VA Awards $6.6M Supply Inventory System Contract to SDV Office Systems LLC

Contract Overview

Contract Amount: $6,602,442 ($6.6M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-25

End Date: 2025-12-31

Contract Duration: 828 days

Daily Burn Rate: $8.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUPPLY INVENTORY SYSTEM

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28805

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.6 million to SDV OFFICE SYSTEMS LLC for work described as: SUPPLY INVENTORY SYSTEM Key points: 1. Contract awarded to SDV Office Systems LLC for a Supply Inventory System. 2. The total award value is $6,602,441.79. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. The North American Industry Classification System (NAICS) code is 339112 (Surgical and Medical Instrument Manufacturing). 5. The contract period runs from September 25, 2023, to December 31, 2025.

Value Assessment

Rating: fair

The contract value of $6.6M for a supply inventory system appears reasonable given the duration and scope. Benchmarking against similar systems is difficult without more detailed specifications, but the price seems within a typical range for enterprise-level inventory management solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While SAP aims for fair and reasonable pricing, the limited nature of the competition may not have yielded the absolute lowest price achievable through full and open competition.

Taxpayer Impact: Taxpayers are impacted by the $6.6M expenditure. The use of SAP suggests an effort to balance acquisition speed with cost-effectiveness, but the potential for higher prices due to limited competition is a consideration.

Public Impact

Ensures efficient management of medical and surgical supplies for the VA. Supports healthcare operations by maintaining adequate inventory levels. Potential for improved patient care through timely availability of necessary equipment. The system's effectiveness will depend on its implementation and user adoption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price inefficiencies due to limited competition
Lack of detailed performance metrics in provided data

Positive Signals

Awarded to a specific business (SDV Office Systems LLC)
Contract duration supports long-term system needs
Firm Fixed Price contract type provides cost certainty

Sector Analysis

The healthcare sector, particularly within government agencies like the VA, relies heavily on efficient supply chain management. Spending on inventory systems is crucial for operational effectiveness and cost control. Benchmarks for similar systems vary widely based on complexity and scale.

Small Business Impact

The data does not indicate if SDV Office Systems LLC is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs. The effectiveness of oversight will depend on the VA's contract management practices and performance monitoring of the awarded system.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for higher costs due to SAP
Lack of detailed system specifications
Unclear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.6 million to SDV OFFICE SYSTEMS LLC. SUPPLY INVENTORY SYSTEM

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS 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 $6.6 million.

What is the period of performance?

Start: 2023-09-25. End: 2025-12-31.

What specific functionalities does the Supply Inventory System include, and how do they align with the VA's critical supply chain needs?

The provided data lacks specific details on the system's functionalities. A comprehensive analysis would require documentation outlining features such as real-time tracking, automated reordering, demand forecasting, and integration capabilities with existing VA systems. Understanding these functionalities is key to assessing the system's value and its alignment with the VA's critical supply chain requirements for medical and surgical instruments.

What were the key factors that led to the decision to compete this contract under Simplified Acquisition Procedures (SAP) instead of full and open competition?

The decision to use SAP likely stems from the contract value being below the threshold for full and open competition, aiming for a faster acquisition process. However, this approach inherently limits the pool of potential bidders. Understanding the specific justification for SAP is crucial for assessing whether the agency adequately explored all viable options to ensure the best possible price and value for taxpayers.

How will the effectiveness of the Supply Inventory System be measured and evaluated post-award to ensure it meets the VA's operational goals?

Effectiveness measurement typically involves defining Key Performance Indicators (KPIs) related to inventory accuracy, stockout rates, order fulfillment times, and cost savings. The VA should establish clear metrics and a robust monitoring process to track the system's performance against these KPIs. Regular reviews and user feedback mechanisms are essential to ensure the system delivers the intended operational benefits and justifies the $6.6M investment.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26223Q1183

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26 MACALLAN LN, ASHEVILLE, NC, 28805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $6,602,442

Exercised Options: $6,602,442

Current Obligation: $6,602,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline