VA awards $42.7K contract for surgical sharpening services to Agiliti Health Inc

Contract Overview

Contract Amount: $42,725 ($42.7K)

Contractor: Agiliti Health Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-15

End Date: 2027-04-14

Contract Duration: 364 days

Daily Burn Rate: $117/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TO FOR PHILADELPHIA VAMC FOR SURGICAL SHARPENING SERVICES

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $42,725.4 to AGILITI HEALTH INC for work described as: TO FOR PHILADELPHIA VAMC FOR SURGICAL SHARPENING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value is relatively small, indicating a niche service requirement. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of one year aligns with typical service contracts of this nature. 5. The awardee, Agiliti Health Inc., is a known provider in the healthcare equipment services sector. 6. Geographic focus on Pennsylvania for the Philadelphia VAMC.

Value Assessment

Rating: good

The contract value of $42,725.40 for one year of surgical sharpening services appears reasonable for a specialized medical equipment maintenance task. Benchmarking against similar contracts is challenging without more specific service details, but the price seems aligned with the scope of maintaining surgical instruments. The firm fixed-price structure provides cost predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a healthy market for these services. This process is designed to ensure the government receives competitive pricing and the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government is not overpaying for necessary services.

Public Impact

Veterans receiving care at the Philadelphia VAMC will benefit from properly maintained surgical instruments. Ensures the availability of sharp and functional surgical tools for medical procedures. Supports the operational efficiency of the surgical department within the VA facility. The contract directly impacts the healthcare services provided to veterans in the Philadelphia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single vendor for a critical service could pose a risk if performance issues arise.

Positive Signals

Award through full and open competition suggests a robust market and potential for good pricing.
Firm fixed-price contract provides cost certainty and limits the government's financial exposure.
The contractor, Agiliti Health Inc., is an established player in the healthcare services market.

Sector Analysis

The healthcare equipment maintenance and repair sector is a critical component of the broader healthcare industry, ensuring the functionality and safety of medical devices. This contract falls under the specialized services category, focusing on surgical instruments. Spending in this area is driven by the operational needs of hospitals and clinics, including those within the federal government. Comparable spending benchmarks would typically involve analyzing contracts for similar sharpening or maintenance services across various healthcare providers.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans. The award to Agiliti Health Inc., a presumably larger entity, suggests that small businesses may not have been primary bidders or awardees for this specific requirement, though they could potentially be subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a firm fixed-price contract awarded through full and open competition, the primary oversight will focus on ensuring the services are delivered according to the contract's specifications and performance standards. Transparency is generally maintained through contract award databases, and any significant issues would likely be handled through standard contract management procedures.

Related Government Programs

Surgical Instrument Maintenance Services
Medical Equipment Repair Contracts
Veterans Affairs Healthcare Procurement

Risk Flags

Potential for vendor lock-in if competition decreases in future
Service quality dependent on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $42,725.4 to AGILITI HEALTH INC. TO FOR PHILADELPHIA VAMC FOR SURGICAL SHARPENING SERVICES

Who is the contractor on this award?

The obligated recipient is AGILITI HEALTH 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 $42,725.4.

What is the period of performance?

Start: 2026-04-15. End: 2027-04-14.

What is the track record of Agiliti Health Inc. with the Department of Veterans Affairs and other federal agencies?

Agiliti Health Inc. has a history of contracts with the Department of Veterans Affairs and other federal entities, primarily related to medical equipment services, rentals, and maintenance. A review of federal procurement data indicates multiple awards to Agiliti for various healthcare-related services. While specific performance metrics for each contract are not publicly detailed in summary data, the continued awarding of contracts suggests a satisfactory performance history. Further analysis would involve examining individual contract performance reports and any documented issues or commendations to fully assess their track record. Their presence across multiple federal agencies highlights their established role in supporting government healthcare operations.

How does the per-unit cost of surgical sharpening compare to market rates or similar contracts?

Determining a precise per-unit cost for surgical sharpening is challenging without detailed service line items and volume data within the contract. The total contract value of $42,725.40 over 364 days for the Philadelphia VAMC suggests a specific operational need. However, the provided data does not break down the cost per sharpened item. To benchmark this, one would need to compare it against industry price lists for surgical instrument sharpening services, which can vary significantly based on instrument type, complexity, and turnaround time. Anecdotal evidence from healthcare facilities suggests that such services can range from a few dollars to tens of dollars per instrument, depending on these factors. Without more granular data from this specific BPA call, a direct comparison to market rates remains qualitative.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if Agiliti Health Inc. experiences operational issues, and the risk of price escalation in future renewals if competition becomes limited. Mitigation strategies are inherent in the contract structure and award process. The firm fixed-price nature limits financial risk for the VA. Awarding through full and open competition aims to secure competitive pricing initially and encourages market participation. Furthermore, the VA's standard contract management practices include performance monitoring and the ability to address deficiencies. The relatively small contract value also limits the overall financial exposure.

What is the expected effectiveness of these surgical sharpening services for the Philadelphia VAMC?

The expected effectiveness of these surgical sharpening services is high, as properly sharpened surgical instruments are critical for patient safety and surgical outcomes. Sharp instruments reduce tissue trauma, facilitate precise surgical maneuvers, and can decrease operative time. By ensuring that the surgical tools used at the Philadelphia VAMC are consistently maintained at optimal sharpness, the contract directly contributes to the quality of care provided to veterans. This service supports the hospital's ability to perform a wide range of surgical procedures efficiently and safely, thereby enhancing the overall effectiveness of the surgical department.

How does this contract's spending compare to historical VA spending on similar services?

This contract represents a modest expenditure of $42,725.40 for surgical sharpening services at a single VA facility (Philadelphia VAMC) over one year. Historical VA spending on similar services can vary significantly based on the number of facilities, the volume of surgical procedures, and the specific service contracts in place across the entire VA network. While this specific award is small in the context of the overall VA budget, the VA collectively spends substantial amounts on medical equipment maintenance and repair. To provide a comparative analysis, one would need to aggregate spending data for surgical instrument sharpening and maintenance across multiple VA medical centers over several fiscal years. This single award is likely part of a broader strategy to ensure instrument readiness across the VAMC system.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6625 W 78TH ST STE 300, MINNEAPOLIS, MN, 55439

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,725

Exercised Options: $42,725

Current Obligation: $42,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24426A0010

IDV Type: BPA

Timeline