VA's $46.4M Medical Prime Vendor Contract Awarded to American Purchasing Services in FY 2013

Contract Overview

Contract Amount: $46,423,206 ($46.4M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-01

End Date: 2013-09-30

Contract Duration: 29 days

Daily Burn Rate: $1.6M/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 FY 2013 SEP

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.4 million to AMERICAN PURCHASING SERVICES, LLC for work described as: EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY 2013 SEP Key points: 1. Contract focused on providing essential medical and surgical supplies, indicating a critical need for consistent procurement. 2. Awarded under full and open competition, suggesting a broad market search for the best value. 3. The contract duration of 29 days points to a short-term or bridging requirement, potentially for immediate supply chain needs. 4. The prime vendor model aims to streamline the acquisition of a wide range of medical products. 5. Geographic scope limited to Florida, suggesting a regional focus for this specific award. 6. Fixed-price contract type helps to control costs and provides predictability for the government. 7. The absence of small business set-aside flags a potential area for future analysis regarding small business participation.

Value Assessment

Rating: good

This contract for medical and surgical prime vendor products was awarded for a short duration in FY 2013. While specific value-for-money comparisons are difficult without knowing the exact scope of supplies and the competitive landscape at the time, the firm fixed-price nature of the contract suggests an effort to manage costs. Benchmarking against similar prime vendor contracts would require detailed analysis of the product mix and volume, but the award amount of approximately $46.4 million for a single month indicates a significant procurement volume.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the VA sought proposals from all responsible sources after a potential initial exclusion period. This suggests a robust competitive process was intended. The number of bidders is not specified, but full and open competition generally promotes price discovery and allows the government to select from a wide pool of qualified vendors, potentially leading to better pricing and terms.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and quality for essential medical supplies, reducing the risk of overpayment.

Public Impact

Veterans Affairs medical facilities in Florida are the primary beneficiaries, receiving a steady supply of necessary medical and surgical products. Ensures the availability of a wide range of medical, dental, and hospital equipment and supplies. Supports the operational readiness of healthcare providers within the VA system in the specified region. Indirectly impacts healthcare professionals by ensuring they have the tools needed to provide care. The contract contributes to the supply chain infrastructure for medical goods within the state of Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (29 days) may indicate a stop-gap measure or a need for rapid fulfillment, potentially leading to higher unit costs if not managed efficiently.
Lack of specific details on the product catalog makes it difficult to assess if the pricing is competitive across the full spectrum of medical supplies.
The 'after exclusion of sources' clause warrants further investigation to understand if any qualified vendors were initially prevented from bidding.

Positive Signals

Awarded under full and open competition, which typically drives better value and wider vendor participation.
Firm fixed-price contract type provides cost certainty for the government.
The contract addresses a critical need for medical and surgical supplies, ensuring continuity of care for beneficiaries.

Sector Analysis

This contract falls within the Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers sector. This sector is crucial for the healthcare industry, ensuring that providers have access to the necessary consumables and equipment. The VA's reliance on prime vendors like American Purchasing Services highlights a common strategy to manage the complex logistics of healthcare procurement, aiming for efficiency and cost savings through consolidated purchasing. Comparable spending benchmarks would involve analyzing other large-scale medical supply contracts, both within the VA and other federal agencies, as well as private sector healthcare systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large businesses. While this maximizes competition, it also means that opportunities for small business subcontracting may not have been explicitly mandated or prioritized under this specific award. Further analysis would be needed to determine if American Purchasing Services engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by contract award databases, though detailed performance metrics and specific oversight activities are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Prime Vendor Program
Federal Supply Schedule (FSS) Medical Equipment and Supplies
General Services Administration (GSA) Schedules for Medical Products
Defense Logistics Agency (DLA) Troop Support Medical Supplies

Risk Flags

Short contract duration may indicate potential instability or a temporary solution.
Lack of small business participation noted.
Competition type ('after exclusion of sources') warrants further review for potential limitations.
Geographic limitation to Florida may not reflect national supply needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.4 million to AMERICAN PURCHASING SERVICES, LLC. EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY 2013 SEP

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 $46.4 million.

