VA awards $45.7M for medical gas cylinders, with RAS ENTERPRISES LLC securing the delivery order

Contract Overview

Contract Amount: $45,713 ($45.7K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $126/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL GAS CYLINDERS MOD P00005

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45,712.67 to RAS ENTERPRISES LLC for work described as: MEDICAL GAS CYLINDERS MOD P00005 Key points: 1. Contract value appears reasonable for the scope of industrial gas manufacturing and delivery. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of one year presents a manageable performance window. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 325120 indicates a focus on industrial gas production. 6. Delivery order mechanism allows for flexibility in meeting fluctuating medical gas needs.

Value Assessment

Rating: good

The contract value of $45.7 million for medical gas cylinders over a one-year period seems aligned with industry standards for such specialized supplies. Benchmarking against similar contracts for medical gases would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator, as it caps the government's financial exposure and incentivizes the contractor to manage costs efficiently. Without specific per-unit data or comparison to other federal awards for identical items, a definitive value assessment is challenging, but the overall award size appears proportionate to the service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the agency initially considered multiple sources but ultimately excluded some before proceeding with a broader competition. This suggests a deliberate effort to ensure a competitive environment. The specific number of bidders is not provided, but the designation implies that multiple responsible sources were solicited. The level of competition achieved is crucial for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that federal funds are used efficiently and effectively.

Public Impact

Veterans receiving medical care will benefit from a reliable supply of essential medical gases. The contract supports healthcare services within facilities managed by the Department of Veterans Affairs. The primary geographic impact is within the service areas of the VA facilities receiving these gases. The contract supports the industrial gas manufacturing sector, contributing to the broader healthcare supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if contractor faces production or logistical issues.
Ensuring consistent quality and purity of medical gases is critical for patient safety.
Dependence on a single contractor for a critical supply line requires robust performance monitoring.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive pricing environment.
One-year duration allows for reassessment of needs and contractor performance.
Delivery order structure provides flexibility for the VA to manage inventory and demand.

Sector Analysis

The medical gas market is a specialized segment within the broader industrial gas manufacturing sector. This contract falls under NAICS code 325120 (Industrial Gas Manufacturing). The market is characterized by stringent quality control, specialized delivery logistics, and significant regulatory oversight due to the critical nature of the products. Spending in this area is driven by the operational needs of healthcare facilities, including hospitals and clinics, to provide life-sustaining and therapeutic gases. Comparable spending benchmarks would typically be assessed based on volume, purity, and delivery requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, RAS ENTERPRISES LLC, is likely a larger entity capable of fulfilling the requirements of this significant award. The absence of a small business set-aside means that opportunities for small business participation would typically arise through the prime contractor's subcontracting plan, if one exists and is mandated.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying the quality and timely delivery of medical gas cylinders. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported within the contracting process or performance.

Related Government Programs

Medical Supplies and Equipment
Pharmaceuticals and Medical Chemicals
Healthcare Services
Industrial Gases

Risk Flags

Potential for supply chain disruption
Ensuring consistent quality and purity
Dependence on a single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45,712.67 to RAS ENTERPRISES LLC. MEDICAL GAS CYLINDERS MOD P00005

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 $45,712.67.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

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

Analyzing historical spending for medical gas cylinders by the VA is crucial for understanding trends, identifying potential cost savings, and assessing the consistency of supply. While this specific award is for $45.7 million, a deeper dive into past contracts would reveal if this represents an increase or decrease in spending, the number of vendors previously used, and the average contract values over time. For instance, if VA spending on medical gases has steadily increased, it might indicate growing healthcare demands or inflationary pressures. Conversely, a decrease could suggest improved efficiency or shifts in procurement strategies. Examining the number of competitors in previous solicitations can also indicate whether the market has become more or less competitive. Without access to historical VA spending data specifically for medical gas cylinders, it's difficult to provide precise figures, but such an analysis would inform future budgeting and procurement decisions, ensuring value for taxpayer dollars.

How does the pricing of RAS ENTERPRISES LLC compare to other suppliers of medical gas cylinders to the federal government?

To assess the value for money in this $45.7 million contract, comparing the pricing of RAS ENTERPRISES LLC to other federal suppliers is essential. This involves benchmarking the per-unit costs for specific gases (e.g., oxygen, nitrogen, medical air) and cylinder sizes against recent awards to similar contractors. Factors such as delivery terms, contract duration, and volume commitments can influence pricing. If RAS ENTERPRISES LLC's pricing is significantly higher than market rates or comparable federal contracts, it could indicate a lack of sufficient competition or potential overpricing. Conversely, if their prices are competitive or lower, it suggests effective price negotiation and a good value proposition. Accessing a broader dataset of federal contract awards for medical gases would allow for a robust comparison, highlighting any outliers and ensuring the VA is obtaining fair and reasonable prices for these critical supplies.

What are the key performance indicators (KPIs) used to evaluate RAS ENTERPRISES LLC's performance under this contract?

Effective oversight of this $45.7 million medical gas cylinder contract necessitates clearly defined Key Performance Indicators (KPIs) to evaluate RAS ENTERPRISES LLC's performance. Critical KPIs would likely include on-time delivery rates, ensuring that medical gases are supplied precisely when and where needed to avoid disruptions in patient care. Purity and quality of the gases are paramount, requiring adherence to strict medical standards and potentially involving regular testing and certification. Responsiveness to VA requests, including emergency orders, is another vital KPI, reflecting the contractor's ability to adapt to changing healthcare demands. Furthermore, compliance with safety regulations during transport and handling, as well as accurate invoicing and reporting, would be monitored. The VA contracting officer would track these KPIs throughout the contract's duration, using them to assess overall performance and inform future procurement decisions.

What is the potential risk associated with the sole-source nature of the competition, if any?

The contract specifies 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is not a sole-source award. A sole-source award implies only one vendor was considered capable of meeting the requirement, often leading to higher prices and reduced innovation due to lack of competition. In this case, the 'exclusion of sources' suggests that while multiple sources may have been initially considered, some were excluded before a broader competition was opened. This process, if properly justified and executed, can still yield competitive pricing. However, if the exclusion criteria were overly restrictive or not well-documented, it could limit the competitive pool unnecessarily. The risk here is not inherent to a sole-source situation but rather to the potential for a less robust competition than 'full and open' might imply if the exclusion process was flawed. The VA should ensure the rationale for excluding sources was sound and that the subsequent competition was indeed vigorous.

How does this contract align with the Department of Veterans Affairs' overall mission to provide healthcare to veterans?

This $45.7 million contract for medical gas cylinders directly aligns with the Department of Veterans Affairs' core mission of providing comprehensive healthcare services to veterans. Medical gases are fundamental to numerous medical procedures, life support, and therapeutic treatments administered in VA facilities. Ensuring a consistent, reliable, and high-quality supply of these gases is critical for the effective functioning of hospitals, clinics, and other healthcare settings within the VA system. By securing these essential supplies through a competitive process, the VA demonstrates its commitment to operational readiness and the well-being of its patients. The contract supports the infrastructure necessary for delivering advanced medical care, thereby contributing significantly to the VA's overarching goal of serving the nation's veterans.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $45,713

Exercised Options: $45,713

Current Obligation: $45,713

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24422D0140

IDV Type: IDC

Timeline