VA awards $4.96M for trailer rental to Mobile Medical International Corporation, a sole-source contract
Contract Overview
Contract Amount: $4,963,278 ($5.0M)
Contractor: Mobile Medical International Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-03-22
End Date: 2027-03-21
Contract Duration: 1,460 days
Daily Burn Rate: $3.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPS TRAILER
Place of Performance
Location: SAINT JOHNSBURY, CALEDONIA County, VERMONT, 05819
State: Vermont Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $5.0 million to MOBILE MEDICAL INTERNATIONAL CORPORATION for work described as: SPS TRAILER Key points: 1. Contract value of $4.96M over 4 years. 2. Sole-source award indicates limited competition. 3. Potential risk in lack of competitive pricing. 4. Sector is Other Commercial and Industrial Machinery Rental.
Value Assessment
Rating: questionable
The contract value of $4.96M for a 4-year trailer rental appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is fair and reasonable compared to market rates for similar equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were solicited. This significantly limits price discovery and may result in a higher cost to taxpayers than if the contract had been competed.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending, as competitive pressures that typically drive down costs were absent.
Public Impact
Veterans may experience delays or disruptions in medical services if the rented trailer is not adequately maintained or replaced. Taxpayers may be overpaying for essential medical equipment due to the lack of competitive bidding. The Department of Veterans Affairs' reliance on sole-source contracts could indicate systemic issues in procurement planning or vendor engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service for veterans
- Long-term contract provides stability
Sector Analysis
The 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' sector is broad. Benchmarking for specialized medical trailers is difficult without more specific data, but sole-source awards in any sector warrant scrutiny.
Small Business Impact
There is no indication that small businesses were considered or involved in this sole-source procurement, which is a missed opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the VA received fair value and that this approach is not a pattern for similar procurements.
Related Government Programs
- Other Commercial and Industrial Machinery and Equipment Rental and Leasing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in vendor selection.
- No small business participation evident.
Tags
other-commercial-and-industrial-machiner, department-of-veterans-affairs, vt, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $5.0 million to MOBILE MEDICAL INTERNATIONAL CORPORATION. SPS TRAILER
Who is the contractor on this award?
The obligated recipient is MOBILE MEDICAL INTERNATIONAL 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 $5.0 million.
What is the period of performance?
Start: 2023-03-22. End: 2027-03-21.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves a unique capability or urgent need. Without further details, it's unclear if the VA adequately explored alternatives or conducted market research to validate the necessity of a sole-source approach and ensure the pricing was reasonable.
What are the risks associated with relying on a single vendor for critical medical equipment like a trailer?
Relying on a single vendor for critical medical equipment poses risks such as service disruptions if the vendor fails to deliver or maintain the equipment, potential price gouging due to lack of competition, and limited options for upgrades or alternative solutions.
How does this contract contribute to the VA's overall mission effectiveness in providing healthcare to veterans?
This contract likely supports the VA's mission by providing necessary mobile medical facilities. However, the effectiveness is potentially compromised if the sole-source award led to suboptimal pricing or if the vendor's performance is not rigorously monitored, impacting the quality and accessibility of care.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2176 PORTLAND ST STE 4, SAINT JOHNSBURY, VT, 05819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,066,151
Exercised Options: $4,963,278
Current Obligation: $4,963,278
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-22
Current End Date: 2027-03-21
Potential End Date: 2027-03-21 00:00:00
Last Modified: 2026-03-11
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