VA awards $2.96M in March 2026 for surgical instruments, highlighting a competitive procurement

Contract Overview

Contract Amount: $2,959,272 ($3.0M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-01

End Date: 2026-03-31

Contract Duration: 30 days

Daily Burn Rate: $98.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: ORDERS PLACED BY ORDERING OFFICERS FOR THE MONTH OF MAR 2026

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to SDV OFFICE SYSTEMS LLC for work described as: EXPRESS REPORT: ORDERS PLACED BY ORDERING OFFICERS FOR THE MONTH OF MAR 2026 Key points: 1. The contract value represents a significant portion of the VA's spending in this category for the month. 2. SDV OFFICE SYSTEMS LLC secured this order, indicating their role in supplying critical medical equipment. 3. The full and open competition suggests a robust market for these instruments. 4. The fixed-price contract type aims to control costs and provide predictability. 5. This order falls within the broader category of surgical and medical instrument manufacturing.

Value Assessment

Rating: good

The awarded amount of $2.96 million for a one-month period appears reasonable given the nature of medical instrument supply. Benchmarking against similar contracts for surgical and medical instruments would provide a clearer picture of value for money. The fixed-price contract type suggests an effort to manage costs effectively. Without specific per-unit data or comparison to market rates for the exact instruments procured, a definitive value assessment is challenging, but the competitive nature of the award is a positive indicator.

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 were likely invited to bid. The specific number of bidders is not provided, but the designation suggests a healthy competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of qualified vendors, ensuring the government receives the best value for its investment.

Public Impact

Veterans Affairs medical facilities will receive essential surgical and medical instruments. The procurement supports the operational needs of healthcare providers within the VA system. The contract directly impacts the availability of necessary equipment for patient care. The geographic impact is likely nationwide, serving VA facilities across the country.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific detail on the exact instruments procured makes it difficult to assess unit price competitiveness.
The short duration of the order (30 days) may indicate a need for rapid fulfillment or a smaller, specific requirement, rather than a long-term strategic supply agreement.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The firm fixed-price contract type provides cost certainty for the government.
The procurement supports critical healthcare needs within the Department of Veterans Affairs.

Sector Analysis

This contract falls within the Surgical and Medical Instrument Manufacturing sector (NAICS 339112). This industry is characterized by the production of a wide range of medical devices, from simple instruments to complex diagnostic equipment. The market is driven by healthcare demand, technological advancements, and regulatory requirements. Spending in this sector by government agencies like the VA is crucial for maintaining healthcare infrastructure and ensuring the availability of necessary medical supplies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, SDV OFFICE SYSTEMS LLC, is likely a larger entity or a small business that won through open competition. There is no explicit information on subcontracting plans for small businesses within this specific order, but the overall impact on the small business ecosystem would depend on whether SDV OFFICE SYSTEMS LLC utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and contracting offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is facilitated by contract award databases, though detailed performance metrics are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Surgical Instrument Supply Contracts
Federal Healthcare Equipment Purchasing

Risk Flags

Lack of specific product details
Limited performance metrics provided
Unknown total contract value beyond current order

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to SDV OFFICE SYSTEMS LLC. EXPRESS REPORT: ORDERS PLACED BY ORDERING OFFICERS FOR THE MONTH OF MAR 2026

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS 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 $3.0 million.

What is the period of performance?

Start: 2026-03-01. End: 2026-03-31.

What is the specific type and quantity of surgical and medical instruments ordered?

The provided data does not specify the exact types or quantities of surgical and medical instruments ordered under this contract. The NAICS code 339112 covers a broad range of products within 'Surgical and Medical Instrument Manufacturing.' To understand the precise nature of the procurement, further details from the contract award documentation would be necessary. This could include line-item descriptions, specifications, and quantities for each item. Without this granular information, it is impossible to assess the specific value or suitability of the items procured.

How does the awarded amount compare to historical spending for similar instruments by the VA?

The awarded amount of $2.96 million for March 2026 is a specific data point for a single month's orders. To compare this to historical spending, one would need to analyze past monthly or annual expenditures by the VA for similar surgical and medical instruments. This would involve querying historical contract databases for awards under NAICS code 339112 or specific product categories. A comparison would reveal whether this award represents an increase, decrease, or stable level of spending for these types of goods, providing context on the VA's procurement trends and budget allocation for medical supplies.

What is the track record of SDV OFFICE SYSTEMS LLC in fulfilling government contracts, particularly for the VA?

Information regarding the track record of SDV OFFICE SYSTEMS LLC in fulfilling government contracts, especially for the VA, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including on-time delivery, quality of goods, and adherence to contract terms. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be valuable resources for this analysis. Understanding their history would help gauge the reliability and capability of the contractor for this specific order.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the methods for measuring performance for this contract. Typically, for supply contracts, KPIs might include on-time delivery rates, product defect rates, order accuracy, and compliance with specifications. The Department of Veterans Affairs would have established performance standards within the contract's statement of work. Performance would likely be monitored through regular reporting by the contractor and potentially through inspections or quality checks by VA personnel.

What is the estimated value of this contract beyond the initial March 2026 order?

The provided data only details orders placed for the month of March 2026, totaling $2.96 million. It does not indicate if this is a single delivery order under a larger contract with potential for future orders, or if it represents the entirety of the contract value. The 'aw' field indicates 'DELIVERY ORDER,' suggesting it is one order placed against a potentially larger contract vehicle (like a GSA Schedule or an IDIQ). Without further information on the base contract, the total estimated value beyond this specific order remains unknown.

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: 34 REDMOND DR UNIT C, FLETCHER, NC, 28732

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,959,272

Exercised Options: $2,959,272

Current Obligation: $2,959,272

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G25D0013

IDV Type: IDC

Timeline