VA Awards $5.1M Lease for Automated Dispensing Cabinets to CareFusion Solutions, LLC
Contract Overview
Contract Amount: $5,116,253 ($5.1M)
Contractor: Carefusion Solutions, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-04-01
End Date: 2026-09-30
Contract Duration: 912 days
Daily Burn Rate: $5.6K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: AUTOMATED DISPENSING CABINETS - LEASE
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92130
Plain-Language Summary
Department of Veterans Affairs obligated $5.1 million to CAREFUSION SOLUTIONS, LLC for work described as: AUTOMATED DISPENSING CABINETS - LEASE Key points: 1. Contract awarded to CareFusion Solutions, LLC for automated dispensing cabinets. 2. The contract is valued at $5,116,253 over its duration. 3. Procurement was competed under Simplified Acquisition Procedures (SAP). 4. The contract is for a firm-fixed-price lease agreement. 5. This falls under the Surgical and Medical Instrument Manufacturing sector.
Value Assessment
Rating: good
The lease price for automated dispensing cabinets appears reasonable given the contract duration and the nature of the equipment. Benchmarking against similar lease agreements for medical equipment would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under SAP, suggesting a competitive process was utilized. This method generally allows for price discovery through multiple bids, potentially leading to a fair market price.
Taxpayer Impact: Taxpayer funds are being used for a lease agreement, which is a common procurement method for equipment. The competitive nature of the award should ensure value for money.
Public Impact
Ensures availability of critical medical supplies at VA facilities. Supports efficient inventory management and patient care. Lease agreement allows for potential technology upgrades over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for higher long-term costs compared to outright purchase.
- Dependence on vendor for maintenance and support.
Positive Signals
- Competitive award process.
- Firm-fixed-price contract provides cost certainty.
- Supports critical healthcare operations.
Sector Analysis
The healthcare sector relies heavily on specialized equipment like automated dispensing cabinets for efficient operations. Spending benchmarks for similar leased medical equipment can vary significantly based on features and vendor.
Small Business Impact
The award was made to CareFusion Solutions, LLC. Further analysis would be needed to determine the extent of small business participation in this contract, if any.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this lease agreement. Standard contract management practices should ensure compliance and performance.
Related Government Programs
- Surgical and Medical Instrument Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lease vs. purchase cost analysis
- Vendor lock-in potential
- Service and maintenance responsiveness
- Technology obsolescence risk
Tags
surgical-and-medical-instrument-manufact, department-of-veterans-affairs, ca, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $5.1 million to CAREFUSION SOLUTIONS, LLC. AUTOMATED DISPENSING CABINETS - LEASE
Who is the contractor on this award?
The obligated recipient is CAREFUSION SOLUTIONS, 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 $5.1 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-09-30.
What is the total cost of ownership over the lease term compared to a purchase?
The total cost of ownership over the lease term is $5,116,253. A direct comparison to purchasing would require knowing the purchase price of comparable cabinets, including any associated maintenance and upgrade costs over a similar period. Leases can offer flexibility but may incur higher cumulative costs than outright purchase if the equipment is retained long-term.
What are the key performance indicators (KPIs) for this lease agreement?
Key performance indicators would likely focus on the reliability and uptime of the automated dispensing cabinets, the accuracy of inventory tracking, and the vendor's response time for maintenance and support. Ensuring these KPIs are met is crucial for uninterrupted patient care and efficient supply chain management within the VA facilities.
How does the functionality of these cabinets compare to industry standards?
The functionality of these cabinets is expected to align with industry standards for automated dispensing, including secure storage, inventory tracking, and dispensing of medications and supplies. The specific features and technological advancements would need to be compared against current market offerings to assess if they represent best-in-class or standard capabilities.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C24923Q0470
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Becton, Dickinson and CO
Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,054,146
Exercised Options: $14,747,382
Current Obligation: $5,116,253
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-04-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-03-25
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