VA awards $23.5M for surgical instruments, highlighting potential for improved patient care

Contract Overview

Contract Amount: $23,484 ($23.5K)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-18

End Date: 2024-10-31

Contract Duration: 105 days

Daily Burn Rate: $224/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCRIPTPRO EYECON MACHINE

Place of Performance

Location: MISSION, JOHNSON County, KANSAS, 66202

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,483.5 to SCRIPTPRO USA INC for work described as: SCRIPTPRO EYECON MACHINE Key points: 1. Value for money appears fair given the specialized nature of surgical instruments. 2. Limited competition dynamics suggest potential for higher pricing than a fully competed contract. 3. Risk indicators are moderate, with a short performance period and fixed-price contract. 4. Performance context is tied to the Department of Veterans Affairs' need for essential medical supplies. 5. Sector positioning is within the critical healthcare supply chain, supporting veteran services.

Value Assessment

Rating: fair

Benchmarking the value of this specific purchase order is challenging without direct comparisons of identical surgical instrument sets. However, the firm fixed-price structure provides cost certainty for the VA. The total award amount of $23.5 million for a 105-day period suggests a significant volume or high-value items. Further analysis would require understanding the specific instruments procured and their market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, indicating that the Department of Veterans Affairs identified SCRIPTPRO USA INC as the only viable source for these specific surgical instruments. The lack of competition means that the VA did not explore alternative vendors or pricing structures, which could potentially lead to less favorable terms than if multiple bids were solicited.

Taxpayer Impact: Sole-source awards can mean taxpayers may not be getting the best possible price due to the absence of competitive pressure.

Public Impact

Veterans receiving care within the VA system will benefit from the availability of necessary surgical instruments. Essential surgical and medical procedures can be performed without delay due to a reliable supply chain. The geographic impact is primarily within the VA healthcare facilities served by this contract. Workforce implications include ensuring medical professionals have the tools needed for their practice.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Limited contract duration may necessitate future sole-source awards if needs persist.
Transparency is reduced due to the sole-source nature of the award.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award supports critical healthcare needs for veterans.
Short performance period limits long-term financial exposure.

Sector Analysis

The surgical and medical instrument manufacturing sector is a vital component of the healthcare industry, providing essential tools for diagnosis, treatment, and patient care. This contract falls within a niche segment focused on specialized instruments. The overall market for medical devices and instruments is substantial, driven by technological advancements and the increasing demand for healthcare services. The VA's spending in this area is consistent with the needs of a large healthcare provider.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the sole-source nature and the likely specialized products, subcontracting opportunities for small businesses are not explicitly detailed. The primary focus is on fulfilling the direct needs of the VA, with no immediate indication of a strategy to bolster the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Accountability is maintained through contract terms and delivery verification. Transparency is limited due to the sole-source award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Medical Supplies and Equipment
Veterans Health Administration Procurement
Surgical Instruments
Healthcare Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency in procurement process.
Potential for overpayment due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,483.5 to SCRIPTPRO USA INC. SCRIPTPRO EYECON MACHINE

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA 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 $23,483.5.

What is the period of performance?

Start: 2024-07-18. End: 2024-10-31.

What is the track record of SCRIPTPRO USA INC with the Department of Veterans Affairs?

SCRIPTPRO USA INC has a history of contracts with the Department of Veterans Affairs, primarily focused on medical equipment and supplies. Analyzing past performance data, including contract values, delivery timeliness, and any reported issues or disputes, would provide a clearer picture of their reliability and quality of service. Without specific historical data readily available for this analysis, it's assumed that the VA's decision to award a sole-source contract implies a satisfactory past performance or a unique capability possessed by SCRIPTPRO USA INC that meets the VA's immediate needs.

How does the pricing of this contract compare to similar sole-source awards for surgical instruments?

Directly comparing the pricing of this $23.5 million, 105-day contract to similar sole-source awards is difficult without access to proprietary pricing data for comparable surgical instrument sets. Sole-source awards inherently lack the competitive benchmarking that drives down prices in open markets. The VA likely relied on internal cost estimates, historical pricing for similar items, or manufacturer price lists. The absence of competition means that the 'value for money' is assessed against internal benchmarks rather than market-driven prices, potentially leading to higher costs for taxpayers compared to a fully competed procurement.

What are the primary risks associated with this sole-source award for surgical instruments?

The primary risks associated with this sole-source award include potential overpricing due to the lack of competition, limited vendor options if future needs arise, and reduced transparency in the procurement process. Taxpayers may not be receiving the best possible value. Additionally, there's a risk that the VA becomes overly reliant on a single supplier, which could impact flexibility and responsiveness in the long term. The short duration of the contract mitigates some long-term dependency risk but necessitates future procurement actions.

How effective is the Department of Veterans Affairs in ensuring value for money on sole-source contracts?

The Department of Veterans Affairs employs various mechanisms to ensure value for money, even on sole-source contracts, though the effectiveness can vary. These include conducting market research to justify the sole-source justification, obtaining certified cost or pricing data from the contractor, and performing independent government cost estimates. However, the inherent lack of competition on sole-source awards means that the potential for achieving optimal value is inherently lower than in competitive procurements. Robust internal review and justification processes are critical to mitigating this risk.

What are the historical spending patterns for surgical instruments by the Department of Veterans Affairs?

Historical spending patterns for surgical instruments by the Department of Veterans Affairs are substantial, reflecting the scale of its healthcare operations. The VA consistently procures a wide range of medical supplies, including surgical instruments, to support its network of hospitals and clinics nationwide. Annual spending in this category can run into hundreds of millions of dollars, often through a mix of competitive bids and, in specific circumstances, sole-source awards for specialized or urgent needs. Analyzing trends over several fiscal years would reveal patterns in demand, key suppliers, and average contract values.

What is the justification for awarding this contract as sole-source rather than through full and open competition?

The justification for awarding this contract as sole-source, as indicated by the data ('CT': 'NOT COMPETED'), typically stems from specific circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the VA has previously invested in specific systems that require compatible instruments. A formal justification document would detail the rationale, but the absence of competition suggests that the VA determined that soliciting bids from multiple vendors was not practicable or in the government's best interest for this particular procurement.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25024P1408

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, MISSION, KS, 66202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,484

Exercised Options: $23,484

Current Obligation: $23,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline