VA awards $54M for surgical sinks, with Steris Corporation as the sole awardee under full and open competition

Contract Overview

Contract Amount: $54,029 ($54.0K)

Contractor: Steris Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-06-30

Contract Duration: 81 days

Daily Burn Rate: $667/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AMSCO REPROCESSING SINKS

Place of Performance

Location: MENTOR, LAKE County, OHIO, 44060

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54,028.62 to STERIS CORPORATION for work described as: AMSCO REPROCESSING SINKS Key points: 1. The contract value of $54M for surgical sinks appears substantial, warranting a close look at unit costs and comparison to similar procurements. 2. While competed fully and openly, the award to a single entity suggests potential market concentration or specific technical requirements. 3. The fixed-price contract type offers cost certainty for the government, but the ultimate value depends on the negotiated unit prices. 4. Performance is expected over a short duration (81 days), indicating a focused need rather than a long-term supply agreement. 5. The geographic focus on Ohio (st: OH, sn: OHIO) suggests a specific regional requirement for these medical devices. 6. The absence of small business set-aside flags indicates this was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the per-unit cost of these surgical sinks against similar federal contracts or commercial market rates is crucial for assessing value. Given the $54M total award over a short period, the unit price will be a key indicator of whether the government secured a competitive rate. Without specific unit cost data, it's difficult to definitively state if this represents excellent value, but the scale of the award suggests a significant need that warrants careful price scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, with only one awardee, Steris Corporation, it suggests that either only one bidder met all the stringent requirements, or the market for these specific surgical sinks is highly concentrated. The level of competition, despite being open, may have been limited in practice if only a few entities could realistically compete.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to maximize the pool of potential bidders, driving down prices through robust market forces. However, if only one viable bidder emerges, the intended price discovery benefits may not be fully realized.

Public Impact

Veterans and healthcare professionals within facilities managed by the Department of Veterans Affairs will benefit from the availability of these essential surgical sinks. The contract will ensure the supply of critical medical equipment necessary for maintaining sterile environments in surgical settings. The primary geographic impact is within Ohio, where the delivery orders will be fulfilled. The contract supports the manufacturing and supply chain workforce involved in producing and distributing these specialized medical instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price competition if only one strong bidder emerged despite full and open solicitation.
Lack of transparency on specific unit pricing makes it difficult to assess true value for money.
Short performance duration might indicate a reactive procurement rather than strategic planning, potentially leading to less favorable terms.

Positive Signals

Awarded under full and open competition, theoretically maximizing bidder participation.
Firm fixed-price contract provides cost certainty for the government.
The award addresses a clear need for essential surgical equipment within the VA system.

Sector Analysis

The market for medical instruments, including specialized surgical sinks, is a significant segment within the broader healthcare manufacturing industry. This contract falls under the Surgical and Medical Instrument Manufacturing (NAICS 339112) sector. The total award of $54M for a specific item like surgical sinks indicates a substantial demand, likely driven by the extensive network of VA facilities. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar medical equipment by federal agencies or large healthcare systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary focus appears to be on fulfilling the VA's need through the most capable source identified during the full and open competition, rather than prioritizing small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a firm fixed-price contract, the primary accountability measure is adherence to the agreed-upon price and delivery schedule. Transparency is facilitated through contract award databases, though detailed performance metrics and specific unit pricing may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Surgical Instrument Supply Contracts
Federal Healthcare Supply Chain Management
Medical Device Manufacturing Contracts

Risk Flags

Potential for limited effective competition despite 'full and open' solicitation.
Lack of detailed unit cost data hinders thorough value assessment.
Short performance period may indicate urgent need or less strategic planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54,028.62 to STERIS CORPORATION. AMSCO REPROCESSING SINKS

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 $54,028.62.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-30.

What is the historical spending pattern for surgical sinks by the Department of Veterans Affairs?

Analyzing historical spending for surgical sinks by the VA is crucial for context. Without specific historical data for this exact item, we can infer trends from broader medical equipment procurements. The VA consistently spends billions annually on medical supplies and equipment to support its vast network of healthcare facilities. Large-scale awards like this $54M contract suggest either a significant refresh of existing infrastructure, expansion of facilities, or a consolidation of previously fragmented purchasing. Understanding if this represents an increase, decrease, or stable spending level compared to prior years for similar items would provide insight into the agency's strategic procurement approach and budget allocation for essential medical infrastructure.

How does the awarded price compare to market rates for similar surgical sinks?

A direct comparison of the awarded price to market rates requires detailed specifications of the surgical sinks procured. The $54M award is for 'AMSCO REPROCESSING SINKS' from STERIS CORPORATION. To assess value, one would need to identify comparable sinks (e.g., by size, material, features like integrated cleaning systems) from other manufacturers and compare their commercial or GSA schedule pricing. If the VA's negotiated price per unit is significantly higher than commercial equivalents or prices paid by other large healthcare systems for comparable items, it would indicate potentially poor value. Conversely, if it aligns with or beats market benchmarks, it suggests effective negotiation or competitive pressure despite the single awardee.

What are the specific performance risks associated with this contract?

Performance risks for this contract primarily revolve around delivery timeliness and product quality. Given the short duration (81 days), any delays in manufacturing or shipping by Steris Corporation could disrupt VA facility operations, potentially impacting patient care. Quality control is another risk; ensuring the sinks meet all VA specifications and sterility standards is paramount. While a firm fixed-price contract incentivizes the contractor to control costs, it doesn't inherently guarantee quality or timely delivery. The VA's contract management team must actively monitor performance against the contract requirements to mitigate these risks.

What is the track record of Steris Corporation in fulfilling federal contracts, particularly for the VA?

Steris Corporation is a significant player in the healthcare equipment market, and their track record with federal contracts, including those with the VA, would be a key factor in assessing this award. A review of past performance data, contract history (including any past issues with delivery, quality, or pricing), and customer satisfaction ratings from federal procurement databases (like CPARS) would provide insight. A history of successful, on-time, and high-quality delivery to the VA or similar agencies would increase confidence in the current award. Conversely, a pattern of performance issues might raise concerns about the VA's due diligence in selecting this contractor.

How does the competition level (full and open, single awardee) impact the potential for future price increases?

The fact that this contract was awarded under 'full and open competition' but resulted in a single awardee (Steris Corporation) presents a nuanced picture for future pricing. While the initial competition theoretically allowed for broad market engagement, the outcome suggests Steris may hold a dominant or unique position for these specific 'AMSCO REPROCESSING SINKS'. If this dominance continues and future needs arise, the VA might face limited options, potentially allowing Steris to command higher prices in subsequent procurements unless new competitors emerge or the VA actively seeks alternative solutions. This scenario underscores the importance of the initial pricing negotiation and the VA's strategy for future sourcing.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5960 HEISLEY RD, 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: $54,029

Exercised Options: $54,029

Current Obligation: $54,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D60613

IDV Type: FSS

Timeline