VA spent $50.6M on surgical instruments via full and open competition from Oct 2017-Feb 2018

Contract Overview

Contract Amount: $50,618,443 ($50.6M)

Contractor: Kreisers, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-01

End Date: 2018-02-28

Contract Duration: 150 days

Daily Burn Rate: $337.5K/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 OF OCTOBER, NOVEMBER, DECEMBER 2017, AND JANUARY, FEBRUARY 2018.

Place of Performance

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

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50.6 million to KREISERS, LLC for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS OF OCTOBER, NOVEMBER, DECEMBER 2017, AND JANUARY, FEBRUARY 2018. Key points: 1. Spending of $50.6M over 5 months indicates significant demand for surgical instruments. 2. Kreisers, LLC secured the contract, highlighting potential market concentration. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The primary sector is Surgical and Medical Instrument Manufacturing, a critical area for healthcare.

Value Assessment

Rating: good

The $50.6M expenditure over five months suggests a substantial volume of purchases. Benchmarking against similar prime vendor contracts would be necessary for a precise value assessment, but the full and open competition indicates an effort to secure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, allowing any qualified vendor to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the surgical instruments procured.

Taxpayer Impact: The competitive bidding process likely resulted in cost savings for taxpayers compared to a sole-source or limited competition award.

Public Impact

Ensures availability of critical medical supplies for veterans. Supports the healthcare operations of the Department of Veterans Affairs. Impacts the medical device manufacturing industry through significant contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data for detailed analysis.
Potential for price fluctuations in future contract periods.

Positive Signals

Awarded under full and open competition.
Consistent spending indicates reliable supply chain.
Contract duration of 150 days allows for timely delivery.

Sector Analysis

The Department of Veterans Affairs is a major purchaser of medical and surgical supplies. Spending in this sector is crucial for maintaining healthcare services for veterans and is subject to significant market dynamics and regulatory oversight.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime vendors in this contract. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown per item.
Potential for price increases in subsequent contract periods.
Limited visibility into small business participation.
No information on performance metrics or quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50.6 million to KREISERS, LLC. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS OF OCTOBER, NOVEMBER, DECEMBER 2017, AND JANUARY, FEBRUARY 2018.

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 $50.6 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-02-28.

What was the average monthly expenditure for surgical instruments during this period?

The total expenditure was $50,618,443.06 over approximately five months (October 2017 to February 2018). This averages to roughly $10.12 million per month. This figure provides a baseline for understanding the scale of VA's surgical instrument procurement during this specific timeframe.

What specific types of surgical instruments were procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 339112, which covers Surgical and Medical Instrument Manufacturing. However, it does not detail the specific instruments purchased. A more granular breakdown would be needed to understand the exact product mix and their respective costs.

Were there any performance issues or quality concerns reported during the contract period?

The provided data does not contain information regarding performance issues or quality concerns. Such details would typically be found in contract performance reports, inspection records, or customer feedback mechanisms managed by the Department of Veterans Affairs.

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

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: $50,618,443

Exercised Options: $50,618,443

Current Obligation: $50,618,443

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0002

IDV Type: IDC

Timeline