VA awards $3.2M for Medical Courier Services to FG Management Group LLC

Contract Overview

Contract Amount: $3,233,793 ($3.2M)

Contractor: FG Management Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2026-04-30

Contract Duration: 2,038 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: MEDICAL COURIER SERVICES

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to FG MANAGEMENT GROUP LLC for work described as: MEDICAL COURIER SERVICES Key points: 1. Contract awarded to FG Management Group LLC for $3.2M. 2. Services are for Medical Courier, supporting the Department of Veterans Affairs. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. This is a Firm Fixed Price contract with a duration of 2038 days. 5. The award was a Purchase Order.

Value Assessment

Rating: fair

The contract value of $3.2M over approximately 5.6 years suggests a moderate annual spend. Benchmarking against similar courier service contracts would be necessary to fully assess pricing, but the SAP competition method may limit aggressive price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer vendors and potentially less robust price competition than full and open competition. This method can lead to higher prices if not managed carefully.

Taxpayer Impact: The $3.2M expenditure supports essential medical courier services for veterans. While SAP competition might not yield the absolute lowest price, the cost is likely reasonable for the services rendered, impacting taxpayers through direct spending.

Public Impact

Ensures timely delivery of medical supplies and samples for veterans. Supports the operational efficiency of the Department of Veterans Affairs. Provides essential logistics services within California. Creates jobs through FG Management Group LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Long contract duration (2038 days)
Potential for price creep with Firm Fixed Price

Positive Signals

Supports critical VA mission
Awarded to a single vendor
Clear service delivery requirements

Sector Analysis

Medical courier services fall under the broader logistics and transportation sector. Spending benchmarks for such services can vary significantly based on geographic scope, volume, and specialized requirements. This contract's value appears moderate for a regional service provider.

Small Business Impact

The contract was awarded to FG Management Group LLC. Further analysis would be needed to determine if this is a small business and if the contract contributed to small business goals.

Oversight & Accountability

Oversight would involve monitoring service performance against contract requirements, ensuring timely deliveries, and managing payments. The Department of Veterans Affairs is responsible for ensuring accountability for this purchase order.

Related Government Programs

Local Messengers and Local Delivery
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to suboptimal pricing.
Long contract duration could mask inefficiencies.
Lack of performance data hinders effectiveness assessment.
Potential for price increases over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to FG MANAGEMENT GROUP LLC. MEDICAL COURIER SERVICES

Who is the contractor on this award?

The obligated recipient is FG MANAGEMENT GROUP 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 $3.2 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-04-30.

What is the average cost per delivery or per mile for these medical courier services?

Without detailed delivery logs or mileage data, calculating a precise per-delivery or per-mile cost is not possible from the provided data. The total contract value of $3.2M over 2038 days suggests an average daily spend of approximately $1,587. This figure needs to be contextualized with the volume and distance of deliveries to assess cost-effectiveness.

What were the specific criteria used to select FG Management Group LLC under SAP, and how did they ensure fair pricing?

Under Simplified Acquisition Procedures (SAP), agencies typically solicit quotes from a limited number of sources. The selection criteria would likely involve a combination of price, technical capability, and past performance. Fair pricing is generally assessed by comparing quotes received and ensuring they are reasonable for the services required, though the scope of competition is narrower than in full and open procedures.

How does the performance of FG Management Group LLC compare to industry standards for medical courier services in terms of on-time delivery rates and handling of sensitive materials?

The provided data does not include performance metrics for FG Management Group LLC. Assessing their performance against industry standards would require access to contract performance reports, delivery success rates, incident logs, and potentially customer feedback. The VA's contract management team would be responsible for tracking and evaluating these aspects.

Industry Classification

NAICS: Transportation and Warehousing › Local Messengers and Local Delivery › Local Messengers and Local Delivery

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26120Q0804

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550 SPRINGFIELD AVE STE A, MAPLEWOOD, NJ, 07040

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,233,793

Exercised Options: $3,233,793

Current Obligation: $3,233,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline