VA awards $4.9M for prescription eyeglasses and optician services, with PDS Consultants Inc. securing the sole-source contract

Contract Overview

Contract Amount: $4,916,000 ($4.9M)

Contractor: PDS Consultants, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-07-31

Contract Duration: 303 days

Daily Burn Rate: $16.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PRESCRIPTION EYEGLASSES AND OPTICIAN SERVICES FOR VISN 2 DOWNSTATE

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40218

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to PDS CONSULTANTS, INC for work described as: PRESCRIPTION EYEGLASSES AND OPTICIAN SERVICES FOR VISN 2 DOWNSTATE Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 303 days suggests a focused scope of services. 3. Awarded by the Department of Veterans Affairs, highlighting a commitment to veteran healthcare. 4. The North American Industry Classification System (NAICS) code 339115 points to the ophthalmic goods manufacturing sector. 5. No small business set-aside was utilized, suggesting potential for larger prime contractors. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The contract value of $4.9 million for prescription eyeglasses and optician services appears to be a reasonable estimate for a 303-day period. However, without specific details on the quantity of services or goods to be provided, a direct comparison to similar contracts is challenging. The firm-fixed-price structure offers cost certainty, but the absence of competitive bidding limits the ability to benchmark pricing against market alternatives. Further analysis would require understanding the scope of services, such as the number of beneficiaries served and the types of optical goods required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when the agency determines it is in the government's best interest to award to a specific contractor. The lack of competition means that PDS Consultants, Inc. was the only entity considered for this award, and there were no other bidders to compare against. This can sometimes lead to higher prices than if the contract had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in less favorable pricing for taxpayers compared to a fully competed contract.

Public Impact

Veterans within VISN 2 Downstate will benefit from access to prescription eyeglasses and optician services. The contract ensures the provision of essential ophthalmic goods and related services. The geographic impact is focused on the Downstate region served by VISN 2. The contract supports the healthcare infrastructure dedicated to serving the veteran population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits transparency in pricing and service delivery benchmarks.
Absence of small business participation could reduce opportunities for smaller enterprises in this sector.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to PDS Consultants, Inc. ensures continuity of services for veterans.
Contract directly supports the healthcare needs of the veteran community.

Sector Analysis

The ophthalmic goods manufacturing sector (NAICS 339115) encompasses companies that produce eyeglasses, lenses, and other optical instruments. Federal spending in this area often supports healthcare initiatives, particularly for specific populations like veterans or military personnel. While the total market size for ophthalmic goods is substantial, federal contracts represent a niche segment. This contract fits within the broader healthcare services procurement category, focusing on specialized medical equipment and related services. Benchmarking would typically involve comparing pricing for similar quantities and types of optical goods and services provided to other government agencies or large healthcare networks.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, PDS Consultants, Inc., is likely a larger entity or that the scope of work was not deemed suitable for a small business set-aside. The absence of explicit small business provisions means that opportunities for small businesses to participate in this specific contract, either as the prime or as subcontractors, may be limited.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs (VA). As a sole-source award, the VA's contracting officers and program managers will be responsible for monitoring performance, ensuring compliance with contract terms, and verifying the quality of goods and services delivered. Transparency may be limited due to the non-competitive nature of the award. While specific Inspector General (IG) jurisdiction is not detailed here, the VA Office of Inspector General typically has oversight over VA contracts to investigate fraud, waste, and abuse.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Federal Supply Schedule (FSS) for Medical Equipment and Supplies
Veteran Readiness and Employment (VR&E) Services

Risk Flags

Sole-source award may indicate limited market availability or strategic sourcing.
Contract value and duration require further context for comprehensive value assessment.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to PDS CONSULTANTS, INC. PRESCRIPTION EYEGLASSES AND OPTICIAN SERVICES FOR VISN 2 DOWNSTATE

Who is the contractor on this award?

The obligated recipient is PDS CONSULTANTS, 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 $4.9 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-07-31.

What is the track record of PDS Consultants, Inc. in performing similar government contracts, particularly for the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess PDS Consultants, Inc.'s track record. Specifically, one would look for past performance evaluations on similar contracts, including those for ophthalmic goods and services, and contracts with the Department of Veterans Affairs. Key indicators would include on-time delivery, quality of goods/services, adherence to budget, and any past disputes or contract terminations. Without access to detailed past performance information and contract histories, it is difficult to definitively state their track record. However, the fact that they were awarded this sole-source contract may imply a pre-existing relationship or a perceived capability by the VA.

How does the awarded amount of $4.9 million compare to the typical cost of prescription eyeglasses and optician services for a similar population size and service scope?

Directly comparing the $4.9 million award to market rates for prescription eyeglasses and optician services is challenging without detailed scope information. The contract covers 303 days and is for VISN 2 Downstate. To benchmark effectively, we would need to know the estimated number of veterans to be served, the types of eyeglasses and lenses required (e.g., standard, high-index, specialized coatings), and the extent of optician services (e.g., fittings, adjustments, repairs). A firm-fixed-price contract provides cost certainty but doesn't inherently guarantee value. If this contract serves a large veteran population with complex optical needs, the amount might be justified. Conversely, if the scope is limited, it could represent a higher-than-average cost per beneficiary.

What are the specific risks associated with awarding this contract on a sole-source basis, and how are they being mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. This can lead to less value for taxpayer money. Another risk is reduced innovation, as there's less incentive for the contractor to offer novel solutions or efficiencies. Mitigation strategies typically involve rigorous negotiation of terms and pricing by the contracting agency, thorough market research to ensure the sole-source justification is valid, and robust contract administration to monitor performance and ensure the government receives the best possible outcome under the circumstances. The VA would need to demonstrate that PDS Consultants, Inc. is the only viable source or that competition would not be in the government's best interest.

What is the expected effectiveness of this contract in meeting the optical needs of veterans in the VISN 2 Downstate region?

The effectiveness of this contract hinges on the quality of services and products provided by PDS Consultants, Inc. and the VA's contract management. Assuming the contractor delivers high-quality prescription eyeglasses and competent optician services as per the contract's specifications, the effectiveness in meeting veterans' needs should be high. The contract's success will be measured by veteran satisfaction, the accuracy of prescriptions, the durability of the eyewear, and the accessibility of optician services within the specified region. The VA's oversight will be crucial in ensuring these outcomes are achieved and that the contract adequately addresses the intended purpose of supporting veteran healthcare.

How does current spending on prescription eyeglasses and optician services for VISN 2 compare to historical spending patterns for this service category within the VA?

To assess historical spending patterns, one would need to analyze VA procurement data over several fiscal years for similar contracts, ideally within VISN 2 or comparable VISNs. This analysis would involve identifying contracts for ophthalmic goods and optician services, noting their values, durations, and whether they were competed or sole-sourced. Comparing the $4.9 million award for a 303-day period to historical averages would reveal if this contract represents an increase, decrease, or stable level of spending. Factors like inflation, changes in veteran population needs, and shifts in procurement strategies could influence these patterns. Without this historical data, it's impossible to determine if current spending is anomalous.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Ophthalmic Goods Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3801 BISHOP LN, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,916,000

Exercised Options: $4,916,000

Current Obligation: $4,916,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24225D0091

IDV Type: IDC

Timeline