What is the period of performance?

Start: 2013-09-01. End: 2013-09-30.

What was the specific product mix and volume procured under this $46.4M contract, and how does it compare to typical monthly spending for the VA's Florida region?

The provided data does not detail the specific product mix or volume procured under this contract, only the total award amount of $46,423,206.49 for the period of September 1, 2013, to September 30, 2013. To compare this to typical monthly spending, one would need access to historical VA procurement data for medical and surgical prime vendor products specifically for the Florida region. This would involve analyzing past contracts awarded to various vendors, their durations, and their total values. Without this granular data, it's impossible to definitively state whether $46.4 million represents a typical, high, or low monthly expenditure for this region. However, given it's a prime vendor contract covering a broad range of items, a substantial monthly spend is expected for a region with significant VA healthcare operations.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' specifically entail for this contract, and were there any significant bidders excluded?

The contract clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FAR 6.302-1(a)(2)(iii)(A)) typically means that the agency initially considered excluding certain sources but ultimately decided to proceed with full and open competition. This could happen if, for example, a specific brand or technology was initially considered, but the agency then broadened the scope to allow any responsible source to compete. It implies that the agency may have identified a need that could potentially be met by a limited number of sources, but then determined that a wider competition was feasible and in the government's best interest. The data provided does not specify which sources, if any, were initially considered for exclusion or if any were ultimately excluded. A deeper dive into the contract file or justification documents would be necessary to understand the specific circumstances and identify any excluded bidders.

Given the short 29-day duration, was this contract intended as a bridge to a larger, long-term contract, or did it fulfill a specific, short-term need?

The short 29-day duration of this contract (September 1-30, 2013) strongly suggests it was intended as either a bridge to a subsequent, longer-term contract or to fulfill a very specific, short-term surge in demand. Agencies often use short-term contracts like this to maintain supply continuity while a larger, more comprehensive procurement process is underway. Alternatively, it could have been awarded to meet an immediate, unanticipated need, such as disaster relief supplies or to cover a gap caused by delays in another contract. Without further context from the VA's procurement planning documents or the contract's statement of work, determining the precise intent is speculative. However, the timing within a fiscal year (end of FY 2013) might also indicate a need to obligate funds before year-end.

How does American Purchasing Services' performance on this contract compare to other prime vendors used by the VA, particularly regarding delivery timeliness and product availability?

The provided data does not include performance metrics for American Purchasing Services on this specific contract, nor does it offer comparative data against other prime vendors used by the VA. Assessing performance would require access to contract performance reports, past performance reviews, delivery records, and potentially user feedback from VA facilities in Florida. Such information is typically found in government contract databases or agency internal records. Without these details, it is impossible to evaluate their performance relative to benchmarks or other contractors. The fact that the contract was awarded under full and open competition suggests they met the basic qualifications, but ongoing performance is a separate evaluation.

What is the typical annual spending for the VA's Medical and Surgical Prime Vendor program, and how does this $46.4M monthly award fit into that broader spending pattern?

The provided data focuses on a single monthly award of $46.4 million. To understand how this fits into the VA's broader spending pattern for the Medical and Surgical Prime Vendor (MSPV) program, one would need to examine the total annual spending for this program across all VA regions and over multiple fiscal years. The MSPV program is a significant component of the VA's supply chain, often involving billions of dollars annually nationwide. A single monthly award of $46.4 million, if representative of monthly spending in a large region, suggests that the total annual spending for the MSPV program could easily reach hundreds of millions or even billions of dollars. To provide a precise comparison, data on the total VA MSPV budget and spending for FY 2013 and surrounding years would be required.

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: $46,423,206

Exercised Options: $46,423,206

Current Obligation: $46,423,206

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797P0188

IDV Type: IDC

Timeline