VA awards $227K for audiology equipment maintenance, highlighting a sole-source procurement

Contract Overview

Contract Amount: $22,781 ($22.8K)

Contractor: E3 Diagnostics, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $31/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CALIBRATION AND PREVENTATIVE MAINTENANCE OF AUDIOLOGY DIAGNOSTIC EQUIPMENT

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13210

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,781.01 to E3 DIAGNOSTICS, INC. for work described as: CALIBRATION AND PREVENTATIVE MAINTENANCE OF AUDIOLOGY DIAGNOSTIC EQUIPMENT Key points: 1. The contract value of $227,810 for a 2-year period suggests a moderate annual spend for equipment maintenance. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. Potential risks include lack of competitive pricing and limited options for future service providers. 4. The performance period of 2 years provides a defined timeframe for assessing contractor performance. 5. This contract falls within the broader category of electronic and precision equipment repair and maintenance services. 6. The award to E3 Diagnostics, Inc. indicates a specific vendor relationship for this specialized service.

Value Assessment

Rating: fair

The contract value of $227,810 over two years for calibration and preventative maintenance of audiology diagnostic equipment appears reasonable on the surface for specialized services. However, without comparable contract data or a clear justification for the sole-source award, it is difficult to definitively benchmark the value for money. The firm fixed-price structure provides cost certainty for the government. Further analysis would require understanding the scope of services and the specific types of equipment covered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, E3 Diagnostics, Inc., was solicited. The justification for this limited competition is not provided in the data. Typically, sole-source awards occur when only one vendor possesses the necessary capabilities, proprietary knowledge, or when urgency dictates. The lack of competition raises concerns about whether the government obtained the best possible price and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent, and may limit opportunities for other qualified businesses to secure government contracts.

Public Impact

Veterans receiving audiology services will benefit from properly maintained and calibrated diagnostic equipment. The contract ensures the continued availability and accuracy of critical diagnostic tools used in audiology. The services are geographically focused on New York, where the contractor is located. This contract supports specialized technical roles within the healthcare maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Sole-source award limits the government's ability to explore alternative vendors or technologies.
Dependence on a single vendor could create future supply chain or service continuity risks.

Positive Signals

Firm fixed-price contract provides cost predictability.
Defined performance period allows for clear evaluation of services.
Specialized nature of the service may necessitate a single, qualified provider in some circumstances.

Sector Analysis

The healthcare equipment maintenance sector is a critical component of the broader healthcare industry, ensuring the operational readiness of medical devices. This contract for audiology diagnostic equipment falls under the Electronic and Precision Equipment Repair and Maintenance (NAICS 811210) industry. Spending in this area is driven by the need to maintain complex medical technology, with government agencies like the VA being significant purchasers of such services to support healthcare facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does the data indicate any subcontracting plans. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. Without a competitive bidding process or specific small business considerations, the impact on the small business ecosystem for this particular contract is minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal controls. Transparency is limited by the sole-source nature of the award, and specific Inspector General jurisdiction would depend on any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Maintenance Contracts
Veterans Affairs Healthcare Services
Diagnostic Equipment Support
Sole Source Procurement Analysis

Risk Flags

Sole Source Justification
Lack of Competition
Potential for Overpricing
Limited Vendor Options

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,781.01 to E3 DIAGNOSTICS, INC.. CALIBRATION AND PREVENTATIVE MAINTENANCE OF AUDIOLOGY DIAGNOSTIC EQUIPMENT

Who is the contractor on this award?

The obligated recipient is E3 DIAGNOSTICS, INC..

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 $22,781.01.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is the track record of E3 Diagnostics, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding the specific track record of E3 Diagnostics, Inc. with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require querying federal procurement databases (like FPDS or SAM.gov) to identify past awards, performance evaluations, and any history of disputes or issues. Understanding their past performance is crucial for assessing the reliability and quality of services they are likely to provide under this new contract. Without this historical data, the assessment of contractor reliability remains speculative.

How does the pricing of this contract compare to similar audiology equipment maintenance contracts awarded by the VA or other federal agencies?

Benchmarking the pricing of this $227,810 contract against similar audiology equipment maintenance contracts is challenging without access to a broader dataset of comparable awards. The sole-source nature of this award further complicates direct price comparison, as competitive pressures that typically drive down costs are absent. To perform a robust comparison, one would need to identify contracts with similar scope, equipment types, duration, and geographic coverage, ideally awarded through full and open competition. The firm fixed-price nature offers some cost certainty, but the absolute value relative to market rates remains unverified by the provided data.

What are the specific risks associated with a sole-source award for specialized equipment maintenance?

The primary risk associated with a sole-source award for specialized equipment maintenance is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be securing the most cost-effective solution. Another significant risk is vendor lock-in; the agency becomes dependent on a single provider, which can limit flexibility in negotiating future contracts or adopting new technologies. Furthermore, if the sole-source provider experiences financial difficulties or service disruptions, it could severely impact the agency's ability to maintain critical equipment, potentially affecting service delivery to beneficiaries.

What is the expected effectiveness of this contract in ensuring the operational readiness of audiology diagnostic equipment for the VA?

The effectiveness of this contract in ensuring the operational readiness of audiology diagnostic equipment hinges on the quality of services provided by E3 Diagnostics, Inc. and the clarity of the contract's scope of work. The firm fixed-price structure and a defined 2-year performance period suggest a commitment to regular calibration and preventative maintenance. Assuming E3 Diagnostics, Inc. possesses the necessary expertise and resources, and adheres to the contract's requirements, the equipment should remain functional and accurate. However, the sole-source nature means the VA has limited leverage to drive improvements or ensure optimal service levels beyond the contract's minimum requirements.

What has been the historical spending pattern for audiology diagnostic equipment maintenance by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for audiology diagnostic equipment maintenance by the Department of Veterans Affairs. To analyze this, one would need to examine past contract awards for similar services over several fiscal years. This would involve identifying all relevant contracts, their values, durations, and the vendors involved. Understanding historical spending can reveal trends, identify potential increases or decreases in demand, and highlight any recurring issues with specific equipment types or maintenance providers, providing context for the current award.

Are there any specific performance metrics or service level agreements (SLAs) defined within this contract?

The provided data summary does not specify the performance metrics or service level agreements (SLAs) included in this contract. While the contract is for 'CALIBRATION AND PREVENTATIVE MAINTENANCE,' the exact deliverables, response times, and quality standards are not detailed. Effective oversight and assessment of contractor performance rely heavily on clearly defined and measurable metrics. Without this information, it is difficult to objectively evaluate whether E3 Diagnostics, Inc. is meeting the VA's needs beyond a basic fulfillment of the service agreement.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24224Q0082

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3333 N KENNICOTT AVE, ARLINGTON HEIGHTS, IL, 60004

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

Financial Breakdown

Contract Ceiling: $125,480

Exercised Options: $22,781

Current Obligation: $22,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline