VA awards $38M for surgical instruments to Medtronic Care Management, a sole-source contract

Contract Overview

Contract Amount: $38,009,207 ($38.0M)

Contractor: Medtronic Care Management Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-03-31

Contract Duration: 181 days

Daily Burn Rate: $210.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OCTOBER 2024 - MARCH 2025 EXPRESS REPORTS

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.0 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC for work described as: OCTOBER 2024 - MARCH 2025 EXPRESS REPORTS Key points: 1. Significant contract value of $38 million. 2. Sole-source award to Medtronic Care Management Services, LLC. 3. Focus on surgical and medical instrument manufacturing. 4. Contract duration spans October 2024 to March 2025.

Value Assessment

Rating: questionable

The contract is a sole-source award, making direct price comparisons difficult. Without competitive bidding, it's challenging to ascertain if the $38 million represents the best value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these surgical instruments.

Public Impact

Veterans will receive necessary surgical and medical instruments. Potential for higher costs due to sole-source nature. Medtronic Care Management Services, LLC is the sole provider for this period. Department of Veterans Affairs ensures continued supply chain for critical medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment without competitive benchmarking.
Lack of transparency in pricing.

Positive Signals

Ensures supply of critical medical instruments.
Contract awarded to a known entity in the field.

Sector Analysis

The Department of Veterans Affairs is a significant purchaser of medical equipment. Spending in the surgical and medical instrument manufacturing sector (NAICS 339112) is substantial, with competition typically driving innovation and cost-effectiveness.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large corporation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants careful oversight to ensure fair pricing and prevent potential waste. The VA should document the justification for not competing this requirement.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Limited transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.0 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC. OCTOBER 2024 - MARCH 2025 EXPRESS REPORTS

Who is the contractor on this award?

The obligated recipient is MEDTRONIC CARE MANAGEMENT SERVICES, 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 $38.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-03-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further documentation from the VA, it's impossible to confirm the specific reason. This lack of transparency raises concerns about whether alternative solutions were explored or if this was the most cost-effective approach for taxpayers.

How does the pricing compare to similar sole-source contracts for medical instruments?

Direct comparison is difficult without access to detailed pricing data and specific product specifications. However, sole-source contracts are inherently at a disadvantage regarding price discovery. The VA should have a robust internal process to benchmark pricing against historical data or industry averages to mitigate potential overspending.

What is the potential impact on patient care if this sole-source contract leads to inflated prices?

Inflated prices on essential medical instruments could indirectly impact patient care by potentially diverting funds from other critical healthcare services or equipment. While the VA aims to provide necessary care, inefficient spending due to a lack of competition could strain resources, potentially affecting the quantity or quality of services available in the long run.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Medtronic Public Limited Company

Address: 7980 CENTURY BLVD, CHANHASSEN, MN, 55317

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

Financial Breakdown

Contract Ceiling: $38,009,207

Exercised Options: $38,009,207

Current Obligation: $38,009,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79122D0008

IDV Type: IDC

Timeline