VA awards $6.9M for medical carts to Minburn Technology Group, a sole-source contract

Contract Overview

Contract Amount: $6,948,883 ($6.9M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-30

End Date: 2026-12-29

Contract Duration: 364 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOWARD MEDICAL CARTS

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.9 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: HOWARD MEDICAL CARTS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract is for medical carts, a critical component for healthcare delivery. 3. Duration of 364 days suggests a short-term need or bridge contract. 4. Firm Fixed Price contract type aims to control costs. 5. No small business set-aside was utilized. 6. The award value is relatively modest for federal IT peripheral contracts.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific product details and market comparisons for 'HOWARD MEDICAL CARTS'. However, the award of $6.9 million for a single-source, one-year contract for computer peripherals warrants scrutiny. While firm-fixed-price contracts offer cost certainty, the lack of competition means the VA may not have secured the best possible price. Further analysis would require understanding the specific features and market price of these medical carts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This indicates that the VA likely identified a specific need that only Minburn Technology Group could fulfill, or that justification for a sole-source award was made. The lack of competition means that potential savings from a competitive bidding process were forgone, and the VA relied on negotiation to determine a fair price.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. Without multiple bids, it's difficult to ascertain if the negotiated price represents the best value achievable in the market.

Public Impact

Veterans Affairs healthcare facilities will receive medical carts to support patient care. The contract directly benefits the contractor, Minburn Technology Group, LLC. The primary geographic impact is within the VA's operational areas, likely nationwide. The contract supports the healthcare technology sector by procuring essential equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Lack of transparency in the justification for sole-source award.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Contract addresses a specific need for medical carts within the VA system.
Award to a single vendor simplifies procurement and management for this specific item.

Sector Analysis

The procurement of computer terminals and peripheral equipment falls under the broader IT hardware sector. This contract specifically addresses a niche within healthcare IT, focusing on specialized medical carts. The market for such equipment can vary significantly based on customization and integration requirements. Comparable spending benchmarks would typically involve analyzing other VA or DoD contracts for similar medical technology or specialized computer peripherals, considering factors like quantity, features, and contract type.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of any subcontracting requirements for small businesses. The sole-source nature of the award further precludes opportunities for small businesses to compete or participate as subcontractors. This means the direct economic benefit to the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs' contracting officers and program managers. As a sole-source award, the justification and negotiation process would be subject to internal VA review and potentially oversight from the Government Accountability Office (GAO) if a protest were filed. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Medical Equipment Procurement
Veterans Affairs IT Hardware Contracts
Sole-Source IT Procurements
Computer Peripheral Equipment

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.9 million to MINBURN TECHNOLOGY GROUP, LLC. HOWARD MEDICAL CARTS

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, 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 $6.9 million.

What is the period of performance?

Start: 2025-12-30. End: 2026-12-29.

What is the specific justification for awarding this contract on a sole-source basis to Minburn Technology Group, LLC?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a 'SOLE SOURCE'. A sole-source justification is typically required when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if the item is a follow-on to a previous sole-source award. Without the specific justification document, the exact reason remains unknown. However, the VA would have had to formally document and approve this justification to proceed with a sole-source award, ensuring it aligns with federal acquisition regulations (FAR).

How does the price of $6.9 million for 364 days of medical carts compare to similar VA or government contracts?

Direct price comparison is difficult without knowing the exact specifications, quantity, and features of the 'HOWARD MEDICAL CARTS'. The award value of $6.9 million for a one-year contract translates to approximately $18,900 per day. If this contract is for a significant number of carts, the per-unit cost could be benchmarked against other VA procurements for medical carts or similar specialized computer peripherals. However, given the sole-source nature, it's plausible that the price may not reflect the lowest possible cost achievable through competition. A thorough value analysis would require access to the detailed product list and unit pricing.

What are the potential risks associated with a sole-source award for critical medical equipment?

Sole-source awards carry inherent risks, primarily related to cost and innovation. Without competition, the government may pay a higher price than if multiple vendors had bid. There's also a reduced incentive for the sole provider to innovate or offer significant improvements, as they face no direct competitive pressure. Furthermore, reliance on a single source can create supply chain vulnerabilities if the contractor experiences production issues or goes out of business. For critical medical equipment, these risks could impact patient care delivery and operational continuity within the VA.

What is Minburn Technology Group, LLC's track record with the federal government, particularly the VA?

Minburn Technology Group, LLC has secured federal contracts, including this recent award from the Department of Veterans Affairs. Further investigation into their contract history would reveal the types of goods and services they have provided, their performance ratings on past contracts (if available), and their overall experience with government procurement. Understanding their past performance, especially with the VA, can provide insights into their reliability and capability to fulfill this current contract for medical carts.

What is the nature of 'HOWARD MEDICAL CARTS' and why might they require a sole-source procurement?

The term 'HOWARD MEDICAL CARTS' likely refers to a specific product line or brand of medical carts, possibly manufactured or exclusively distributed by Minburn Technology Group, LLC, or a related entity. Such carts are often specialized, designed to integrate specific medical devices, provide ergonomic support for clinicians, and meet stringent healthcare facility requirements (e.g., infection control, durability). If these carts incorporate proprietary technology, unique design features, or are essential for compatibility with existing VA medical systems, it could form the basis for a sole-source justification. Without more product details, the exact nature and the rationale for sole-sourcing remain speculative.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Terminal and Other Computer Peripheral Equipment Manufacturing

Product/Service Code: IT AND TELECOM - END USER

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: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,948,883

Exercised Options: $6,948,883

Current Obligation: $6,948,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25026A0013

IDV Type: BPA

Timeline