VA Awards $91.5M for Abbott Optis PM Maintenance, Sole-Source Contract

Contract Overview

Contract Amount: $91,500 ($91.5K)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $84/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ABBOTT OPTIS PM BASE PLUS 4 OPTION YEARS

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $91,500 to ABBOTT LABORATORIES INC. for work described as: ABBOTT OPTIS PM BASE PLUS 4 OPTION YEARS Key points: 1. Contract awarded to Abbott Laboratories Inc. for electronic and precision equipment repair. 2. Significant spending on maintenance for a specific medical device. 3. Sole-source award raises questions about competition and potential cost savings. 4. The contract duration is over 3 years, indicating long-term reliance.

Value Assessment

Rating: fair

The award amount of $91.5 million for a 3-year contract with option years suggests a substantial investment. Benchmarking against similar maintenance contracts for specialized medical equipment would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant contract may lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Veterans may experience uninterrupted access to critical medical equipment maintenance. Potential for higher costs due to lack of competitive bidding. Reliance on a single vendor for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Ensures continued maintenance of critical equipment
Long-term contract provides stability

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining operational readiness of complex systems, but competitive bidding is typically preferred to ensure cost-effectiveness.

Small Business Impact

The contract was awarded to Abbott Laboratories Inc. and does not indicate any specific provisions or set-asides for small businesses. Further analysis would be needed to determine if small businesses could have participated in a competitive bidding process.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the necessity for a sole-source justification is well-documented and periodically reviewed.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition may lead to inflated prices.
Potential for vendor lock-in.
Limited transparency in pricing.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $91,500 to ABBOTT LABORATORIES INC.. ABBOTT OPTIS PM BASE PLUS 4 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES 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 $91,500.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the justification for this sole-source award, and has it been reviewed for necessity?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. For this contract, the VA would need to provide documentation demonstrating why Abbott Laboratories Inc. is the only viable source for the maintenance of the Abbott Optis PM system. Regular reviews are crucial to ensure the sole-source status remains valid and that competition is pursued when feasible.

What is the benchmarked cost for similar maintenance services in the market?

Benchmarking the cost of this contract against similar maintenance services for comparable medical equipment is essential. Without competitive bids, it's difficult to ascertain if the $91.5 million price tag represents fair market value. Industry standards and pricing for other government or commercial contracts for similar equipment maintenance would provide a basis for comparison.

Are there plans to transition to a competitive contract in the future?

Given the sole-source nature of this award, it is important to understand the VA's long-term strategy. If the equipment is standard or if alternative maintenance providers exist or could be developed, the VA should explore options for future competitive procurements to potentially achieve cost savings and foster market competition.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26024P0501

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 LAKESIDE DR, SANTA CLARA, CA, 95054

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

Financial Breakdown

Contract Ceiling: $152,500

Exercised Options: $91,500

Current Obligation: $91,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline