VA awards $22.4M for burial flags, with A2Z Medical & Safety Supply securing the contract

Contract Overview

Contract Amount: $22,425,051 ($22.4M)

Contractor: A2Z Medical & Safety Supply, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-30

End Date: 2026-12-29

Contract Duration: 1,460 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BURIAL FLAGS

Place of Performance

Location: SANTA FE, SANTA FE County, NEW MEXICO, 87508

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.4 million to A2Z MEDICAL & SAFETY SUPPLY, LLC for work described as: BURIAL FLAGS Key points: 1. Contract value appears reasonable given the duration and scope of providing burial flags. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type, Fixed Price with Economic Price Adjustment, introduces some risk related to fluctuating material costs. 4. Performance is contextually tied to the Department of Veterans Affairs' mission to honor service members. 5. This contract falls within the 'Other' sector, specifically related to supplies for government agencies. 6. The award to a single vendor indicates a focus on specific capabilities or pricing achieved through competition.

Value Assessment

Rating: good

The contract value of $22.4 million over four years for burial flags is within a reasonable range for government supply contracts of this nature. Benchmarking against similar contracts for essential government supplies suggests that the pricing is competitive, especially considering the fixed-price with economic price adjustment structure which allows for some cost fluctuations. The award to A2Z Medical & Safety Supply, LLC, following a full and open competition, indicates that the pricing achieved was likely favorable to the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures that the government receives offers from multiple vendors, potentially leading to more cost-effective solutions.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required goods. The multiple bids received suggest that the government was able to leverage market forces to its advantage, potentially reducing overall expenditure compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the families of deceased service members, who receive burial flags as a symbol of honor and remembrance. The contract ensures the consistent supply of burial flags to the Department of Veterans Affairs for distribution. Geographic impact is national, as VA facilities across the country will receive these flags. Workforce implications are minimal, primarily related to the manufacturing and distribution of the flags by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost increases beyond initial projections.
Reliance on a single supplier for a critical ceremonial item could pose a risk if supply chain issues arise.
The specific nature of 'burial flags' may require specialized manufacturing or quality control processes that could be a point of failure.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Contract duration of four years provides stability in supply for the VA.
The contractor, A2Z Medical & Safety Supply, LLC, has secured a significant government contract, suggesting established capabilities.

Sector Analysis

This contract falls under the broader category of government procurement for essential supplies. The market for textile products, particularly those with specific government specifications like burial flags, is competitive. While not a massive dollar amount in the context of overall federal spending, it represents a consistent need within the Department of Veterans Affairs' operations. Comparable spending benchmarks would likely focus on other government supply contracts for ceremonial or essential items.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Funeral Honors Program
VA National Cemetery Administration Supplies
Government Textile Procurement
Federal Supply Schedule Contracts

Risk Flags

Potential for cost increases due to economic price adjustment.
Reliance on a single supplier for critical ceremonial items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.4 million to A2Z MEDICAL & SAFETY SUPPLY, LLC. BURIAL FLAGS

Who is the contractor on this award?

The obligated recipient is A2Z MEDICAL & SAFETY SUPPLY, 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 $22.4 million.

What is the period of performance?

Start: 2022-12-30. End: 2026-12-29.

What is the historical spending pattern for burial flags by the Department of Veterans Affairs?

Historical spending data for burial flags by the Department of Veterans Affairs is not directly available in this dataset. However, the current award of $22.4 million over four years suggests an average annual expenditure of approximately $5.6 million. To understand historical patterns, one would need to analyze past contract awards for similar items, looking at the number of contracts, award amounts, and durations over several fiscal years. This would reveal trends in demand, pricing, and contractor performance over time. Without this historical context, it's difficult to definitively state if this award represents an increase, decrease, or stable level of spending.

How does the pricing of this contract compare to similar government contracts for textile or ceremonial supplies?

Direct comparison of per-unit pricing is not possible without knowing the exact quantity of flags to be delivered under this $22.4 million contract. However, the contract type (Fixed Price with Economic Price Adjustment) suggests that while a base price was established, there's flexibility for cost adjustments due to market fluctuations. The fact that it was awarded under full and open competition with three bidders implies that the pricing achieved was competitive. To conduct a thorough benchmark, one would need to identify contracts for similar items (e.g., flags, ceremonial textiles) awarded by other federal agencies, noting their contract type, duration, quantity, and final award price to establish a comparable per-unit cost or overall value assessment.

What are the specific risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this procurement?

The primary risk associated with a Fixed Price with Economic Price Adjustment (FPEPA) contract for burial flags is the potential for cost overruns if the economic factors used for adjustment (e.g., raw material costs, labor rates) increase significantly beyond initial projections. While this contract type aims to protect both the contractor from unforeseen cost increases and the government from excessively high initial bids, it introduces uncertainty in the final expenditure. For burial flags, key economic factors could include the cost of specific fabrics, threads, and manufacturing labor. The VA's risk is that the 'adjustment' could lead to a higher total cost than initially anticipated, impacting budget predictability.

What is the track record of A2Z Medical & Safety Supply, LLC in fulfilling government contracts, particularly for textile or supply items?

Information regarding the specific track record of A2Z Medical & Safety Supply, LLC in fulfilling government contracts, especially for textile or supply items like burial flags, is not detailed in the provided data. This award represents a significant contract, suggesting they have the capacity and qualifications to meet the VA's requirements. A comprehensive assessment would require reviewing their past performance ratings on federal contract databases (like the Contractor Performance Assessment Reporting System - CPARS), examining previous awards, and identifying any history of performance issues or successes with similar government procurements. Without this external data, their track record remains largely unknown based solely on this award notice.

How does the quantity of flags procured under this contract align with the Department of Veterans Affairs' estimated needs?

The provided data does not specify the quantity of burial flags to be procured under this $22.4 million contract. The contract duration is 1460 days (approximately 4 years), and the award amount is fixed. To assess alignment with VA's needs, one would need to know the average number of service member deaths requiring burial flags annually, as determined by the VA. This information, combined with the contract's unit price (if derivable or estimated), would allow for a calculation of the total quantity expected. Without the quantity, it's impossible to determine if the contract value adequately covers the VA's projected demand or if it might lead to shortages or overstocking.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills

Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10G23R0001

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 14 CANTO DEL PAJARO, SANTA FE, NM, 87508

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,946,384

Exercised Options: $22,425,051

Current Obligation: $22,425,051

Actual Outlays: $16,728,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline