VA awards $62.4M for COVID-19 PPE to New Hampshire, bypassing competition

Contract Overview

Contract Amount: $62,360,025 ($62.4M)

Contractor: NEW Hampshire Department of Health & Human Services

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-05-18

End Date: 2021-05-17

Contract Duration: 364 days

Daily Burn Rate: $171.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COVID 19 EMERGENCY PPE ITEMS

Place of Performance

Location: CONCORD, MERRIMACK County, NEW HAMPSHIRE, 03301

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $62.4 million to NEW HAMPSHIRE DEPARTMENT OF HEALTH & HUMAN SERVICES for work described as: COVID 19 EMERGENCY PPE ITEMS Key points: 1. Significant award for essential COVID-19 supplies. 2. Sole-source award raises questions about price discovery. 3. Limited competition may increase taxpayer cost. 4. Sector: Healthcare supplies manufacturing.

Value Assessment

Rating: questionable

The award of $62.4 million for surgical appliances and supplies lacks a clear benchmark for comparison due to its non-competitive nature. Without competitive bids, it's difficult to assess if the firm fixed price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competitive bidding for this substantial contract may result in taxpayers paying a premium for essential COVID-19 personal protective equipment.

Public Impact

Ensures supply of critical PPE during a national emergency. Supports a state-level health department's response efforts. Potential for inflated costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Addresses critical need for PPE
Timely award during emergency

Sector Analysis

The award falls within the Surgical Appliance and Supplies Manufacturing sector, crucial for healthcare. Spending benchmarks for PPE during the pandemic varied widely, but competitive processes generally yielded better pricing.

Small Business Impact

The data does not indicate whether small businesses were involved in this sole-source award. Further analysis would be needed to determine any small business participation.

Oversight & Accountability

The award was made by the Department of Veterans Affairs to the New Hampshire Department of Health & Human Services. Oversight would focus on ensuring the necessity of the sole-source justification and the reasonableness of the price.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source justification questionable
Potential for inflated pricing
Lack of transparency in price discovery
Limited small business opportunity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62.4 million to NEW HAMPSHIRE DEPARTMENT OF HEALTH & HUMAN SERVICES. COVID 19 EMERGENCY PPE ITEMS

Who is the contractor on this award?

The obligated recipient is NEW HAMPSHIRE DEPARTMENT OF HEALTH & HUMAN SERVICES.

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 $62.4 million.

What is the period of performance?

Start: 2020-05-18. End: 2021-05-17.

What was the justification for awarding this contract as sole-source instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to urgent and compelling needs or unique capabilities. Further investigation into the contract file would be required to ascertain the specific rationale.

How does the firm fixed price compare to market rates for similar PPE during the pandemic?

Without competitive bids or specific itemized pricing, it is challenging to benchmark this firm fixed price against market rates. The pandemic saw significant price fluctuations for PPE. A sole-source award, especially without transparent pricing details, makes it difficult to determine if the price was fair and reasonable compared to what could have been achieved through competition.

What is the potential impact on the VA's budget and future procurement strategies given this sole-source award?

This sole-source award represents a significant expenditure that could have been lower if competitively bid. It may set a precedent or signal a willingness to use sole-source awards for critical supplies, potentially impacting future budget allocations and the VA's approach to competitive contracting, especially during emergencies.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N/A

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: NEW Hampshire, State of

Address: 129 PLEASANT ST, CONCORD, NH, 03301

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $62,360,025

Exercised Options: $62,360,025

Current Obligation: $62,360,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline