VA awards $3M contract for cardiac cath lab equipment installation at Memphis VA Medical Center

Contract Overview

Contract Amount: $3,050,166 ($3.1M)

Contractor: Semper TEK Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-17

End Date: 2026-04-08

Contract Duration: 1,087 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 614-CSI-108 - INSTALL MISC. HI-TECH HI-COST EQUIP. (CARDIAC CATH LAB) AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS TENNESSEE.

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38104

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to SEMPER TEK INC for work described as: 614-CSI-108 - INSTALL MISC. HI-TECH HI-COST EQUIP. (CARDIAC CATH LAB) AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS TENNESSEE. Key points: 1. Contract awarded to Semper Tek Inc. for installation of high-cost cardiac catheterization lab equipment. 2. The contract has a duration of 1087 days, spanning from April 2023 to April 2026. 3. This is a definitive contract with a firm fixed price, indicating defined scope and cost. 4. The award was made under full and open competition after exclusion of sources. 5. The project is located in Memphis, Tennessee, serving the local VA Medical Center. 6. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the equipment and installation scope. However, the total award amount of approximately $3.05 million for a multi-year installation project suggests a significant investment in critical medical infrastructure. Comparing this to similar projects for hospital equipment installation would provide a clearer picture of value for money. The firm fixed-price nature of the contract helps control costs, but the overall value depends on the efficiency and quality of the installation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was open, certain sources may have been excluded based on specific criteria, which warrants further investigation. The number of bidders is not specified, but the 'full and open' nature suggests an intent to maximize competition. The level of competition achieved will directly impact price discovery and the potential for cost savings for the government.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and terms, potentially leading to a more cost-effective outcome.

Public Impact

Veterans in the Memphis, Tennessee area will benefit from improved cardiac care services at the VA Medical Center. The contract facilitates the installation of advanced high-tech, high-cost equipment for cardiac catheterization procedures. The project's geographic impact is focused on the Memphis VA Medical Center and its patient population. The installation services will likely involve skilled labor within the construction and medical equipment installation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in an otherwise 'full and open' competition needs clarification to ensure no viable vendors were unfairly prevented from bidding.
Lack of specific details on the 'misc. hi-tech hi-cost equip.' makes it difficult to assess if the chosen equipment represents the best value or if alternative, more cost-effective solutions were considered.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the Department of Veterans Affairs.
Awarding the contract under full and open competition, even with exclusions, suggests an effort to leverage market competition for better pricing.
The project addresses a critical healthcare need for veterans, indicating a positive impact on healthcare delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to healthcare facility upgrades. The market for medical equipment installation is specialized, often involving complex logistics and technical expertise. Spending on healthcare infrastructure within the VA system is substantial, with significant investments made annually to modernize facilities and acquire advanced medical technology to serve the veteran population. Comparable benchmarks would involve analyzing other VA or public hospital construction and equipment installation contracts.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large construction and equipment installation projects often involve subcontracting opportunities, which could potentially benefit small businesses if actively pursued by the prime contractor, Semper Tek Inc.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress and specific oversight activities may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Construction
Medical Equipment Procurement and Installation
Cardiac Care Services
Healthcare Infrastructure Modernization

Risk Flags

Competition Exclusions
Scope Definition Clarity
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to SEMPER TEK INC. 614-CSI-108 - INSTALL MISC. HI-TECH HI-COST EQUIP. (CARDIAC CATH LAB) AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS TENNESSEE.

Who is the contractor on this award?

The obligated recipient is SEMPER TEK INC.

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 $3.1 million.

What is the period of performance?

Start: 2023-04-17. End: 2026-04-08.

What specific 'misc. hi-tech hi-cost equip. (cardiac cath lab)' is being installed, and what is the rationale for selecting this particular equipment over alternatives?

The specific details of the 'misc. hi-tech hi-cost equip. (cardiac cath lab)' are not provided in the summary data. This equipment likely refers to advanced imaging systems, diagnostic tools, and patient support apparatus essential for performing cardiac catheterization procedures. The rationale for selection would typically involve a needs assessment by the VA Medical Center, considering factors such as diagnostic accuracy, patient throughput, technological advancements, integration with existing systems, and long-term operational costs. Without further documentation, it's impossible to definitively state the exact equipment or the comparative analysis that led to its selection. However, such procurements are usually driven by the need to provide state-of-the-art care and maintain the facility's capabilities.

