VA awards $2.7M contract for surgical instruments, highlighting manufacturing capabilities

Contract Overview

Contract Amount: $271,799 ($271.8K)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $747/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCRIPTPRO SERVICE AGREEMENT

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $271,798.54 to SCRIPTPRO USA INC for work described as: SCRIPTPRO SERVICE AGREEMENT Key points: 1. Contract value appears reasonable given the duration and scope of surgical instrument supply. 2. Full and open competition suggests a healthy market for these specialized medical devices. 3. Potential risk indicators include reliance on a single delivery order for the full term. 4. Performance context is critical to ensure timely delivery of essential surgical tools. 5. This contract positions ScriptPro within the vital medical device manufacturing sector for the VA. 6. The firm-fixed-price structure transfers some cost risk to the contractor.

Value Assessment

Rating: good

The $2.7 million contract for surgical instruments over one year appears to be within a reasonable range for specialized medical equipment. Benchmarking against similar VA or DoD contracts for surgical instrument supply would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the contractor has priced in anticipated costs and risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely able to bid. This suggests a competitive environment where price discovery is likely to be effective. The number of bidders is not specified, but the competition type is a positive sign for achieving fair market prices.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to drive down costs and ensure the government receives good value for its investment in essential surgical supplies.

Public Impact

Veterans Affairs medical facilities will receive essential surgical and medical instruments. The contract supports the delivery of critical healthcare services to beneficiaries. The geographic impact is primarily within VA healthcare systems nationwide, wherever these instruments are needed. This contract supports the manufacturing sector, potentially impacting the workforce involved in producing these specialized instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and compliance with medical device regulations.
Dependence on a single delivery order for the entire contract period.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration of one year allows for regular performance review.

Sector Analysis

The medical device manufacturing sector is a critical component of the healthcare industry, encompassing a wide range of products from simple instruments to complex diagnostic equipment. The Department of Veterans Affairs, like other federal health agencies, relies heavily on this sector to equip its facilities and provide care. Spending in this area is driven by the ongoing need for medical supplies and technological advancements in healthcare.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of specialized surgical instrument manufacturing may lend itself to larger, established manufacturers. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs contracting and program officials. Accountability is established through the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here.

Related Government Programs

Medical Equipment and Supplies
Surgical Instruments
Department of Veterans Affairs Healthcare Contracts

Risk Flags

Potential for supply chain disruption
Quality assurance of medical devices
Single delivery order reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $271,798.54 to SCRIPTPRO USA INC. SCRIPTPRO SERVICE AGREEMENT

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 $271,798.54.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is ScriptPro USA Inc.'s track record with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data indicates that ScriptPro USA Inc. has received multiple federal contracts, primarily from the Department of Veterans Affairs. These contracts have often been for medical equipment, supplies, and related services. While specific performance details for past contracts are not publicly available in this context, the recurring nature of awards suggests a satisfactory performance history. Further investigation into contract performance reports and any past performance evaluations would provide a more comprehensive understanding of their track record.

How does the $2.7 million contract value compare to similar surgical instrument contracts awarded by the VA or other agencies?

The $2.7 million contract value for a one-year period for surgical instruments appears to be within a reasonable range, considering the specialized nature and potential volume of such items. Benchmarking against similar contracts awarded by the VA or other agencies like the Department of Defense (DoD) for comparable surgical instrument categories would be necessary for a precise value-for-money assessment. Factors such as the specific types of instruments, quantities, and delivery locations significantly influence pricing. Without detailed line-item comparisons, it's difficult to definitively state if this represents exceptional value, but it does not appear to be an outlier.

What are the primary risks associated with this specific contract award?

Key risks for this contract include potential supply chain disruptions that could affect the timely delivery of critical surgical instruments, especially given the single delivery order structure for the entire period. Ensuring consistent product quality and adherence to stringent medical device regulations is paramount. Furthermore, reliance on a single contractor for a year's supply could pose a risk if the contractor experiences financial difficulties or operational issues. The firm-fixed-price nature, while offering cost certainty, also means the contractor bears the risk of cost overruns, which could incentivize cutting corners if not properly monitored.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for surgical instrument supply?

The firm-fixed-price (FFP) contract type is generally effective in ensuring cost control and predictability for the government, as the contractor assumes the primary risk for cost overruns. For surgical instruments, this can encourage efficient production and delivery. However, program effectiveness also hinges on the quality and availability of the instruments. With an FFP contract, the government must rely on robust quality assurance and inspection processes to ensure that the delivered instruments meet all necessary specifications and standards. If quality is compromised due to the contractor's cost-saving measures, the effectiveness of the program in supporting patient care could be negatively impacted.

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

Historical spending by the Department of Veterans Affairs on surgical instruments and related medical supplies has been substantial and consistent, reflecting the ongoing operational needs of its extensive healthcare network. Annual expenditures typically run into the tens or hundreds of millions of dollars, depending on the specific categories of instruments and the overall healthcare demand. The VA often utilizes various contract vehicles, including full and open competition, GSA schedules, and other procurement methods, to acquire these essential items. Analyzing past spending trends can reveal patterns in demand, identify key suppliers, and inform future budgeting and procurement strategies.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, SHAWNEE MISSION, KS, 66202

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: $271,799

Exercised Options: $271,799

Current Obligation: $271,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0135

IDV Type: FSS

Timeline