VA awards $32.6M for Medical Gases, with RAS ENTERPRISES LLC securing the delivery order

Contract Overview

Contract Amount: $32,618 ($32.6K)

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: $90/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 $32,618.02 to RAS ENTERPRISES LLC for work described as: MEDICAL GASES Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. Focus on essential medical supplies indicates a critical service delivery. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Delivery order structure allows for phased execution and potential flexibility. 5. Contract duration of one year aligns with typical supply needs for such items. 6. Small business participation not explicitly noted, requiring further investigation.

Value Assessment

Rating: good

The contract value of $32.6 million for medical gases appears reasonable given the duration and the nature of the goods. Benchmarking against similar contracts for industrial gas manufacturing would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control. Without specific performance metrics or historical data for this contractor, a definitive value assessment is challenging, but the competitive award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for acquisitions below certain thresholds. While the exact number of bidders is not provided, SAP generally allows for multiple quotes, fostering price discovery. This method is typically used for smaller value procurements, suggesting that the agency sought competitive pricing within these parameters.

Taxpayer Impact: Competing under SAP generally leads to better pricing for taxpayers compared to sole-source awards, as it introduces market forces into the procurement process.

Public Impact

Veterans receiving care at VA facilities will benefit from a consistent supply of essential medical gases. The contract ensures the availability of critical medical supplies for healthcare operations. Services are likely delivered across various VA medical centers within the Mississippi region. The contract supports the industrial gas manufacturing sector, contributing to the supply chain for healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor performance beyond delivery.
Information on small business subcontracting is not readily available, potentially limiting broader economic impact.
The specific types and quantities of medical gases are not detailed, impacting a granular value analysis.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm fixed-price contract type helps manage cost certainty.
Delivery order structure allows for phased procurement and potential flexibility in managing supply.
Contract duration is aligned with typical annual supply needs.

Sector Analysis

The medical gases sector is a critical component of the healthcare supply chain, encompassing the manufacturing and distribution of gases like oxygen, nitrogen, and medical air. This contract falls under the Industrial Gas Manufacturing (NAICS 325120) industry. Spending in this sector is driven by healthcare demand, research, and industrial applications. Comparable spending benchmarks would typically be found within broader healthcare supply contracts or specific industrial gas procurement data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While the contract was competed under SAP, which can include small businesses, there is no explicit set-aside. This means that larger businesses were likely eligible and may have participated. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and payment verification. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Supplies
Healthcare Services
Industrial Gas Manufacturing
Department of Veterans Affairs Contracts

Risk Flags

Supply Chain Risk
Quality Control
Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,618.02 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 $32,618.02.

What is the period of performance?

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

What is the historical spending by the VA on medical gases?

Historical spending by the Department of Veterans Affairs (VA) on medical gases can be substantial, reflecting the critical nature of these supplies for patient care across its extensive network of medical centers and clinics. While specific aggregate figures for medical gases alone are not always easily isolated without detailed data mining, the VA consistently procures a wide range of medical supplies. Annual spending on such essential items often runs into hundreds of millions of dollars across various categories. Analyzing past contract awards for similar medical gases, including their values, durations, and awarded contractors, would reveal trends in VA's procurement patterns and budget allocation for these vital resources. This contract, valued at $32.6 million over one year, represents a significant, albeit specific, portion of that broader spending.

How does the pricing of this contract compare to market rates for medical gases?

Assessing the precise pricing competitiveness of this $32.6 million medical gases contract requires detailed market analysis and access to specific product-level pricing data, which is not fully available in the provided summary. However, the contract was awarded under Simplified Acquisition Procedures (SAP), suggesting a competitive bidding process among multiple vendors. This competitive environment generally drives prices towards market rates. To perform a robust comparison, one would need to benchmark the unit prices for specific gases (e.g., medical oxygen, nitrous oxide) against prevailing commercial rates and other government contracts. Factors such as volume discounts, delivery terms, and contract duration also influence the overall value. Without these granular details, the assessment remains qualitative, relying on the assumption that competition under SAP yielded a fair market price.

What are the key performance indicators (KPIs) for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this medical gases contract. However, for a contract of this nature, typical KPIs would likely focus on delivery timeliness, product quality and purity standards, and order fulfillment accuracy. For instance, metrics might include the percentage of on-time deliveries, the rate of returned or rejected products due to quality issues, and the accuracy of quantities delivered against purchase orders. The firm fixed-price nature of the contract implies that the contractor is responsible for meeting these performance standards to receive full payment. The VA's contract administration team would be responsible for monitoring adherence to these unstated but implied KPIs.

What is the track record of RAS ENTERPRISES LLC with the VA?

Information regarding the specific track record of RAS ENTERPRISES LLC with the Department of Veterans Affairs (VA) is not detailed in the provided data. To assess their track record, one would typically examine past contract awards to this company from the VA, including the types of goods or services provided, contract values, durations, and performance ratings if available. A review of public databases like the Federal Procurement Data System (FPDS) or SAM.gov could reveal the extent of their past engagements with the VA and other federal agencies. A history of successful contract completions, timely deliveries, and adherence to quality standards would indicate a positive track record, while a pattern of issues or disputes might raise concerns.

Are there any identified risks associated with this contract award?

Potential risks associated with this contract award include supply chain disruptions, which could impact the timely delivery of essential medical gases, especially given the single-year duration. While the contract is firm fixed-price, mitigating cost overrun risks, there's always a risk of quality control issues with manufactured goods, potentially affecting patient safety. Furthermore, the lack of explicit information on small business subcontracting could represent a missed opportunity for broader economic impact and potentially limit the diversity of the supply chain. Dependence on a single awardee for a critical supply, even if competed, carries inherent risks if performance falters.

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: $32,628

Exercised Options: $32,628

Current Obligation: $32,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24223D0011

IDV Type: IDC

Timeline