VA awards $1.24M delivery order for surgical instruments to SDV OFFICE SYSTEMS LLC

Contract Overview

Contract Amount: $124,156 ($124.2K)

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: $4.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: NX ORDERS PLACED MARCH 2026

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $124,156 to SDV OFFICE SYSTEMS LLC for work described as: EXPRESS REPORT: NX ORDERS PLACED MARCH 2026 Key points: 1. Value for money is difficult to assess due to the lack of competition and limited performance period. 2. The contract was not competed, raising questions about potential price overruns and the absence of market-driven pricing. 3. Risk indicators are moderate, primarily due to the sole-source nature and short duration, which limits extensive performance evaluation. 4. Performance context is minimal, with a one-month delivery period offering little insight into long-term reliability or quality. 5. Sector positioning places this contract within the Surgical and Medical Instrument Manufacturing industry, a critical area for healthcare provision.

Value Assessment

Rating: fair

Benchmarking the value of this $1.24 million delivery order is challenging given its sole-source nature and short, one-month duration. Without competitive bids or comparable contract data for similar instruments over this specific period, it's difficult to definitively assess if the price reflects fair market value. The fixed-price nature offers some cost certainty, but the lack of competition prevents a robust comparison against industry benchmarks or alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Department of Veterans Affairs (VA) did not provide details on why full and open competition was not utilized. This approach limits the opportunity for price discovery through market forces and may result in higher costs compared to a competitively bid contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these surgical instruments due to the absence of competitive bidding, which typically drives down costs.

Public Impact

Veterans receiving care through the VA healthcare system will benefit from the availability of necessary surgical instruments. The services delivered include the provision of surgical and medical instruments essential for patient treatment. The geographic impact is likely concentrated within facilities served by the VA, potentially across North Carolina. Workforce implications are minimal, as this contract focuses on the supply of goods rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value.
Short contract duration provides limited scope for performance assessment.
Lack of detailed justification for sole-source award raises transparency concerns.

Positive Signals

Fulfills a critical need for medical supplies within the VA system.
Fixed-price contract provides cost predictability for the awarded amount.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is a vital component of the healthcare industry, encompassing the production of a wide array of tools used in medical procedures. This contract falls under NAICS code 339112. Spending in this sector by federal agencies is substantial, driven by the ongoing needs of military and public health facilities. Comparable spending benchmarks are difficult to establish without more specific product details and competitive data, but the overall market for medical devices is significant and growing.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to include specific small business set-aside provisions. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, this award does not directly contribute to the small business ecosystem or provide opportunities for small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and procurement oversight mechanisms. As a delivery order under a larger contract vehicle (though not specified here), its execution is monitored by the VA's program managers. Transparency is limited by the sole-source nature and the brevity of the provided information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Limited performance period
No justification for sole-source provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $124,156 to SDV OFFICE SYSTEMS LLC. EXPRESS REPORT: NX ORDERS PLACED MARCH 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 $124,156.

What is the period of performance?

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

What is the specific type of surgical and medical instrument being procured under this delivery order?

The provided data does not specify the exact type of surgical and medical instruments being procured. It only indicates the general category under NAICS code 339112, which covers Surgical and Medical Instrument Manufacturing. To provide a more detailed analysis, information on the specific instruments (e.g., scalpels, forceps, diagnostic equipment) would be necessary. This detail is crucial for understanding the criticality of the items, potential supply chain risks, and for accurate benchmarking against market prices.

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

The justification for awarding this $1.24 million delivery order on a sole-source basis is not provided in the Express Report. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, such as in cases of urgent and compelling requirements, unique capabilities, or when a specific brand-name item is mandated. Without this justification, it is difficult to assess whether the VA fully explored competitive options or if this award represents the best value for taxpayers. Further investigation into the contract file would be required to understand the rationale.

How does the pricing of this delivery order compare to similar instruments purchased competitively by the VA or other federal agencies?

Direct comparison of pricing is not feasible with the current data due to the sole-source nature of this award and its short, one-month duration. Competitive awards typically allow for price benchmarking against multiple bids and established market rates. Without knowing the specific instruments and having access to pricing data from competitively awarded contracts for similar items, it's impossible to determine if this $1.24 million order represents a fair market price. The absence of competition inherently limits the ability to validate cost-effectiveness.

What is the track record of SDV OFFICE SYSTEMS LLC in fulfilling federal contracts, particularly for medical instruments?

The provided data identifies SDV OFFICE SYSTEMS LLC as the contractor but does not offer details on their track record. To assess their reliability and performance history, one would need to examine past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review of their past performance would help determine their capability to deliver the required surgical and medical instruments effectively and on time.

What are the potential risks associated with a sole-source award for critical medical instruments?

Sole-source awards for critical medical instruments carry several risks. Firstly, the lack of competition can lead to inflated prices, meaning taxpayers may overpay for the goods. Secondly, it limits the agency's ability to leverage market dynamics to secure the best quality or most innovative products. Thirdly, it can create a dependency on a single supplier, potentially leading to supply chain vulnerabilities if that supplier faces production issues or goes out of business. Finally, it reduces transparency and accountability in the procurement process.

What is the historical spending pattern for surgical and medical instruments by the Department of Veterans Affairs?

The provided data focuses on a single, recent delivery order and does not offer historical spending patterns for surgical and medical instruments by the VA. To analyze historical spending, one would need to access broader contract databases and aggregate spending data over multiple fiscal years. This would reveal trends in procurement volume, average contract values, dominant suppliers, and the proportion of spending allocated to competitive versus sole-source awards within this category. Such analysis is crucial for understanding the VA's long-term procurement strategy and budget allocation for medical supplies.

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: 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: $124,156

Exercised Options: $124,156

Current Obligation: $124,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0115

IDV Type: IDC

Timeline