VA Awards $621K for Stryker Neptune Service, Sole-Source Contract
Contract Overview
Contract Amount: $62,103 ($62.1K)
Contractor: Stryker Sales, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-09-28
End Date: 2025-09-27
Contract Duration: 730 days
Daily Burn Rate: $85/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: STRYKER NEPTUNE SERVICE AGREEMENT
Place of Performance
Location: MOUNTAIN HOME, WASHINGTON County, TENNESSEE, 37684
Plain-Language Summary
Department of Veterans Affairs obligated $62,102.92 to STRYKER SALES, LLC for work described as: STRYKER NEPTUNE SERVICE AGREEMENT Key points: 1. Contract awarded to Stryker Sales, LLC for maintenance services. 2. The contract is for a firm-fixed-price, 730-day period. 3. No competition was utilized under the Simplified Acquisition Procedures. 4. The NAICS code is 811210 for Electronic and Precision Equipment Repair and Maintenance. 5. The award was a Purchase Order.
Value Assessment
Rating: fair
The contract value of $621,029.20 over two years suggests a moderate annual cost. Without specific details on the equipment covered and its criticality, it's difficult to benchmark against similar service agreements. However, the price appears reasonable for specialized medical equipment maintenance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-source is not provided, which is a concern for ensuring fair pricing.
Taxpayer Impact: Taxpayer funds are used for this sole-source contract. The lack of competition may result in a higher price than could be achieved through a competitive bidding process, impacting the overall value for taxpayer money.
Public Impact
Veterans will continue to receive services supported by Stryker Neptune equipment. The Department of Veterans Affairs ensures continued operational readiness of critical medical equipment. Potential for increased costs due to sole-source procurement impacts healthcare budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Sole-source justification not provided
- Lack of competition limits price discovery
- Potential for overpayment due to non-competitive award
Positive Signals
- Ensures continued service for critical medical equipment
- Firm-fixed-price contract provides cost certainty
- Awarded to a known vendor with likely expertise
Sector Analysis
This contract falls within the healthcare equipment maintenance sector. Spending in this area is critical for ensuring the operational readiness of medical facilities. Benchmarks for such specialized maintenance contracts can vary widely based on equipment type and service level agreements.
Small Business Impact
This contract was awarded directly to Stryker Sales, LLC and does not indicate any subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. The lack of a provided justification for the sole-source award raises questions about the thoroughness of the oversight process and adherence to procurement regulations designed to ensure fair and competitive pricing.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award without clear justification
- Lack of competitive bidding process
- Potential for inflated pricing
- Limited transparency in procurement decision
Tags
electronic-and-precision-equipment-repai, department-of-veterans-affairs, tn, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $62,102.92 to STRYKER SALES, LLC. STRYKER NEPTUNE SERVICE AGREEMENT
Who is the contractor on this award?
The obligated recipient is STRYKER SALES, 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 $62,102.92.
What is the period of performance?
Start: 2023-09-28. End: 2025-09-27.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data does not include the justification for this sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess the validity of the sole-source determination and its impact on competition and pricing.
How does the per-unit cost of this service agreement compare to industry benchmarks for similar Stryker Neptune equipment maintenance?
A direct comparison of the per-unit cost is not possible without more detailed information on the specific services included in the agreement and the number of units covered. The total contract value of $621,029.20 over two years is a significant investment. Benchmarking would require access to proprietary pricing data or publicly available contract awards for identical or highly similar service agreements.
What is the potential risk to the VA if this sole-source contract is not renewed competitively in the future?
The primary risk to the VA if this contract is not competitively renewed is the potential for continued higher costs. A sole-source award inherently lacks the price pressure that competition provides. Future sole-source awards could lead to inflated prices, reduced service quality if the vendor becomes complacent, and a missed opportunity to leverage market competition for better value and innovation.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1941 STRYKER WAY, PORTAGE, MI, 49002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $124,201
Exercised Options: $62,103
Current Obligation: $62,103
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-09-28
Current End Date: 2025-09-27
Potential End Date: 2025-09-27 00:00:00
Last Modified: 2026-04-08
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