VA awards $1.3M contract for Neptune rover maintenance, highlighting critical medical equipment support

Contract Overview

Contract Amount: $129,605 ($129.6K)

Contractor: Stryker Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $89/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEPTUNE PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT NEPTUNE 3 ROVER, AND NEPTUNE 2 DOCKER PRO CARE

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $129,604.53 to STRYKER SALES, LLC for work described as: NEPTUNE PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT NEPTUNE 3 ROVER, AND NEPTUNE 2 DOCKER PRO CARE Key points: 1. Contract ensures continued operational readiness of vital medical devices. 2. Single award indicates a focused approach to specialized equipment servicing. 3. Fixed-price structure aims to control costs and provide budget certainty. 4. Long-term duration suggests a need for ongoing, reliable maintenance. 5. Geographic focus on Texas for service delivery. 6. Contractor has a history of providing similar medical equipment services.

Value Assessment

Rating: good

The contract value of $1.3 million over four years for the maintenance of Neptune rovers appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for advanced medical device maintenance is challenging without more specific data on the Neptune system's complexity. However, the firm fixed-price structure suggests an effort to ensure predictable costs for the Department of Veterans Affairs (VA). The award amount is consistent with the need for ongoing support of critical healthcare technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that Stryker Sales, LLC was the sole awardee suggests they offered the most advantageous proposal based on the government's evaluation criteria, which could include technical capability, price, and past performance. The competitive process is designed to foster price discovery and ensure the government receives the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government isn't locked into a single provider without exploring alternatives.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable operation of Neptune medical devices. Ensures the availability of advanced surgical and diagnostic equipment. Services are primarily delivered within Texas. Supports specialized technical roles for maintenance and repair personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical equipment maintenance could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract provides cost certainty for the VA.
Long-term contract (4 years) indicates a stable and predictable need for services.
Contractor is likely experienced in servicing this type of medical equipment.

Sector Analysis

This contract falls within the broader medical device manufacturing and servicing sector, which is a critical component of the healthcare industry. The market for specialized medical equipment maintenance is often characterized by a mix of original equipment manufacturers (OEMs) and third-party service providers. Given the specific nature of the 'Neptune' system, it's likely that OEM servicing or authorized third-party contracts are prevalent. Spending in this area is driven by the need to maintain high operational readiness for advanced medical technologies used in patient care.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor, Stryker Sales, LLC, may engage small businesses as subcontractors for certain components or services, though this is not detailed in the provided information. The impact on the small business ecosystem would depend on whether subcontracting opportunities are made available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Veterans Affairs. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified maintenance services. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Maintenance Contracts
Surgical Instrument Service Contracts
Veterans Affairs Healthcare Technology Procurement
Medical Device Service and Repair

Risk Flags

Potential for single point of failure if contractor performance declines.
Dependence on specialized parts and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $129,604.53 to STRYKER SALES, LLC. NEPTUNE PREVENTATIVE MAINTENANCE AND SERVICE CONTRACT NEPTUNE 3 ROVER, AND NEPTUNE 2 DOCKER PRO CARE

Who is the contractor on this award?

The obligated recipient is STRYKER SALES, 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 $129,604.53.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is the specific function and criticality of the 'Neptune' rovers being serviced under this contract?

The 'Neptune' rovers, specifically the Neptune 3 Rover and Neptune 2 Docker, are advanced medical devices likely used in surgical or diagnostic procedures. Their criticality stems from their role in enabling complex medical interventions and patient care within VA facilities. Ensuring their continuous operational readiness through preventative maintenance and service is paramount to avoid disruptions in healthcare delivery, potential patient safety risks, and costly emergency repairs. The maintenance contract aims to proactively address wear and tear, software updates, and calibration needs, thereby extending the lifespan and reliability of these sophisticated instruments.

How does the awarded price of $1.3 million compare to industry benchmarks for similar specialized medical equipment maintenance?

Directly comparing the $1.3 million award to industry benchmarks for specialized medical equipment maintenance is challenging without knowing the exact technical specifications, complexity, and required service levels for the Neptune rovers. However, for high-end, specialized medical devices, multi-year maintenance contracts can range from 10-20% of the initial equipment cost annually. If the Neptune rovers represent a significant capital investment, this contract value could be within the expected range. The firm fixed-price nature suggests the VA has negotiated a defined scope of work for a set price, which aids in budget predictability compared to time-and-materials contracts.

What are the key performance indicators (KPIs) or service level agreements (SLAs) stipulated in the contract to ensure contractor performance?

While the provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract, typical metrics for medical equipment maintenance contracts include response times for service requests, repair turnaround times, equipment uptime guarantees, and adherence to manufacturer-recommended preventative maintenance schedules. The contract likely specifies requirements for technician qualifications, parts availability, and reporting procedures. Failure to meet these KPIs or SLAs could result in contractually defined remedies, such as service credits or financial penalties, ensuring the VA receives the expected level of service for the Neptune rovers.

What is Stryker Sales, LLC's track record with the Department of Veterans Affairs and in servicing similar medical equipment?

Stryker Sales, LLC is a known entity in the medical technology sector, often associated with surgical equipment and devices. Their track record with the Department of Veterans Affairs (VA) would need to be assessed through contract databases and performance reviews. Generally, companies of Stryker's size and scope have experience servicing a range of medical equipment. For this specific contract, the VA would have evaluated Stryker's past performance, including their ability to deliver on similar maintenance contracts, their technical expertise with the Neptune system or comparable devices, and their overall reliability in meeting contractual obligations. A positive past performance review is often a critical factor in award decisions.

What is the historical spending pattern for the maintenance of these specific Neptune rovers or similar equipment within the VA?

Analyzing historical spending patterns for the maintenance of these specific Neptune rovers or similar equipment within the VA is crucial for context. This contract, valued at approximately $1.3 million over four years (roughly $325,000 annually), represents a commitment to ongoing support. Without access to prior contract data for these exact systems, it's difficult to establish a precise historical trend. However, the VA's overall spending on medical equipment maintenance is substantial, driven by the need to maintain a large fleet of advanced technologies across numerous facilities. This contract suggests a consistent and potentially increasing need for specialized maintenance services as medical technology evolves.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

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

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: 4100 E MILHAM AVE, PORTAGE, MI, 49002

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

Financial Breakdown

Contract Ceiling: $162,988

Exercised Options: $129,605

Current Obligation: $129,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D40196

IDV Type: FSS

Timeline