VA awards $1.85M contract for TEMPTRAK sustainment maintenance to Trillamed LLC

Contract Overview

Contract Amount: $1,851,387 ($1.9M)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-12

End Date: 2027-05-11

Contract Duration: 1,825 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 19 TEMPTRAK SUSTAINMENT MAINTENANCE OPTION CONTRACT

Place of Performance

Location: BINGHAM FARMS, OAKLAND County, MICHIGAN, 48025

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.9 million to TRILLAMED LLC for work described as: VISN 19 TEMPTRAK SUSTAINMENT MAINTENANCE OPTION CONTRACT Key points: 1. Contract awarded for sustainment maintenance of TEMPTRAK equipment. 2. Duration of the contract is 5 years. 3. The contract was not competed under simplified acquisition procedures. 4. The award is a purchase order. 5. The contract type is firm fixed price. 6. The contractor is Trillamed LLC. 7. The agency is the Department of Veterans Affairs.

Value Assessment

Rating: questionable

The contract value of $1.85 million over five years for sustainment maintenance of specialized equipment appears to be within a reasonable range for such services. However, without specific details on the TEMPTRAK system and its maintenance requirements, a precise benchmark is difficult. The firm fixed price structure suggests cost certainty for the government, but the lack of competitive bidding raises concerns about whether the best possible price was achieved. Further analysis would require understanding the scope of work and comparing it to similar maintenance contracts for comparable systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which suggests it may have been awarded without full and open competition, potentially under simplified acquisition procedures or other exceptions. The absence of information regarding the number of bidders or the specific justification for not competing it fully makes it difficult to assess the level of competition. This lack of transparency in the procurement process raises questions about potential price discovery and whether the government secured the most advantageous terms.

Taxpayer Impact: When a contract is not fully competed, taxpayers may not benefit from the cost savings that can arise from robust competition among multiple vendors. This can lead to higher prices than might otherwise be achievable.

Public Impact

Veterans receiving care will benefit from the continued operational readiness of TEMPTRAK systems. The contract ensures the sustainment and maintenance of critical medical equipment. The services are delivered to the Department of Veterans Affairs. The geographic impact is likely within the facilities managed by VISN 19. The contract supports the maintenance workforce responsible for this equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about optimal pricing.
Limited information on the specific maintenance requirements and scope of work.
The 'NOT COMPETED UNDER SAP' designation requires further clarification on the procurement rationale.
Potential for higher costs due to non-competitive award.

Positive Signals

Firm fixed price contract provides cost certainty.
Long-term sustainment contract ensures equipment availability.
Award to a single contractor simplifies administration.

Sector Analysis

This contract falls within the broader sector of healthcare equipment maintenance and sustainment. The market for such specialized services can vary significantly depending on the technology's complexity and the number of qualified providers. While specific market size data for TEMPTRAK sustainment is not readily available, the Department of Veterans Affairs represents a significant customer for medical equipment and related services, with substantial annual spending in this category. Benchmarking would ideally involve comparing this contract's pricing and scope to similar maintenance agreements for comparable medical monitoring or tracking systems.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false) and there is no indication of subcontracting requirements for small businesses (sb=false). Therefore, this specific award does not appear to directly benefit small businesses through set-aside provisions or mandated subcontracting. The impact on the broader small business ecosystem is minimal for this particular contract, as it was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm fixed price contract terms, requiring Trillamed LLC to deliver specified maintenance services. Transparency is limited due to the lack of competitive bidding information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

VISN 19 Medical Equipment Maintenance
TEMPTRAK System Support Contracts
Department of Veterans Affairs Sustainment Services
Healthcare Technology Maintenance

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.9 million to TRILLAMED LLC. VISN 19 TEMPTRAK SUSTAINMENT MAINTENANCE OPTION CONTRACT

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 $1.9 million.

What is the period of performance?

Start: 2022-05-12. End: 2027-05-11.

What is the specific function and criticality of the TEMPTRAK system being maintained under this contract?

The TEMPTRAK system, based on its classification under NAICS code 334515 (Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing), likely refers to specialized environmental monitoring or control equipment. In a healthcare context, such systems could be critical for maintaining specific temperature, humidity, or other environmental conditions required for sensitive medical equipment, pharmaceuticals, or patient care areas. Its criticality would depend on its role in patient safety, data integrity, or the efficacy of other medical devices. Without more specific product information, its exact function remains inferred, but its sustainment maintenance suggests it is a vital piece of operational infrastructure for VISN 19 facilities.

What is the historical spending pattern for TEMPTRAK sustainment maintenance within VISN 19 or the VA?

Historical spending data for TEMPTRAK sustainment maintenance within VISN 19 or the broader Department of Veterans Affairs is not provided in the current data set. To establish a historical spending pattern, one would need to access previous contract awards for this specific system or similar environmental monitoring equipment. Analyzing past contract values, durations, and contractor performance would reveal trends in pricing, frequency of maintenance, and potential cost increases over time. This information is crucial for assessing whether the current $1.85 million award over five years represents a fair market value or an escalation compared to previous expenditures. Without this context, it is difficult to determine if current spending aligns with historical norms.

What is Trillamed LLC's track record with the Department of Veterans Affairs and similar contracts?

Information regarding Trillamed LLC's specific track record with the Department of Veterans Affairs or its performance on similar sustainment maintenance contracts is not detailed in the provided data. To assess their track record, one would need to review past performance evaluations, contract history, and any reported issues or successes. A positive track record with the VA on comparable contracts would suggest a lower risk for this award. Conversely, a history of performance issues or a lack of experience with similar complex systems might indicate a higher risk. Further due diligence would involve searching federal procurement databases and performance rating systems for insights into Trillamed LLC's capabilities and reliability.

How does the $1.85 million contract value compare to industry benchmarks for similar equipment maintenance?

Benchmarking the $1.85 million contract value for TEMPTRAK sustainment maintenance against industry standards is challenging without precise details on the TEMPTRAK system's specifications, age, and the scope of maintenance required. The NAICS code suggests equipment related to environmental control, which can range from standard HVAC to highly specialized climate control systems. If TEMPTRAK is a complex, mission-critical system, the five-year cost of $1.85 million might be reasonable. However, if it's a more common type of equipment, this value could be on the higher side. A thorough benchmark would require comparing the contract's labor rates, parts costs, and service level agreements against those offered by other maintenance providers for comparable healthcare technology or environmental control systems.

What are the specific risks associated with a non-competed contract for essential equipment maintenance?

The primary risks associated with a non-competed contract for essential equipment maintenance, such as this TEMPTRAK sustainment contract, revolve around potential overpricing and reduced service quality. Without competition, the contractor (Trillamed LLC) may have less incentive to offer the most competitive pricing, potentially leading to higher costs for the government and taxpayers. Furthermore, the absence of multiple bidders can limit the government's ability to select a vendor with the absolute best technical expertise or responsiveness. There's also a risk of vendor lock-in, making it difficult to switch providers in the future even if performance is unsatisfactory. The 'NOT COMPETED UNDER SAP' designation warrants scrutiny to ensure the justification for foregoing competition was valid and served the government's best interest.

Industry Classification

NAICS: Manufacturing › Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing › Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25922Q0306

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30100 TELEGRAPH RD STE 366, BINGHAM FARMS, MI, 48025

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,252,990

Exercised Options: $1,851,387

Current Obligation: $1,851,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline