VA awards $144K for TEMPTRAK maintenance, a sole-source contract for 4 hospitals

Contract Overview

Contract Amount: $144,177 ($144.2K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $396/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TEMPTRAK MAINTENANCE SERVICES FOR 4 VISN 12 VA HOSPITALS

Place of Performance

Location: BEVERLY HILLS, OAKLAND County, MICHIGAN, 48025

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $144,177.41 to TRILLAMED LLC for work described as: TEMPTRAK MAINTENANCE SERVICES FOR 4 VISN 12 VA HOSPITALS Key points: 1. The contract value appears modest for maintenance services across multiple facilities. 2. Sole-source award raises questions about potential price overpayment and lack of competitive pressure. 3. Limited competition increases the risk of suboptimal service quality or inflated costs. 4. The fixed-price nature of the contract provides some cost certainty. 5. The duration of one year suggests a need for ongoing evaluation of service requirements. 6. The specific nature of 'TEMPTRAK' maintenance requires specialized knowledge, potentially limiting bidders.

Value Assessment

Rating: fair

Benchmarking TEMPTRAK maintenance costs is challenging without specific details on the equipment and services covered. However, a $144,177 award for a one-year period across four hospitals suggests a per-hospital cost of approximately $36,000 annually. This figure needs to be compared against similar maintenance contracts for comparable medical equipment in other VA facilities or healthcare systems to determine value for money. The sole-source nature of the award prevents a direct price comparison with competing offers, making it difficult to definitively assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, TRILLAMED LLC, was solicited. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that the government did not explore potential savings or service improvements that could have resulted from a competitive bidding process. This limits the government's ability to ensure it is receiving the best possible price and value.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects market rates or that innovative, cost-saving solutions were considered.

Public Impact

Patients at four VISN 12 VA hospitals will benefit from the continued operational readiness of TEMPTRAK equipment. The services ensure the proper functioning of medical devices critical for patient care and monitoring. The contract supports the operational continuity of healthcare services within the specified VA network. The maintenance services indirectly support the healthcare workforce by ensuring reliable equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for the contractor to offer superior service or innovation.
Transparency is reduced without a competitive process to evaluate multiple vendor proposals.
The specific nature of 'TEMPTRAK' maintenance might indicate a reliance on a single provider, raising long-term dependency concerns.

Positive Signals

The contract ensures the continued availability and functionality of critical medical equipment.
A fixed-price contract provides budget certainty for the awarded amount.
The award is for a defined period, allowing for future re-evaluation of procurement strategy.
The Department of Veterans Affairs is fulfilling its mission to provide healthcare services.

Sector Analysis

The healthcare equipment maintenance sector is crucial for the operational efficiency of hospitals and clinics. This contract falls under the broader category of medical equipment repair and maintenance services. The market for such services can be specialized, with some equipment requiring manufacturer-specific expertise or proprietary parts. The total federal spending on medical equipment maintenance is substantial, and contracts like this, even if individually small, contribute to the overall landscape. Benchmarking is difficult without knowing the specific TEMPTRAK system and its complexity.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside or subcontracting plan. TRILLAMED LLC's size status is not provided, but the sole-source nature of the award suggests it may not have been specifically targeted to small businesses. Further analysis would be needed to determine if subcontracting opportunities for small businesses were missed due to the procurement method.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers responsible for VISN 12 facilities. The contract is a Purchase Order, which is a common instrument for acquiring goods and services. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for oversight. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse, rather than routine contract monitoring.

Related Government Programs

VA Medical Equipment Maintenance Contracts
VISN 12 Healthcare Services
Electromedical Apparatus Maintenance
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency in procurement process.
Dependency on a single contractor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $144,177.41 to TRILLAMED LLC. TEMPTRAK MAINTENANCE SERVICES FOR 4 VISN 12 VA HOSPITALS

Who is the contractor on this award?

