VA awards $7.76M for Ambulatory Health Care Services to Medtronic, highlighting potential cost efficiencies

Contract Overview

Contract Amount: $7,755,749 ($7.8M)

Contractor: Medtronic Care Management Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2025-11-30

Contract Duration: 60 days

Daily Burn Rate: $129.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT OCT & NOV 2025 (FY26)

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.8 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC for work described as: EXPRESS REPORT OCT & NOV 2025 (FY26) Key points: 1. The award to Medtronic Care Management Services, LLC for $7.76M represents a significant investment in ambulatory health care. 2. Full and open competition was utilized, suggesting a competitive bidding process aimed at securing favorable pricing. 3. The contract duration is short (60 days), indicating a need for immediate or short-term services. 4. The specific NAICS code (621999) covers a broad range of 'All Other Miscellaneous Ambulatory Health Care Services', requiring further detail for precise sector analysis.

Value Assessment

Rating: good

The award amount of $7.76M for a 60-day period suggests a high per-diem or per-service cost. Benchmarking against similar contracts for specialized ambulatory care services would be necessary to confirm value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The impact on price discovery is likely positive, as multiple bidders would have had the opportunity to submit proposals.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the services rendered, though specific cost savings are not detailed.

Public Impact

Veterans will receive essential ambulatory health care services, potentially improving access and quality of care. The use of a large, established provider like Medtronic indicates a focus on reliable service delivery. The short duration may signal a pilot program or a response to an urgent, temporary need within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service description within the provided data.
Short contract duration may indicate a reactive rather than strategic procurement.
Potential for high per-unit costs given the contract value and short term.

Positive Signals

Awarded via full and open competition.
Contract awarded to a known entity in the healthcare sector.
Supports critical healthcare services for veterans.

Sector Analysis

This contract falls under the broad 'Ambulatory Health Care Services' sector. Spending in this area is consistently high across federal agencies, particularly within the Department of Defense and Veterans Affairs, to support healthcare needs.

Small Business Impact

The data indicates the contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary participants in this specific procurement, missing an opportunity for set-aside awards.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The 'Delivery Order' type suggests it's part of a larger contract vehicle, implying existing oversight mechanisms are in place.

Related Government Programs

All Other Miscellaneous Ambulatory Health Care Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High implied daily cost.
Lack of service specificity.
Short contract duration.
No small business set-aside.
Potential for uncompetitive pricing if competition was weak despite being 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.8 million to MEDTRONIC CARE MANAGEMENT SERVICES, LLC. EXPRESS REPORT OCT & NOV 2025 (FY26)

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 $7.8 million.

What is the period of performance?

Start: 2025-10-01. End: 2025-11-30.

What specific ambulatory health care services are being procured under this contract?

The provided data lacks specificity regarding the exact services. The NAICS code 621999 covers a wide array of miscellaneous ambulatory health care services, which could range from specialized clinics to diagnostic services or home health support. Further details are needed to understand the precise nature and value of the care being provided to veterans.

What is the projected cost per veteran or per service provided, and how does it compare to benchmarks?

With a total award of $7.76 million for a 60-day period, the implied daily cost is approximately $129,359. Without knowing the number of veterans served or the specific services rendered, a precise per-unit cost benchmark is impossible. However, this high daily expenditure warrants scrutiny against industry standards for similar ambulatory care contracts.

How effective is this short-term contract in addressing the VA's long-term healthcare needs?

A 60-day contract is typically insufficient for addressing long-term healthcare needs and may indicate a stop-gap measure or a pilot program. While it provides immediate support, its effectiveness in the long run depends on whether it leads to more sustainable solutions or if it's part of a larger, ongoing strategy. The short duration limits its ability to establish long-term patient relationships or infrastructure.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

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

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: $7,755,749

Exercised Options: $7,755,749

Current Obligation: $7,755,749

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79123D0001

IDV Type: IDC

Timeline