VA awards $18.6M for Medical Gas Cylinders to RAS Enterprises LLC under full and open competition

Contract Overview

Contract Amount: $18,561 ($18.6K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $51/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: BUTLER, BUTLER County, PENNSYLVANIA, 16001

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18,560.86 to RAS ENTERPRISES LLC for work described as: MEDICAL GAS CYLINDERS MOD P00005 Key points: 1. Contract awarded to RAS Enterprises LLC for medical gas cylinders. 2. The contract value is $18.56 million. 3. Awarded by the Department of Veterans Affairs. 4. Competition type: Full and Open Competition after Exclusion of Sources. 5. Contract duration is 364 days.

Value Assessment

Rating: good

The contract value of $18.56 million for medical gas cylinders appears reasonable given the 364-day duration. Benchmarking against similar VA contracts for industrial gas manufacturing would provide further validation.

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 a competitive process was used. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential medical supplies.

Public Impact

Ensures continued supply of critical medical gas cylinders for VA facilities. Supports patient care by providing necessary medical equipment. The award to RAS Enterprises LLC contributes to the industrial gas manufacturing sector. Transparency in contracting through full and open competition benefits taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 51 / 10

Warning Flags

Potential for price increases if market conditions change significantly during the contract term.
Reliance on a single awardee for a critical supply chain item.

Positive Signals

Competitive award process ensures fair pricing.
Clear contract duration and delivery schedule.
Awarded by a major federal agency (VA).

Sector Analysis

The Department of Veterans Affairs requires a consistent supply of medical gases for patient care. Spending in the Industrial Gas Manufacturing sector (NAICS 325120) is driven by healthcare demand and industrial applications.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and performance.

Related Government Programs

Industrial Gas Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for supply chain disruption.
Vendor lock-in risk.
Price volatility in raw materials.
Dependence on a single awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18,560.86 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 $18,560.86.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the historical pricing trend for medical gas cylinders procured by the VA?

Analyzing historical pricing data for similar medical gas cylinder contracts awarded by the VA would provide a benchmark for assessing the current award's value. This includes examining price variations over time, considering factors like inflation, volume discounts, and changes in market competition. Understanding these trends helps determine if the $18.6 million award represents a fair market price or if there are opportunities for cost savings in future procurements.

What are the specific risks associated with relying on RAS Enterprises LLC for this critical supply?

Risks include potential supply chain disruptions due to RAS Enterprises LLC's operational issues, financial instability, or unforeseen global events impacting raw material availability. Dependence on a single vendor could also limit negotiation leverage for future contracts or extensions. The VA should monitor RAS Enterprises LLC's performance closely and have contingency plans in place.

How effectively does the 'Full and Open Competition after Exclusion of Sources' method ensure optimal value for taxpayers in this scenario?

This method aims for optimal value by allowing all responsible sources to compete after initial exclusions, promoting price discovery. However, the effectiveness depends on the clarity of the solicitation, the number and capability of bidders, and the VA's negotiation strategy. If the exclusion was minimal and competition robust, it likely secured good value; otherwise, it might have limited the potential for even better pricing.

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: $18,561

Exercised Options: $18,561

Current Obligation: $18,561

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