VA awards $1.47M to CareFusion Solutions for Pyxis Equipment Maintenance, a sole-source purchase order

Contract Overview

Contract Amount: $147,132 ($147.1K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2027-06-30

Contract Duration: 1,094 days

Daily Burn Rate: $134/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PYXIS EQUIPMENT MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $147,132 to CAREFUSION SOLUTIONS, LLC for work described as: PYXIS EQUIPMENT MAINTENANCE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on maintenance for Pyxis equipment suggests critical healthcare infrastructure support. 3. The fixed-price contract type aims to control costs for the government. 4. Duration of nearly three years indicates a need for sustained support. 5. Small business participation is not explicitly detailed in this award. 6. Geographic focus on Wisconsin for this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this $1.47 million contract for Pyxis equipment maintenance is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The fixed-price nature provides some cost certainty. However, the lack of competition inherent in a sole-source award raises questions about whether the government secured the best possible price. Further analysis would require understanding the specific services included and the complexity of Pyxis equipment maintenance.

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. This typically occurs when only one vendor is capable of providing the required goods or services, or in specific circumstances defined by procurement regulations. The lack of competition means there were no other bidders to compare against, potentially leading to higher prices than if the contract had been open to multiple vendors.

Taxpayer Impact: Taxpayers may not benefit from competitive pricing due to the sole-source nature of this award. Without a competitive bidding process, there is a risk that the price paid is higher than what could have been achieved in an open market.

Public Impact

Veterans Affairs medical facilities in Wisconsin will benefit from the continued maintenance of Pyxis equipment. Ensures the operational readiness of critical medication dispensing systems, vital for patient care. Supports the healthcare delivery infrastructure within the VA system. Indirectly supports the healthcare workforce by ensuring reliable equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency on specific maintenance tasks and associated costs.
Potential for price escalation in future sole-source renewals without competitive pressure.

Positive Signals

Fixed-price contract type offers cost predictability.
Longer contract duration provides stability for essential equipment support.
Awarding to CareFusion Solutions, LLC suggests a potentially established relationship or specialized expertise.

Sector Analysis

The healthcare equipment maintenance sector is crucial for ensuring the operational continuity of medical facilities. This contract falls under the broader category of healthcare services and equipment support. The market for specialized equipment maintenance can be concentrated, sometimes leading to sole-source awards if a particular vendor holds unique expertise or proprietary knowledge. Benchmarking requires comparing to similar maintenance contracts for medical dispensing systems.

Small Business Impact

This contract was not awarded to a small business, nor does it indicate any specific small business set-aside provisions. There is no information provided regarding subcontracting opportunities for small businesses within this award. Further investigation would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Equipment Maintenance Contracts
Department of Veterans Affairs Healthcare Procurement
Pyxis Equipment Support Services
Sole-Source Healthcare Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $147,132 to CAREFUSION SOLUTIONS, LLC. PYXIS EQUIPMENT MAINTENANCE SUPPORT SERVICES

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 $147,132.

What is the period of performance?

Start: 2024-07-01. End: 2027-06-30.

What is the specific nature of the Pyxis equipment being maintained, and what are the key maintenance tasks covered under this contract?

The Pyxis equipment refers to automated medication dispensing systems manufactured by Becton, Dickinson and Company (BD). These systems are critical for hospital pharmacies and nursing units to manage, dispense, and track medications accurately and efficiently. Key maintenance tasks typically include preventative maintenance (e.g., cleaning, calibration, software updates, hardware checks), corrective maintenance (troubleshooting and repair of malfunctions), and potentially emergency support. The specific scope of services for this $1.47 million contract with CareFusion Solutions, LLC would be detailed in the contract's Statement of Work (SOW), outlining the exact procedures, response times, and required parts or labor.

How does the $1.47 million contract value compare to historical spending on Pyxis equipment maintenance by the VA or similar healthcare providers?

Comparing the $1.47 million contract value requires access to historical spending data for Pyxis equipment maintenance, which is not readily available in the provided data. However, given the contract duration of nearly three years (1094 days), the approximate annual spending is around $500,000 ($1,471,320 / 2.99 years). This figure needs to be contextualized by the number of Pyxis units supported, their geographic distribution within the VA network in Wisconsin, and the complexity of the maintenance services required. Without specific benchmarks for similar VA facilities or other healthcare systems of comparable size and scope, it's difficult to definitively assess if this value is high or low. Sole-source awards can sometimes inflate costs compared to competitively bid contracts.

What are the justifications for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). For this contract, awarded as 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), the exact justification is not detailed. Common reasons for sole-sourcing include: the item or service is available only from a single responsible source (e.g., proprietary equipment requiring manufacturer-specific maintenance), urgent and compelling needs where competition is not feasible, or specific small business programs. CareFusion Solutions, LLC may be the authorized service provider for Pyxis equipment, or possess unique technical expertise or certifications required by the VA. Alternative solutions would have been considered, and the justification would need to demonstrate why they were not suitable or available.

What is CareFusion Solutions, LLC's track record with the Department of Veterans Affairs and in providing similar equipment maintenance services?

Information on CareFusion Solutions, LLC's specific track record with the Department of Veterans Affairs (VA) and their experience in Pyxis equipment maintenance is not provided in the summary data. However, CareFusion Solutions is a known entity in the healthcare technology and services sector, often associated with medical device support and solutions. To assess their track record, one would typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contracts awarded by the VA or other federal agencies, and their overall business history. A positive track record with the VA would indicate reliability, quality of service, and adherence to contract terms in previous engagements.

What are the potential risks associated with a sole-source contract for essential healthcare equipment maintenance?

The primary risk associated with a sole-source contract for essential healthcare equipment maintenance is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the contractor may have less incentive to offer the lowest possible price. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting flexibility and future negotiation power. Furthermore, if the sole-source provider experiences financial difficulties or operational issues, it could disrupt critical maintenance services, impacting patient care. There's also a risk of complacency from the vendor regarding service quality or innovation, as they face no direct competition for this specific contract.

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

Solicitation ID: 36C25224Q0543

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: $248,460

Exercised Options: $147,132

Current Obligation: $147,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline