VA awards $118K for Stryker surgical handpiece maintenance, extending to 2027

Contract Overview

Contract Amount: $118,024 ($118.0K)

Contractor: Stryker Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $108/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTIVE MAINTENANCE AND REPAIRS ON STYKER SURGICAL HANDPIECES

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $118,023.6 to STRYKER SALES, LLC for work described as: PREVENTIVE MAINTENANCE AND REPAIRS ON STYKER SURGICAL HANDPIECES Key points: 1. Contract focuses on specialized equipment maintenance, a critical but niche area. 2. Sole reliance on the original manufacturer, Stryker, raises potential cost concerns. 3. Limited competition suggests a need for careful price justification. 4. Long-term contract duration requires ongoing monitoring for value.

Value Assessment

Rating: questionable

The contract is for specialized equipment maintenance. Without competitive bids, it's difficult to assess if the $118,023.60 price is competitive against market alternatives or if it reflects a premium for single-source access.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and appears to be sole-source, awarded directly to Stryker Sales, LLC. This lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for maintenance services that could potentially be secured at a lower cost through a competitive bidding process.

Public Impact

Ensures continued operational readiness of critical surgical equipment for veterans. Potential for higher costs due to lack of competitive bidding. Dependence on a single vendor for essential repairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for price escalation over contract term

Positive Signals

Ensures availability of specialized maintenance
Long-term contract provides stability

Sector Analysis

The healthcare sector relies heavily on specialized equipment like surgical handpieces. Maintenance contracts for such items are often sole-sourced due to manufacturer exclusivity, but this can lead to higher costs compared to more commoditized services.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large manufacturer. Opportunities for small businesses in specialized medical equipment repair are limited.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the sole-source nature, robust oversight is crucial to ensure fair pricing and adequate service delivery throughout the contract period.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competitive bidding.
Dependence on a single vendor.
Long contract duration may allow for price creep.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $118,023.6 to STRYKER SALES, LLC. PREVENTIVE MAINTENANCE AND REPAIRS ON STYKER SURGICAL HANDPIECES

Who is the contractor on this award?

The obligated recipient is STRYKER SALES, 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 $118,023.6.

What is the period of performance?

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

What is the justification for awarding this contract as sole-source to Stryker Sales, LLC, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For specialized medical equipment, this often relates to proprietary technology or unique expertise. The VA should have conducted a price analysis to ensure the negotiated price was fair and reasonable, comparing it to historical prices, commercial prices, or independent cost estimates.

What are the risks associated with relying solely on the original equipment manufacturer for maintenance, particularly regarding long-term costs and service responsiveness?

The primary risk is the potential for inflated prices due to the lack of competition. The manufacturer may charge a premium knowing there are no viable alternatives. Service responsiveness could also be a concern if the manufacturer prioritizes other contracts or if their service capacity is limited. This dependence can also lead to vendor lock-in, making future procurements more challenging and costly.

How will the VA ensure the effectiveness of the preventive maintenance and repairs performed by Stryker to maintain the optimal functioning of surgical handpieces?

Effectiveness will be ensured through clear performance standards outlined in the contract, regular service reports from Stryker, and potentially independent inspections or performance reviews by VA biomedical engineers. The VA should track equipment uptime, repair turnaround times, and the quality of work performed to validate that the maintenance is indeed preserving the handpieces' functionality and extending their lifespan.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1941 STRYKER WAY, PORTAGE, MI, 49002

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: $118,024

Exercised Options: $118,024

Current Obligation: $118,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline