VA awards $1.45M contract for warehousing and medical equipment services to Agiliti Health Inc

Contract Overview

Contract Amount: $1,449,325 ($1.4M)

Contractor: Agiliti Health Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EO14042 - WAREHOUSING, TRANSPORTATION, AND MEDICAL EQUIPMENT INSPECTION AND MAINTENANCE SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.4 million to AGILITI HEALTH INC for work described as: EO14042 - WAREHOUSING, TRANSPORTATION, AND MEDICAL EQUIPMENT INSPECTION AND MAINTENANCE SERVICES Key points: 1. Contract awarded under GSA's Federal Supply Schedule (FSS) for medical equipment, indicating pre-negotiated pricing and streamlined acquisition. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The contract duration of 1095 days (3 years) suggests a stable, ongoing need for these services. 4. The awardee, Agiliti Health Inc., is a significant player in the medical equipment market. 5. The contract falls under the General Warehousing and Storage NAICS code, suggesting a focus on logistical support. 6. The contract was competed under Simplified Acquisition Procedures (SAP), implying a focus on smaller dollar value procurements.

Value Assessment

Rating: good

The contract value of $1.45 million over three years appears reasonable for the scope of warehousing, transportation, and medical equipment inspection and maintenance services. As it was competed under SAP and likely leverages existing GSA schedules, the pricing is expected to be competitive. Benchmarking against similar contracts for these services would provide a more precise value-for-money assessment, but the firm-fixed-price structure and competitive award suggest a fair price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bidders is not provided, SAP aims to ensure fair and reasonable pricing through competition among qualified sources. The use of a BPA Call suggests it was likely competed among pre-qualified vendors on a GSA schedule.

Taxpayer Impact: The limited competition under SAP for this contract value is generally acceptable and aims to balance efficiency with price discovery, ensuring taxpayers receive good value without excessive administrative burden.

Public Impact

Veterans Affairs medical facilities will benefit from reliable warehousing, transportation, and maintenance of critical medical equipment. Ensures the availability and operational readiness of medical equipment essential for patient care. The services provided will support the VA's mission to deliver healthcare to veterans across the nation. Potential positive impact on the healthcare logistics and medical equipment maintenance workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical logistical and maintenance services could pose a risk if performance falters.

Positive Signals

Award to an established company with likely experience in medical equipment services.
Firm-fixed-price contract shifts cost risk to the contractor.
Contract duration suggests a stable and predictable service delivery model.

Sector Analysis

The healthcare sector, particularly within government procurement, relies heavily on specialized logistics and maintenance services for medical equipment. This contract fits within the broader market for medical equipment support services, which includes maintenance, repair, and warehousing. The market is characterized by a mix of large, established providers and smaller, specialized firms. Government spending in this area is substantial, driven by the need to maintain operational readiness and ensure the quality of care provided by agencies like the VA.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Agiliti Health Inc. may utilize small businesses for subcontracting, there is no explicit requirement or indication of a small business set-aside in this award. The focus appears to be on securing specialized services from a capable provider, with the potential impact on the small business ecosystem being indirect.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm-fixed-price contract, including service level agreements for warehousing, transportation, and equipment maintenance. Transparency is facilitated through contract award databases, and any significant issues could be subject to review by the VA Office of Inspector General.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Warehousing and Logistics Services
GSA Schedule Contracts for Healthcare
Medical Device Servicing Contracts

Risk Flags

Contract performance risk
Potential for cost overruns if scope expands
Dependence on single vendor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.4 million to AGILITI HEALTH INC. EO14042 - WAREHOUSING, TRANSPORTATION, AND MEDICAL EQUIPMENT INSPECTION AND MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is AGILITI HEALTH 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 $1.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is Agiliti Health Inc.'s track record with the Department of Veterans Affairs and other federal agencies for similar services?

Agiliti Health Inc. has a history of providing medical equipment services to various healthcare providers, including government entities. A review of federal procurement data indicates past awards to Agiliti for equipment maintenance, rentals, and related services. Specifically, their engagement with the Department of Veterans Affairs would be crucial to assess. Analyzing past performance evaluations, any past performance issues or commendations, and the volume and type of previous contracts with the VA would provide insight into their reliability and capability for this specific warehousing, transportation, and medical equipment inspection and maintenance services contract. Their broader federal contracting history can be examined through resources like FPDS-NG or SAM.gov to understand their experience and performance across different agencies and contract types.

How does the awarded price of $1.45 million compare to market rates for similar warehousing and medical equipment maintenance services?

The awarded price of $1.45 million over three years equates to approximately $483,333 annually. To benchmark this against market rates, one would typically compare it to similar contracts awarded by other federal agencies or large healthcare systems, considering factors like geographic location, specific equipment types, and service level agreements. Given that this contract was likely procured through a GSA Federal Supply Schedule (FSS) and competed under Simplified Acquisition Procedures (SAP), the pricing is expected to be at or below market rates due to pre-negotiated terms and competitive bidding among qualified vendors. However, a definitive comparison would require access to detailed pricing data for comparable contracts and an understanding of the specific service requirements outlined in the Statement of Work.

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

Primary risks include potential service disruptions if Agiliti Health Inc. experiences operational issues, unexpected increases in maintenance costs that could strain the fixed-price budget, or a decline in service quality over the contract term. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price nature shifts cost overrun risk to the contractor. The Department of Veterans Affairs will likely implement performance monitoring, regular reviews, and defined service level agreements (SLAs) to ensure quality and responsiveness. Having multiple vendors available through the GSA schedule could also provide contingency options if performance issues are severe. Furthermore, the VA's established procurement processes and potential for contract termination for default serve as deterrents against significant performance failures.

How effective is the current contract in ensuring the operational readiness and availability of critical medical equipment for VA facilities?

The effectiveness of this contract in ensuring operational readiness hinges on the contractor's performance in providing timely warehousing, transportation, and inspection/maintenance services. A well-executed contract should lead to minimal downtime for critical medical equipment, ensuring it is available when needed for patient care. The Department of Veterans Affairs' oversight mechanisms, including performance metrics and regular reporting requirements, are key to monitoring this effectiveness. If the contractor consistently meets or exceeds service level agreements, the contract is likely effective. Conversely, frequent equipment failures, delays in repairs, or issues with equipment availability would indicate a lack of effectiveness, prompting corrective actions or potential re-competition.

What are the historical spending patterns for warehousing, transportation, and medical equipment maintenance services by the Department of Veterans Affairs?

Historical spending patterns for these services by the VA would reveal the agency's consistent investment in logistical and maintenance support for its medical infrastructure. Analyzing past contract awards, their values, durations, and the types of services procured over several fiscal years would illustrate trends. This could show an increasing reliance on outsourced services, shifts in preferred contracting methods (e.g., from sole-source to competed), or changes in the average contract value. Understanding these patterns helps in forecasting future needs, budgeting, and identifying potential areas for cost savings or efficiency improvements through strategic sourcing and contract management.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6625 W 78TH ST STE 300, MINNEAPOLIS, MN, 55439

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,449,325

Exercised Options: $1,449,325

Current Obligation: $1,449,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26021A0061

IDV Type: BPA

Timeline