VA awards $8.75M contract for patient monitoring system upgrade at Oklahoma City VA Medical Center

Contract Overview

Contract Amount: $8,753,928 ($8.8M)

Contractor: Avmedical LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-09

End Date: 2027-05-08

Contract Duration: 729 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PATIENT MONITORING SYSTEM UPGRADE FOR THE OKLAHOMA CITY VA MEDICAL CENTER.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to AVMEDICAL LLC for work described as: PATIENT MONITORING SYSTEM UPGRADE FOR THE OKLAHOMA CITY VA MEDICAL CENTER. Key points: 1. The contract aims to enhance patient monitoring capabilities at a key VA facility. 2. The chosen contractor, AVMedical LLC, will provide a system upgrade. 3. The contract duration is 729 days, indicating a significant implementation period. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The fixed-price contract type helps manage cost certainty for the government. 6. The upgrade is critical for maintaining and improving patient care standards.

Value Assessment

Rating: good

The contract value of $8.75 million for a patient monitoring system upgrade appears reasonable given the scope and duration. Benchmarking against similar large-scale medical equipment procurements by the VA or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple vendors were likely solicited and allowed to bid. The presence of two bids suggests a moderate level of competition. While not a large number of bidders, it still provides a basis for price comparison and ensures that the government is not limited to a single source.

Taxpayer Impact: The competitive nature of this award, even with two bidders, is beneficial for taxpayers as it likely drove a more competitive price than a sole-source procurement. It ensures that taxpayer funds are used efficiently by selecting a vendor based on merit and price.

Public Impact

Veterans receiving care at the Oklahoma City VA Medical Center will benefit from improved patient monitoring. The upgrade will enhance the hospital's capacity to track patient vital signs and health status. This directly impacts the quality and safety of healthcare services delivered. The project supports the VA's mission to provide comprehensive healthcare to veterans. It may also involve training for medical staff on the new system, indirectly benefiting the healthcare workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system requires proprietary maintenance or consumables.
Risk of implementation delays impacting patient care continuity.
Ensuring adequate training for staff to maximize system benefits.

Positive Signals

Modernization of critical healthcare infrastructure.
Commitment to improving patient safety and outcomes.
Use of a competitive process to secure a fair price.

Sector Analysis

The market for electromedical and electrotherapeutic apparatus manufacturing is a significant segment within the broader healthcare technology sector. This contract falls within the category of medical device procurement, specifically focusing on patient monitoring systems. The VA is a major purchaser of such technologies, aiming to equip its facilities with state-of-the-art equipment to serve veterans. Spending in this area is driven by the need for upgrades, replacements, and the integration of new technologies to improve patient care and operational efficiency.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, the primary focus was likely on best value from all eligible sources. Further analysis would be needed to determine if AVMedical LLC has a history of engaging small businesses in its supply chain or if subcontracting opportunities exist.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its contracts, including this one. The contract is a definitive contract with a fixed price, which provides a clear framework for performance and payment. Accountability is expected through performance monitoring against contract requirements and delivery schedules. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

VA Medical Equipment Procurement
Patient Monitoring Systems
Healthcare Technology Modernization
Veterans Health Administration Services

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with patient data
Dependence on vendor for ongoing support and updates

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to AVMEDICAL LLC. PATIENT MONITORING SYSTEM UPGRADE FOR THE OKLAHOMA CITY VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is AVMEDICAL 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 $8.8 million.

What is the period of performance?

Start: 2025-05-09. End: 2027-05-08.

What is the track record of AVMedical LLC in fulfilling federal contracts, particularly for patient monitoring systems?

A review of federal contract databases would be necessary to fully assess AVMedical LLC's track record. Information on past performance, including contract values, types, and timeliness of delivery, would indicate their reliability. Specifically, examining previous awards for similar patient monitoring systems or healthcare technology upgrades would provide insight into their capabilities and experience in this specialized area. Any history of contract modifications, disputes, or performance issues would also be critical factors in evaluating their suitability for this current award.

How does the awarded price of $8.75 million compare to similar patient monitoring system upgrades in the federal sector?

To benchmark the value, one would compare this $8.75 million contract against similar procurements for patient monitoring systems by the Department of Veterans Affairs or other federal health agencies (e.g., Department of Defense, HHS). Key comparison points would include the number of beds or patient units covered, the specific functionalities of the systems (e.g., telemetry, vital signs monitoring, data integration), the duration of the contract, and the level of competition. If comparable contracts show significantly lower or higher costs for similar scope and scale, it would indicate whether this award represents excellent value, is within the expected range, or warrants further scrutiny.

What are the primary risks associated with the implementation of this patient monitoring system upgrade?

Key risks include potential implementation delays due to unforeseen technical challenges, integration issues with existing hospital IT infrastructure, or inadequate staff training. There's also a risk of user adoption challenges if the new system is not intuitive or if the transition is poorly managed. Furthermore, cybersecurity risks related to patient data transmission and storage must be rigorously addressed. The reliance on a single vendor for a critical system could also pose a long-term risk if the vendor's support or product lifecycle is not robust.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for medical equipment?

This procurement method aims to maximize competition by allowing all responsible sources to submit offers after initial market research or a prior limited solicitation identified potential sources. While it's more competitive than a sole-source award, the 'exclusion of sources' part suggests that not all potential vendors were initially considered or allowed to bid, which could limit the breadth of competition. The effectiveness in ensuring competitive pricing depends on the number of actual bids received (in this case, two) and the government's ability to negotiate favorable terms. A higher number of bids generally leads to better price discovery and taxpayer savings.

What is the historical spending trend for patient monitoring systems by the Department of Veterans Affairs?

Analyzing historical spending data for patient monitoring systems by the VA would reveal trends in procurement volume, average contract values, and the types of systems being purchased. This context is crucial for understanding if the current $8.75 million award is consistent with past investments or represents a significant increase or decrease. It can also highlight shifts in technology adoption, vendor market share, and the VA's strategic priorities in upgrading its medical equipment infrastructure across different facilities.

What are the potential long-term cost implications beyond the initial contract award, such as maintenance and software updates?

Beyond the initial $8.75 million for the upgrade, long-term costs typically include ongoing maintenance contracts, software licenses, firmware updates, and potential hardware replacements or expansions. The firm fixed-price nature of this award covers the initial implementation. However, the government must budget for sustainment. Understanding the vendor's pricing structure for these post-award services is critical for a complete total cost of ownership analysis. Negotiating favorable terms for future support during the initial contract phase can mitigate long-term cost escalations.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25925R0017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 727 KATHLEEN DR, PULASKI, TN, 38478

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

Financial Breakdown

Contract Ceiling: $8,753,928

Exercised Options: $8,753,928

Current Obligation: $8,753,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline