VA awards $172K for Bulk Oxygen Services to RCG of North Carolina, LLC
Contract Overview
Contract Amount: $172,014 ($172.0K)
Contractor: RCG of North Carolina, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-12-01
End Date: 2025-11-30
Contract Duration: 364 days
Daily Burn Rate: $473/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BULK OXYGEN SERVICES
Place of Performance
Location: CAROLINA BEACH, NEW HANOVER County, NORTH CAROLINA, 28428
Plain-Language Summary
Department of Veterans Affairs obligated $172,014.47 to RCG OF NORTH CAROLINA, LLC for work described as: BULK OXYGEN SERVICES Key points: 1. The Department of Veterans Affairs (VA) is procuring bulk oxygen services. 2. The contract is awarded to RCG of North Carolina, LLC. 3. The contract value is $172,014.47 for a 364-day period. 4. The procurement was competed under Simplified Acquisition Procedures (SAP).
Value Assessment
Rating: fair
The contract value of $172,014.47 for a one-year period for bulk oxygen services appears reasonable given the specialized nature of the product and service. Benchmarking against similar contracts for industrial gases would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, suggesting a limited competition approach. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: The taxpayer impact is likely moderate, as the contract value is relatively small and was subject to some level of competition.
Public Impact
Ensures critical medical gas supply for VA facilities. Supports patient care and medical procedures within the VA system. Provides essential services to veterans receiving care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may not guarantee best value.
- Reliance on a single vendor for a critical supply.
- Potential for price increases in future contract renewals.
Positive Signals
- Contract awarded to a small business (if applicable, based on NAICS code 325120).
- Clear contract period and pricing structure.
- Supports a specific regional need within North Carolina.
Sector Analysis
The procurement falls within the industrial gas manufacturing sector, specifically for medical and industrial gases. Spending benchmarks for this sector can vary significantly based on volume, purity, and delivery requirements.
Small Business Impact
The contract was awarded to RCG of North Carolina, LLC, located in North Carolina. Further analysis is needed to determine if RCG qualifies as a small business for this specific NAICS code (325120).
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely delivery and quality of bulk oxygen services, maintaining accountability for the expenditure.
Related Government Programs
- Industrial Gas Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Potential supply chain vulnerability
- Lack of detailed specifications for benchmarking
- Dependence on a single provider for critical service
Tags
industrial-gas-manufacturing, department-of-veterans-affairs, nc, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $172,014.47 to RCG OF NORTH CAROLINA, LLC. BULK OXYGEN SERVICES
Who is the contractor on this award?
The obligated recipient is RCG OF NORTH CAROLINA, 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 $172,014.47.
What is the period of performance?
Start: 2024-12-01. End: 2025-11-30.
What is the specific volume and purity of bulk oxygen being procured, and how does this impact the price benchmark?
The data does not specify the exact volume or purity requirements for the bulk oxygen. These details are crucial for accurate price benchmarking. Higher purity levels or specific delivery mechanisms (e.g., cryogenic tanks, cylinders) would command different price points. Without this information, a precise per-unit cost comparison is not feasible.
What are the risks associated with relying on a single vendor for bulk oxygen, especially in a healthcare setting?
The primary risk is supply chain disruption. If the sole vendor experiences production issues, delivery problems, or faces unforeseen circumstances, it could directly impact patient care at VA facilities. This necessitates robust contingency planning by the VA, including emergency backup suppliers or maintaining strategic reserves.
How effective is the SAP competition method in ensuring value for money for specialized industrial gases like bulk oxygen?
Simplified Acquisition Procedures (SAP) are designed for efficiency and speed for purchases under the simplified acquisition threshold. While effective for routine procurements, for specialized items like bulk oxygen, SAP might limit the pool of potential bidders compared to full and open competition. This could potentially lead to a less competitive price discovery process.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C24724Q0538
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 205 N CAROLINA AVE, CAROLINA BEACH, NC, 28428
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: $530,110
Exercised Options: $172,014
Current Obligation: $172,014
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-12-01
Current End Date: 2025-11-30
Potential End Date: 2029-11-30 00:00:00
Last Modified: 2026-04-07
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