NHTSA Spends $7,228 on AED Maintenance, Extending Support to 2027

Contract Overview

Contract Amount: $35,584 ($35.6K)

Contractor: Stryker Sales, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-02-15

End Date: 2027-01-31

Contract Duration: 1,811 days

Daily Burn Rate: $20/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY 2022 STRYKER THE PURPOSE OF THIS PURCHASE ORDER IS TO PROVIDE FULL FUNDING IN THE AMOUNT OF $7,228.00 TO SECURE SERVICES FOR THE CONTINUATION OF MAINTENANCE AND SUPPORT FOR THE AUTOMATED EXTERNAL DEFIBRILLATORS THROUGHOUT NHTSA'S REGIONAL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $35,584 to STRYKER SALES, LLC for work described as: FY 2022 STRYKER THE PURPOSE OF THIS PURCHASE ORDER IS TO PROVIDE FULL FUNDING IN THE AMOUNT OF $7,228.00 TO SECURE SERVICES FOR THE CONTINUATION OF MAINTENANCE AND SUPPORT FOR THE AUTOMATED EXTERNAL DEFIBRILLATORS THROUGHOUT NHTSA'S REGIONAL Key points: 1. This purchase order secures essential maintenance for Automated External Defibrillators (AEDs) across NHTSA's regional offices. 2. The contract is with Stryker Sales, LLC, a known provider in the medical equipment sector. 3. The primary risk is the lack of competition, potentially leading to suboptimal pricing. 4. The sector is healthcare support services, crucial for emergency preparedness.

Value Assessment

Rating: questionable

The $7,228 price for a 5-year maintenance contract for AEDs appears reasonable on the surface, but without competitive bids, it's difficult to ascertain true value. Similar multi-year maintenance contracts for medical equipment can vary significantly based on the number of units and service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This method bypasses the price discovery benefits of a competitive bidding process, potentially resulting in higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these essential maintenance services.

Public Impact

Ensures continued operational readiness of critical life-saving AED equipment for NHTSA personnel. Supports the safety and well-being of employees in regional offices. Maintains the functionality of medical devices vital for emergency response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award
Long-term commitment without demonstrated value

Positive Signals

Ensures continuity of essential service
Supports critical safety equipment

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on the maintenance of medical devices. Spending benchmarks for such services can vary widely, but typically involve service level agreements and unit costs that should be benchmarked against industry standards.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The contract was awarded to Stryker Sales, LLC, which is likely a larger entity, and the procurement method did not prioritize small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on justifying the lack of competition and ensuring the pricing is fair and reasonable through post-award analysis or market research.

Related Government Programs

Computer and Office Machine Repair and Maintenance
Department of Transportation Contracting
National Highway Traffic Safety Administration Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment without market validation.
Limited transparency on specific service inclusions.
Long-term commitment without performance history review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $35,584 to STRYKER SALES, LLC. FY 2022 STRYKER THE PURPOSE OF THIS PURCHASE ORDER IS TO PROVIDE FULL FUNDING IN THE AMOUNT OF $7,228.00 TO SECURE SERVICES FOR THE CONTINUATION OF MAINTENANCE AND SUPPORT FOR THE AUTOMATED EXTERNAL DEFIBRILLATORS THROUGHOUT NHTSA'S REGIONAL

Who is the contractor on this award?

The obligated recipient is STRYKER SALES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $35,584.

What is the period of performance?

Start: 2022-02-15. End: 2027-01-31.

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

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without further documentation, it's difficult to assess the validity of this justification for the AED maintenance contract.

How does the per-unit cost of this maintenance contract compare to industry benchmarks?

Benchmarking the per-unit cost is challenging without knowing the exact number of AEDs covered and the specific maintenance services included. However, for a 5-year contract, the total cost of $7,228 suggests a relatively low per-unit cost, which could be reasonable if the scope is limited or if Stryker offers significant volume discounts. Further analysis is needed.

What is the potential impact on taxpayer funds due to the lack of competition?

The lack of competition inherently carries the risk of inflated prices. Without competitive bids, the government may not be achieving the lowest possible cost for the maintenance services. This could lead to a less efficient use of taxpayer funds compared to a scenario where multiple vendors vied for the contract.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stryker Sales LLC

Address: 3800 E CENTRE AVE, PORTAGE, MI, 49002

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: $35,584

Exercised Options: $35,584

Current Obligation: $35,584

Actual Outlays: $16,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline