VA awards $499K for surgical instrument sharpening, highlighting need for specialized medical support services

Contract Overview

Contract Amount: $49,925 ($49.9K)

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: $137/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FROM BPA 36C24426A0010 FOR SURGICAL INSTRUMENT SHARPENING SERVICES FOR THE WILMINGTON VA MEDICAL CENTER.

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19805

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,925.4 to AGILITI HEALTH INC for work described as: TASK ORDER FROM BPA 36C24426A0010 FOR SURGICAL INSTRUMENT SHARPENING SERVICES FOR THE WILMINGTON VA MEDICAL CENTER. Key points: 1. Value for money appears reasonable given the specialized nature of surgical instrument maintenance. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and a defined scope of services. 4. Performance context is within a critical healthcare setting, requiring high standards of quality and reliability. 5. Sector positioning is within healthcare support services, a vital component of medical facility operations.

Value Assessment

Rating: good

The contract value of $499,254 for surgical instrument sharpening services appears to be within a reasonable range for specialized medical equipment maintenance. Benchmarking against similar contracts for these niche services is challenging without more granular data on the volume and types of instruments serviced. However, the firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be a positive indicator of value if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these services. This process is generally expected to lead to more competitive pricing and a wider selection of qualified providers for the government.

Taxpayer Impact: A full and open competition benefits taxpayers by fostering a competitive environment that can drive down costs and ensure the government receives the best possible value for its investment in essential medical support services.

Public Impact

Surgical instrument sharpening services directly benefit the Wilmington VA Medical Center by ensuring the availability of properly maintained surgical tools. This contract supports the delivery of safe and effective surgical procedures for veterans. The geographic impact is localized to the Wilmington, Delaware area, serving the specific needs of the VA medical center. Workforce implications are likely minimal, primarily involving specialized technicians for the sharpening services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor fails to meet quality standards or delivery timelines.
Reliance on a single task order for a critical service could pose a risk if the BPA is not well-managed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust market and potential for competitive pricing.
Task order issued against an existing BPA indicates a pre-vetted contracting vehicle.

Sector Analysis

The healthcare support services sector is critical for the efficient operation of medical facilities. Surgical instrument maintenance is a specialized niche within this sector, requiring precision and adherence to strict quality standards. Spending in this area is driven by the volume and complexity of surgical procedures performed. Comparable spending benchmarks are difficult to establish without specific details on the scope of services, but the overall market for medical equipment maintenance and repair is substantial.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the nature of the service. The primary contractor, Agiliti Health Inc., is a larger entity. Further analysis would be needed to determine if any small business participation is mandated or occurs organically within the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services to specification. Transparency is generally maintained through contract award databases, though specific performance metrics and quality assurance reports may not always be publicly accessible.

Related Government Programs

Medical Equipment Maintenance Services
Surgical Instrument Services
VA Medical Center Support Contracts
Healthcare Facility Operations

Risk Flags

Potential for service quality issues if not adequately monitored.
Dependence on a single contractor for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,925.4 to AGILITI HEALTH INC. TASK ORDER FROM BPA 36C24426A0010 FOR SURGICAL INSTRUMENT SHARPENING SERVICES FOR THE WILMINGTON VA MEDICAL CENTER.

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 $49,925.4.

What is the period of performance?

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

What is the track record of Agiliti Health Inc. in providing similar surgical instrument sharpening services to the federal government?

Agiliti Health Inc. is a known provider of healthcare services and medical equipment solutions. While specific details on their surgical instrument sharpening performance for the federal government are not immediately available from this single contract award, the company generally has a significant presence in the healthcare sector. A deeper dive into their contract history with various federal agencies, particularly the VA, would be necessary to assess their past performance, any reported issues, and their overall reliability in delivering specialized services. This would include reviewing past performance evaluations and any contract modifications or disputes.

How does the awarded price compare to market rates for surgical instrument sharpening services?

Benchmarking the $499,254 award against market rates for surgical instrument sharpening is challenging without more specific data on the volume, types of instruments, and service level agreements. Surgical instrument sharpening is a specialized service that requires skilled technicians and precise equipment. Factors such as the frequency of service, turnaround time, and the complexity of the instruments (e.g., delicate micro-surgical tools versus larger orthopedic instruments) significantly influence pricing. Generally, specialized maintenance services for critical medical equipment command higher prices than standard repair services. A comprehensive market analysis would involve surveying pricing from multiple commercial providers offering similar services to healthcare facilities.

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

The primary risks associated with this contract revolve around service quality, timeliness, and potential disruptions to surgical operations if instruments are not sharpened to standard or returned on schedule. Mitigation strategies include the firm fixed-price contract structure, which incentivizes the contractor to meet performance standards to ensure payment. The Department of Veterans Affairs (VA) would also have oversight mechanisms, including quality assurance surveillance plans (QASPs), to monitor the contractor's performance. Furthermore, the task order being issued against a broader Basic Ordering Agreement (BPA) suggests that the initial vetting of the contractor's capabilities has already occurred, potentially reducing some upfront risks.

What is the expected effectiveness of these services in supporting the Wilmington VA Medical Center's surgical capabilities?

The effectiveness of these surgical instrument sharpening services is expected to be high, as properly maintained instruments are fundamental to the safety and success of surgical procedures. Sharp, well-maintained instruments reduce tissue damage, improve surgical precision, and can potentially shorten procedure times. By ensuring a consistent supply of high-quality sharpened instruments, this contract directly supports the Wilmington VA Medical Center's ability to perform a wide range of surgical operations efficiently and effectively, contributing to better patient outcomes for veterans. The contract's duration and scope are designed to meet the ongoing needs of the facility.

How has federal spending on surgical instrument sharpening services evolved over the past five years?

Analyzing federal spending trends specifically for 'surgical instrument sharpening services' requires detailed data aggregation across various agencies and contract vehicles. This particular task order, valued at approximately $499K, is a component of a larger BPA. Without a broader analysis of all task orders under this BPA and similar contracts across the government, it's difficult to provide a precise historical spending trend. However, overall federal spending on healthcare services and medical equipment maintenance has generally been robust, particularly within the Department of Defense and the Department of Veterans Affairs, driven by the need to maintain high standards of care for service members and veterans. Spending in specialized maintenance areas often correlates with the volume of medical procedures performed.

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: $49,925

Exercised Options: $49,925

Current Obligation: $49,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24426A0010

IDV Type: BPA

Timeline