VA awards $1.77M for Medical Gases and Cylinders to RAS Enterprises LLC, a single purchase order

Contract Overview

Contract Amount: $1,765,759 ($1.8M)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL GASES AND CYLINDERS

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.8 million to RAS ENTERPRISES LLC for work described as: MEDICAL GASES AND CYLINDERS Key points: 1. Contract awarded for essential medical gases and cylinders, critical for healthcare operations. 2. The contract value of $1.77M over three years suggests a moderate annual spend. 3. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. RAS Enterprises LLC is the sole awardee for this specific requirement. 6. The contract duration of approximately three years allows for consistent supply. 7. The North American Industry Classification System (NAICS) code 325120 points to industrial gas manufacturing.

Value Assessment

Rating: fair

The contract value of $1.77M for medical gases and cylinders over three years averages approximately $588,586 annually. Without specific details on the volume of gases and cylinders required, or comparable contracts for similar medical facilities, a precise value-for-money assessment is challenging. However, the award under SAP suggests an effort to obtain competitive pricing for a requirement within this procurement threshold. Further benchmarking against other VA facilities or similar healthcare providers for comparable services would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes or proposals. While the specific number of bidders is not provided, SAP is designed to streamline the procurement process for purchases below a certain dollar threshold, often resulting in less extensive competition than full and open solicitations. The limited competition may stem from the specific nature of the medical gases and cylinders required or the geographic location of the VA facility.

Taxpayer Impact: Limited competition under SAP can sometimes lead to higher prices for taxpayers compared to a fully competed contract with numerous bidders vying for the business. However, SAP is intended to balance efficiency with reasonable pricing for smaller procurements.

Public Impact

Veterans receiving care at VA facilities will benefit from the consistent availability of essential medical gases and cylinders. The contract ensures the supply of critical gases (e.g., oxygen, medical air) and associated cylinders necessary for patient treatment and medical procedures. The geographic impact is primarily within Mississippi, where the contract is managed. The contract supports the workforce within the industrial gas manufacturing sector, specifically related to medical-grade gases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact price competitiveness.
Lack of detailed performance metrics makes it difficult to assess service quality.
Reliance on a single vendor for critical medical supplies could pose a supply chain risk if not managed proactively.

Positive Signals

Awarded under a firm-fixed-price contract, providing budget certainty.
The contract duration of nearly three years offers stability in supply.
The requirement is for essential medical supplies, directly supporting patient care.

Sector Analysis

The medical gases and cylinders market is a specialized segment within the broader industrial gas industry. This sector is characterized by stringent quality control, regulatory compliance, and specialized distribution networks to ensure the safe and timely delivery of gases for medical applications. The contract fits within the VA's broader healthcare procurement strategy, ensuring the availability of essential supplies for its medical facilities. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for similar medical gas supplies, as well as private healthcare systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to RAS Enterprises LLC, without specific information on its size, does not inherently indicate opportunities or challenges for the broader small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Veterans Affairs' contracting officers and program managers. Accountability measures would be embedded in the contract terms and conditions, including delivery schedules and quality specifications. Transparency is facilitated through contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Supplies
Healthcare Services
Industrial Gases
Veterans Affairs Medical Procurement
Purchase Orders

Risk Flags

Limited Competition
Sole Source Award (under SAP)
Critical Medical Supply

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.8 million to RAS ENTERPRISES LLC. MEDICAL GASES AND CYLINDERS

Who is the contractor on this award?

The obligated recipient is RAS ENTERPRISES 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 $1.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the historical spending pattern for medical gases and cylinders by the Department of Veterans Affairs?

