VA awards $1.68M maintenance contract for Alaris equipment to CareFusion Solutions, LLC

Contract Overview

Contract Amount: $16,800 ($16.8K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $46/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CAREFUSION ALARIS EQUIPMENT MAINTENANCE

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,800 to CAREFUSION SOLUTIONS, LLC for work described as: CAREFUSION ALARIS EQUIPMENT MAINTENANCE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 364 days is standard for maintenance agreements. 3. Firm Fixed Price contract type aims to control costs for the VA. 4. Maintenance services for critical medical equipment suggest high operational importance. 5. No small business set-aside was utilized for this procurement. 6. The North American Industry Classification System (NAICS) code indicates a focus on equipment repair.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the Alaris equipment model and the scope of maintenance required. However, a $1.68 million award for a one-year maintenance contract for specialized medical equipment is within a plausible range for such services. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs. Further analysis would require comparing this award to similar maintenance contracts for comparable medical devices across federal agencies or the healthcare sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the VA did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium due to the absence of competitive pressure to drive down costs. This necessitates careful justification and oversight to ensure the price is fair and reasonable.

Public Impact

Veterans receiving care at VA facilities will benefit from the continued operational readiness of Alaris medical equipment. Ensures the availability and proper functioning of critical patient monitoring and medication delivery systems. The contract supports the VA's mission to provide healthcare services to eligible beneficiaries. Maintenance services are likely concentrated in VA facilities within Michigan, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
No indication of performance metrics or service level agreements within the provided data.
Potential for vendor lock-in due to specialized nature of maintenance.

Positive Signals

Firm Fixed Price contract provides cost certainty for the agency.
Contract ensures continued availability of essential medical equipment for patient care.
Award to an established vendor may indicate reliability and expertise.

Sector Analysis

The healthcare equipment maintenance sector is critical for ensuring the operational readiness of medical facilities. This contract falls under the Electronic and Precision Equipment Repair and Maintenance (NAICS 811210) industry. The market for medical equipment maintenance is often characterized by specialized knowledge and manufacturer-specific expertise, which can sometimes lead to sole-source procurements. Comparable spending benchmarks would involve analyzing maintenance contracts for similar medical devices like infusion pumps, patient monitors, and diagnostic imaging equipment across federal healthcare providers and large hospital systems.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is minimal for this particular contract, as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency regarding the specific maintenance tasks, performance standards, and pricing details would be crucial for effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Maintenance Contracts
Department of Veterans Affairs Healthcare Procurement
Sole-Source Medical Device Service Agreements
Alaris Infusion System Support

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding requires strong justification.
Potential for vendor lock-in with specialized equipment maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,800 to CAREFUSION SOLUTIONS, LLC. CAREFUSION ALARIS EQUIPMENT MAINTENANCE

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 $16,800.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the specific model of Alaris equipment being maintained under this contract, and what is the criticality of this equipment to patient care?

The provided data identifies the equipment as 'CAREFUSION ALARIS EQUIPMENT' but does not specify the exact model (e.g., Alaris infusion pumps, patient monitors). Alaris equipment, particularly infusion pumps, is critical for administering medications and fluids to patients, playing a vital role in patient safety and treatment efficacy. The criticality level would depend on the specific function of the Alaris devices deployed at the VA facility. Without model specifics, it's difficult to ascertain the precise impact, but generally, such equipment is considered essential for direct patient care and requires reliable maintenance to prevent disruptions and ensure patient safety.

How was the price of $1.68 million determined to be fair and reasonable for this sole-source maintenance contract?

For a sole-source contract, the procuring agency must conduct a price analysis to determine if the proposed price is fair and reasonable. This typically involves comparing the proposed price to historical prices paid for similar items or services, catalog prices, or prices paid by other government agencies or commercial entities. Without access to the VA's price negotiation documentation, it is impossible to definitively state how fairness and reasonableness were established. However, the agency would likely have used available market research, cost data from the contractor, or comparisons to similar maintenance agreements for comparable medical equipment to justify the award price.

What is the track record of CareFusion Solutions, LLC in providing maintenance services for Alaris equipment to the VA or other federal agencies?

CareFusion Solutions, LLC, now part of Becton, Dickinson and Company (BD), has a history of providing medical devices and related services, including those for the Alaris system. Information on their specific track record with the VA for Alaris equipment maintenance would typically be found in contract databases like FPDS-NG or SAM.gov, detailing past performance evaluations and contract history. A review of these sources would reveal the duration and success of previous maintenance contracts, any performance issues, and overall satisfaction levels. Generally, established medical device manufacturers often have dedicated service divisions to support their products.

What are the specific maintenance tasks and service level agreements (SLAs) included in this $1.68 million contract?

The provided data does not detail the specific maintenance tasks or Service Level Agreements (SLAs) covered by this contract. Typically, a comprehensive maintenance contract for medical equipment like the Alaris system would include preventative maintenance, corrective maintenance (repairs), software updates, calibration, and potentially replacement parts. SLAs would define response times for service requests, equipment uptime guarantees, and performance standards. The $1.68 million value suggests a robust scope of services over the 364-day period, likely encompassing both scheduled preventative care and on-demand repair services to ensure continuous operational readiness.

Are there any alternative solutions or vendors capable of providing similar maintenance for Alaris equipment, and if so, why was this contract sole-sourced?

The justification for a sole-source award typically hinges on the unique capabilities or proprietary nature of the product or service. For Alaris equipment, the manufacturer (historically CareFusion, now BD) often holds the intellectual property and specialized knowledge required for maintenance and repair. While third-party service providers might exist, they may lack the original manufacturer's certification, access to genuine parts, or the latest technical updates, potentially impacting warranty and performance. The VA would have had to document why other vendors could not meet the requirement, likely due to the specialized nature of the Alaris system and the need for manufacturer-authorized support.

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

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: $84,000

Exercised Options: $16,800

Current Obligation: $16,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline