VA awards $4.2M for Hospital Beds to Trillamed LLC, impacting Surgical Appliance Manufacturing

Contract Overview

Contract Amount: $4,236,162 ($4.2M)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2026-02-13

Contract Duration: 1,049 days

Daily Burn Rate: $4.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOSPITAL BEDS

Place of Performance

Location: BINGHAM FARMS, OAKLAND County, MICHIGAN, 48025

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to TRILLAMED LLC for work described as: HOSPITAL BEDS Key points: 1. Contract value of $4.2M for hospital beds. 2. Competition was conducted under Simplified Acquisition Procedures (SAP). 3. Potential risk associated with a single awardee for critical supplies. 4. Spending falls within the Surgical Appliance and Supplies Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $4.2M for hospital beds appears reasonable given the duration and quantity. However, without specific per-unit cost data or comparison to similar VA contracts, a definitive assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting limited competition. While SAP aims for efficiency, it may not always yield the best price discovery compared to full and open competition, especially for essential medical supplies.

Taxpayer Impact: Taxpayer funds are utilized for this procurement. The limited competition may result in a higher cost than if broader competition were pursued, impacting overall value.

Public Impact

Ensures availability of essential hospital beds for veterans. Supports the Surgical Appliance and Supplies Manufacturing industry. Potential for price fluctuations if competition remains limited in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Single awardee for critical supplies
Lack of detailed cost breakdown

Positive Signals

Addresses a critical need for veteran healthcare
Contract duration provides supply stability

Sector Analysis

This contract falls within the Surgical Appliance and Supplies Manufacturing sector, which is crucial for healthcare infrastructure. Spending benchmarks for similar hospital bed procurements are not readily available, making direct comparison difficult.

Small Business Impact

The data does not indicate if Trillamed LLC is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of SAP and a single awardee warrants scrutiny to ensure fair pricing and adequate supply chain resilience.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for overpayment due to limited competition
Supply chain vulnerability with a single awardee
Lack of transparency in pricing structure
Limited data on small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to TRILLAMED LLC. HOSPITAL BEDS

Who is the contractor on this award?

The obligated recipient is TRILLAMED 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 $4.2 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-02-13.

What is the average per-unit cost of these hospital beds compared to industry standards or previous VA contracts?

The provided data does not include a per-unit cost breakdown, making direct comparison difficult. To assess value, a detailed analysis of the unit price against historical VA contracts for similar beds or publicly available industry benchmarks would be necessary. This would help determine if the $4.2M award represents a competitive price.

What are the risks associated with relying on a single supplier for critical hospital beds, especially under limited competition?

Relying on a single supplier for critical items like hospital beds poses risks of supply chain disruption due to unforeseen events affecting the vendor, potential price increases in future solicitations due to lack of ongoing competition, and reduced leverage for the government in negotiating terms or quality improvements.

How effectively does the Simplified Acquisition Procedure (SAP) ensure the best value for taxpayer dollars in this specific healthcare procurement?

SAP is designed for efficiency in smaller procurements, but its effectiveness in ensuring best value for larger or critical items like hospital beds can be limited. While it may expedite the process, the reduced competition inherent in SAP can potentially lead to higher prices than those achievable through more robust competitive bidding processes.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24623Q0207

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30100 TELEGRAPH RD, BINGHAM FARMS, MI, 48025

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,236,162

Exercised Options: $4,236,162

Current Obligation: $4,236,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline