VA spent $58.8M on medical surgical supplies in 5 months, with American Purchasing Services as prime vendor

Contract Overview

Contract Amount: $58,828,440 ($58.8M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-01

End Date: 2018-02-28

Contract Duration: 150 days

Daily Burn Rate: $392.2K/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: MIRAMAR, BROWARD County, FLORIDA, 33025

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.8 million to AMERICAN PURCHASING SERVICES, 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. The contract facilitated the delivery of essential medical and surgical supplies to support VA operations. 2. Spending concentrated in Florida, indicating a regional focus for this prime vendor's distribution. 3. The prime vendor, American Purchasing Services, LLC, managed a significant portion of the VA's medical supply chain. 4. The contract period covered a critical five-month span, highlighting consistent demand for these supplies. 5. A firm fixed-price contract type suggests predictable costs for the government over the performance period.

Value Assessment

Rating: good

The reported spending of $58.8 million over five months represents a substantial investment in medical surgical supplies. Benchmarking this against similar prime vendor contracts for the Department of Veterans Affairs would provide a clearer picture of value for money. However, the firm fixed-price nature of the contract suggests a degree of cost certainty for the VA, which is a positive indicator. The specific value derived from this expenditure depends on the breadth and criticality of the supplies procured and their impact on patient care.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally leads to better price discovery and potentially more favorable terms for the government. This approach is designed to ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through a robust bidding process.

Public Impact

Veterans receiving care through VA facilities benefit from the timely availability of necessary medical and surgical supplies. Healthcare providers within the VA system are supported with the equipment needed for patient treatment and procedures. The contract's impact is primarily concentrated in Florida, where the supplies are likely distributed and utilized. The contract supports the operational readiness of VA healthcare facilities, ensuring continuity of care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and timeliness of deliveries.
The concentration of spending in one state (Florida) could indicate potential logistical inefficiencies if supplies are needed nationwide.
No information on small business subcontracting is provided, raising questions about broader economic impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost predictability for the government.
The contract addresses a critical need for medical and surgical supplies within the VA system.

Sector Analysis

The medical surgical supply industry is a critical component of the healthcare sector, encompassing a wide range of products from basic consumables to complex surgical instruments. This contract falls within the Surgical and Medical Instrument Manufacturing (NAICS 339112) sector. The market is characterized by numerous manufacturers and distributors vying for government contracts, particularly with large agencies like the Department of Veterans Affairs. Spending benchmarks for similar prime vendor contracts can vary significantly based on the scope of supplies, geographic coverage, and contract duration.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded through full and open competition, there is no explicit information regarding subcontracting opportunities for small businesses. Further analysis would be needed to determine if American Purchasing Services, LLC has a subcontracting plan in place that benefits the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports and Inspector General reviews would provide deeper insights into the contract's execution and value.

Related Government Programs

VA Medical Equipment Procurement
Federal Supply Schedule (FSS) Contracts
Defense Logistics Agency (DLA) Medical Supplies

Risk Flags

Lack of detailed performance metrics.
Limited information on small business subcontracting.
Geographic concentration of spending requires further scrutiny.
No specific data on unit pricing for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.8 million to AMERICAN PURCHASING SERVICES, 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 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 $58.8 million.

What is the period of performance?

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

What is the historical spending trend for this specific prime vendor contract with the VA?

The provided data covers a specific five-month period from October 2017 to February 2018, during which $58.8 million was spent. To understand historical spending trends, one would need to examine contract awards and expenditures over multiple years. This would involve looking at previous contract periods for American Purchasing Services, LLC, or any prior prime vendors for similar medical surgical supplies. Analyzing year-over-year spending, average monthly expenditures, and any significant fluctuations would reveal patterns and help assess whether the current spending level is consistent, increasing, or decreasing relative to past performance. Without this longitudinal data, it's impossible to establish a definitive historical trend.

How does the per-unit cost of items procured under this contract compare to market rates or other federal contracts?

The provided data does not include specific itemized costs or quantities, making a direct per-unit cost comparison impossible. To conduct such an analysis, detailed line-item data from the delivery orders would be required, including the specific item, quantity purchased, and unit price. This data would then need to be benchmarked against publicly available pricing from Federal Supply Schedules (FSS), other agency contracts for similar items, or commercial market data. Factors such as volume discounts, delivery terms, and specific product specifications would need to be considered for an accurate comparison. The absence of this granular data prevents a definitive assessment of value for money on a per-unit basis.

What is the track record of American Purchasing Services, LLC in fulfilling federal contracts, particularly within the VA?

Information on the track record of American Purchasing Services, LLC is not detailed in the provided express report. A comprehensive assessment would require reviewing their past performance evaluations, any documented contract disputes or terminations, and their history of delivering goods and services on time and to specification for the VA and other federal agencies. Databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) could offer insights into past performance issues. Understanding their experience with similar large-scale prime vendor contracts is crucial for evaluating their capability and reliability in managing the VA's medical surgical supply chain.

What specific types of medical and surgical supplies were procured under this contract?

The provided data identifies the contract as being for 'MEDICAL SURGICAL PRIME VENDOR EXPENDITURES' and assigns the North American Industry Classification System (NAICS) code 339112, which relates to 'Surgical and Medical Instrument Manufacturing.' However, it does not list the specific items procured. A prime vendor contract typically covers a broad range of supplies. To understand the specifics, one would need to access the underlying delivery orders or contract line items. These would detail the exact products, such as bandages, syringes, surgical tools, diagnostic equipment, or pharmaceuticals, that were purchased during the specified period.

What are the potential risks associated with relying on a single prime vendor for a significant portion of medical surgical supplies?

Relying on a single prime vendor, like American Purchasing Services, LLC in this instance, can introduce several risks. Supply chain disruptions, whether due to the vendor's internal issues, natural disasters, or geopolitical events, could significantly impact the VA's ability to procure necessary supplies. There's also a potential risk of reduced price competition over time if the vendor becomes entrenched, potentially leading to higher costs than a more diversified procurement strategy. Furthermore, a lack of alternative sources could limit the VA's flexibility in adopting new technologies or products. Robust contract management, contingency planning, and regular performance reviews are essential to mitigate these risks.

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: $58,828,440

Exercised Options: $58,828,440

Current Obligation: $58,828,440

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0004

IDV Type: IDC

Timeline