VA awards $247K for sterilizer repair, with 2 bids received under simplified acquisition procedures

Contract Overview

Contract Amount: $246,967 ($247.0K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-07

End Date: 2025-09-30

Contract Duration: 85 days

Daily Burn Rate: $2.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REPLACE SPS STERILIZERS

Place of Performance

Location: BINGHAM FARMS, OAKLAND County, MICHIGAN, 48025

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $246,966.8 to TRILLAMED LLC for work described as: REPLACE SPS STERILIZERS Key points: 1. Value appears reasonable given the short duration and limited scope of repair services. 2. Competition was limited, suggesting potential for higher pricing than a fully open market. 3. Risk indicators are low due to the small contract value and straightforward service requirement. 4. Performance context is a short-term repair need for essential medical equipment. 5. Sector positioning is within the healthcare support services for federal agencies.

Value Assessment

Rating: good

The contract value of $246,966.80 for approximately 85 days of service seems within a reasonable range for specialized equipment repair. Benchmarking against similar, albeit potentially longer-term or broader, sterilizer maintenance contracts suggests this pricing is competitive for the scope. The firm-fixed-price structure also provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition than full and open procedures. With only two bids received, the level of competition was limited. This suggests that while some price discovery occurred, it may not have reached the optimal level achievable with a larger pool of bidders.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that a more robust bidding process could have yielded.

Public Impact

Veterans receiving care at VA facilities will benefit from properly functioning sterilizers. Essential medical equipment maintenance services are delivered, ensuring operational readiness. The geographic impact is likely localized to the VA facility where the sterilizers are located. Workforce implications include support for specialized repair technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Reliance on a single vendor for specialized repair could pose future supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Short duration limits long-term financial exposure.
Awarded to a single vendor, simplifying administration.

Sector Analysis

The healthcare equipment repair and maintenance sector is critical for ensuring the operational efficiency of medical facilities. Federal agencies, particularly the Department of Veterans Affairs, rely heavily on specialized services to maintain complex machinery like sterilizers. Spending in this area is consistent with the need to uphold high standards of patient care and equipment longevity.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to TRILLAMED LLC, a single entity, does not indicate a direct impact on the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Standard procurement regulations and internal controls are expected to ensure accountability. Transparency is facilitated through contract databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Medical Equipment Maintenance Contracts
Department of Veterans Affairs Procurement
Commercial and Industrial Machinery Repair

Risk Flags

Limited Competition
Potential for Price Underselling

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $246,966.8 to TRILLAMED LLC. REPLACE SPS STERILIZERS

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 $246,966.8.

What is the period of performance?

Start: 2025-07-07. End: 2025-09-30.

What is the track record of TRILLAMED LLC in performing similar repair services for the federal government?

Information regarding TRILLAMED LLC's specific track record with federal repair contracts, particularly for sterilizers, is not detailed in the provided data. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess past performance, contract history, and any reported issues or successes. Without this, it's difficult to gauge their experience level and reliability for this specific task.

How does the awarded price compare to market rates for sterilizer repair services?

The provided data does not include specific market rate benchmarks for sterilizer repair. However, the contract value of approximately $247,000 for an 85-day period suggests a daily rate of roughly $2,905. This figure needs to be compared against industry pricing guides, quotes from other service providers, or historical VA spending on similar services to determine if it represents good value. The limited competition (2 bids) might indicate the price is not aggressively low.

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

The primary risks include potential service disruptions if TRILLAMED LLC underperforms or faces internal issues, and the risk of suboptimal pricing due to limited competition. Mitigation strategies include the firm-fixed-price structure which caps costs, the short contract duration which limits exposure, and the VA's oversight mechanisms. However, the lack of detailed performance history for the contractor introduces some uncertainty regarding execution quality.

How effective is the simplified acquisition procedure in ensuring fair pricing for this type of service?

Simplified Acquisition Procedures (SAP) are designed for efficiency and speed for purchases under the simplified acquisition threshold. While they can reduce administrative burden, they often result in less robust competition compared to full and open procedures. For a service valued at nearly $250,000, SAP's limited competition (two bidders in this case) may not guarantee the most competitive pricing for taxpayers. The effectiveness hinges on the specific market and the number of vendors actively participating within the SAP framework.

What is the historical spending pattern for sterilizer repair and maintenance by the Department of Veterans Affairs?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns. To analyze this, one would need to query federal procurement databases for all sterilizer repair and maintenance contracts awarded by the VA over several fiscal years. This would reveal trends in spending, average contract values, common contractors, and fluctuations in demand or pricing, providing context for the current award.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $246,967

Exercised Options: $246,967

Current Obligation: $246,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline