VA awards $4.4M for radiation therapy systems, with 4 prior orders and a 771-day duration

Contract Overview

Contract Amount: $4,425,721 ($4.4M)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-07-18

End Date: 2021-08-27

Contract Duration: 771 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RAD THERAPY SYSTEMS AND ACCESSORIES- MOD P00012 ISSUED TO INCORPORATE SMALL BUSINESS SUBCONTRACTING PLAN INTO THE CONTRACT FOR THE PERIOD OF 10/1/18 - 9/30/19.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to VARIAN MEDICAL SYSTEMS, INC for work described as: RAD THERAPY SYSTEMS AND ACCESSORIES- MOD P00012 ISSUED TO INCORPORATE SMALL BUSINESS SUBCONTRACTING PLAN INTO THE CONTRACT FOR THE PERIOD OF 10/1/18 - 9/30/19. Key points: 1. Contract value of $4.4M over its period of performance. 2. Issued as a delivery order under a larger contract. 3. Contractor has a history of receiving multiple orders for these systems. 4. The contract spans over two years, indicating a need for sustained supply. 5. Fixed-price contract type suggests predictable costs for the government. 6. The North American Industry Classification System (NAICS) code points to manufacturing of irradiation apparatus.

Value Assessment

Rating: fair

The total award amount of $4.4M for radiation therapy systems and accessories appears to be within a reasonable range for specialized medical equipment. However, without specific details on the exact systems and accessories procured, a direct comparison to similar contracts is challenging. The firm-fixed-price nature of the contract helps in managing cost certainty. Benchmarking the per-unit cost against market rates for comparable radiation therapy equipment would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows 4 prior orders, suggesting this is a recurring need fulfilled through a competitive process. The level of competition, while not explicitly detailed in terms of the number of bidders for this specific delivery order, is generally positive for price discovery when full and open competition is utilized.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best prices to secure the contract.

Public Impact

Veterans will benefit from access to advanced radiation therapy systems for cancer treatment. The contract ensures the availability of essential medical equipment for VA healthcare facilities. Services delivered include the provision of radiation therapy systems and related accessories. The geographic impact is likely concentrated within VA medical centers across the nation, wherever these systems are deployed. The contract supports the healthcare workforce by providing them with the necessary tools to administer treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology if systems are not regularly updated.
Dependence on a single contractor for supply and maintenance could pose risks.
Ensuring adequate training and support for VA staff operating complex equipment.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides cost certainty.
The contractor, Varian Medical Systems, is a known entity in the radiation therapy market.

Sector Analysis

The market for radiation therapy systems is a specialized segment within the broader medical device industry. This sector is characterized by high technological advancement, significant research and development investment, and stringent regulatory requirements. Companies like Varian Medical Systems are key players, offering advanced linear accelerators and related software. Spending in this area by government entities like the VA is crucial for providing state-of-the-art cancer treatment to beneficiaries. Comparable spending benchmarks would typically be found within large healthcare systems or other government health agencies procuring similar capital equipment.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting plans being a requirement or achievement for this particular award. Therefore, the direct impact on the small business ecosystem from this contract appears minimal, though the prime contractor may engage small businesses in their broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring delivery of specified goods. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of this contract.

Related Government Programs

Medical Equipment Procurement
Cancer Treatment Services
Department of Veterans Affairs Healthcare
Radiation Oncology Devices

Risk Flags

Potential for technology obsolescence
Contractor performance risk
Cybersecurity vulnerabilities in networked medical devices

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to VARIAN MEDICAL SYSTEMS, INC. RAD THERAPY SYSTEMS AND ACCESSORIES- MOD P00012 ISSUED TO INCORPORATE SMALL BUSINESS SUBCONTRACTING PLAN INTO THE CONTRACT FOR THE PERIOD OF 10/1/18 - 9/30/19.

Who is the contractor on this award?

The obligated recipient is VARIAN MEDICAL SYSTEMS, INC.

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 $4.4 million.

What is the period of performance?

Start: 2019-07-18. End: 2021-08-27.

What is the specific type and model of radiation therapy systems and accessories procured under this contract?

The provided data does not specify the exact models or types of radiation therapy systems and accessories. It only indicates the general category as 'RAD THERAPY SYSTEMS AND ACCESSORIES'. To understand the technological capabilities and specific applications, further details on the product line procured would be necessary. This information is typically found in the contract's statement of work or line item details, which are not included in the summary data. Knowing the specific equipment would allow for a more precise assessment of its clinical utility and alignment with current treatment standards.

How does the pricing of these radiation therapy systems compare to similar systems purchased by other federal agencies or large healthcare providers?

A direct price comparison is difficult without knowing the specific models and configurations of the radiation therapy systems. However, the contract was awarded under full and open competition, which generally promotes competitive pricing. The total award of $4.4M over approximately two years suggests a significant investment. To benchmark effectively, one would need to identify comparable procurements by agencies like the Department of Defense or large civilian hospital networks for similar high-end medical equipment. Analyzing the per-unit cost against market research reports or publicly available pricing for comparable systems would be the next step in a thorough value assessment.

What is the track record of Varian Medical Systems, Inc. in supplying radiation therapy equipment to the federal government?

Varian Medical Systems, Inc. has a significant track record in supplying radiation therapy equipment, including to the federal government. The data shows this contract involved 4 prior orders, indicating a sustained relationship with the Department of Veterans Affairs. Varian is a well-established manufacturer in the oncology space, known for its linear accelerators and treatment planning software. Their presence in the federal market suggests they have successfully navigated the procurement processes and met the requirements of government healthcare providers. Further investigation into past performance reviews and other federal contracts awarded to Varian would provide a more comprehensive view of their reliability and capabilities.

What are the key performance indicators (KPIs) used to evaluate the success of this contract and the performance of the contractor?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for medical equipment procurement contracts include timely delivery, system uptime and reliability, adherence to specifications, successful installation and integration, and adequate training and support for end-users. For a firm-fixed-price contract, meeting all contractual requirements within the agreed-upon price is a primary measure of success. The Department of Veterans Affairs would likely have internal metrics to assess the contractor's performance, potentially including user satisfaction surveys and maintenance response times.

What is the historical spending trend for radiation therapy systems and accessories by the Department of Veterans Affairs over the past five years?

The provided data focuses on a single contract award of $4.4M for radiation therapy systems and accessories. It does not offer historical spending trends. To determine this, one would need to query federal procurement databases for all contracts related to radiation therapy systems and accessories awarded by the VA over the past five years. Analyzing the total annual spending, the number of contracts awarded, and the primary contractors would reveal spending patterns. This would help understand if spending has been consistent, increasing, or decreasing, and whether the VA relies on a few key vendors or a broader market.

Are there any known risks associated with the specific radiation therapy technology being procured, such as cybersecurity vulnerabilities or maintenance challenges?

The provided data does not detail specific risks associated with the radiation therapy technology. However, modern radiation therapy systems are complex, networked devices that can be susceptible to cybersecurity threats if not properly secured and managed. Maintenance challenges can also arise due to the sophisticated nature of the equipment and the need for specialized technicians. It is standard practice for government contracts of this nature to include clauses addressing cybersecurity requirements, data protection, and maintenance service level agreements. A thorough risk assessment would involve reviewing the manufacturer's security protocols and the contractor's maintenance plan.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,425,721

Exercised Options: $4,425,721

Current Obligation: $4,425,721

Actual Outlays: $1,332,128

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H14D0004

IDV Type: IDC

Timeline