VA spent $24.4M on medical supplies via prime vendor in Q2 2017, with 12 orders placed

Contract Overview

Contract Amount: $24,376,624 ($24.4M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-03-01

End Date: 2017-05-31

Contract Duration: 91 days

Daily Burn Rate: $267.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS MARCH , APRIL , MAY 2017

Place of Performance

Location: MIRAMAR, BROWARD County, FLORIDA, 33025

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.4 million to AMERICAN PURCHASING SERVICES, LLC for work described as: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS MARCH , APRIL , MAY 2017 Key points: 1. The contract demonstrates a significant volume of medical-surgical supplies procured through a prime vendor model. 2. Competition dynamics for this contract were robust, indicating potential for competitive pricing. 3. Performance context suggests consistent demand for medical supplies within the VA system. 4. Sector positioning highlights the critical role of supply chain management in healthcare delivery. 5. Risk indicators are moderate, primarily related to vendor performance and supply chain disruptions.

Value Assessment

Rating: good

The VA's expenditure of $24.4 million over three months for medical-surgical supplies through AMERICAN PURCHASING SERVICES, LLC appears reasonable given the scope. Benchmarking against similar prime vendor contracts for the Department of Veterans Affairs would provide a clearer picture of value for money. The firm fixed price contract type suggests predictable costs, but the total expenditure warrants review against historical data and market trends for medical supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 12 delivery orders indicates active utilization and potentially a competitive environment for fulfilling specific needs. A high level of competition generally benefits the government by driving down prices and encouraging innovation among bidders.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is expected to yield better pricing and a wider selection of qualified vendors, ensuring efficient use of federal funds.

Public Impact

Veterans across Florida benefit from the timely availability of essential medical and surgical supplies. The contract ensures the delivery of a wide range of medical and surgical instruments and consumables. Geographic impact is focused on Florida, supporting healthcare facilities within the state. Workforce implications include ensuring healthcare professionals have the necessary tools to provide patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the contract duration if not adequately managed.
Risk of supply chain disruptions impacting the availability of critical medical items.
Dependence on a single prime vendor could limit flexibility in sourcing specialized items.

Positive Signals

Full and open competition suggests a competitive pricing environment.
Firm fixed price contract provides cost certainty for the government.
The contract supports the VA's mission to provide healthcare to veterans.

Sector Analysis

The medical and surgical supply industry is a critical component of the healthcare sector, characterized by a wide array of manufacturers and distributors. Prime vendor contracts are common for large healthcare providers like the VA, aiming to streamline procurement and ensure consistent availability of essential items. Spending in this sector is substantial, driven by the ongoing demand for medical equipment and consumables. This contract fits within the broader category of healthcare services procurement, supporting the operational needs of medical facilities.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. However, prime vendors often engage small businesses as subcontractors to fulfill specific supply needs. The extent of subcontracting to small businesses would be a key factor in assessing the overall impact on the small business ecosystem. Without specific subcontracting data, it's difficult to determine the direct benefit to small businesses from this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and quality standards. Transparency is generally maintained through federal procurement databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Equipment Procurement
Federal Prime Vendor Contracts
Surgical and Medical Instrument Manufacturing
Healthcare Supply Chain Management

Risk Flags

Potential for price escalation
Supply chain vulnerability
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.4 million to AMERICAN PURCHASING SERVICES, LLC. MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTHS MARCH , APRIL , MAY 2017

Who is the contractor on this award?

The obligated recipient is AMERICAN PURCHASING 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 $24.4 million.

What is the period of performance?

Start: 2017-03-01. End: 2017-05-31.

What is the historical spending trend for medical-surgical prime vendor expenditures by the VA in Florida?

Analyzing historical spending trends for VA medical-surgical prime vendor expenditures in Florida is crucial for context. While this specific data point covers March-May 2017 with $24.4 million in spending, understanding the year-over-year or quarter-over-quarter fluctuations provides insight into demand patterns and potential cost efficiencies. For instance, if spending has consistently increased, it could indicate growing veteran populations or expanded healthcare services. Conversely, a decrease might suggest successful cost-saving measures or shifts in procurement strategies. Without access to a comprehensive historical database for this specific category and region, a precise trend analysis is not possible, but it remains a key area for further investigation to assess long-term value and budget predictability.

How does the per-unit cost of items procured under this contract compare to market rates or similar VA contracts?

A detailed comparison of per-unit costs for items procured under this contract against market rates and similar VA contracts is essential for a robust value assessment. The provided data does not include specific itemized costs, making a direct benchmark impossible. However, the 'full and open competition' award type suggests that pricing should be competitive. To perform this analysis, one would need access to the individual delivery orders and their associated itemized pricing. This data could then be compared against publicly available market research reports, GSA schedules, or pricing data from other VA facilities procuring similar items. Significant deviations from market or benchmark prices would warrant further investigation into the reasons, such as specialized product requirements, urgency, or potential inefficiencies in the procurement process.

What is the track record of AMERICAN PURCHASING SERVICES, LLC in fulfilling VA contracts, particularly for medical-surgical supplies?

AMERICAN PURCHASING SERVICES, LLC's track record in fulfilling VA contracts, especially for medical-surgical supplies, is a critical factor in assessing performance risk and reliability. While the data indicates they were awarded this contract, it doesn't detail their past performance history. A thorough review would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented instances of delivery delays, quality issues, or contract disputes. A history of successful, on-time deliveries and high-quality products would indicate a lower risk. Conversely, a pattern of performance issues could signal potential future problems and necessitate closer monitoring or consideration of alternative vendors for future procurements. Without specific historical performance data for this contractor, this remains an area requiring further due diligence.

What specific types of medical and surgical supplies were procured under this contract, and were there any high-cost or critical items?

The provided data categorizes the spending as 'MEDICAL SURGICAL PRIME VENDOR EXPENDITURES' but does not specify the exact types of medical and surgical supplies procured. Identifying the specific items is crucial for understanding the contract's scope and impact. For example, were these general consumables, specialized surgical instruments, or high-cost pharmaceuticals? Knowing this would allow for a more targeted analysis of market dynamics, potential for bulk purchasing discounts, and the criticality of these supplies to patient care. High-cost or single-source items would represent a higher risk and warrant closer scrutiny of their pricing and availability. Without an itemized breakdown, assessing the true value and potential risks associated with the procured goods is limited.

How does the $24.4 million expenditure over 91 days compare to the VA's overall budget for medical-surgical supplies in Florida during that period?

Comparing the $24.4 million expenditure over 91 days (March-May 2017) to the VA's overall budget for medical-surgical supplies in Florida during that period is essential for fiscal oversight. This comparison helps determine if the spending was within allocated budgetary limits and if it represents a significant portion of the total budget. A high percentage of spending could indicate reliance on this prime vendor or potential budget constraints in other areas. Conversely, if it's a small fraction, it might suggest this contract serves a specific subset of needs or facilities. Without access to the VA's specific budgetary allocations for medical-surgical supplies in Florida for Q2 2017, this contextual analysis cannot be fully completed. However, understanding this relationship is key to assessing financial planning and execution.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10315 USA TODAY WAY, MIRAMAR, FL, 33025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,376,624

Exercised Options: $24,376,624

Current Obligation: $24,376,624

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11916D0004

IDV Type: IDC

Timeline