DOJ's $313K Varian Maintenance Contract for Linear Accelerators Awarded to Varian Medical Systems

Contract Overview

Contract Amount: $313,489 ($313.5K)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $861/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VARIAN: MAINTENANCE & LABOR SERVICES FOR LINEAR ACCELERATOR DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $313,489 to VARIAN MEDICAL SYSTEMS, INC for work described as: VARIAN: MAINTENANCE & LABOR SERVICES FOR LINEAR ACCELERATOR DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED. Key points: 1. Contract awarded to incumbent Varian Medical Systems for essential maintenance of linear accelerators. 2. The $313,489 contract covers a 12-month period for the Federal Prison System. 3. Spending is categorized under Electronic and Precision Equipment Repair and Maintenance (NAICS 811210). 4. This contract supports critical medical equipment within correctional facilities.

Value Assessment

Rating: good

The $313,489 price for a one-year maintenance contract for a linear accelerator appears reasonable when benchmarked against similar specialized medical equipment service agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential maintenance, ensuring the operational readiness of critical medical equipment, which is a necessary expenditure.

Public Impact

Ensures continued operation of vital medical equipment for inmates. Supports healthcare services within the Federal Prison System. Maintains specialized technology crucial for inmate well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not guarantee best value.
Reliance on a single vendor for specialized maintenance.

Positive Signals

Ensures operational continuity of critical medical equipment.
Supports inmate healthcare services.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on the maintenance of advanced medical technology. Spending benchmarks for specialized equipment maintenance can vary widely based on the complexity and criticality of the device.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Varian Medical Systems, Inc., a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract is managed by the Department of Justice, Federal Prison System. Oversight would involve ensuring service delivery meets contractual obligations and that funds are used appropriately for maintenance.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for sole-source reliance due to specialized equipment.
Limited competition under SAP.
Dependency on a single vendor for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $313,489 to VARIAN MEDICAL SYSTEMS, INC. VARIAN: MAINTENANCE & LABOR SERVICES FOR LINEAR ACCELERATOR DOS: OCTOBER 1, 2025 THRU SEPTEMBER 30, 2026 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Who is the contractor on this award?

The obligated recipient is VARIAN MEDICAL SYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $313,489.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical performance of Varian Medical Systems in providing maintenance for linear accelerators to the Federal Prison System?

Historical performance data would be crucial to assess Varian's reliability and quality of service. Reviewing past contract performance, any documented issues or commendations, and on-time completion rates would provide insight into their track record. This information helps determine if the current contract represents a continued good value or if potential risks associated with past performance should be considered.

Are there alternative vendors capable of providing similar maintenance services for these linear accelerators, even if specialized?

Investigating potential alternative vendors, even for specialized equipment, is important for understanding the competitive landscape. While Varian may be a primary provider, exploring if other certified technicians or companies possess the requisite skills and certifications could reveal opportunities for future competition or cost savings. This assessment helps gauge the true level of market availability.

How does the cost of this maintenance contract compare to similar contracts awarded by other federal agencies or state prison systems for comparable equipment?

Benchmarking this contract's cost against similar agreements across different government entities provides a vital perspective on value for money. If costs are significantly higher than comparable contracts, it may indicate a lack of competitive pricing or an inflated service cost. Conversely, if costs are in line or lower, it suggests a fair market price has been achieved.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 3100 HANSEN WAY, PALO ALTO, CA, 94304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $313,489

Exercised Options: $313,489

Current Obligation: $313,489

Actual Outlays: $89,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline