VA Awards $3.9M Inpatient Pharmacy Compounding Room Contract to DAX Safety & Staffing

Contract Overview

Contract Amount: $3,909,003 ($3.9M)

Contractor: DAX Safety & Staffing Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2026-05-29

Contract Duration: 270 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 508-21-107 | INPATIENT PHARMACY IV COMPOUNDING ROOM | FINAL EVALUATION REPORT

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to DAX SAFETY & STAFFING SOLUTIONS, LLC for work described as: 508-21-107 | INPATIENT PHARMACY IV COMPOUNDING ROOM | FINAL EVALUATION REPORT Key points: 1. Contract value of $3.9M for a critical healthcare facility upgrade. 2. DAX Safety & Staffing Solutions, LLC, a new awardee, faces initial scrutiny. 3. Risk of performance issues due to limited past performance data. 4. Spending falls within the typical range for similar construction projects.

Value Assessment

Rating: fair

The contract value of $3.9M appears reasonable for a specialized construction project of this nature. Benchmarking against similar VA or healthcare facility construction contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after excluding sources, suggesting a deliberate process to ensure fair pricing. However, the limited number of bids (2) warrants further investigation into the effectiveness of the solicitation process.

Taxpayer Impact: Taxpayer funds are being used for a necessary upgrade to a VA healthcare facility, aiming to improve patient care and safety.

Public Impact

Improved patient care through enhanced pharmacy compounding capabilities. Potential for job creation in the construction sector. Ensures compliance with healthcare facility standards and regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending benchmarks for similar projects vary widely based on scope, location, and specific requirements, but $3.9M is within a plausible range for a specialized facility upgrade.

Small Business Impact

The contract was not awarded to a small business. Further analysis is needed to determine if small business participation was adequately considered or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The definitive contract award type suggests a structured process, but monitoring performance and adherence to contract terms will be crucial.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-veterans-affairs, ga, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to DAX SAFETY & STAFFING SOLUTIONS, LLC. 508-21-107 | INPATIENT PHARMACY IV COMPOUNDING ROOM | FINAL EVALUATION REPORT

Who is the contractor on this award?

The obligated recipient is DAX SAFETY & STAFFING SOLUTIONS, 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 $3.9 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-05-29.

What is the specific scope of work for the inpatient pharmacy IV compounding room, and how does it compare to industry standards for similar facilities?

The specific scope involves the construction or renovation of an inpatient pharmacy IV compounding room. This typically includes specialized ventilation, sterile environments, and workflow design to ensure the safe preparation of intravenous medications. Benchmarking against industry standards requires detailed specifications of the room's size, equipment, and required certifications (e.g., USP <797>, <800>).

Given the limited number of bids (2), what steps were taken to ensure the government received fair market value for this construction project?

The contracting officer should have conducted thorough market research to establish a reasonable price before soliciting offers. The use of a firm fixed-price contract provides cost certainty. However, the low bid count suggests potential issues with the solicitation's reach or attractiveness, necessitating a review of the procurement process to ensure adequate competition was encouraged.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure the effectiveness of the new compounding room post-construction?

Key performance indicators likely include adherence to schedule, quality of construction, compliance with sterile compounding standards, and timely completion of punch list items. Effectiveness will be measured by the facility's ability to meet regulatory requirements, improve workflow efficiency for pharmacy staff, and ultimately contribute to enhanced patient safety and medication accuracy.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24725R0046

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2158 SPRING COVE RD, SUNRISE BEACH, MO, 65079

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

Financial Breakdown

Contract Ceiling: $3,909,003

Exercised Options: $3,909,003

Current Obligation: $3,909,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-09-01

Current End Date: 2026-05-29

Potential End Date: 2026-05-29 00:00:00

Last Modified: 2026-01-20

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