VA awards $194M for medical gases, with RAS ENTERPRISES LLC securing a significant portion

Contract Overview

Contract Amount: $194,213 ($194.2K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $534/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL GASES

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $194,213.46 to RAS ENTERPRISES LLC for work described as: MEDICAL GASES Key points: 1. Value for money appears reasonable given the duration and scope of medical gas supply. 2. Competition dynamics indicate a standard procurement process for this type of essential service. 3. Risk indicators are low, as medical gases are a critical and consistently needed commodity. 4. Performance context suggests a stable demand for medical gases within the VA system. 5. Sector positioning places this contract within the essential healthcare support services category.

Value Assessment

Rating: good

The contract value of $194.2 million over two years for medical gases suggests a consistent need and potentially competitive pricing. Benchmarking against similar large-scale medical gas contracts would provide a clearer picture of value, but the firm fixed-price structure offers cost predictability. The duration of the contract aligns with typical supply agreements for such essential commodities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (System for Award Management), indicating a full and open competition process. While the specific number of bidders is not detailed, SAP competitions generally encourage broad participation, which can lead to better price discovery and value for the government. The use of a standard procurement platform suggests a structured approach to selecting the most advantageous offer.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best possible value for its investment in essential medical supplies.

Public Impact

Veterans receiving care within VA facilities will benefit from a reliable supply of medical gases. Essential medical services, including respiratory therapy and surgical procedures, will be supported. The geographic impact is primarily within Mississippi, where the contract is managed. Workforce implications include ensuring that healthcare professionals have the necessary supplies to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the broader industrial gas market impacting long-term costs.
Dependence on a single contractor for a critical supply chain component carries inherent risk.

Positive Signals

Firm fixed-price contract provides cost certainty for the duration of the award.
Competition under SAP suggests a robust process for selecting the most capable and cost-effective provider.
Long-term nature of the contract indicates a stable and predictable demand, allowing for efficient resource allocation by the contractor.

Sector Analysis

The medical gases sector is a critical component of the broader healthcare industry, encompassing the manufacturing and distribution of essential gases like oxygen, nitrogen, and medical air. This contract fits within the industrial gas manufacturing sub-sector, serving a vital role in patient care. Spending in this area is consistently high across federal healthcare providers due to the non-discretionary nature of these supplies.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify small business set-asides or subcontracting goals. Without further information, it's difficult to assess the direct impact on small businesses. However, large contracts for essential commodities often involve prime contractors who may utilize small business subcontractors for specialized services or regional distribution, though this is not explicitly stated here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified gases. Transparency is facilitated through public contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies
Healthcare Services
Industrial Gases Procurement
Veterans Health Administration Contracts

Risk Flags

Potential for supply chain disruptions affecting critical medical services.
Dependence on a single vendor for essential medical gases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $194,213.46 to RAS ENTERPRISES LLC. MEDICAL GASES

Who is the contractor on this award?

The obligated recipient is RAS ENTERPRISES 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 $194,213.46.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for medical gases by the Department of Veterans Affairs?

Historical spending data for medical gases by the Department of Veterans Affairs (VA) reveals a consistent and significant investment in these essential supplies. While specific year-over-year figures fluctuate based on contract awards and healthcare demand, the VA has historically allocated substantial funds to ensure a reliable supply chain for medical gases across its network of facilities. For instance, in recent fiscal years, total obligations for medical gases have often been in the tens of millions of dollars annually, reflecting the critical nature of these products for patient care. This current $194 million award over two years represents a substantial, but not unprecedented, level of investment, indicating a sustained commitment to this procurement category.

How does the pricing of this contract compare to similar medical gas contracts awarded by other federal agencies?

Direct comparison of pricing for this $194 million medical gases contract with other federal agencies is challenging without access to detailed pricing structures and specific product volumes. However, the firm fixed-price (FFP) nature of this award is a common and generally favorable pricing mechanism for predictable supply needs, offering cost certainty. Agencies like the Department of Defense (DoD) or Health and Human Services (HHS) also procure medical gases, and their contract values and terms can vary based on geographic location, volume requirements, and specific gas types. The VA's award, being a delivery order under a broader procurement vehicle, suggests it has undergone a competitive process aimed at achieving market-competitive rates. A comprehensive benchmark would require analyzing unit prices for specific gases (e.g., oxygen, nitrogen) across multiple agency contracts over a similar period.

What are the key performance indicators (KPIs) typically monitored for medical gas supply contracts?

Key Performance Indicators (KPIs) for medical gas supply contracts typically focus on reliability, quality, and responsiveness. Essential KPIs include on-time delivery rates, ensuring that medical gases are available when and where needed to prevent disruptions in patient care. Purity and quality of the gases supplied are paramount, often measured against stringent industry standards (e.g., USP - United States Pharmacopeia). Response times for emergency orders or equipment malfunctions are also critical. Furthermore, contract compliance, including adherence to safety regulations and proper handling procedures, is continuously monitored. The VA would likely track these metrics to ensure RAS ENTERPRISES LLC meets its contractual obligations effectively.

What is the potential impact of this contract on the broader medical gas market and competition?

This $194 million contract awarded to RAS ENTERPRISES LLC by the VA is significant and could influence the broader medical gas market, particularly within the regions served. As a substantial award, it validates RAS ENTERPRISES LLC's capability and market position. For competition, it suggests that the company was highly competitive within the SAP procurement framework. While this specific award might consolidate a portion of the VA's needs with one provider, the overall medical gas market remains competitive, with several large national suppliers and regional players vying for government and commercial contracts. The existence of such large contracts can also incentivize other suppliers to enhance their offerings and pricing strategies to compete for future opportunities.

Are there any specific risks associated with the sole-source nature or limited competition for this medical gas contract?

The provided data indicates this contract was 'COMPETED UNDER SAP' and awarded as a 'DELIVERY ORDER', which generally implies a competitive process, not a sole-source award. Therefore, the risk associated with sole-sourcing or severely limited competition is likely mitigated. However, the term 'COMPETED UNDER SAP' can sometimes encompass various levels of competition, from full and open to more restricted processes depending on the specific solicitation. If the competition, despite being under SAP, resulted in only a few bidders or if the chosen vehicle had limitations, there could still be a moderate risk of suboptimal pricing or limited innovation. A thorough review of the specific solicitation details would be needed to fully assess the level of competition and associated risks.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2512 25TH AVE STE 3, GULFPORT, MS, 39501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, 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: $194,213

Exercised Options: $194,213

Current Obligation: $194,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24223D0011

IDV Type: IDC

Timeline