VA awards $4.6M for Pyxis Medstations, a sole-source purchase order for surgical instrument manufacturing

Contract Overview

Contract Amount: $464,890 ($464.9K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-08-31

Contract Duration: 152 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PYXIS MEDSTATIONS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92130

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $464,890 to CAREFUSION SOLUTIONS, LLC for work described as: PYXIS MEDSTATIONS Key points: 1. The contract value of $4.6 million for a 5-month period suggests a high per-unit cost for the medstations. 2. Sole-source award indicates a lack of competitive bidding, potentially leading to higher prices and reduced value for money. 3. The contract is for surgical and medical instrument manufacturing, specifically for Pyxis Medstations, a critical healthcare technology. 4. The duration of 152 days for this purchase order is relatively short, suggesting an immediate need or a bridge contract. 5. The fixed-price contract type aims to control costs, but the sole-source nature limits the ability to benchmark against competitive pricing. 6. The Department of Veterans Affairs is the contracting and funding agency, indicating a focus on veteran healthcare services.

Value Assessment

Rating: questionable

The contract value of $4.6 million for a 152-day period for Pyxis Medstations appears high. Without competitive bidding, it is difficult to assess if this represents fair market value. Benchmarking against similar sole-source procurements or commercially available pricing for these systems is necessary to determine true value for money. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, CAREFUSION SOLUTIONS, LLC, was solicited. This typically occurs when a unique product or service is required, or when there is an urgent need that precludes full and open competition. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible pricing for essential medical equipment.

Public Impact

Veterans will benefit from access to Pyxis Medstations, which are automated dispensing cabinets for medications and supplies, improving medication management and patient safety. The services delivered include the provision of these critical medical devices, essential for efficient hospital operations. The geographic impact is likely focused on VA facilities within California, where the contractor is located. The contract supports the healthcare workforce by providing them with necessary tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
High contract value for a short duration raises questions about unit pricing and overall value.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in if Pyxis Medstations are proprietary and require specific maintenance or supplies.

Positive Signals

Ensures timely access to critical medical dispensing technology for VA facilities.
Fixed-price contract type provides cost certainty once awarded.
Contract supports a known vendor with a specific product line, potentially leveraging existing expertise.

Sector Analysis

The healthcare technology sector, particularly in medical devices and pharmaceutical dispensing systems, is characterized by significant innovation and high research and development costs. Pyxis Medstations are a well-established product in this market, used by many healthcare facilities for inventory management and medication dispensing. Spending in this area is driven by the need for efficiency, accuracy, and patient safety in clinical settings. Comparable spending benchmarks would typically involve analyzing the cost of similar automated dispensing systems from various manufacturers or previous VA procurements of these systems.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside. Therefore, it is unlikely to have direct implications for small businesses through subcontracting opportunities related to this specific award. The focus appears to be on a large, established vendor for a specialized product.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a purchase order, it falls under the agency's standard procurement regulations and contract administration processes. Transparency regarding the justification for the sole-source award and the specific terms of the purchase order would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Procurement
Surgical Instruments
Automated Dispensing Cabinets
Department of Veterans Affairs Healthcare Spending
Sole-Source Contracts

Risk Flags

Sole-source award may indicate a lack of competition, potentially leading to higher costs.
Short contract duration for a significant dollar amount warrants scrutiny of unit pricing.
Need for clear justification for sole-source procurement to ensure fair value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $464,890 to CAREFUSION SOLUTIONS, LLC. PYXIS MEDSTATIONS

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 $464,890.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-31.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis to CAREFUSION SOLUTIONS, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements require a detailed justification from the agency, citing reasons such as unique capabilities of the vendor, urgent and compelling needs that preclude competition, or the unavailability of the item from any other source. Without this justification, it is difficult to fully assess the necessity and potential impact on value for money. The VA would need to document why competition was not feasible for these Pyxis Medstations.

How does the per-unit cost of these Pyxis Medstations compare to market rates or previous VA purchases?

The provided data does not allow for a direct per-unit cost calculation or comparison. The total award is $4.6 million over 152 days. To determine the per-unit cost, the number of Pyxis Medstations procured would be needed. Furthermore, without competitive bids, establishing a benchmark against market rates is challenging. If the VA has previously purchased similar systems, a comparison to those historical prices would be valuable. However, given the sole-source nature, it is likely that the price was negotiated directly with the vendor, potentially at a premium compared to a competitive scenario.

What are the potential risks associated with relying on a sole-source provider for critical medical equipment like Pyxis Medstations?

The primary risk of a sole-source award for critical medical equipment is the lack of competitive pricing, which can lead to higher costs for the government and taxpayers. Additionally, it can create vendor lock-in, making it difficult and expensive to switch to alternative solutions in the future. There's also a reduced incentive for the sole-source provider to innovate or offer competitive pricing if they are guaranteed the contract. For the VA, this could mean paying more than necessary for essential technology, potentially diverting funds from other critical healthcare needs.

What is the track record of CAREFUSION SOLUTIONS, LLC in providing similar medical equipment to federal agencies?

The provided data identifies CAREFUSION SOLUTIONS, LLC as the contractor. While the data confirms they are providing Pyxis Medstations, it does not detail their broader track record with federal agencies. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous federal contracts. Understanding their history with similar procurements, especially sole-source awards, would provide insight into their reliability and pricing practices within the federal acquisition landscape.

How does this $4.6 million award fit into the VA's overall spending on medical equipment and technology?

This $4.6 million award represents a specific investment in automated medication dispensing technology. To understand its place within the VA's overall spending, one would need to analyze the VA's total budget for medical equipment, surgical instruments, and healthcare IT over the relevant fiscal years. This contract's value should be compared against the broader category of 'Surgical and Medical Instrument Manufacturing' (NAICS code 339112) and potentially other IT-related healthcare procurements. Without broader spending context, it's difficult to gauge the significance of this single award relative to the VA's total procurement portfolio.

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

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: $464,890

Exercised Options: $464,890

Current Obligation: $464,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline