VA awards $5.8M for automated medication dispensing systems, with 2 bids received

Contract Overview

Contract Amount: $5,799,552 ($5.8M)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-29

End Date: 2026-09-28

Contract Duration: 364 days

Daily Burn Rate: $15.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM

Place of Performance

Location: BINGHAM FARMS, OAKLAND County, MICHIGAN, 48025

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.8 million to TRILLAMED LLC for work described as: REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM Key points: 1. The contract value appears reasonable given the scope of automated medical dispensing systems. 2. Limited competition suggests potential for higher pricing than a more open process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This purchase order supports the VA's ongoing efforts to modernize healthcare delivery. 5. The award falls within the surgical and medical instrument manufacturing sector. 6. Performance is expected over one year, aligning with typical system deployment timelines.

Value Assessment

Rating: good

The $5.8 million award for a REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM is a significant investment. Benchmarking against similar automated dispensing systems is challenging without more detailed specifications. However, the price appears within a plausible range for such technology, considering the need for integration, software, and hardware. The fixed-price nature of the contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. With only two bids received, the level of competition is limited. This suggests that while some market interest existed, the process may not have attracted the broadest possible range of vendors, potentially impacting price discovery.

Taxpayer Impact: Limited competition can sometimes lead to less aggressive pricing for taxpayers. However, SAP is designed for smaller procurements where extensive competition might not be cost-effective.

Public Impact

Veterans will benefit from improved medication management and dispensing accuracy. The system will enhance efficiency within VA healthcare facilities. The geographic impact is likely concentrated within the specific VA facility receiving the system. This could lead to improved patient safety and reduced medication errors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price negotiation opportunities.
The specific capabilities and integration requirements of the 'REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM' are not detailed, posing a potential risk if they exceed initial expectations.

Positive Signals

The firm-fixed-price contract type offers cost predictability.
The award is to TRILLAMED LLC, a known entity in the medical supply space.
The contract duration is one year, allowing for performance evaluation before potential renewal.

Sector Analysis

The market for automated medication dispensing systems is a growing segment within the broader healthcare technology and medical device industry. These systems are crucial for improving pharmacy workflow, patient safety, and inventory management in hospitals and healthcare facilities. Spending in this area is driven by the need for efficiency, accuracy, and compliance with regulatory requirements. Comparable spending can vary widely based on system complexity, capacity, and vendor.

Small Business Impact

This contract was competed under Simplified Acquisition Procedures and does not appear to have a specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses. The impact on the small business ecosystem is likely minimal for this particular award, as it was not specifically targeted towards small business participation.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its procurements, including this purchase order. Accountability is maintained through contract performance monitoring and adherence to the terms of the firm-fixed-price agreement. Transparency is facilitated by contract data reporting, though detailed operational data may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Equipment Procurement
Pharmacy Automation Systems
Veterans Health Administration IT Modernization

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.8 million to TRILLAMED LLC. REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM

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 $5.8 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-28.

What is the track record of TRILLAMED LLC in providing automated medication dispensing systems to federal agencies?

Information regarding TRILLAMED LLC's specific track record with automated medication dispensing systems for federal agencies is not detailed in the provided data. Further research into past performance evaluations, contract history, and client references would be necessary to fully assess their capabilities and reliability in this specialized area. While they are listed under NAICS code 339112 (Surgical and Medical Instrument Manufacturing), this broad category encompasses many product types. Understanding their experience with similar systems, integration challenges, and post-installation support is crucial for evaluating future performance.

How does the awarded price compare to similar automated medication dispensing systems procured by the VA or other federal agencies?

Direct comparison of the $5.8 million award for this REPLACEMENT AUTOMATED MEDS DISPENSING SYSTEM to similar contracts is difficult without detailed specifications of the system's capabilities, capacity, and included services (e.g., installation, training, maintenance). Automated dispensing systems can range significantly in price based on these factors. Generally, larger, more complex, or highly integrated systems command higher prices. The fact that this was competed under SAP with only two bids might suggest the price is competitive within that limited scope, but a broader market benchmark would be needed for a definitive value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues if TRILLAMED LLC lacks sufficient experience with this specific type of system, integration challenges with existing VA infrastructure, and the possibility that the limited competition resulted in a less than optimal price. Mitigation strategies include the firm-fixed-price contract type, which shifts cost overrun risk to the contractor. The VA's standard contract management processes, including performance monitoring and acceptance criteria, are also key mitigation factors. The one-year duration allows for a performance assessment before long-term commitment.

What is the expected impact of this system on the efficiency and safety of medication dispensing within the VA facility?

Automated medication dispensing systems are designed to significantly improve the efficiency and safety of medication management. They typically reduce manual handling, minimize transcription errors, enhance inventory control, and provide auditable dispensing records. For the VA facility receiving this system, the expected impact includes faster dispensing times, improved accuracy in medication delivery to patients, better tracking of drug usage and stock levels, and potentially a reduction in medication errors and diversion. This contributes to overall patient safety and operational efficiency within the pharmacy.

What are the historical spending patterns for automated medication dispensing systems by the Department of Veterans Affairs?

Historical spending patterns for automated medication dispensing systems by the VA are not provided in the current data. To analyze this, one would need to examine past contract awards for similar systems over several fiscal years. Key metrics to track would include the number of contracts awarded, the total dollar value of these contracts, the types of systems procured (e.g., decentralized vs. centralized, specific vendor technologies), and the competition levels for these procurements. Understanding historical spending can reveal trends in technology adoption, vendor reliance, and budget allocation for such critical healthcare infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25925Q0433

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $5,799,552

Exercised Options: $5,799,552

Current Obligation: $5,799,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline