VA awards $4.7M industrial gas contract to RAS ENTERPRISES LLC for 91 days

Contract Overview

Contract Amount: $4,697 ($4.7K)

Contractor: RAS Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 days

Daily Burn Rate: $52/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 DELIVERY ORDER

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4,697 to RAS ENTERPRISES LLC for work described as: FY26 DELIVERY ORDER Key points: 1. Contract value appears reasonable for a short-term, firm-fixed-price delivery order. 2. Competition details are limited, suggesting potential for price discovery limitations. 3. Performance risk seems low given the short duration and established industrial gas market. 4. This contract supports essential medical gas supply for VA facilities. 5. The award falls within the Industrial Gas Manufacturing sector.

Value Assessment

Rating: good

The contract value of $4.7 million for a 91-day delivery order for industrial gases is substantial but requires context. Without specific details on the volume and type of gases, a direct per-unit cost comparison is difficult. However, given the short duration and the nature of industrial gas supply, which often involves specialized equipment and delivery, the pricing appears to be within a plausible range for a firm-fixed-price contract. Further benchmarking against similar short-term VA or other federal agency contracts for industrial gases would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for more streamlined competition for smaller dollar amounts. The specific level of competition (number of bidders) is not provided in the data. While SAP can facilitate quicker awards, it may not always yield the same breadth of competition as full and open procedures, potentially impacting price discovery. The 'COMPETED UNDER SAP' designation suggests an effort to compete, but the extent of that competition is unclear.

Taxpayer Impact: The level of competition under SAP can mean that taxpayers may not always benefit from the lowest possible prices achievable through broader market engagement. However, for smaller procurements, the efficiency gains of SAP can also lead to cost savings.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable supply of essential industrial gases. The services delivered include the provision and potentially delivery of industrial gases. The geographic impact is focused on Minnesota, where the contract is managed. Workforce implications are likely minimal, primarily involving logistics and delivery personnel for RAS ENTERPRISES LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics under SAP limits assurance of best value.
Short contract duration may not incentivize long-term supply chain optimization.
Firm-fixed-price structure could lead to higher costs if market prices fluctuate significantly downwards.

Positive Signals

Awarded to a specific entity (RAS ENTERPRISES LLC), indicating a clear supplier.
Firm-fixed-price contract provides cost certainty for the VA.
Short duration allows for flexibility and potential re-competition if needs change.

Sector Analysis

The Industrial Gas Manufacturing sector (NAICS 325120) is a critical component of the broader chemical manufacturing industry. It encompasses the production and distribution of gases like oxygen, nitrogen, argon, and specialty gases used in healthcare, manufacturing, and research. Federal spending in this sector often supports healthcare facilities, research institutions, and defense operations. Benchmarking this contract's value requires comparison with other short-term supply agreements for industrial gases, considering volume, purity, and delivery logistics.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The award to RAS ENTERPRISES LLC, whose size status is not provided, means the primary impact is on the direct awardee.

Oversight & Accountability

Oversight for this delivery order would primarily fall under the Department of Veterans Affairs (VA) contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by federal procurement data systems, though detailed operational oversight specifics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies and Equipment
Healthcare Services
Chemical Manufacturing Contracts
Logistics and Distribution Services

Risk Flags

Limited Competition Data
Potential Price Volatility
Contractor Performance History Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4,697 to RAS ENTERPRISES LLC. FY26 DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is RAS ENTERPRISES 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 $4,697.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

What is the track record of RAS ENTERPRISES LLC in fulfilling federal contracts, particularly for industrial gases?

Information regarding the specific track record of RAS ENTERPRISES LLC in fulfilling federal contracts, especially for industrial gases, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance ratings, any documented issues on previous contracts, and their experience with similar types and volumes of industrial gas orders. Without this historical performance data, it is difficult to definitively assess their reliability and past success in meeting government requirements. Further investigation into contract databases and performance penilaian systems would be necessary.

How does the $4.7 million value for a 91-day delivery order compare to similar industrial gas contracts awarded by the VA or other federal agencies?

The $4.7 million value for a 91-day delivery order represents a significant daily expenditure, approximately $51,500 per day. To benchmark this value effectively, comparisons should be made with other firm-fixed-price delivery orders for industrial gases of comparable volume, type, and duration. Factors such as the specific gases (e.g., medical oxygen, nitrogen, specialty gases), purity levels, delivery methods (bulk, cylinders), and geographic location of service are crucial. Without these specific details, it's challenging to definitively state if this represents excellent, fair, or questionable value. However, for critical, potentially high-volume medical gases, this expenditure might be within an expected range for a short-term, high-demand period.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions for industrial gases, price volatility in the commodities market, and performance issues from the contractor, RAS ENTERPRISES LLC. Given the short 91-day duration, risks related to long-term market shifts are minimized. Mitigation strategies likely involve the firm-fixed-price structure, which transfers some price risk to the contractor. The Department of Veterans Affairs (VA) would also have oversight mechanisms to monitor delivery and quality. Furthermore, the industrial gas market is generally mature, with established players, which can reduce the likelihood of severe supply disruptions compared to more nascent industries. The VA's procurement process would also involve vetting the contractor's capability.

What is the expected effectiveness of this contract in ensuring the continuity of essential medical gas supply for VA facilities?

This contract is expected to be highly effective in ensuring the continuity of essential medical gas supply for VA facilities in Minnesota for its 91-day duration. Industrial gases are critical for patient care, including respiratory support and surgical procedures. By awarding a firm-fixed-price contract, the VA secures a defined supply for a specific period, providing cost certainty and operational reliability. The short duration suggests it might be fulfilling an immediate need, covering a gap, or part of a larger, ongoing supply strategy. Assuming RAS ENTERPRISES LLC is a capable supplier, the contract should directly translate into uninterrupted access to necessary gases for patient treatment.

How does this contract fit into the VA's overall spending patterns for industrial gases and related medical supplies?

This $4.7 million delivery order for 91 days represents a focused expenditure within the VA's broader budget for medical supplies and operational support. While it's a significant amount for a short period, it needs to be viewed in the context of the VA's total annual spending on pharmaceuticals, medical equipment, and consumables, which runs into billions of dollars. Contracts for industrial gases are typically recurring needs for healthcare facilities. This specific award might be a routine replenishment, a response to increased demand, or a bridge to a longer-term contract. Analyzing historical VA spending on NAICS code 325120 (Industrial Gas Manufacturing) would reveal if this contract aligns with typical spending levels and frequencies.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2512 25TH AVE STE 3, GULFPORT, MS, 39501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $4,697

Exercised Options: $4,697

Current Obligation: $4,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26321D0014

IDV Type: IDC

Timeline