VA Awards $3.46M for Davinci Robot Surgical Instruments to SDV Office Systems LLC

Contract Overview

Contract Amount: $3,456,840 ($3.5M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-25

End Date: 2026-03-24

Contract Duration: 180 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DAVINCI ROBOT

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to SDV OFFICE SYSTEMS LLC for work described as: DAVINCI ROBOT Key points: 1. The contract is for surgical and medical instruments, specifically the DAVINCI ROBOT. 2. The awardee is SDV OFFICE SYSTEMS LLC, a company in the Surgical and Medical Instrument Manufacturing sector. 3. The contract was awarded under full and open competition. 4. The contract duration is 180 days, with an estimated completion date of March 24, 2026.

Value Assessment

Rating: fair

The contract value of $3.46 million for a 180-day delivery order appears reasonable given the specialized nature of surgical robotics. Benchmarking against similar robotic system component procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive award process is expected to yield fair market value, minimizing unnecessary taxpayer expenditure for these critical medical instruments.

Public Impact

Veterans will benefit from access to advanced surgical technology through this contract. The procurement supports the Department of Veterans Affairs' mission to provide high-quality healthcare. This award could impact the availability and cost of specialized surgical equipment within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited contract duration may necessitate future procurements.
Potential for sole-source follow-on if SDV OFFICE SYSTEMS is the only provider of specific components.

Positive Signals

Awarded under full and open competition.
Supports critical healthcare needs for veterans.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is highly specialized, often involving complex technology and stringent regulatory requirements. Spending in this area is driven by healthcare demand and technological advancements in medical devices.

Small Business Impact

While this specific award went to SDV OFFICE SYSTEMS LLC, the 'full and open competition' nature of the procurement allows for small businesses to potentially participate as subcontractors or prime contractors on future similar contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely delivery and adherence to specifications. Robust oversight is crucial for medical equipment procurements to guarantee patient safety and effective use.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited contract duration.
Potential for vendor lock-in on specialized components.
High cost of advanced medical technology.
Dependence on specific robotic system components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to SDV OFFICE SYSTEMS LLC. DAVINCI ROBOT

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 $3.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-03-24.

What is the specific role of the DAVINCI ROBOT components in surgical procedures, and how does their cost compare to alternative surgical methods?

The DAVINCI ROBOT components are integral to robotic-assisted minimally invasive surgery, offering enhanced precision, visualization, and control for surgeons. Their cost is typically higher upfront compared to traditional open surgery but can lead to reduced recovery times, shorter hospital stays, and fewer complications, potentially offsetting the initial investment through long-term patient outcomes and reduced healthcare resource utilization.

What are the potential risks associated with relying on a single vendor for specialized surgical instrument components, even if initially procured competitively?

Relying on a single vendor, even after competitive bidding, carries risks such as price escalation in future contracts, potential supply chain disruptions if the vendor faces issues, and limited opportunities for technological innovation if competitors are excluded. This dependence can reduce the VA's negotiating leverage and potentially impact the availability of critical equipment if the vendor's capacity or business viability changes.

How effectively does this procurement contribute to the VA's overall goal of modernizing surgical capabilities and improving patient outcomes?

This procurement directly contributes to modernizing surgical capabilities by providing access to advanced robotic surgical instruments. By enabling minimally invasive procedures, it supports the VA's goal of improving patient outcomes through reduced recovery times and potentially fewer complications. The effectiveness hinges on the successful integration of these instruments into surgical workflows and ongoing training for medical staff.

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: $3,456,840

Exercised Options: $3,456,840

Current Obligation: $3,456,840

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