VA awards $35.8K task order for dental water line testing kits to HGS Engineering Inc

Contract Overview

Contract Amount: $35,796 ($35.8K)

Contractor: HGS Engineering Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $98/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL WATER LINE TESTING KITS TASK ORDER #2

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35,796.12 to HGS ENGINEERING INC for work described as: DENTAL WATER LINE TESTING KITS TASK ORDER #2 Key points: 1. Contract awarded for essential dental water line testing kits, crucial for infection control. 2. Task order issued under a Services Acquisition Process (SAP), suggesting a streamlined procurement. 3. The contract duration is one year, aligning with typical operational needs for such services. 4. The award is a Firm Fixed Price (FFP) type, providing cost certainty for the government. 5. The contractor, HGS Engineering Inc., is a new entity in federal contracting based on available data. 6. The task order falls under the 'Testing Laboratories and Services' NAICS code (541380).

Value Assessment

Rating: fair

The contract value of $35,796.12 for a one-year period for dental water line testing kits appears reasonable for a task order of this nature. Benchmarking against similar contracts is difficult without more specific details on the scope of services and the number of units or locations covered. However, the fixed-price nature of the award suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government. The absence of extensive contract history for HGS Engineering Inc. necessitates a cautious approach to value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This task order was competed under the Services Acquisition Process (SAP), which is typically used for smaller dollar value procurements. While the specific competition details are not provided, SAP generally allows for a limited number of quotes to be solicited, often from pre-qualified vendors or through simplified acquisition procedures. The exact number of bidders and the extent of the competition within the SAP framework are not detailed, making it difficult to fully assess the price discovery achieved.

Taxpayer Impact: The limited competition under SAP may result in less aggressive pricing compared to a full and open competition. However, for a task order of this size, the administrative savings from a simplified process can also be a benefit to taxpayers.

Public Impact

Veterans receiving dental care will benefit from improved infection control measures. The services delivered will ensure compliance with health and safety standards for dental facilities. The geographic impact is likely localized to the facilities served by the Department of Veterans Affairs in Oklahoma. The contract supports specialized testing services, potentially involving a small number of technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition history for contractor HGS Engineering Inc. raises questions about long-term performance and pricing.
Lack of detailed competition metrics within the SAP process makes it hard to confirm optimal value for money.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the VA.
Task order awarded under a streamlined SAP process, potentially leading to faster service delivery.
Contract duration of one year is appropriate for the scope of testing services.

Sector Analysis

The healthcare sector, particularly within government agencies like the VA, requires a consistent supply of specialized testing and laboratory services to maintain operational standards and patient safety. This contract for dental water line testing kits fits within the broader market for medical and laboratory supplies and services, which is a significant segment of the federal procurement landscape. Comparable spending benchmarks for such specific testing services are not readily available, but the overall market for healthcare support services is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a task order under a larger procurement vehicle (implied by 'task order' and 'competed under SAP'), the subcontracting implications for small businesses would depend on the terms of the base contract. Without further information on the base contract's small business subcontracting plan, its direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Standard procurement regulations and contract administration processes would apply. Transparency is facilitated by federal contract databases, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Dental Services
Medical Equipment and Supplies
Laboratory Testing Services
Healthcare Facility Maintenance

Risk Flags

Contractor Performance Risk (New/Limited History)
Competition Level Risk (Limited Competition)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35,796.12 to HGS ENGINEERING INC. DENTAL WATER LINE TESTING KITS TASK ORDER #2

Who is the contractor on this award?

The obligated recipient is HGS ENGINEERING INC.

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 $35,796.12.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of HGS Engineering Inc. with federal contracts?

Based on the provided data, HGS Engineering Inc. appears to be a new entrant or has a limited presence in federal contracting. The data does not indicate a substantial history of awards or performance with the federal government. This lack of a significant track record means that assessing their past performance, reliability, and ability to consistently deliver on similar contracts is challenging. Future awards to this contractor will be important for building a performance history and understanding their capabilities within the federal acquisition system.

How does the pricing of this dental water line testing kit contract compare to similar government procurements?

Direct comparison of pricing for this $35,796.12 task order is difficult without detailed specifications of the kits, the scope of testing (e.g., number of locations, frequency, specific tests performed), and the number of units procured. However, the contract is a Firm Fixed Price (FFP) award, which generally provides cost certainty for the government. The Services Acquisition Process (SAP) used for competition suggests a focus on smaller value procurements, where pricing might be less aggressive than in large-scale, full-and-open competitions. Without access to a benchmark database for dental water line testing kits specifically for the VA or other federal agencies, a precise value-for-money assessment is limited.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include the limited performance history of the contractor, HGS Engineering Inc., which could indicate potential issues with delivery timelines, quality of service, or responsiveness. The limited competition under the Services Acquisition Process (SAP) might also pose a risk of not achieving the most competitive pricing. Furthermore, the effectiveness of dental water line testing is critical for patient safety; any lapse in the quality or timeliness of these kits could lead to compliance issues or, more critically, pose a risk to patient health within VA dental facilities.

How effective is the Department of Veterans Affairs in procuring essential supplies like dental water line testing kits?

The Department of Veterans Affairs (VA) procures a wide range of essential supplies, including those for dental care, through various contracting mechanisms. The use of a task order under a SAP for dental water line testing kits suggests an effort to efficiently acquire necessary items for specific operational needs. The effectiveness can be gauged by the ability to secure necessary services at reasonable prices, ensure timely delivery, and maintain quality standards. While this specific award appears to be of a smaller scale, the VA's overall effectiveness in procurement is a complex issue often subject to scrutiny regarding timeliness, competition, and cost management across its vast portfolio of contracts.

What are the historical spending patterns for dental water line testing kits by the VA?

Historical spending patterns for dental water line testing kits by the VA are not detailed in the provided data. This specific award is a task order valued at $35,796.12 with a one-year duration. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts and task orders specifically for dental water line testing kits, their values, durations, and awarded contractors. This would reveal trends in spending volume, average cost per contract, and the prevalence of specific vendors or contracting approaches used by the VA for these essential supplies.

What is the significance of the NAICS code 541380 (Testing Laboratories and Services) in the context of this contract?

The North American Industry Classification System (NAICS) code 541380, 'Testing Laboratories and Services,' is significant because it categorizes the primary business activity for which HGS Engineering Inc. is being contracted. This code helps classify the contract within the broader federal procurement landscape, allowing for analysis of spending trends within the testing and laboratory services sector. It indicates that the government is purchasing specialized analytical or testing services, in this case, related to dental water lines, rather than manufactured goods or general services. This classification is crucial for understanding the market, identifying potential competitors, and benchmarking contract values within this specific industry segment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1121 NOBLE ST, ANNISTON, AL, 36201

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

Financial Breakdown

Contract Ceiling: $35,796

Exercised Options: $35,796

Current Obligation: $35,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25924D0011

IDV Type: IDC

Timeline