VA awards $720K for surgical instruments, highlighting manufacturing capabilities in Minnesota

Contract Overview

Contract Amount: $720,927 ($720.9K)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCRIPTPRO SUPPORT

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $720,927.39 to SCRIPTPRO USA INC for work described as: SCRIPTPRO SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of surgical instrument supply. 2. Full and open competition suggests a healthy market for these specialized medical devices. 3. Potential risks include supply chain disruptions for specialized instruments. 4. Performance context is critical for ensuring the quality and availability of essential medical supplies. 5. This contract positions the VA within the broader healthcare manufacturing sector. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of approximately $720,927 for a 364-day period for surgical and medical instruments seems aligned with market rates for specialized medical supplies. Benchmarking against similar contracts for instrument manufacturing and supply would provide a more precise value-for-money assessment. The firm-fixed-price nature of the award suggests a predictable cost outcome for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging lower prices and better terms for the government. The presence of multiple bidders suggests a robust market for surgical and medical instruments.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the value of federal spending.

Public Impact

Veterans receiving care at VA facilities will benefit from the availability of necessary surgical instruments. The contract ensures the supply of surgical and medical instruments for VA healthcare services. The geographic impact is primarily within the VA healthcare system, with potential distribution across multiple facilities. Workforce implications may include support for manufacturing jobs within the medical instrument industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting instrument availability.
Ensuring consistent quality control for critical medical devices.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm-fixed-price contract type helps manage cost certainty.
Contract duration allows for sustained supply of necessary instruments.

Sector Analysis

The surgical and medical instrument manufacturing sector is a critical component of the healthcare industry, providing essential tools for patient care. This contract fits within the broader landscape of federal procurement for medical supplies, which is a significant market. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for similar instrument categories.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit mention of subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses are participating in the supply chain for this contract or if there are opportunities for them to do so.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Accountability measures are inherent in the firm-fixed-price structure and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Supply Chain Management
Federal Healthcare Supply Contracts

Risk Flags

Supply Chain Vulnerability
Quality Assurance for Medical Devices

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $720,927.39 to SCRIPTPRO USA INC. SCRIPTPRO SUPPORT

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA 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 $720,927.39.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of SCRIPTPRO USA INC in supplying surgical and medical instruments to the federal government?

Information regarding SCRIPTPRO USA INC's specific track record in supplying surgical and medical instruments to the federal government is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations, contract history, and any reported issues or successes with previous federal awards. This would help assess their reliability and capability in fulfilling the current contract requirements. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed answer on their historical performance.

How does the awarded price compare to market rates for similar surgical instruments?

The provided data does not include specific details on the types or quantities of surgical instruments being procured, making a direct price comparison to market rates challenging. The total award of $720,927 over approximately one year for 'Surgical and Medical Instrument Manufacturing' suggests a broad category. To benchmark effectively, one would need to identify comparable contracts for similar instrument types and quantities, analyze their pricing structures, and consider factors like inflation, customization, and delivery logistics. Without this granular data, the assessment remains qualitative, suggesting the price is 'reasonable' within a general context.

What are the primary risks associated with this contract for the Department of Veterans Affairs?

The primary risks associated with this contract for the Department of Veterans Affairs (VA) revolve around supply chain reliability and product quality. Given that these are surgical instruments, any disruption in the supply chain could directly impact patient care and the ability of VA facilities to perform necessary procedures. Ensuring consistent quality control and adherence to stringent medical device standards is paramount. Furthermore, reliance on a single awardee, even if competitively sourced, carries inherent risks if the contractor faces production issues, financial instability, or regulatory challenges. The VA must have contingency plans in place to mitigate these potential disruptions.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for the Department of Veterans Affairs in this context because it shifts the risk of cost overruns to the contractor, SCRIPTPRO USA INC. This means the VA knows the total cost upfront, providing budget certainty. For standardized or well-defined requirements like surgical instruments, FFP encourages the contractor to manage their costs efficiently to maximize profit. However, the effectiveness hinges on the initial price being set appropriately through competition. If the competition was not robust or the initial estimate was flawed, the FFP might not represent the best possible value, but it does provide cost predictability.

What is the historical spending pattern for surgical and medical instruments by the Department of Veterans Affairs?

The provided data snippet focuses on a single contract award and does not offer insights into the Department of Veterans Affairs' (VA) historical spending patterns for surgical and medical instruments. To understand this, one would need to analyze aggregated spending data over several fiscal years, identifying trends in contract values, types of instruments procured, primary contractors, and competition levels. This analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether the VA has historically relied on full and open competition or other contracting methods for these essential supplies. Such historical context is crucial for strategic sourcing and budget planning.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, SHAWNEE MISSION, KS, 66202

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

Financial Breakdown

Contract Ceiling: $2,172,322

Exercised Options: $720,927

Current Obligation: $720,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0135

IDV Type: FSS

Timeline