VA Awards $3.37M for Davinci Robot Surgical Instruments to SDV Office Systems LLC

Contract Overview

Contract Amount: $3,367,794 ($3.4M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-19

End Date: 2026-03-18

Contract Duration: 89 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DAVINCI ROBOT

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to SDV OFFICE SYSTEMS LLC for work described as: DAVINCI ROBOT Key points: 1. The Department of Veterans Affairs (VA) is procuring surgical instruments valued at $3.37 million. 2. The contract was awarded to SDV OFFICE SYSTEMS LLC, a small business. 3. The contract duration is 89 days, indicating a short-term need. 4. The procurement falls under the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: good

The award amount of $3.37 million for a 89-day delivery order appears reasonable given the specialized nature of surgical instruments. Benchmarking against similar contracts for advanced robotic surgical equipment would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Veterans will benefit from access to advanced surgical instruments, potentially improving surgical outcomes. The procurement supports the medical technology sector and the companies that manufacture these specialized devices. The use of a firm fixed-price contract provides cost certainty for the VA and taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a gap or urgent need, requiring close monitoring.
Limited data on specific instrument types makes comprehensive cost analysis challenging.

Positive Signals

Awarded under full and open competition.
Contract awarded to a small business.
Firm fixed-price contract provides cost certainty.

Sector Analysis

The procurement is within the Surgical and Medical Instrument Manufacturing sector, which is critical for healthcare delivery. Spending benchmarks for this sector vary widely based on the complexity and type of instruments, but this award appears within a reasonable range for specialized equipment.

Small Business Impact

The contract was awarded to SDV OFFICE SYSTEMS LLC, a small business, aligning with federal goals to support small business participation in government contracting. This award demonstrates opportunities for small businesses in the specialized medical device market.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight procedures for delivery orders, including performance monitoring and payment verification, should be in place to ensure successful delivery and adherence to contract terms.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Short contract duration.
Limited detail on specific instrument type.
Potential for urgent need or gap filling.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to SDV OFFICE SYSTEMS LLC. DAVINCI ROBOT

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS 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 $3.4 million.

What is the period of performance?

Start: 2025-12-19. End: 2026-03-18.

What is the specific type of DAVINCI ROBOT surgical instrument being procured, and how does its cost compare to similar advanced robotic surgical tools?

The specific type of DAVINCI ROBOT surgical instrument is not detailed in the provided data. However, the award amount of $3.37 million for a 89-day delivery order suggests a significant investment in specialized, high-tech equipment. A comprehensive cost comparison would require detailed specifications of the instruments and benchmarking against current market prices for comparable robotic surgical systems and their associated consumables.

What are the potential risks associated with a short contract duration of 89 days for critical surgical instruments?

A short contract duration of 89 days for critical surgical instruments could pose risks such as supply chain disruptions if the vendor faces unforeseen production issues, potential delays in delivery impacting patient care, and the need for a rapid re-procurement process. It may also indicate an urgent, short-term need or a bridge contract, which could lead to less favorable pricing compared to longer-term agreements.

How does the firm fixed-price contract structure ensure the effectiveness of this procurement for the VA?

A firm fixed-price contract structure ensures effectiveness by providing cost certainty to the VA. The contractor assumes the risk of cost overruns, meaning the VA pays the agreed-upon price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage costs efficiently and deliver the specified surgical instruments within budget, thereby maximizing the value of taxpayer funds.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 REDMOND DR UNIT C, FLETCHER, NC, 28732

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,367,794

Exercised Options: $3,367,794

Current Obligation: $3,367,794

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G25D0013

IDV Type: IDC

Timeline