VA's $28.7M Medical Vendor Contract Awarded to American Purchasing Services in FY2015

Contract Overview

Contract Amount: $28,726,111 ($28.7M)

Contractor: American Purchasing Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-09-01

End Date: 2015-09-30

Contract Duration: 29 days

Daily Burn Rate: $990.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2015 SEP

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.7 million to AMERICAN PURCHASING SERVICES, LLC for work described as: EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2015 SEP Key points: 1. The contract awarded was for $28.7 million in FY2015. 2. American Purchasing Services, LLC was the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Surgical and Medical Instrument Manufacturing.

Value Assessment

Rating: questionable

The contract was awarded on a firm fixed price basis. Without competition, it's difficult to assess if the pricing is optimal or reflects market rates for similar medical and surgical supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these medical and surgical products, impacting taxpayer funds.

Public Impact

Veterans may experience continuity in the supply of essential medical and surgical products. The sole-source nature of the award could limit the availability of innovative or cost-saving products from other vendors. Ensuring the quality and availability of medical supplies is critical for VA healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited vendor options

Positive Signals

Ensured supply chain for medical products

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector, which is crucial for healthcare delivery. Spending benchmarks for this sector vary widely based on specific product categories and contract types.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the prime awardee and the contracting agency are listed as the Department of Veterans Affairs. Further analysis would be needed to determine if small business subcontracting opportunities were pursued.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The lack of competition suggests a need for robust oversight to ensure fair pricing and adequate performance.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.7 million to AMERICAN PURCHASING SERVICES, LLC. EXPRESS REPORT MEDICAL AND SURGICAL PRIME VENDOR (MSPV) PRODUCTS FY2015 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 $28.7 million.

What is the period of performance?

Start: 2015-09-01. End: 2015-09-30.

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

The provided data states the contract was 'NOT COMPETED' but does not offer a specific justification. Typically, sole-source awards require a documented justification, such as a critical need, lack of available sources, or national security implications. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.

How does the pricing of this contract compare to similar sole-source awards or market research data?

Benchmarking pricing for this sole-source contract is challenging without access to detailed product lists and quantities. However, a general assessment would involve comparing the total award amount against historical data for similar medical and surgical supply contracts, especially those awarded competitively, to identify potential price discrepancies.

What measures were in place to ensure the quality and timely delivery of medical supplies under this contract?

While the contract type is 'FIRM FIXED PRICE,' which typically incentivizes the contractor for performance, the data doesn't detail specific quality assurance or delivery performance metrics. The VA would likely have internal procedures for monitoring vendor performance, but these are not explicitly stated in the provided information.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $28,726,111

Exercised Options: $28,726,111

Current Obligation: $28,726,111

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797N15C0005

IDV Type: IDC

Timeline