Analyzing historical spending patterns for medical gases and cylinders by the Department of Veterans Affairs (VA) is crucial for understanding trends, identifying potential cost savings, and assessing the consistency of supply. While specific historical data for this exact contract is not provided, the VA generally procures these essential supplies through various contract vehicles, including both competed and sole-source awards, often under simplified acquisition procedures for smaller amounts or specific needs. Over the past five years, the VA's spending on medical gases and related equipment has likely fluctuated based on facility needs, changes in medical technology, and the expiration and re-competition of existing contracts. Examining aggregated spending data across the VA system for NAICS code 325120 (Industrial Gas Manufacturing) or related service codes would reveal overall expenditure levels. Trends might show an increasing reliance on specific types of gases or a shift towards more efficient delivery systems. Benchmarking this $1.77M award against the VA's total annual expenditure on such items would provide context on its relative significance.

How does the pricing of this contract compare to similar medical gas contracts awarded by other federal agencies?

Comparing the pricing of this $1.77M contract for medical gases and cylinders to similar contracts awarded by other federal agencies requires access to detailed pricing information for both this award and comparable contracts. Without specific unit prices or detailed service scopes, a direct comparison is difficult. However, the fact that this contract was competed under Simplified Acquisition Procedures (SAP) suggests an effort to achieve competitive pricing within that framework. Agencies like the Department of Defense (DoD) or the Health and Human Services (HHS) also procure medical gases. If this contract was awarded on a firm-fixed-price basis, it provides cost certainty. Benchmarking would involve looking at contracts with similar volumes, types of gases, delivery requirements, and contract durations across agencies. Variations in pricing could be attributed to geographic location, specific vendor capabilities, and the level of competition encountered during the procurement process.

What are the potential risks associated with RAS Enterprises LLC as the sole awardee for this critical medical supply?

The primary risk associated with RAS Enterprises LLC being the sole awardee for this critical medical supply is the potential for supply chain disruption. If RAS Enterprises experiences operational issues, such as production problems, delivery failures, or financial instability, it could directly impact the VA's ability to obtain necessary medical gases and cylinders. This could lead to shortages, affecting patient care and potentially requiring emergency, higher-cost procurements from alternative sources. Another risk relates to price escalation over the contract term, especially if the initial pricing was based on assumptions that change. Without ongoing competition, there is less inherent pressure on the contractor to maintain the most competitive pricing throughout the contract's duration. Robust contract management, including regular performance reviews and contingency planning by the VA, is essential to mitigate these risks.

What is the expected performance standard for RAS Enterprises LLC under this contract?

The expected performance standards for RAS Enterprises LLC under this contract are primarily defined by the terms and conditions of the Purchase Order, which would include specifications for the medical gases and cylinders, delivery schedules, and quality requirements. As a supplier of critical medical items, RAS Enterprises is expected to adhere to stringent quality control measures to ensure the purity, potency, and safety of the gases provided. Delivery performance will be critical, requiring timely and accurate fulfillment of orders to prevent disruptions in healthcare services. The contract likely includes clauses related to compliance with relevant healthcare regulations and industry standards. The VA will monitor performance against these metrics, and deviations could lead to corrective actions or penalties as stipulated in the contract. Specific performance metrics, such as on-time delivery rates or defect rates, would typically be detailed within the contract documentation.

How does this contract align with the VA's overall strategy for procuring medical supplies and ensuring healthcare delivery to veterans?

This contract for medical gases and cylinders aligns with the VA's overarching strategy to ensure the consistent and reliable delivery of healthcare services to veterans. Medical gases are fundamental to a wide range of medical procedures, from respiratory support to anesthesia, making their uninterrupted supply a critical component of patient care. By awarding this contract, the VA is securing a vital resource necessary for its medical facilities to function effectively. The procurement approach, utilizing SAP and a firm-fixed-price structure, suggests a balance between efficiency in acquiring necessary supplies and managing costs for these essential items. This specific award contributes to the VA's broader goal of maintaining a robust supply chain for medical necessities, thereby supporting its mission to provide comprehensive healthcare to the veteran population.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25724Q0378

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2512 25TH AVE, GULFPORT, MS, 39501

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

Financial Breakdown

Contract Ceiling: $2,349,164

Exercised Options: $1,765,759

Current Obligation: $1,765,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline