VA awards $532K for anesthesia machines, highlighting potential value concerns with limited competition

Contract Overview

Contract Amount: $532,590 ($532.6K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-06-26

Contract Duration: 80 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 7 ANESTHESIA MACHINES

Place of Performance

Location: SOUTHFIELD, OAKLAND County, MICHIGAN, 48076

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $532,590 to TRILLAMED LLC for work described as: 7 ANESTHESIA MACHINES Key points: 1. The contract's value appears reasonable given the quantity of anesthesia machines, but a deeper dive into specific features and market pricing is needed. 2. Limited competition may have impacted the final price, suggesting potential for better value if more vendors had participated. 3. The short performance period and delivery order structure indicate a need for timely execution and potential for follow-on requirements. 4. This contract falls within the Surgical Appliance and Supplies Manufacturing NAICS code, a sector with established players and varying price points. 5. The contractor, TRILLAMED LLC, has a track record that warrants review to assess past performance and reliability. 6. The absence of small business set-aside flags suggests this was not specifically targeted to smaller enterprises.

Value Assessment

Rating: fair

The award of $532,590 for 7 anesthesia machines, averaging approximately $75,000 per unit, requires careful benchmarking. While anesthesia machines can range significantly in price based on features and brand, this per-unit cost should be compared against recent similar federal procurements and commercial price lists. Without more detailed specifications of the machines procured, it is difficult to definitively assess value for money. However, the benchmark of $6,657 for a related item (likely a component or accessory, given the large discrepancy) suggests a potential outlier in pricing for the main equipment.

Cost Per Unit: Approximately $75,000 per unit. Benchmarking against comparable anesthesia machines in the federal market and commercial sector is recommended.

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. However, the data shows only two offers were received. While full and open competition was the method, the low number of bids suggests that the pool of interested and capable vendors might have been limited for this specific requirement, potentially impacting the breadth of price discovery.

Taxpayer Impact: While competition was open, the low number of bids may have limited the government's ability to secure the lowest possible price, potentially costing taxpayers more than if a wider range of vendors had competed.

Public Impact

Veterans will benefit from the acquisition of new anesthesia machines, enhancing the capabilities of surgical services within VA facilities. The contract directly supports the delivery of essential medical equipment for surgical procedures. The primary geographic impact is within the facilities served by the Department of Veterans Affairs, likely across Michigan given the 'MI' state code. This contract supports the healthcare workforce by providing them with necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received under full and open competition could indicate potential issues with market research or solicitation clarity.
The significant difference between the total award amount and the 'br' benchmark value raises questions about what the benchmark represents and if it's directly comparable.
The short duration of the contract (80 days) might indicate an urgent need or a phased approach, requiring close monitoring of delivery timelines.

Positive Signals

The contract was awarded through full and open competition, adhering to principles of fair opportunity.
The Department of Veterans Affairs is procuring critical medical equipment to support veteran healthcare.
The firm fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the broader healthcare equipment manufacturing and supply sector. The NAICS code 339113 (Surgical Appliance and Supply Manufacturing) encompasses a range of medical devices. The market for anesthesia machines is characterized by specialized manufacturers and distributors, with prices varying based on technological sophistication, features, and service agreements. Federal spending in this category is substantial, driven by agencies like the VA and DoD, which often procure high-end medical equipment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible contractors, regardless of size. While there's no explicit subcontracting plan mentioned, large prime contractors are often required to outline their plans for engaging small businesses. In this instance, with a likely smaller prime contractor (TRILLAMED LLC), the direct impact on the small business ecosystem may be limited unless they themselves subcontract.

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 invoice payments. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Contracts
Surgical Supplies
Anesthesia Devices

Risk Flags

Low number of bids received under full and open competition.
Potential for price overpayment due to limited competition.
Urgency implied by short contract duration requires close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $532,590 to TRILLAMED LLC. 7 ANESTHESIA MACHINES

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 $532,590.

What is the period of performance?

