VA awards $300K contract for Monarch Bronchoscope maintenance to Auris Health, Inc

Contract Overview

Contract Amount: $300,000 ($300.0K)

Contractor: Auris Health, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-22

End Date: 2027-05-21

Contract Duration: 1,460 days

Daily Burn Rate: $205/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANNUAL PREVENTATIVE MAINTENANCE AND CORRECTIVE REPAIR SERVICE ON-SITE FOR THE MONARCH BRONCHOSCOPE PLATFORM.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $300,000 to AURIS HEALTH, INC for work described as: ANNUAL PREVENTATIVE MAINTENANCE AND CORRECTIVE REPAIR SERVICE ON-SITE FOR THE MONARCH BRONCHOSCOPE PLATFORM. Key points: 1. The contract focuses on essential maintenance for specialized medical equipment. 2. A single vendor, Auris Health, Inc., is awarded the contract. 3. Potential risks include vendor lock-in and limited price negotiation. 4. The sector is healthcare equipment repair and maintenance.

Value Assessment

Rating: fair

The $300,000 award for a 4-year maintenance contract appears reasonable given the specialized nature of the Monarch Bronchoscope platform. Benchmarking is difficult without specific service level agreements and comparable contracts for this niche equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Auris Health, Inc. This limits price discovery and competitive negotiation, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for this specialized medical equipment maintenance.

Public Impact

Ensures continued operational readiness of critical medical diagnostic equipment. Supports patient care by maintaining advanced bronchoscopy technology. Potential for increased costs due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for price escalation without competitive pressure.
Reliance on a single vendor for critical maintenance.

Positive Signals

Ensures availability of specialized maintenance.
Supports critical healthcare function.

Sector Analysis

This contract falls within the healthcare equipment repair and maintenance sector. Spending in this area is crucial for maintaining advanced medical technologies, but often involves specialized vendors, leading to sole-source or limited competition scenarios.

Small Business Impact

The contract was awarded to Auris Health, Inc., a specific manufacturer, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Veterans Affairs is the awarding and contracting agency. Oversight would involve ensuring the contractor meets service level agreements and that the pricing remains justified throughout the contract term.

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
Lack of competitive bidding
Potential for vendor lock-in
Limited price negotiation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $300,000 to AURIS HEALTH, INC. ANNUAL PREVENTATIVE MAINTENANCE AND CORRECTIVE REPAIR SERVICE ON-SITE FOR THE MONARCH BRONCHOSCOPE PLATFORM.

Who is the contractor on this award?

The obligated recipient is AURIS 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 $300,000.

What is the period of performance?

Start: 2023-05-22. End: 2027-05-21.

What is the justification for the sole-source award, and were alternative solutions explored?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or lack of market availability from other vendors. For specialized medical equipment like the Monarch Bronchoscope, the original manufacturer often holds the exclusive rights to service and repair. The VA would need to document why competition was not feasible, such as the need for specific manufacturer-trained technicians and proprietary parts.

How does the annual maintenance cost compare to industry benchmarks for similar advanced medical equipment?

Benchmarking this contract's cost is challenging without access to specific service level agreements and detailed breakdowns of included services (e.g., preventative vs. corrective, response times, parts included). However, given the specialized nature of robotic bronchoscopy platforms, maintenance contracts can be substantial. A comparison would require identifying contracts for similar high-value, technologically advanced medical devices from other federal agencies or large healthcare systems.

What measures are in place to ensure the effectiveness and quality of the maintenance services provided?

Effectiveness and quality are typically ensured through clearly defined performance standards and metrics within the contract's Statement of Work (SOW). The VA would monitor the contractor's adherence to these standards, including response times for corrective repairs, successful completion of preventative maintenance schedules, and overall equipment uptime. Performance reviews and potential penalties for non-compliance are common mechanisms for ensuring service quality.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson & Johnson

Address: 150 SHORELINE DR, REDWOOD CITY, CA, 94065

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

Financial Breakdown

Contract Ceiling: $375,000

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline