VA awards $3.1M for surgical instruments, highlighting manufacturing sector performance

Contract Overview

Contract Amount: $3,133,600 ($3.1M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-15

End Date: 2026-02-01

Contract Duration: 139 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DAVINCI ROBOT

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28805

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to SDV OFFICE SYSTEMS LLC for work described as: DAVINCI ROBOT Key points: 1. Contract value appears reasonable given the scope of surgical and medical instrument manufacturing. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period is relatively short, allowing for agile adaptation to evolving needs. 5. This award aligns with the VA's ongoing efforts to equip healthcare facilities. 6. The North Carolina location may indicate regional manufacturing strengths in this sector.

Value Assessment

Rating: good

The contract value of $3.1 million for surgical and medical instruments seems aligned with industry benchmarks for similar procurements. While specific per-unit cost data is not provided, the firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which is generally favorable for the government. Benchmarking against other VA or DoD contracts for comparable instrument sets would provide a more precise value assessment, but the initial indication is positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The number of bidders is not specified, but the method itself suggests a robust selection process aimed at achieving optimal value.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by leveraging market forces to drive down prices.

Public Impact

Veterans will benefit from access to modern and reliable surgical and medical instruments. The contract supports the delivery of essential medical supplies to VA healthcare facilities. The geographic impact is primarily within North Carolina, where the contractor is located, potentially supporting regional jobs. This award contributes to the operational readiness of medical personnel within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor effectiveness beyond delivery.
Limited detail on the exact types of instruments procured hinders a full understanding of the value proposition.

Positive Signals

Firm fixed-price contract type reduces financial risk for the government.
Awarded under full and open competition, suggesting a competitive market.
Contractor is located in North Carolina, potentially supporting regional economic activity.

Sector Analysis

The surgical and medical instrument manufacturing sector is a critical component of the healthcare industry, encompassing the design, production, and distribution of a wide range of devices used in medical procedures. This contract falls within the broader manufacturing and healthcare supply chain, a market characterized by innovation and stringent quality controls. Comparable spending benchmarks would typically be found within defense and civilian healthcare agency procurements for similar medical equipment.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of specific small business subcontracting requirements. The award to SDV OFFICE SYSTEMS LLC, whose size status is not detailed here, means that the direct impact on the small business ecosystem is not immediately apparent. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under a larger contract vehicle (implied by 'delivery order'), oversight may be managed by the issuing agency (Department of Veterans Affairs). Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies Procurement
Veterans Health Administration Contracts
Surgical Equipment
Medical Device Manufacturing

Risk Flags

Potential for supply chain disruptions affecting delivery timelines.
Risk of instruments not meeting evolving clinical standards or technological advancements.
Dependence on a single contractor for a specific set of instruments could pose a risk if performance issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to SDV OFFICE SYSTEMS LLC. DAVINCI ROBOT

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS 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 $3.1 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-02-01.

What is the track record of SDV OFFICE SYSTEMS LLC in fulfilling federal contracts, particularly for medical equipment?

Information regarding SDV OFFICE SYSTEMS LLC's specific track record for fulfilling federal contracts, especially for medical equipment, is not detailed in the provided data. A thorough review of the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess past performance, including contract values, types of goods or services provided, timeliness of delivery, and any reported issues or awards. Understanding their history with similar instrument procurements would offer insight into their reliability and capability for this specific award.

How does the awarded price compare to similar surgical instrument contracts awarded by the VA or other federal agencies?

Without specific details on the exact instruments procured and their quantities, a direct price comparison is challenging. However, the total award of $3.1 million for a 139-day period suggests a significant investment in medical supplies. Benchmarking this against other VA contracts for surgical kits, diagnostic tools, or specialized surgical instruments would be the next step. Factors like the complexity of the instruments, brand names, and bulk purchasing discounts would influence price variations. A preliminary assessment indicates the value is within a plausible range for such procurements.

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

The primary risks for this contract include potential delays in delivery, quality control issues with the instruments, and the possibility of the procured items not meeting the specific clinical needs of the VA. Mitigation strategies are embedded in the contract terms. The firm fixed-price structure shifts the financial risk to the contractor. The relatively short performance period allows for quicker identification and resolution of issues. Furthermore, the VA's standard procurement processes include requirements for product specifications, quality assurance, and acceptance testing, which serve to mitigate risks related to product suitability and quality.

How effective is the VA in procuring surgical and medical instruments through competitive bidding processes?

The VA generally utilizes competitive bidding processes, such as full and open competition, to procure a wide range of medical supplies, including surgical instruments. The effectiveness of these processes is typically measured by the number of bids received, the competitiveness of pricing, and the quality of the awarded products. Awards made under full and open competition, like this one, suggest a commitment to leveraging market forces. However, the VA, like any large agency, faces challenges in ensuring optimal value across all procurements, which can be influenced by market dynamics, specific product needs, and the complexity of the bidding process itself.

What are the historical spending patterns for surgical and medical instruments by the Department of Veterans Affairs?

Historical spending patterns for surgical and medical instruments by the Department of Veterans Affairs are substantial, reflecting the vast network of healthcare facilities and the critical need for these supplies. Annual spending typically runs into hundreds of millions, if not billions, of dollars across various categories of medical equipment and consumables. This $3.1 million award represents a small fraction of the VA's overall medical supply budget. Analyzing trends over several fiscal years would reveal fluctuations based on healthcare demand, technological advancements, and strategic sourcing initiatives.

What is the anticipated impact of this contract on the availability of essential medical equipment for veterans?

This contract is expected to positively impact the availability of essential medical equipment for veterans by ensuring that VA healthcare facilities are supplied with necessary surgical and medical instruments. By procuring these items, the VA aims to maintain high standards of care and support the medical procedures required by veterans. The timely delivery of quality instruments directly contributes to the operational capacity of the VA's medical services, ultimately enhancing the healthcare experience and outcomes for beneficiaries.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 REDMOND DR UNIT C, FLETCHER, NC, 28732

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $3,133,600

Exercised Options: $3,133,600

Current Obligation: $3,133,600

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G25D0013

IDV Type: IDC

Timeline