Start: 2026-04-07. End: 2026-06-26.

What is the typical price range for anesthesia machines with similar specifications in the federal market?

The average price per unit for this contract is approximately $75,000. Anesthesia machines can vary widely in price, from tens of thousands to over $100,000, depending on advanced features like integrated ventilators, gas monitoring, anesthesia delivery systems, and touchscreen interfaces. Federal agencies like the VA and DoD often procure sophisticated models. Benchmarking against recent awards for similar specifications within FPDS or GSA schedules would provide a clearer picture. For instance, contracts for high-end anesthesia workstations with advanced monitoring capabilities have been awarded in the $80,000-$120,000 range. Lower-end or refurbished models might fall below $50,000. Without specific model numbers or feature lists for the 7 machines procured by the VA, a precise comparison is challenging, but the $75,000 average appears within the plausible range for mid-to-high tier equipment.

How does the number of bids received (2) compare to typical competition levels for similar medical equipment procurements by the VA?

Receiving only two bids under a 'full and open competition' solicitation for medical equipment like anesthesia machines can be considered a relatively low level of competition. While the ideal number of bids can vary depending on the complexity and market size of the item, many federal procurements aim for three or more offers to ensure robust price discovery and market responsiveness. For specialized medical equipment, it's not uncommon to see fewer bidders than for more commoditized items. However, a low bid count might suggest potential issues such as insufficient market research, restrictive solicitation requirements, unclear specifications, or a limited number of qualified manufacturers and distributors actively participating in federal contracting. The VA should analyze the reasons for the low bid count to improve future solicitations and maximize competition.

What are the potential risks associated with a short contract duration (80 days) for medical equipment delivery?

A short contract duration of 80 days for the delivery of 7 anesthesia machines presents several potential risks. Firstly, it implies an urgent need, which could mean the VA faced a critical equipment shortage, potentially impacting patient care if not met promptly. Secondly, it places significant pressure on the contractor, TRILLAMED LLC, to procure, configure, and deliver the machines within a tight timeframe. Delays could arise from manufacturing backlogs, shipping issues, or logistical challenges, leading to the VA not receiving the critical equipment when needed. This urgency might also limit the government's ability to conduct thorough inspections or acceptances. Finally, such short timelines can sometimes lead to higher prices as contractors may factor in expedited costs or premiums for rapid fulfillment.

What does the 'br' value of $6,657 signify in relation to the total award of $532,590?

The 'br' value of $6,657 is significantly lower than the total award amount ($532,590) and the per-unit average ($75,000). In federal procurement data, 'br' often refers to a benchmark or reference price, potentially for a specific component, accessory, or a different, smaller item within the same contract or a related contract. Given the magnitude of the difference, it is highly unlikely that $6,657 represents the cost of an anesthesia machine. It could be a benchmark for a specific part, a service component, or perhaps an unrelated item included in a broader procurement action that this specific delivery order is part of. Without further context or definition from the data source, its precise meaning is unclear, but it does not appear to be a comparable benchmark for the anesthesia machines themselves.

What is TRILLAMED LLC's track record with the Department of Veterans Affairs and for similar medical equipment?

Assessing TRILLAMED LLC's track record is crucial for understanding the reliability and performance associated with this $532,590 contract. A review of federal procurement databases (like FPDS) would reveal their past awards, including the value, type of goods/services, and agencies served. Specifically, looking at their history with the VA for medical equipment, particularly anesthesia-related items, would be most relevant. Key performance indicators to examine include on-time delivery rates, contract modifications (and reasons), past performance evaluations (if available), and any history of disputes or corrective actions. If TRILLAMED LLC has a strong history of successful deliveries and positive performance ratings with the VA, it increases confidence in this current award. Conversely, any red flags in their past performance would heighten the risk assessment for this contract.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Manufacturer of Goods, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $532,590

Exercised Options: $532,590

Current Obligation: $532,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0041

IDV Type: FSS

Timeline