VA awards $2.3M for STERIS equipment maintenance, lacking competition

Contract Overview

Contract Amount: $2,319,513 ($2.3M)

Contractor: Steris Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STERIS EQUIPMENT PREVENTATIVE AND REPAIR MAINTENANCE FOR THE COLUMBIA, MO VAMC, EASTERN KANSAS HEALTHCARE SYSTEM (EKHCS), MARION, IL VAMC, AND POPLAR BLUFF, MO VAMC.

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to STERIS CORPORATION for work described as: STERIS EQUIPMENT PREVENTATIVE AND REPAIR MAINTENANCE FOR THE COLUMBIA, MO VAMC, EASTERN KANSAS HEALTHCARE SYSTEM (EKHCS), MARION, IL VAMC, AND POPLAR BLUFF, MO VAMC. Key points: 1. The contract is for essential preventative and repair maintenance of STERIS equipment across multiple VA facilities. 2. The total value is $2,319,513.16 over a period of approximately four years. 3. The award was made on a 'not competed' basis, raising questions about price discovery. 4. The primary sector is IT/Electronic Maintenance, supporting critical healthcare operations.

Value Assessment

Rating: questionable

The contract value of $2.3M for four years of maintenance on specialized medical equipment appears reasonable on its face. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price for taxpayers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, likely due to specific equipment requirements or a limited vendor pool. The lack of competition means the VA did not explore alternative pricing or service providers, potentially leading to a higher cost than a competitive process might yield.

Taxpayer Impact: The absence of competition may result in higher costs for taxpayers compared to a scenario where multiple vendors bid on the contract.

Public Impact

Ensures continued operation of critical medical equipment at four VA facilities. Supports patient care by minimizing downtime for essential medical devices. The contract's non-competitive nature could be a point of scrutiny for efficient spending. Reliable maintenance is crucial for the longevity and performance of expensive medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment without market comparison

Positive Signals

Ensures critical equipment uptime
Supports multiple healthcare facilities

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector, specifically supporting healthcare facilities. Spending in this area is critical for operational readiness and patient safety, but often involves specialized equipment requiring specific vendor expertise.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The contract was awarded to STERIS CORPORATION, suggesting a focus on original equipment manufacturer services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The 'not competed' status warrants review to ensure proper justification and adherence to procurement regulations for future similar awards.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in vendor selection
Reliance on a single vendor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to STERIS CORPORATION. STERIS EQUIPMENT PREVENTATIVE AND REPAIR MAINTENANCE FOR THE COLUMBIA, MO VAMC, EASTERN KANSAS HEALTHCARE SYSTEM (EKHCS), MARION, IL VAMC, AND POPLAR BLUFF, MO 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 $2.3 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is the justification for not competing this maintenance contract, and were alternative solutions considered?

The justification for not competing this contract is not provided in the data. Typically, non-competitive awards are made when only one source can provide the required service, such as proprietary equipment maintenance. However, the VA should have explored if other qualified vendors could perform the service or if a competitive process was feasible to ensure best value.

What is the potential risk to taxpayer funds due to the lack of competition?

The primary risk to taxpayer funds is the potential for paying a premium price. Without competitive bids, there's no market pressure to drive down costs. STERIS CORPORATION may have charged a higher price than they would have under a competitive scenario, leading to inefficient use of government funds.

How does this contract ensure the effectiveness of critical medical equipment maintenance?

The contract ensures effectiveness by assigning maintenance responsibilities to STERIS CORPORATION, the likely original equipment manufacturer or authorized service provider. This specialized knowledge should lead to high-quality preventative maintenance and timely repairs, minimizing equipment downtime and ensuring its operational readiness for patient care.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25523Q0064

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,319,513

Exercised Options: $2,319,513

Current Obligation: $2,319,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline