. Benchmarking against similar large-scale prime vendor contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the data only reflects a specific delivery order period, and the overall competition strategy for the prime vendor program needs further examination to ensure sustained price discovery.

Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers. The $33.5M expenditure represents a significant investment, and ongoing competition is vital to ensure cost-effectiveness.

Public Impact

Ensures availability of critical medical and surgical supplies for VA facilities. Supports healthcare operations for veterans by providing necessary equipment and instruments. The prime vendor model aims to streamline procurement and reduce administrative burden. Potential for price fluctuations or supply chain disruptions if competition is not maintained long-term.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on specific items purchased and their unit costs.
Limited insight into the competitive landscape beyond this specific delivery order.
Potential for vendor lock-in if future competitions are not robust.

Positive Signals

Contract awarded under full and open competition.
Firm Fixed Price contract provides cost certainty.
Streamlined procurement through a prime vendor.

Sector Analysis

The spending is within the Surgical and Medical Instrument Manufacturing sector, which is vital for healthcare. Benchmarking this expenditure against other federal agencies or large healthcare systems for similar prime vendor services would provide further context on its efficiency.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this specific contract or the broader prime vendor program. Further analysis is needed to assess small business participation and opportunities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure the vendor meets performance requirements, maintains supply chain integrity, and provides fair pricing throughout the contract duration.

Related Government Programs

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

Risk Flags

Potential for price increases due to limited competition.
Supply chain disruption risk if vendor faces issues.
Need for ongoing monitoring of vendor performance.
Lack of transparency on specific product pricing.
Ensuring adequate small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.6 million to AMERICAN PURCHASING SERVICES, LLC. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS JUNE, JULY, AUGUST 2017.

Who is the contractor on this award?

The obligated recipient is AMERICAN PURCHASING 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 $33.6 million.

What is the period of performance?

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

What was the average monthly spending on medical surgical supplies through this prime vendor contract during the specified period?

The total expenditure for June, July, and August 2017 was $33,568,208.02. Dividing this by three months yields an average monthly spending of approximately $11,189,402.67. This figure represents a significant and consistent outlay for essential medical and surgical supplies.

What are the primary risks associated with relying on a single prime vendor for medical surgical supplies?

The primary risks include potential price inflation due to reduced competition, supply chain vulnerabilities if the vendor faces disruptions, and limited flexibility in sourcing alternative products. Over-reliance can also diminish the VA's leverage in negotiating favorable terms over time.

How effectively does the prime vendor model ensure the availability of a wide range of medical surgical instruments?

The effectiveness hinges on the vendor's capabilities and the contract's scope. A well-structured prime vendor contract should ensure access to a broad catalog of instruments. However, the VA must actively monitor inventory levels, product availability, and responsiveness to ensure it meets diverse clinical needs.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10315 USA TODAY WAY, MIRAMAR, FL, 33025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,568,208

Exercised Options: $33,568,208

Current Obligation: $33,568,208

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0004

IDV Type: IDC

Timeline