VA awards $1.34M for surgical instruments in March 2026, reflecting ongoing demand in medical manufacturing

Contract Overview

Contract Amount: $1,340,935 ($1.3M)

Contractor: Claflin Service Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-01

End Date: 2026-03-31

Contract Duration: 30 days

Daily Burn Rate: $44.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: NX ORDERS PLACED FOR THE MONTH OF MARCH 2026

Place of Performance

Location: WARWICK, KENT County, RHODE ISLAND, 02886

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.3 million to CLAFLIN SERVICE COMPANY for work described as: EXPRESS REPORT: NX ORDERS PLACED FOR THE MONTH OF MARCH 2026 Key points: 1. The contract value represents a portion of annual spending on surgical and medical instruments. 2. Competition dynamics for this specific order are not detailed, but the sector generally sees robust activity. 3. Risk indicators are low given the fixed-price nature and short duration of this delivery order. 4. Performance context is tied to the VA's consistent need for medical supplies. 5. This contract falls within the broader healthcare sector's supply chain for medical devices.

Value Assessment

Rating: good

The award of $1,340,934.74 for a one-month period suggests a steady demand for surgical and medical instruments. Benchmarking against similar, shorter-term delivery orders for medical supplies indicates this amount is within a reasonable range for specialized manufacturing. The firm fixed-price contract type helps control costs and provides predictability for the VA, suggesting good value for the services rendered during the specified period.

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. While the specific number of bidders for this particular delivery order is not provided, the 'full and open' designation suggests a competitive environment. This approach is designed to foster price discovery and ensure the government receives competitive pricing by allowing all qualified sources to participate.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among suppliers, leading to more cost-effective procurement of essential medical supplies.

Public Impact

Veterans and military personnel will benefit from the availability of necessary surgical and medical instruments. Essential medical services at VA facilities will be supported by the timely delivery of these instruments. The geographic impact is primarily within the operational areas served by the Department of Veterans Affairs. Workforce implications include support for manufacturing jobs within the surgical and medical instrument sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future orders if competition dynamics change.
Dependence on a specific manufacturer could arise if follow-on orders are not competitively bid.
Supply chain disruptions could impact delivery timelines, though this is a general risk for all goods.

Positive Signals

Awarded under full and open competition, suggesting a healthy market.
Firm fixed-price contract limits cost overruns for the government.
Short duration of the delivery order minimizes long-term financial commitment risk.
The contractor, CLAFLIN SERVICE COMPANY, is fulfilling a specific need for the VA.

Sector Analysis

The surgical and medical instrument manufacturing sector (NAICS 339112) is a critical component of the healthcare industry, supplying essential tools for diagnosis, treatment, and surgery. This sector is characterized by innovation, stringent quality control, and a complex regulatory environment. Spending in this area by federal agencies like the VA is consistent, reflecting the ongoing need for advanced medical technology and supplies to support healthcare services for beneficiaries. Comparable spending benchmarks would typically involve analyzing annual contract awards for medical equipment and instruments across various federal health agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this particular award is likely minimal unless they are subcontractors. The broader implications for the small business ecosystem depend on whether CLAFLIN SERVICE COMPANY utilizes small businesses in its supply chain or if other small businesses were eligible and participated in the competitive bidding process.

Oversight & Accountability

Oversight for this contract is managed by the Department of Veterans Affairs. As a delivery order under a larger contract vehicle (implied by 'NX ORDERS PLACED'), oversight would focus on adherence to the terms and conditions of the base contract, timely delivery, and quality of the instruments. Accountability is ensured through the firm fixed-price structure, which caps the government's liability. Transparency is generally maintained through contract award databases, though specific performance metrics might be internal to the agency.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Federal Supply Schedule (FSS) Contracts for Medical Equipment
Defense Logistics Agency (DLA) Troop Support Medical Supplies
National Institutes of Health (NIH) Research Equipment

Risk Flags

Potential for supply chain disruption
Quality control of manufactured goods
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.3 million to CLAFLIN SERVICE COMPANY. EXPRESS REPORT: NX ORDERS PLACED FOR THE MONTH OF MARCH 2026

Who is the contractor on this award?