How does the $3.05 million contract value compare to similar cardiac cath lab installation projects at other VA medical centers or comparable healthcare facilities?

Direct comparison of the $3.05 million contract value for this cardiac cath lab installation project to similar projects is challenging without more granular data on the scope of work, specific equipment included, and the duration of installation. However, the total contract value suggests a significant undertaking. Projects involving the installation of advanced medical equipment in healthcare facilities can range widely in cost depending on the complexity of the infrastructure modifications required, the sophistication of the technology, and the labor involved. For context, major hospital construction or renovation projects can run into tens or hundreds of millions of dollars. A $3 million contract for equipment installation within an existing or newly constructed wing of a medical center is substantial but not necessarily outside the expected range for high-cost medical technology deployment, especially considering the firm fixed-price nature which may include contingencies.

What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the successful installation and functionality of the cardiac cath lab equipment?

While specific KPIs and quality assurance measures are not detailed in the provided summary, federal contracts of this nature typically include stringent requirements. These would likely involve adherence to manufacturer specifications, relevant building codes (e.g., for electrical, plumbing, radiation shielding), and medical facility standards. Performance would be monitored through site inspections, progress reports, and milestone completions. Quality assurance would encompass testing and commissioning of the installed equipment to ensure it meets performance benchmarks and is fully operational before final acceptance. The contract likely specifies acceptance criteria, warranty periods, and potential penalties for non-performance or delays, ensuring the VA receives a fully functional and reliable cardiac catheterization laboratory.

What is the track record of Semper Tek Inc. in performing similar large-scale construction or medical equipment installation projects for federal agencies, particularly the VA?

Semper Tek Inc. is listed as the contractor for this definitive contract. To assess their track record, one would typically review their past performance on federal contracts, particularly those involving construction and installation of specialized equipment within healthcare settings. Information on past performance, including project history, client satisfaction, and any past performance issues or awards, can often be found in federal procurement databases like SAM.gov or through agency-specific contract award histories. Without direct access to Semper Tek's detailed contract history, it's difficult to provide a specific assessment. However, the fact that they were awarded this contract suggests they met the agency's requirements and demonstrated capability, at least to the satisfaction of the contracting officers involved in this specific procurement.

What are the potential risks associated with this contract, and what mitigation strategies are employed by the Department of Veterans Affairs?

Potential risks for this contract include installation delays due to unforeseen site conditions, supply chain disruptions for specialized equipment, contractor performance issues, or cost overruns if the fixed-price contract doesn't adequately account for all eventualities (though the risk of overruns is primarily on the contractor). Mitigation strategies employed by the VA would typically involve thorough pre-award contractor vetting, clear contract language defining scope and deliverables, robust project management and oversight, regular progress reviews, and potentially performance bonds. The firm fixed-price structure itself shifts much of the cost risk to the contractor. The 'exclusion of sources' in the competition also presents a potential risk if it inadvertently limited the pool of qualified bidders, potentially impacting price or innovation.

How does this contract align with the VA's broader strategy for modernizing its medical facilities and improving healthcare services for veterans?

This contract directly aligns with the VA's broader strategy to modernize its medical facilities and enhance healthcare services. Investing in advanced cardiac catheterization laboratory equipment and ensuring its proper installation is crucial for providing timely and effective treatment for cardiovascular diseases, which are prevalent among veterans. Modernizing such critical infrastructure allows the VA to offer cutting-edge diagnostic and interventional procedures, potentially reducing the need for veterans to seek care from external providers and improving health outcomes. It reflects a commitment to equipping VA medical centers with the technology necessary to meet the evolving healthcare needs of the veteran population.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24922R0058

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 848 NANDINO BLVD, LEXINGTON, KY, 40511

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

Financial Breakdown

Contract Ceiling: $3,050,166

Exercised Options: $3,050,166

Current Obligation: $3,050,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline