VA's October Medical Surgical Prime Vendor Spending Reached $24.7M with Concordance Healthcare Solutions

Contract Overview

Contract Amount: $24,677,260 ($24.7M)

Contractor: Concordance Healthcare Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2024-10-31

Contract Duration: 30 days

Daily Burn Rate: $822.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF OCTOBER 2024

Place of Performance

Location: TIFFIN, SENECA County, OHIO, 44883

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.7 million to CONCORDANCE HEALTHCARE SOLUTIONS LLC for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF OCTOBER 2024 Key points: 1. Spending for October 2024 represents a significant monthly outlay for medical and surgical supplies. 2. The contract vehicle is a prime vendor model, suggesting a broad range of items are covered. 3. The absence of competition raises questions about potential price efficiencies and market responsiveness. 4. The firm-fixed-price contract type provides cost certainty for the government. 5. This expenditure falls within the Surgical and Medical Instrument Manufacturing sector. 6. The single awardee, Concordance Healthcare Solutions, holds a key position in the supply chain.

Value Assessment

Rating: fair

The reported spending of $24.7 million for October 2024 is a substantial figure for medical-surgical supplies. Without comparative data on similar prime vendor contracts or historical spending trends for this specific vendor, a precise value-for-money assessment is challenging. However, the lack of competition suggests potential for higher costs than a more robustly competed contract might yield. The firm-fixed-price nature offers predictability, but the overall value hinges on whether the pricing reflects competitive market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for this approach are not detailed in the provided data. A sole-source award means there was likely only one vendor considered capable of meeting the requirement, or it was awarded under specific circumstances that precluded full and open competition. This limits the opportunity for multiple vendors to bid, potentially impacting price discovery and the government's ability to secure the best possible pricing through market forces.

Taxpayer Impact: A sole-source award means taxpayers may not be benefiting from the cost savings that could arise from a competitive bidding process. The government may be paying a premium due to the lack of alternative offers.

Public Impact

Veterans Affairs (VA) healthcare facilities benefit from a consistent supply of medical and surgical instruments. The contract ensures the availability of essential supplies for patient care across VA hospitals and clinics. The geographic impact is primarily within Ohio, where Concordance Healthcare Solutions is based, but supplies likely reach VA facilities nationwide. The contract supports the healthcare workforce by ensuring they have the necessary tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce market pressure for innovation and efficiency.
Dependence on a single vendor could create supply chain vulnerabilities.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Prime vendor model can streamline procurement for a wide range of supplies.
Concordance Healthcare Solutions is a known entity in the medical supply chain.

Sector Analysis

The medical-surgical supply industry is a critical component of the healthcare sector, characterized by a complex supply chain involving manufacturers, distributors, and end-users like the VA. This contract falls under the Surgical and Medical Instrument Manufacturing (NAICS 339112) category. The market is competitive, with numerous players ranging from large corporations to specialized suppliers. Prime vendor contracts are common in government procurement to consolidate the acquisition of a broad spectrum of goods, aiming for efficiency and cost savings through volume. Benchmarks for this type of spending vary widely based on the scope of supplies and the specific agency's needs.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a stated factor in this specific contract award. As a sole-source award, there were no opportunities for small businesses to compete directly. Furthermore, there is no information regarding subcontracting plans with small businesses. This suggests that the primary focus was on fulfilling the medical-surgical supply needs through the awarded vendor, with no explicit set-aside or subcontracting requirements detailed in this report.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the sole-source nature of the award, as the justification for not competing is not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the contract's execution or award.

Related Government Programs

Medical Equipment and Supplies
Prime Vendor Contracts
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency into award justification.
Potential for overpayment due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.7 million to CONCORDANCE HEALTHCARE SOLUTIONS LLC. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF OCTOBER 2024

Who is the contractor on this award?

The obligated recipient is CONCORDANCE HEALTHCARE SOLUTIONS 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 $24.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2024-10-31.

What is the historical spending pattern for this specific medical-surgical prime vendor contract with the VA?

The provided data only reflects spending for October 2024 ($24.7 million). To understand the historical spending pattern, one would need access to previous monthly or annual reports for this contract. Analyzing past expenditures would reveal trends in demand, identify seasonal variations, and provide a baseline for assessing the current month's spending in context. Without this historical data, it's difficult to determine if October's spending is typical, an anomaly, or indicative of a growing need for these supplies. Further investigation into contract modifications, delivery orders, and overall contract value over its life cycle would be necessary.

What specific types of medical and surgical instruments are covered under this prime vendor contract?

The data identifies the contract under NAICS code 339112 (Surgical and Medical Instrument Manufacturing) and describes it as a 'MEDICAL SURGICAL PRIME VENDOR EXPENDITURES'. This suggests a broad category of items, likely encompassing a wide range of consumables, instruments, and equipment used in medical procedures and patient care. Examples could include surgical tools, diagnostic equipment, implants, bandages, sterile supplies, and personal protective equipment. A detailed list of covered items would typically be found in the contract's statement of work or associated product catalogs agreed upon by the VA and Concordance Healthcare Solutions. The 'prime vendor' designation implies a consolidated approach to sourcing these diverse items.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The specific justification for this determination is not included in the Express Report. Common reasons for sole-source awards include situations where only one responsible source can provide the required supplies or services, urgent and compelling needs that preclude competition, or when a follow-on contract is awarded to the original source under specific conditions. Without further documentation, such as a Justification and Approval (J&A) document, the precise rationale remains unknown. This lack of competition is a key area for scrutiny regarding value for taxpayer money.

How does Concordance Healthcare Solutions' pricing compare to other vendors or market rates for similar medical-surgical supplies?

Assessing Concordance Healthcare Solutions' pricing requires comparative data that is not present in the provided report. Since this was a sole-source award, direct price comparisons from a competitive bidding process are unavailable. To benchmark their pricing, one would need to: 1) Examine historical pricing data for this specific contract if available. 2) Compare unit prices for common items against other federal supply schedules (e.g., GSA schedules) or contracts held by other agencies. 3) Research commercial market rates for equivalent products. The firm-fixed-price nature provides cost certainty but does not inherently guarantee competitive pricing without a competitive award process or robust market research.

What are the potential risks associated with a sole-source prime vendor contract for medical-surgical supplies?

Several risks are associated with sole-source prime vendor contracts. Firstly, the lack of competition can lead to inflated prices, as the vendor faces less pressure to offer the most cost-effective solutions. Secondly, it can reduce incentives for innovation and service improvement, as the vendor's market position is secured without needing to outperform competitors. Thirdly, there's an increased reliance on a single entity, which can create supply chain vulnerabilities; disruptions at the vendor's end could significantly impact the VA's ability to procure essential supplies. Finally, without competitive benchmarking, it's harder to ensure the government is receiving optimal value for its investment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85 SHAFFER PARK DR, TIFFIN, OH, 44883

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,677,260

Exercised Options: $24,677,260

Current Obligation: $24,677,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0002

IDV Type: IDC

Timeline