VA awards $906,767 for eyeglass supply and service to Superior Optical Labs, Inc

Contract Overview

Contract Amount: $906,768 ($906.8K)

Contractor: Superior Optical Labs, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-03-31

Contract Duration: 182 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 6 EYEGLASS SUPPLY & SERVICE

Place of Performance

Location: SALISBURY, ROWAN County, NORTH CAROLINA, 28144

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $906,767.57 to SUPERIOR OPTICAL LABS, INC for work described as: VISN 6 EYEGLASS SUPPLY & SERVICE Key points: 1. Spending on ophthalmic goods manufacturing is concentrated with a single vendor. 2. The contract value is moderate, but the lack of competition raises concerns. 3. Potential risks include price escalation and limited vendor options for future needs. 4. The sector is essential for veteran healthcare, requiring reliable supply chains.

Value Assessment

Rating: questionable

The contract value of $906,767 for a 6-month period appears high for eyeglass manufacturing and services. Benchmarking against similar contracts for ophthalmic goods is difficult without more detailed service descriptions and unit costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in the VA paying a premium for these services, impacting taxpayer funds negatively.

Public Impact

Veterans may face limited choices for eyewear if this vendor is the sole provider. The VA's ability to secure cost-effective solutions is hindered by non-competitive awards. Future contract opportunities for other small or large businesses in this sector are reduced.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited vendor pool

Positive Signals

Essential service for veterans
Fixed-price contract

Sector Analysis

The Department of Veterans Affairs procures ophthalmic goods and services to support veteran healthcare. Spending benchmarks for this specific niche can vary widely based on product complexity and service scope, but competitive pricing is generally expected.

Small Business Impact

The contract was awarded to Superior Optical Labs, Inc., a company that may or may not be a small business. The data indicates it was not set aside for small businesses, and no specific small business participation goals are mentioned.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The lack of competition suggests potential weaknesses in the procurement process that warrant further review to ensure fair and effective use of taxpayer funds.

Related Government Programs

Ophthalmic Goods Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Sole-source award
Limited vendor options

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $906,767.57 to SUPERIOR OPTICAL LABS, INC. VISN 6 EYEGLASS SUPPLY & SERVICE

Who is the contractor on this award?

The obligated recipient is SUPERIOR OPTICAL LABS, 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 $906,767.57.

What is the period of performance?

Start: 2023-10-01. End: 2024-03-31.

What is the specific breakdown of costs for materials, labor, and profit within this contract to assess value?

Without a detailed cost breakdown, it is challenging to ascertain the true value for money. A thorough analysis would require itemized costs for lenses, frames, manufacturing, and associated services, alongside a reasonable profit margin benchmark for the ophthalmic industry. This information is crucial for determining if the $906,767 award represents a fair price.

What are the risks associated with a sole-source award for essential veteran healthcare services like eyeglass provision?

A sole-source award for essential services like eyeglass provision carries significant risks. It can lead to inflated prices due to the absence of competitive pressure, potentially resulting in suboptimal value for taxpayer money. Furthermore, it limits the VA's ability to leverage innovation from a broader market and creates dependency on a single supplier, which could disrupt service delivery if the vendor faces operational issues.

How does this contract contribute to the overall effectiveness of the VA's healthcare delivery to veterans?

This contract is critical for the effectiveness of the VA's healthcare delivery, as eyeglasses are essential for many veterans' quality of life and ability to function. Ensuring a timely and reliable supply of quality eyewear directly impacts veteran satisfaction and health outcomes. However, the effectiveness is potentially compromised by the lack of competition, which could lead to delays or quality issues if the sole provider is unable to meet demand efficiently.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Ophthalmic Goods Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6525 SUNPLEX DR, OCEAN SPRINGS, MS, 39564

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, 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: $3,121,523

Exercised Options: $3,121,523

Current Obligation: $906,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24623D0034

IDV Type: IDC

Timeline