The obligated recipient is TRILLAMED 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 $144,177.41.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific 'TEMPTRAK' system being maintained, and what are the critical functions it performs for patient care?

The 'TEMPTRAK' system likely refers to a temperature monitoring and tracking solution, crucial in healthcare settings for maintaining the integrity of temperature-sensitive medications, vaccines, laboratory samples, and patient environments. These systems often involve sensors, data loggers, and software platforms that continuously record and alert staff to temperature deviations. For patient care, this could relate to maintaining optimal conditions in patient rooms or monitoring the temperature of critical medical devices. The specific functions are vital for regulatory compliance (e.g., FDA, Joint Commission), patient safety, and the efficacy of treatments and stored biological materials. Understanding these functions helps contextualize the importance of reliable maintenance.

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

The justification for a sole-source award typically stems from circumstances where only one responsible source can satisfy the agency's needs. For medical equipment maintenance, this often involves proprietary technology, unique technical expertise, or specific warranty requirements that only the original equipment manufacturer (OEM) or an authorized service provider can meet. Without the specific justification document (e.g., a Justification and Approval - J&A), it's presumed that TRILLAMED LLC is either the OEM or possesses unique, indispensable knowledge or capability related to the TEMPTRAK system. This could include access to proprietary diagnostic tools, specialized training, or unique replacement parts not available through other vendors.

How does the annual cost per hospital for this maintenance contract compare to industry benchmarks for similar equipment?

Comparing the annual cost per hospital ($36,000) requires detailed information about the TEMPTRAK system's complexity, the scope of maintenance services (preventive, corrective, parts included), and the specific model. Industry benchmarks for medical equipment maintenance vary widely. For instance, service contracts for complex imaging equipment (like MRI or CT scanners) can cost tens to hundreds of thousands of dollars annually. Simpler monitoring systems might be significantly less. Without knowing if TEMPTRAK is a basic temperature logger or a sophisticated environmental control system, a direct benchmark is difficult. However, if it's a relatively standard temperature monitoring solution, $36,000 per site might be on the higher end, especially if competition were available.

What is TRILLAMED LLC's track record with the VA or other federal agencies for providing similar maintenance services?

Information on TRILLAMED LLC's specific track record with the VA or other federal agencies for TEMPTRAK maintenance is not detailed in the provided data. A thorough analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes. Understanding their history, particularly with sole-source awards or similar types of medical equipment maintenance, would provide insight into their reliability, quality of service, and pricing consistency. Without this historical data, assessing their suitability and the value they provide is speculative.

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

Relying on a sole-source provider for critical medical equipment maintenance carries several risks. Firstly, it eliminates competitive pressure, potentially leading to higher prices and reduced incentives for the contractor to innovate or improve service quality. Secondly, it creates a dependency; if the sole-source provider experiences financial difficulties, goes out of business, or significantly increases prices, the agency has limited alternatives, potentially disrupting essential services. Thirdly, there's a risk of complacency, where the contractor may not feel the need to proactively address potential issues or offer cost-saving measures. Finally, without competitive benchmarking, it's harder to ensure the services rendered are truly cost-effective and meet the highest standards.

Are there any plans for future competition for these TEMPTRAK maintenance services, or is this likely to remain a sole-source arrangement?

The provided data does not indicate future competition plans for these TEMPTRAK maintenance services. Typically, if a sole-source award is made due to unique capabilities, the agency may continue to sole-source as long as those conditions persist. However, agencies are generally encouraged to seek competition whenever possible. A review of the contract's performance and the market landscape would be necessary to determine if future competition is feasible. If the technology becomes more standardized or if other qualified vendors emerge, the VA could potentially transition to a competitive procurement in subsequent contract periods, subject to market research and justification.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25225Q0240

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30100 TELEGRAPH RD, BINGHAM FARMS, MI, 48025

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

Financial Breakdown

Contract Ceiling: $663,885

Exercised Options: $144,177

Current Obligation: $144,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline