VA awards $2.1M for mobile sterilization trailer to Steris Corporation, impacting Lebanon VAMC operations

Contract Overview

Contract Amount: $2,096,790 ($2.1M)

Contractor: Steris Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-07

End Date: 2026-08-13

Contract Duration: 552 days

Daily Burn Rate: $3.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SPS EQUIPMENT PM&R -STERILIZER TRAILER | MOBILE SPD FACILITY FOR THE LEBANON VAMC

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to STERIS CORPORATION for work described as: SPS EQUIPMENT PM&R -STERILIZER TRAILER | MOBILE SPD FACILITY FOR THE LEBANON VAMC Key points: 1. Contract awarded for a mobile sterilization unit, indicating a need for flexible or temporary medical equipment support. 2. The purchase order was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract duration of 552 days (approx. 1.5 years) points to a medium-term operational need. 4. The fixed-price nature of the contract provides cost certainty for the Department of Veterans Affairs. 5. The award to a single vendor, Steris Corporation, warrants a review of the competitive landscape for such specialized equipment. 6. The contract's primary purpose is to support the Lebanon VA Medical Center, highlighting a specific facility requirement.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for a mobile sterilization trailer appears reasonable given the specialized nature of the equipment and its intended use for a VA medical center. Benchmarking against similar mobile medical unit procurements would provide further insight, but the price seems aligned with the acquisition of complex, self-contained facilities. The firm fixed-price structure helps manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a broader range of competition than micro-purchases but is streamlined for smaller dollar values. While the specific number of bids received isn't detailed, SAP aims to foster competition among qualified vendors. The fact that it was competed suggests that multiple vendors could have potentially offered solutions, contributing to price discovery.

Taxpayer Impact: Competing the contract, even under SAP, likely resulted in a more favorable price for taxpayers compared to a sole-source award. The process ensures that the VA is obtaining the best value available within the simplified acquisition framework.

Public Impact

Patients at the Lebanon VA Medical Center will benefit from enhanced sterilization capabilities, potentially improving the safety and availability of medical equipment. The contract delivers a mobile sterilization trailer, a specialized facility designed to meet urgent or supplementary medical equipment needs. The geographic impact is focused on the Lebanon, Pennsylvania area, directly serving the veterans who utilize the Lebanon VAMC. The acquisition may have implications for the healthcare support workforce, requiring personnel to operate and maintain the mobile unit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics within SAP awards can sometimes obscure true market price.
Dependence on a single vendor for critical mobile equipment could pose a risk if future needs arise.
The specific capabilities and limitations of the mobile unit compared to fixed facilities require clear definition.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
The firm fixed-price contract provides budget certainty for the VA.
The mobile nature of the unit offers flexibility to meet evolving healthcare demands.

Sector Analysis

The healthcare equipment sector is characterized by high technological advancement and stringent regulatory requirements. Mobile medical facilities, like sterilization trailers, represent a niche within this sector, offering deployable solutions for temporary or surge capacity needs. Spending in this area is often driven by specific facility upgrades, emergency preparedness, or specialized service requirements. Comparable spending benchmarks would typically involve other mobile clinic or specialized equipment procurements within federal healthcare agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was competed under Simplified Acquisition Procedures (SAP), there may have been opportunities for small businesses to bid. However, without explicit set-aside information or subcontracting plans, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price purchase order, requiring delivery of the specified mobile sterilization trailer. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

VA Medical Equipment Procurement
Mobile Healthcare Facilities
Medical Sterilization Services
Veterans Health Administration Contracts

Risk Flags

Potential for higher maintenance costs due to mobility.
Dependence on external infrastructure for operation.
Limited capacity or efficiency compared to fixed facilities.
Need for specialized personnel to operate and maintain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to STERIS CORPORATION. SPS EQUIPMENT PM&R -STERILIZER TRAILER | MOBILE SPD FACILITY FOR THE LEBANON VAMC

Who is the contractor on this award?

The obligated recipient is STERIS CORPORATION.

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 $2.1 million.

What is the period of performance?

Start: 2025-02-07. End: 2026-08-13.

What is Steris Corporation's track record with the Department of Veterans Affairs for similar mobile medical equipment?

A review of Steris Corporation's contract history with the Department of Veterans Affairs (VA) would be necessary to assess their track record for mobile medical equipment. While this specific award is for a mobile sterilization trailer, Steris is a known provider of sterilization and surgical equipment. Examining past performance on similar contracts, including delivery timelines, quality of goods/services, and any past performance issues or commendations, would provide crucial context. Data from contract databases like FPDS or SAM.gov could reveal the extent and nature of their previous engagements with the VA, helping to gauge their reliability and expertise in fulfilling such specialized requirements.

How does the $2.1 million cost compare to similar mobile sterilization units procured by other federal agencies or large healthcare systems?

Benchmarking the $2.1 million cost against similar mobile sterilization units requires access to comparative data, which is not directly provided. However, mobile medical facilities, especially those with specialized equipment like sterilization trailers, can be substantial investments. Factors influencing cost include the unit's size, onboard technology, customization, and the vendor's overhead. A comprehensive comparison would involve analyzing recent procurements by agencies like the Department of Defense or large civilian hospital networks for comparable mobile units. Without such direct comparisons, assessing whether this price represents excellent, fair, or questionable value is challenging, though the firm fixed-price nature suggests a defined cost expectation.

What are the primary risks associated with acquiring a mobile sterilization trailer versus a fixed-site solution?

The primary risks associated with acquiring a mobile sterilization trailer versus a fixed-site solution include potential issues related to mobility and infrastructure. Mobile units may face higher maintenance costs due to wear and tear from transport, and their operational lifespan might be shorter than permanent installations. Dependence on external infrastructure (power, water, waste disposal) can also pose risks if connections are unreliable. Furthermore, the space and operational constraints of a mobile unit might limit its capacity or efficiency compared to a purpose-built fixed facility. However, the key advantage, and thus a mitigation of risk for certain scenarios, is the flexibility and deployability to meet fluctuating or temporary needs, which a fixed solution cannot offer.

What is the expected impact of this mobile unit on the Lebanon VAMC's overall operational capacity and service delivery?

The expected impact of this mobile sterilization trailer on the Lebanon VAMC's operational capacity and service delivery is likely to be positive, particularly in enhancing flexibility and potentially augmenting existing sterilization services. This mobile unit could serve as a backup during maintenance or peak demand periods for the VAMC's primary sterilization facilities, ensuring continuity of care. It may also enable the VAMC to handle specific types of equipment or procedures that require specialized, on-demand sterilization capabilities. Ultimately, it should contribute to improved patient safety and more efficient utilization of medical equipment by providing readily available, high-quality sterilization services where and when needed.

Are there any historical spending patterns with the VA for mobile medical equipment that this contract aligns with or deviates from?

Analyzing historical spending patterns for mobile medical equipment by the VA is crucial to contextualize this $2.1 million award. The VA has historically invested in various forms of mobile healthcare services, including mobile clinics and diagnostic units, to extend reach and provide specialized care. The frequency and value of such procurements can fluctuate based on strategic priorities, budget allocations, and demonstrated needs across the VHA network. This contract for a sterilization trailer suggests a specific focus on supporting the infrastructure of care delivery rather than direct patient treatment services. Understanding if the VA has previously procured similar mobile sterilization assets, and at what cost, would reveal whether this award represents a continuation of established practice or a new initiative.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Automotive Equipment Rental and Leasing › Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24425Q0198

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5960, HEISLEY ROAD, MENTOR, OH, 44060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,630,358

Exercised Options: $2,096,790

Current Obligation: $2,096,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline