VA awards $2.4M contract for medical gas delivery to RAS ENTERPRISES LLC

Contract Overview

Contract Amount: $240,995 ($241.0K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-10

End Date: 2026-01-14

Contract Duration: 1,465 days

Daily Burn Rate: $165/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL GAS DELIVERY

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $240,995.47 to RAS ENTERPRISES LLC for work described as: MEDICAL GAS DELIVERY Key points: 1. Contract awarded for industrial gas manufacturing services. 2. Firm Fixed Price contract type suggests predictable costs. 3. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 4. Contract duration of 1465 days provides long-term service stability. 5. Geographic focus on Mississippi for service delivery. 6. No small business set-aside noted, potentially limiting direct small business participation.

Value Assessment

Rating: good

The contract value of $2.4 million over approximately four years for medical gas delivery appears reasonable given the scope. While specific benchmarks for this exact service are not readily available, the award under SAP suggests a competitive process for a procurement of this size. The firm fixed price structure helps manage cost predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but is streamlined compared to full and open competition for larger contracts. The presence of 2 bids indicates some level of competition, suggesting that multiple vendors were aware of and interested in the requirement.

Taxpayer Impact: Competition under SAP generally leads to fair market pricing for taxpayers, as multiple vendors vie for the contract, driving down costs compared to sole-source awards.

Public Impact

Veterans in Mississippi will benefit from reliable access to essential medical gases. Ensures continuity of care within VA healthcare facilities. Supports the operational needs of medical facilities by providing critical supplies. Potential for indirect employment in the logistics and delivery of industrial gases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on RAS ENTERPRISES LLC's specific track record in government contracting.
No indication of small business subcontracting goals, which could limit opportunities for smaller firms.

Positive Signals

Awarded under a competitive process (SAP), suggesting a degree of market validation.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration (1465 days) indicates a stable, ongoing need for the service.

Sector Analysis

The medical gas delivery sector is a critical component of the broader healthcare supply chain, ensuring that hospitals and clinics have access to essential gases like oxygen, nitrogen, and medical air. This contract falls within the Industrial Gas Manufacturing (NAICS 325120) category. Spending in this area is consistent across federal agencies, particularly within the Department of Defense and Department of Veterans Affairs, to support healthcare operations.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements. This means that while RAS ENTERPRISES LLC may engage small businesses as subcontractors, there are no mandated goals. The absence of a set-aside could mean missed opportunities for small businesses to directly compete for this specific contract, though they may still participate indirectly.

Oversight & Accountability

As a Purchase Order awarded under SAP, oversight is typically managed through the contracting officer and the agency's procurement system. The Department of Veterans Affairs has established procurement regulations and oversight mechanisms to ensure compliance. Transparency is facilitated by contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Medical Supplies and Equipment
Industrial Gases
Healthcare Services Contracts
Veterans Affairs Medical Services

Risk Flags

Potential for supply chain disruption
Vendor performance risk
Limited visibility into contractor's specific experience

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $240,995.47 to RAS ENTERPRISES LLC. MEDICAL GAS DELIVERY

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 $240,995.47.

What is the period of performance?

Start: 2022-01-10. End: 2026-01-14.

What is the specific track record of RAS ENTERPRISES LLC with federal contracts, particularly for medical gas delivery?

Publicly available data indicates RAS ENTERPRISES LLC has received this specific purchase order from the Department of Veterans Affairs. Further detailed information regarding their past performance, contract history, and specific experience with medical gas delivery within the federal sector is limited in readily accessible databases. A deeper dive into contract award histories and performance evaluations, if available through specialized government contracting portals or agency records, would be necessary to fully assess their track record. However, the award itself suggests they met the minimum requirements for this procurement.

How does the awarded price compare to similar medical gas delivery contracts?

Benchmarking this specific contract's value of approximately $2.4 million for medical gas delivery is challenging without access to detailed pricing structures and service level agreements for comparable contracts. Contracts for industrial gases can vary significantly based on volume, purity requirements, delivery frequency, and geographic location. Given that this award was made under Simplified Acquisition Procedures (SAP) with two bidders, it suggests a competitive market for this particular procurement size and scope. A comprehensive comparison would require analyzing contract data for similar services awarded by other federal agencies or within different regions, considering factors like contract duration and specific service inclusions.

What are the primary risks associated with this contract for the Department of Veterans Affairs?

The primary risks for the Department of Veterans Affairs (VA) in this contract include potential supply chain disruptions for critical medical gases, which could impact patient care. Vendor performance issues, such as delivery delays or quality control problems with the gases, also pose a risk. Given that the contract is with RAS ENTERPRISES LLC, a thorough assessment of their financial stability and operational capacity to consistently meet demand over the four-year period is important. Additionally, reliance on a single vendor for such a critical supply, even if competed, carries inherent risks if the vendor faces unforeseen operational challenges.

How effective is the competition level in ensuring value for money for this contract?

The contract was competed under Simplified Acquisition Procedures (SAP) with two bids received. While SAP is designed for smaller procurements and allows for streamlined processes, it generally fosters more competition than sole-source awards. The fact that two vendors submitted bids suggests a degree of market interest and potential for price discovery. However, a higher number of bidders typically leads to more robust competition and potentially better value for money. The effectiveness of the current competition level hinges on whether these two bidders represented the majority of capable suppliers and whether the pricing achieved reflects a competitive market outcome.

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

Historical spending data for medical gas delivery by the Department of Veterans Affairs (VA) indicates a consistent and significant investment in these essential supplies. The VA, operating a vast network of healthcare facilities, requires a steady procurement of various medical gases to support patient care, surgical procedures, and respiratory therapies. Annual spending can fluctuate based on facility needs, new equipment adoption, and contract renewals. While specific figures for past years require detailed database analysis, it is evident that medical gas procurement represents a recurring and vital expenditure within the VA's operational budget, often managed through a mix of competitive bids and established supply agreements.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24521Q0807

Offers Received: 2

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: $391,634

Exercised Options: $240,996

Current Obligation: $240,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline