VA awards $495K lease for CT scanner to Redhawk Group International, LLC

Contract Overview

Contract Amount: $494,719 ($494.7K)

Contractor: Redhawk Group International, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-09-30

Contract Duration: 365 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LEASE OF A CT SCANNER FOR VASNHCS

Place of Performance

Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89086

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $494,718.88 to REDHAWK GROUP INTERNATIONAL, LLC for work described as: LEASE OF A CT SCANNER FOR VASNHCS Key points: 1. The contract value appears reasonable for a one-year lease of specialized medical equipment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a purchase order, a common and straightforward procurement instrument. 4. The equipment is for the VA's Nevada facility, indicating a specific regional need. 5. The duration of the lease is one year, aligning with typical equipment rental terms.

Value Assessment

Rating: good

The lease value of approximately $495,000 for a one-year term for a CT scanner is within a reasonable range for such specialized medical equipment. Benchmarking against similar leases for CT scanners, especially those procured through competitive processes, would provide a more precise value-for-money assessment. However, given the full and open competition, it is likely that the pricing reflects market rates. The fixed-price nature of the contract helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows four bids were received, which suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The use of full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. Multiple bidders increase the likelihood of securing the best possible value for the leased equipment.

Public Impact

Patients at the VA Southern Nevada Healthcare System (VASNHCS) will benefit from access to advanced diagnostic imaging capabilities. The leased CT scanner will support timely and accurate diagnoses for a range of medical conditions. The contract directly impacts the healthcare services provided by the VA in Nevada. Medical professionals at VASNHCS will have access to modern equipment to aid in patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for equipment obsolescence if lease terms do not account for technological advancements.
Dependence on a single vendor for a critical piece of medical equipment for the duration of the lease.

Positive Signals

Lease agreement provides access to necessary medical technology without a large capital outlay.
Competitive bidding process likely secured favorable pricing.
Fixed-price contract offers cost predictability.

Sector Analysis

The medical equipment leasing sector is a significant part of the broader healthcare industry, providing essential technology to providers without the burden of outright purchase. This contract for a CT scanner falls within the commercial and industrial machinery and equipment rental and leasing subsector. The market for medical imaging equipment is competitive, with numerous manufacturers and leasing companies vying for government and private sector contracts. The VA's spending in this area is consistent with efforts to maintain modern medical facilities.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). The contract was awarded to Redhawk Group International, LLC. Further analysis would be needed to determine if this prime contractor has a subcontracting plan that includes small businesses, or if small businesses were involved in the supply chain for the leased equipment.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its procurement processes, including contract awards. This purchase order is subject to standard VA procurement regulations and policies. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected in the procurement or execution of this lease agreement.

Related Government Programs

Medical Equipment Procurement
Diagnostic Imaging Services
VA Healthcare Services
Commercial and Industrial Machinery Leasing

Risk Flags

Potential for higher long-term costs compared to purchasing.
Risk of equipment obsolescence.
Dependence on vendor for maintenance and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $494,718.88 to REDHAWK GROUP INTERNATIONAL, LLC. LEASE OF A CT SCANNER FOR VASNHCS

Who is the contractor on this award?

The obligated recipient is REDHAWK GROUP INTERNATIONAL, 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 $494,718.88.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-30.

What is the track record of Redhawk Group International, LLC in securing federal contracts, particularly for medical equipment?

Redhawk Group International, LLC has secured federal contracts, though specific details on their track record for medical equipment leasing require a deeper dive into contract databases. A review of their past performance, including contract values, agencies served, and types of equipment provided, would offer insight into their experience and reliability. Examining past performance evaluations, if available, would further illuminate their ability to meet contract requirements and deliver on time and within budget. Understanding their history with the Department of Veterans Affairs specifically would be particularly relevant.

How does the lease cost compare to purchasing a similar CT scanner outright, considering depreciation and maintenance?

Comparing the lease cost to outright purchase involves analyzing the total cost of ownership for both scenarios. A one-year lease at approximately $495,000 implies a significant annual cost. Purchasing a CT scanner outright involves a substantial upfront capital investment, followed by ongoing costs for maintenance, service contracts, software updates, and eventual depreciation. Leasing offers flexibility and avoids large capital expenditure, but over several years, leasing can become more expensive than purchasing. The decision often hinges on the VA's budget cycles, anticipated equipment lifespan needs, and strategic priorities regarding technology upgrades.

What are the specific technical specifications and capabilities of the CT scanner being leased?

The provided data does not include the specific technical specifications or capabilities of the CT scanner being leased. To fully assess the value and suitability of this contract, it would be essential to obtain details such as the model, manufacturer, imaging resolution, scan speed, radiation dose reduction features, and any specialized applications (e.g., cardiac, neuro). This information is crucial for determining if the leased equipment meets the clinical needs of the VA Southern Nevada Healthcare System and if it is comparable to other available technologies on the market.

What are the potential risks associated with leasing rather than purchasing this critical medical equipment?

Key risks associated with leasing this CT scanner include potential cost escalation over multiple lease renewals compared to purchasing, the possibility of the leased equipment becoming technologically outdated before the end of its useful life, and the administrative burden of managing the lease agreement. Furthermore, if the lease terms are not carefully structured, the VA might not build any equity in the equipment. There's also a risk of penalties for early termination or exceeding usage limits, depending on the contract's fine print. Ensuring robust service level agreements are in place is critical to mitigate downtime risks.

What is the historical spending pattern of the VA for CT scanner leases or purchases in the last five years?

Historical spending data for CT scanner leases or purchases by the Department of Veterans Affairs over the last five years would provide valuable context for this $495,000 lease. Analyzing this data could reveal trends in procurement methods (lease vs. purchase), average contract values, typical lease durations, and the prevalence of full and open competition versus other methods. Understanding past spending patterns can help identify potential cost savings opportunities, assess whether current pricing is competitive, and evaluate the VA's overall strategy for acquiring diagnostic imaging equipment.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26125Q0450

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9334 MAIN ST, WOODSTOCK, GA, 30188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $494,719

Exercised Options: $494,719

Current Obligation: $494,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline