VA awards $10.1M for DA VINCI 5 DUAL CONSOLE SYSTEM, a surgical and medical instrument

Contract Overview

Contract Amount: $10,122,919 ($10.1M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2026-03-01

Contract Duration: 181 days

Daily Burn Rate: $55.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DA VINCI 5 DUAL CONSOLE SYSTEM

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.1 million to SDV OFFICE SYSTEMS LLC for work described as: DA VINCI 5 DUAL CONSOLE SYSTEM Key points: 1. The contract value of $10.1 million for a dual console system appears to be within a reasonable range for advanced medical equipment. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract duration of 181 days is relatively short, indicating a focused procurement for a specific system. 4. The system is classified under Surgical and Medical Instrument Manufacturing, a critical sector for healthcare delivery. 5. The award to SDV OFFICE SYSTEMS LLC warrants a review of their track record with similar medical device procurements. 6. The fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The award of $10.1 million for the DA VINCI 5 DUAL CONSOLE SYSTEM is for a specific, high-value medical device. Benchmarking against similar advanced robotic surgical systems suggests this price is competitive, especially considering the full and open competition. The fixed-price nature of the contract further enhances value by capping potential government expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the use of this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and terms for the government.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving the best possible value and price.

Public Impact

Veterans will benefit from access to advanced surgical technology, potentially leading to improved patient outcomes and reduced recovery times. The contract supports the delivery of critical surgical and medical instruments to the Department of Veterans Affairs. The geographic impact is primarily within the facilities served by the Department of Veterans Affairs, likely across North Carolina. The acquisition of this system may indirectly support specialized surgical teams and healthcare professionals within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for vendor lock-in if training and maintenance are not competitively sourced.
Dependence on a single system for critical surgical procedures.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract type limits financial risk for the government.
The system is a recognized medical device, implying established functionality.

Sector Analysis

The market for surgical and medical instruments, particularly advanced systems like robotic consoles, is highly specialized and dominated by a few key manufacturers. This contract falls within the broader healthcare technology sector, where innovation drives significant investment. Spending benchmarks for such high-end equipment can vary widely based on features, but competitive procurements are crucial for ensuring value.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities, which are not detailed here. The primary focus appears to be on acquiring advanced medical technology through a competitive process.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), oversight would typically involve contract specialists monitoring performance, delivery schedules, and compliance with terms. Transparency is generally maintained through contract databases, though specific performance reviews are internal.

Related Government Programs

Medical Equipment Procurement
Surgical Systems
Veterans Health Administration Contracts
Department of Veterans Affairs IT and Medical Supplies

Risk Flags

Potential for high maintenance costs not detailed.
Limited contract duration may indicate a specific, short-term need or a phased approach.
Dependence on a single vendor for critical surgical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.1 million to SDV OFFICE SYSTEMS LLC. DA VINCI 5 DUAL CONSOLE SYSTEM

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 $10.1 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-03-01.

What is the track record of SDV OFFICE SYSTEMS LLC in supplying advanced medical equipment to federal agencies?

Information regarding SDV OFFICE SYSTEMS LLC's specific track record in supplying advanced medical equipment, particularly systems comparable to the DA VINCI 5 DUAL CONSOLE SYSTEM, is not detailed in the provided data. A thorough review would require examining past performance evaluations, contract history with federal agencies, and any reported issues or successes related to similar procurements. Understanding their experience with high-value medical technology is crucial for assessing reliability and future performance.

How does the $10.1 million award compare to the market price for similar dual console surgical systems?

The $10.1 million award for the DA VINCI 5 DUAL CONSOLE SYSTEM appears to be within a competitive range for advanced robotic surgical systems. However, a precise market comparison requires detailed knowledge of the specific system's configuration, included features, warranty, and any bundled services (like training or maintenance). Prices for such systems can fluctuate significantly based on these factors and the negotiation leverage of the buyer. The fact that this was awarded under full and open competition suggests that the VA likely achieved a favorable price point relative to market alternatives.

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

Key risks include potential technical malfunctions of the sophisticated equipment, the need for specialized training for medical staff, and ensuring timely delivery and installation. The contract is mitigated by its firm fixed-price nature, which caps financial exposure for the government. Furthermore, the Department of Veterans Affairs' oversight mechanisms and the system's classification under Surgical and Medical Instrument Manufacturing suggest a focus on reliability. However, the short duration (181 days) might imply a need for rapid deployment, which could introduce logistical risks if not managed effectively.

What is the expected program effectiveness or impact of acquiring this DA VINCI 5 DUAL CONSOLE SYSTEM?

The expected program effectiveness centers on enhancing the capabilities of the Department of Veterans Affairs' surgical services. The DA VINCI 5 DUAL CONSOLE SYSTEM is a state-of-the-art robotic surgical platform designed to enable minimally invasive procedures with greater precision, control, and visualization. Acquiring this system is anticipated to improve patient outcomes, reduce recovery times, and potentially expand the range of complex surgeries that can be performed within the VA healthcare system, thereby improving the quality and accessibility of care for veterans.

What are the historical spending patterns for similar surgical systems by the Department of Veterans Affairs?

Historical spending patterns for similar surgical systems by the Department of Veterans Affairs would typically show a trend towards investing in advanced medical technologies to improve patient care. The VA has consistently procured sophisticated medical equipment to meet the complex health needs of veterans. Specific data on past acquisitions of robotic surgical systems would reveal the frequency, value, and types of systems purchased, indicating a strategic commitment to upgrading surgical capabilities over time. This $10.1 million award aligns with such a strategic investment.

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: $10,122,919

Exercised Options: $10,122,919

Current Obligation: $10,122,919

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