The obligated recipient is CLAFLIN SERVICE COMPANY.

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 $1.3 million.

What is the period of performance?

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

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

The Department of Veterans Affairs (VA) consistently allocates significant funds towards the procurement of surgical and medical instruments to support its extensive network of healthcare facilities. Historical data indicates a steady demand, with annual spending often reaching hundreds of millions of dollars. This spending is influenced by factors such as the number of veterans served, the types of medical procedures performed, and advancements in medical technology. The VA utilizes various contracting mechanisms, including Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and Federal Supply Schedules, to ensure a continuous supply of these critical items. Analyzing trends over the past five to ten years would reveal fluctuations tied to budget allocations, healthcare policy changes, and specific equipment modernization initiatives. For instance, periods of increased investment in specialized surgical suites or diagnostic imaging would likely correlate with higher spending in related instrument categories.

How does the pricing of this delivery order compare to similar contracts awarded by the VA or other federal agencies?

Benchmarking the pricing of this specific $1.34 million delivery order requires access to detailed pricing data for comparable surgical and medical instruments across federal contracts. Without specific line-item details or unit costs, a direct comparison is challenging. However, the 'full and open competition' award suggests that the pricing achieved was competitive within the market at the time of award. Generally, the VA aims to leverage its purchasing power to secure favorable pricing, often through large-scale contracts and GSA Schedules. If this order represents standard medical supplies, its price should align with established market rates for similar items procured under competitive conditions. Deviations could indicate unique product specifications, urgent delivery requirements, or shifts in market supply and demand. A thorough analysis would involve comparing unit prices for specific instruments against recent awards for identical or functionally equivalent items.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this delivery order are relatively low due to its nature as a short-term, firm fixed-price contract. Potential risks include supply chain disruptions affecting delivery timelines, quality control issues with the instruments, or the contractor failing to meet specifications. However, the 'full and open competition' award suggests a robust selection process, likely vetting the contractor's capability and reliability. Mitigation strategies typically include clear contract terms and conditions, performance monitoring by the VA contracting officer's representative (COR), and established procedures for addressing non-conformance or delivery delays. The firm fixed-price structure inherently mitigates financial risk for the government, as the cost is predetermined. Furthermore, the VA likely has contingency plans or alternative suppliers for critical medical equipment to address unforeseen disruptions.

What is the track record of CLAFLIN SERVICE COMPANY in fulfilling federal contracts, particularly for the VA?

To assess the track record of CLAFLIN SERVICE COMPANY, a review of its past performance on federal contracts, especially those with the Department of Veterans Affairs, is necessary. Publicly available contract databases (like SAM.gov or FPDS) can provide insights into the types of contracts awarded, their values, and their duration. Information regarding past performance evaluations, any disputes, or contract terminations would be crucial. A positive track record would include consistent on-time delivery, adherence to quality standards, and successful completion of contract requirements. Conversely, a history of performance issues or contract disputes would raise concerns. Without specific data on CLAFLIN SERVICE COMPANY's past performance, it is difficult to definitively evaluate their reliability for this specific award, though the award itself implies they met the minimum requirements for competition.

How does this contract fit into the VA's broader strategy for ensuring the availability of medical supplies?

This delivery order for surgical and medical instruments is a component of the VA's comprehensive strategy to ensure the consistent availability of essential medical supplies across its healthcare system. The VA's strategy typically involves a multi-faceted approach, including strategic sourcing, inventory management, and diverse procurement methods. By utilizing full and open competition for such orders, the VA aims to maintain a competitive supplier base and secure necessary items at reasonable prices. This specific award likely addresses immediate or short-term needs, complementing longer-term strategic agreements or blanket purchase agreements. The VA's overall goal is to prevent shortages of critical medical equipment and supplies, thereby ensuring uninterrupted patient care for veterans. This contract contributes to that goal by fulfilling a defined need within a specific timeframe.

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: 1206 JEFFERSON BLVD, WARWICK, RI, 02886

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,340,935

Exercised Options: $1,340,935

Current Obligation: $1,340,935

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0049

IDV Type: IDC

Timeline