DoD awards $12M contract for surgical instrument maintenance, with a 2-year duration

Contract Overview

Contract Amount: $11,986,701 ($12.0M)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE & SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to SCRIPTPRO USA INC for work described as: MAINTENANCE & SUPPORT Key points: 1. Contract value appears reasonable for specialized maintenance services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and future sustainment needs. 4. This contract supports critical medical equipment for the Defense Health Agency. 5. The sector is specialized, focusing on medical instrument manufacturing and support. 6. Spending aligns with typical sustainment costs for complex medical devices.

Value Assessment

Rating: good

The contract value of approximately $12 million over two years for maintenance and support of surgical instruments appears to be within a reasonable range for specialized services. Benchmarking against similar contracts for medical equipment sustainment would provide a more precise value-for-money assessment. However, given the firm-fixed-price nature, the government has defined cost certainty. The absence of detailed cost breakdowns makes a granular price assessment challenging, but the overall award amount does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, leading to potentially better pricing and service offerings for the government. The specific number of bidders is not provided, but the competition type suggests a robust market for these maintenance services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives market efficiencies and encourages competitive pricing, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

Military medical facilities and personnel benefit from the reliable functioning of surgical instruments. Services include maintenance and support for critical surgical and medical equipment. The geographic impact is likely nationwide, supporting DHA facilities across various locations. Workforce implications include ensuring skilled technicians are available for instrument upkeep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single contractor for critical maintenance could pose a risk if performance issues arise.
Ensuring the long-term availability of spare parts and specialized knowledge for instrument repair.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially good value.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration of two years allows for stable support while enabling future re-competition.

Sector Analysis

The contract falls within the broader healthcare and medical device sector, specifically focusing on the maintenance and support of surgical and medical instruments. This is a critical niche within the medical technology industry, ensuring the operational readiness of healthcare services. Spending in this area is essential for maintaining the efficacy and safety of medical procedures within military healthcare systems. Comparable spending benchmarks would typically involve analyzing sustainment contracts for similar high-value medical equipment across government and commercial healthcare providers.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is ScriptPro USA Inc., a mid-sized to large entity, there is no explicit information on small business subcontracting goals or performance. The impact on the small business ecosystem would depend on whether ScriptPro USA Inc. engages small businesses for specialized support or component sourcing as part of fulfilling this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Health Agency (DHA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified maintenance services. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Medical Equipment Maintenance Contracts
Defense Health Agency IT and Medical Support
Surgical Instrument Procurement and Sustainment
Federal Healthcare Services Contracts

Risk Flags

Contractor Performance Risk
Supply Chain Dependency
Technical Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to SCRIPTPRO USA INC. MAINTENANCE & SUPPORT

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What is the track record of ScriptPro USA Inc. in performing similar maintenance and support contracts for the Department of Defense or other federal agencies?

Assessing ScriptPro USA Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving maintenance and support of medical or surgical equipment. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key indicators to examine include on-time delivery, quality of service, responsiveness to issues, and any history of contract disputes or terminations. A positive performance history suggests a lower risk of execution failure for this current contract, while a negative history would warrant closer scrutiny and potentially more stringent oversight from the Defense Health Agency.

How does the awarded price of approximately $12 million over two years compare to market rates for similar surgical instrument maintenance services?

A precise comparison of the $12 million award to market rates requires access to detailed pricing data for comparable services. Factors influencing market rates include the type and complexity of instruments, the scope of maintenance (preventive vs. corrective), response times, and geographic coverage. Benchmarking against contracts awarded by other federal agencies (e.g., VA, NIH) or large commercial healthcare systems for similar services would be informative. Given the firm-fixed-price structure, the government has a defined cost ceiling. However, without specific market data, it's difficult to definitively state if this represents excellent or merely fair value. The full and open competition suggests the price is likely competitive within the market.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential contractor underperformance, leading to instrument downtime and impacting medical readiness; supply chain disruptions affecting the availability of parts; and the potential for cost overruns if the firm-fixed-price contract doesn't adequately cover unforeseen complexities. Mitigation strategies typically involve robust contract oversight by the Defense Health Agency, clear performance metrics and service level agreements, regular performance reviews, and contingency planning for critical part sourcing. The contract's two-year duration also allows for reassessment and potential re-competition if performance is unsatisfactory.

How effective is the Defense Health Agency in managing and overseeing contracts for medical equipment sustainment?

The effectiveness of the DHA in managing such contracts can be assessed by examining their historical contract performance data, audit reports from the Inspector General, and user feedback from medical facilities. Factors contributing to effectiveness include strong program management, clear requirements definition, diligent oversight of contractor performance, and efficient issue resolution processes. Conversely, challenges might arise from complex logistical requirements, the specialized nature of medical equipment, and ensuring consistent service delivery across numerous geographically dispersed facilities. The success of this specific contract will be a data point in evaluating DHA's overall effectiveness in this domain.

What has been the historical spending pattern for surgical and medical instrument maintenance by the Defense Health Agency over the past five years?

Analyzing historical spending patterns for surgical and medical instrument maintenance by the DHA over the past five years would reveal trends in demand, average contract values, and the prevalence of different contract types (e.g., fixed-price, cost-plus). This data can help determine if the current $12 million award is consistent with past investment levels or represents a significant increase or decrease. Understanding these patterns can inform budget planning, identify potential areas for cost savings through consolidation or standardization, and highlight shifts in technology or service requirements within the DHA's medical maintenance portfolio.

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

Solicitation ID: HT001124R0060

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: $12,073,392

Exercised Options: $12,073,392

Current Obligation: $11,986,701

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0135

IDV Type: FSS

Timeline