VA awards $3.15M contract for medical equipment maintenance to Trillamed LLC, a sole-source procurement

Contract Overview

Contract Amount: $31,500 ($31.5K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-17

End Date: 2027-06-16

Contract Duration: 729 days

Daily Burn Rate: $43/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PMR FOR TEMPTRAK-BASE YEAR.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31,500 to TRILLAMED LLC for work described as: PMR FOR TEMPTRAK-BASE YEAR. Key points: 1. The contract value of $3.15 million over two years suggests a significant investment in maintaining critical medical equipment. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential price efficiencies and market responsiveness. 3. The firm-fixed-price structure aims to provide cost certainty for the government, shifting performance risk to the contractor. 4. The contract duration of 729 days allows for sustained support but also necessitates careful monitoring of performance over its term. 5. The primary service category, Electronic and Precision Equipment Repair and Maintenance, is crucial for ensuring the operational readiness of healthcare facilities. 6. The award to Trillamed LLC, without prior competitive history provided, warrants further investigation into their capabilities and pricing relative to market standards.

Value Assessment

Rating: fair

Benchmarking the value of this $3.15 million contract for medical equipment maintenance is challenging without comparable sole-source awards or detailed service scope. The firm-fixed-price nature suggests an attempt at cost control, but the lack of competition means potential savings from a bidding process are foregone. Without market data on per-unit repair costs or service level agreements for similar equipment, assessing true value-for-money is difficult. The VA must ensure Trillamed's pricing is reasonable and reflects the actual cost of services rendered, potentially through post-award audits or performance reviews.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Trillamed LLC was the only vendor considered. The justification for this approach is not detailed in the provided data, but it typically implies a unique capability, urgent need, or lack of market availability. The absence of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. This procurement strategy bypasses the standard competitive dialogue that could reveal alternative solutions or more cost-effective service providers.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without a bidding process, there is a reduced likelihood of achieving the lowest possible price for these essential maintenance services.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable functioning of medical equipment. The contract ensures the availability of critical repair and maintenance services for electronic and precision medical devices. The geographic impact is primarily within California, where the VA facilities requiring this service are located. The contract supports specialized technical jobs within the electronic and precision equipment repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may indicate limited market availability or contractor lock-in.
Performance metrics and value-for-money assessment are critical due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract duration allows for sustained and consistent maintenance support.
Focus on essential medical equipment maintenance directly supports patient care.

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector is vital for the healthcare industry, ensuring the operational readiness of sophisticated medical devices. This contract falls within a niche market where specialized technical expertise is paramount. Comparable spending benchmarks are difficult to establish without knowing the specific types and quantities of equipment serviced. However, the overall market for medical equipment maintenance is substantial, driven by the continuous need to update and sustain advanced diagnostic and therapeutic technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored through a competitive process. The impact on the small business ecosystem is therefore minimal for this specific procurement, as the primary contract is not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures will be tied to the firm-fixed-price agreement, focusing on Trillamed LLC's adherence to service level agreements and delivery schedules. Transparency is limited by the sole-source nature of the award; however, contract performance data and any associated Inspector General reports would be key indicators of oversight effectiveness.

Related Government Programs

Medical Equipment Maintenance Services
Veterans Health Administration Contracts
Sole Source Procurements
Precision Equipment Repair

Risk Flags

Sole-source award raises concerns about competition and potential price inflation.
Lack of detailed performance metrics in provided data requires further investigation.
Contractor's track record and justification for sole-source award need verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31,500 to TRILLAMED LLC. PMR FOR TEMPTRAK-BASE YEAR.

Who is the contractor on this award?

The obligated recipient is TRILLAMED 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 $31,500.

What is the period of performance?

Start: 2025-06-17. End: 2027-06-16.

What is Trillamed LLC's track record with the VA or other federal agencies for similar maintenance services?

The provided data does not include specific details on Trillamed LLC's past performance or track record with the VA or other federal agencies. As this is a sole-source award, it suggests either a pre-existing relationship or a specific justification for selecting this contractor exclusively. A thorough review would require accessing contract performance databases and historical award information to assess their reliability, quality of service, and adherence to contractual obligations in previous engagements. Without this context, evaluating their suitability and the justification for a sole-source award remains incomplete.

How does the $3.15 million contract value compare to market rates for similar medical equipment maintenance in California?

Benchmarking the $3.15 million contract value against market rates for similar medical equipment maintenance in California is challenging without specific details on the types and volume of equipment covered, as well as the scope of services (e.g., preventive maintenance, emergency repairs, parts included). As a sole-source award, there was no competitive bidding to establish a market-driven price. To assess value, the VA would need to compare Trillamed's proposed pricing against industry benchmarks for comparable service contracts, potentially utilizing data from third-party maintenance providers or internal cost analysis. The firm-fixed-price structure aims for predictability, but the absence of competition means the potential for overpayment cannot be ruled out without further analysis.

What are the specific risks associated with a sole-source award for critical medical equipment maintenance?

The primary risk associated with a sole-source award for critical medical equipment maintenance is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible value for its money. Other risks include limited innovation, as the contractor may have less incentive to propose cost-saving efficiencies or advanced solutions. Furthermore, reliance on a single provider can create vulnerabilities if the contractor experiences financial difficulties, operational issues, or fails to meet performance standards, potentially disrupting essential healthcare services. The VA must implement robust oversight to mitigate these risks.

What is the expected impact of this contract on the operational readiness of VA medical facilities in California?

This contract is expected to have a positive impact on the operational readiness of VA medical facilities in California by ensuring that critical electronic and precision medical equipment is properly maintained and repaired. Reliable functioning of diagnostic imaging machines, surgical equipment, patient monitoring systems, and other vital devices is essential for delivering timely and effective patient care. By securing dedicated maintenance services through Trillamed LLC, the VA aims to minimize equipment downtime, prevent costly breakdowns, and extend the lifespan of its valuable assets, thereby supporting the consistent delivery of healthcare services to veterans.

What is the historical spending pattern for medical equipment maintenance by the VA, and how does this award fit within it?

The provided data does not offer historical spending patterns for medical equipment maintenance by the VA. However, the healthcare sector, particularly within large federal agencies like the VA, typically involves significant and ongoing expenditure on equipment maintenance to ensure the functionality of medical technology. This $3.15 million award represents a specific allocation for a defined period and scope. To understand its place within historical spending, one would need to analyze previous VA contracts for similar services, noting trends in contract values, durations, competition levels, and the types of equipment covered. This analysis would reveal whether this award is consistent with past investments or represents a shift in strategy or spending.

Are there any specific performance metrics or service level agreements (SLAs) tied to this contract that will be used to evaluate Trillamed LLC's performance?

While the data specifies a firm-fixed-price contract type, it does not detail the specific performance metrics or Service Level Agreements (SLAs) that Trillamed LLC must adhere to. For a contract of this nature, particularly one supporting critical medical equipment, robust SLAs are crucial for ensuring accountability and value. These would typically include response times for service calls, repair completion times, equipment uptime guarantees, and quality standards for workmanship. The VA's contracting officer and technical monitors are responsible for defining and enforcing these metrics to ensure Trillamed LLC meets its obligations and that taxpayer funds are used effectively to maintain essential healthcare infrastructure.

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

Address: 30100 TELEGRAPH RD, BINGHAM FARMS, MI, 48025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $91,575

Exercised Options: $31,500

Current Obligation: $31,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline