VA Awards $1.98M Lease for Mobile SPS Trailer to STERIS Corporation Under Full and Open Competition

Contract Overview

Contract Amount: $1,983,137 ($2.0M)

Contractor: Steris Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BASE 12 MONTH LEASE WITH TWO 6 MONTH OPTIONS FOR RENTAL OF A MOBILE SPS TRAILER FOR THE JESSE BROWN VAMC

Place of Performance

Location: MENTOR, LAKE County, OHIO, 44060

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to STERIS CORPORATION for work described as: BASE 12 MONTH LEASE WITH TWO 6 MONTH OPTIONS FOR RENTAL OF A MOBILE SPS TRAILER FOR THE JESSE BROWN VAMC Key points: 1. The Department of Veterans Affairs (VA) is leasing a mobile SPS trailer for the Jesse Brown VAMC. 2. The contract was awarded to STERIS CORPORATION following full and open competition. 3. The lease duration is 729 days, covering a base 12-month period with two 6-month options. 4. The total value of the contract is $1,983,137.28. 5. The NAICS code for this procurement is 532120 (Truck, Utility Trailer, and RV Rental and Leasing).

Value Assessment

Rating: good

The pricing of $1,983,137.28 for a 729-day lease of a mobile SPS trailer appears reasonable given the specialized nature of the equipment and the competitive bidding process. Benchmarking against similar specialized medical equipment leases would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the rental services.

Taxpayer Impact: Taxpayer funds are being used for this lease, with the total value at $1,983,137.28. The competitive nature of the award suggests efficient use of these funds.

Public Impact

Ensures continued operational capacity for the Jesse Brown VAMC by providing essential mobile medical equipment. Supports patient care by enabling the facility to maintain or expand its service offerings. The lease agreement contributes to the medical equipment rental and leasing sector. The use of a mobile trailer suggests flexibility and potential for rapid deployment or replacement of fixed infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if options are exercised and market rates rise.
Dependence on a single vendor for maintenance and operation of the leased equipment.

Positive Signals

Awarded through full and open competition, maximizing potential for best value.
Clear contract structure with a base period and defined option periods.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

The procurement falls within the Truck, Utility Trailer, and RV Rental and Leasing sector (NAICS 532120). Spending in this sector can vary widely based on the type and duration of rentals, with specialized equipment like mobile medical trailers commanding higher prices.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were solicited or participated in the competition.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight would involve monitoring contract performance, adherence to lease terms, and ensuring the equipment meets specified requirements throughout the contract period.

Related Government Programs

Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns if option periods are exercised at higher rates.
Dependence on a single contractor for critical equipment maintenance.
Lack of small business participation noted in the award data.
Specialized nature of equipment may limit future re-competition options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to STERIS CORPORATION. BASE 12 MONTH LEASE WITH TWO 6 MONTH OPTIONS FOR RENTAL OF A MOBILE SPS TRAILER FOR THE JESSE BROWN VAMC

Who is the contractor on this award?

The obligated recipient is STERIS CORPORATION.

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 $2.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What specific medical services will the mobile SPS trailer support at the Jesse Brown VAMC, and how critical is this equipment to their operations?

The mobile SPS (Sterile Processing Services) trailer is crucial for maintaining the sterility of surgical instruments and equipment. Its deployment likely supports the VAMC's surgical suite, ensuring patient safety and enabling the continuation of vital medical procedures. The criticality lies in preventing surgical site infections and maintaining the hospital's capacity to perform necessary operations.

What are the potential risks associated with relying on a leased mobile trailer for essential sterile processing services, particularly concerning equipment uptime and maintenance?

Risks include potential equipment malfunctions, extended downtime for repairs, and the availability of specialized maintenance personnel. If the leased trailer experiences significant issues, it could disrupt surgical schedules and patient care. The government's reliance on STERIS CORPORATION for maintenance under the lease agreement necessitates robust performance monitoring to mitigate these risks.

How does the cost of leasing this mobile SPS trailer compare to the cost of purchasing or building a permanent, on-site sterile processing facility?

Leasing offers flexibility and potentially lower upfront costs compared to purchasing or building a permanent facility. However, over the long term, the cumulative lease payments might exceed the capital investment for a permanent solution. A detailed cost-benefit analysis considering lifespan, maintenance, and operational efficiency would be needed to definitively assess long-term value.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Automotive Equipment Rental and Leasing › Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5960 HEISLEY ROAD, MENTOR, OH, 44060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,983,137

Exercised Options: $1,983,137

Current Obligation: $1,983,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS30F022GA

IDV Type: FSS

Timeline