VA's $28.56M Medical Prime Vendor Contract Awarded to American Purchasing Services in FY2012

Contract Overview

Contract Amount: $28,560,092 ($28.6M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-09-01

End Date: 2012-09-30

Contract Duration: 29 days

Daily Burn Rate: $984.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2012 SEPTEMBER

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.6 million to AMERICAN PURCHASING SERVICES, LLC for work described as: EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2012 SEPTEMBER Key points: 1. The contract represents a significant investment in medical supplies for the VA. 2. Competition dynamics for this contract are noted as 'Full and Open Competition After Exclusion of Sources', suggesting a potentially complex procurement process. 3. The contract duration of 29 days is unusually short for a prime vendor agreement, raising questions about its scope or purpose. 4. The award value of $28.56 million for a single month indicates a high volume of medical supply needs. 5. The contract falls under the 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers' category, highlighting its specific focus. 6. The contract was awarded to a single entity, American Purchasing Services, LLC.

Value Assessment

Rating: fair

The contract value of $28.56 million for a 29-day period is substantial, averaging over $984,000 per day. Without comparable monthly prime vendor contracts or detailed line-item data, a precise value-for-money assessment is challenging. However, the high daily expenditure suggests significant demand. The fixed-price nature of the contract provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed, but such a designation can sometimes indicate a more specialized requirement or a desire to leverage existing relationships or capabilities.

Taxpayer Impact: The exclusion of sources, even within a full and open competition framework, could potentially lead to less aggressive pricing than a truly unrestricted competition. Taxpayers may benefit from the initial broad competition, but the exclusions warrant scrutiny to ensure maximum value was achieved.

Public Impact

Veterans Affairs medical facilities and their patients benefit from the timely delivery of essential medical and surgical supplies. The contract ensures the availability of a wide range of medical, dental, and hospital equipment and supplies. The geographic impact is primarily within Florida, where the contractor is located. The contract supports the operational readiness of the VA healthcare system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration (29 days) for a prime vendor agreement is unusual and may indicate a stop-gap measure or a specific, limited-time need, requiring further investigation into its purpose.
The 'Exclusion of Sources' clause in a 'Full and Open Competition' setting warrants a deeper look into the justification for excluding potential bidders, to ensure fair market access and optimal pricing.
Lack of detailed performance metrics or specific outcomes makes it difficult to fully assess the effectiveness and efficiency of this particular award beyond the provision of goods.

Positive Signals

The contract was awarded through a 'Full and Open Competition' process, indicating an effort to solicit bids from a wide range of qualified vendors.
The use of a 'Firm Fixed Price' contract type helps to control costs and provides budget certainty for the Department of Veterans Affairs.
The contract addresses a critical need for medical and surgical supplies within the VA system, ensuring healthcare continuity for veterans.

Sector Analysis

This contract falls within the broader sector of medical supply chain management and wholesale distribution. The market for medical supplies is large and competitive, with numerous distributors vying for government contracts. The VA's prime vendor program is a key strategy to ensure efficient and cost-effective procurement of a wide array of medical products. Benchmarking this specific award is difficult without knowing the exact product mix and volume, but it represents a significant monthly spend within this specialized wholesale segment.

Small Business Impact

There is no indication from the provided data that this contract included specific small business set-asides or subcontracting requirements. The award to American Purchasing Services, LLC, a single entity, does not inherently suggest a focus on small business participation. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a firm-fixed-price contract, the primary oversight would focus on ensuring delivery of specified goods and adherence to contract terms. Transparency is generally maintained through contract award databases, but specific performance monitoring details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Supply Contracts
Prime Vendor Agreements for Healthcare Supplies
Federal Procurement of Medical Equipment and Supplies

Risk Flags

Unusually short contract duration for a prime vendor agreement.
Ambiguity in 'Full and Open Competition After Exclusion of Sources' justification.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.6 million to AMERICAN PURCHASING SERVICES, LLC. EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2012 SEPTEMBER

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 $28.6 million.

What is the period of performance?

Start: 2012-09-01. End: 2012-09-30.

What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The provided data does not specify the exact reasons for excluding certain sources under this 'Full and Open Competition After Exclusion of Sources' award. This procurement method typically involves a broad solicitation but allows the agency to exclude specific vendors based on pre-defined criteria, which could include past performance issues, inability to meet specific technical requirements, or other factors deemed relevant by the agency. Without further documentation from the Department of Veterans Affairs, the precise rationale remains unclear. Such exclusions can impact the level of competition and potentially the final price achieved, making transparency on the justification crucial for assessing value for taxpayers.

How does the daily expenditure of approximately $984,831 compare to typical monthly spending for similar VA prime vendor contracts?

The daily expenditure of approximately $984,831 for this contract, totaling $28.56 million over 29 days, represents a substantial outlay. To benchmark this effectively, one would need to compare it against average daily or monthly spending for other VA Prime Vendor (MSPV) contracts, particularly those serving similar-sized regions or veteran populations. The VA utilizes multiple prime vendors across different geographic areas. Without access to aggregated spending data across these contracts or specific details on the product mix and volume procured under this particular award, it's difficult to definitively state if this daily rate is high, low, or average. However, it signifies a significant operational demand for medical supplies.

What is the typical duration for a VA Medical and Surgical Prime Vendor (MSPV) contract, and why might this one be only 29 days?

Typical VA Medical and Surgical Prime Vendor (MSPV) contracts are usually awarded for longer periods, often spanning one to five years, to ensure consistent supply chain management and allow vendors to optimize their operations and inventory. A contract duration of only 29 days is highly unusual for a prime vendor agreement of this magnitude. Possible explanations include: it being a short-term bridge contract to cover a gap until a longer-term contract is awarded, a specific project with a defined short timeline, or an initial pilot program. The brevity necessitates further inquiry into the contract's specific purpose and whether it was intended as a precursor to a more substantial, long-term commitment.

What specific types of medical and surgical products were prioritized under this $28.56 million contract?

The provided data indicates the contract falls under the North American Industry Classification System (NAICS) code 423450, which covers 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers.' This broad category suggests the contract encompassed a wide range of items, including but not limited to, surgical instruments, diagnostic equipment, hospital furniture, disposable medical supplies (like gloves, syringes, bandages), and dental supplies. However, the data does not offer a breakdown of spending by specific product categories or highlight any particular priorities. The 'prime vendor' designation implies a comprehensive catalog approach rather than a focus on a narrow set of items.

What is the track record of American Purchasing Services, LLC with VA contracts, particularly regarding performance and pricing?

The provided data identifies American Purchasing Services, LLC as the contractor for this specific FY2012 contract. To assess their track record, one would need to examine their historical contract awards with the VA, including contract values, durations, performance evaluations (if publicly available), and any instances of disputes or corrective actions. Without this broader historical context, it's challenging to provide a comprehensive assessment of their performance and pricing practices across multiple engagements. A review of contract databases and performance rating systems (like Contractor Performance Assessment Reporting System - CPARS) would be necessary to evaluate their reliability and competitiveness over time.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4380 NW 135TH ST, OPA LOCKA, FL, 24

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

Financial Breakdown

Contract Ceiling: $28,560,092

Exercised Options: $28,560,092

Current Obligation: $28,560,092

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797P0188

IDV Type: IDC

Timeline