VA awards $4.86M for RT-LINAC to Varian Medical Systems, Inc. under full and open competition

Contract Overview

Contract Amount: $4,856,123 ($4.9M)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-13

End Date: 2026-08-24

Contract Duration: 1,533 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RT-LINAC FOR WEST PALM BEACH, FL

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to VARIAN MEDICAL SYSTEMS, INC for work described as: RT-LINAC FOR WEST PALM BEACH, FL Key points: 1. Spending focuses on specialized medical equipment (Irradiation Apparatus Manufacturing). 2. Varian Medical Systems, Inc. is the sole awardee for this specific order. 3. The contract is a delivery order against an existing contract. 4. The contract duration is 1533 days, ending in August 2026.

Value Assessment

Rating: good

The award amount of $4.86 million for an RT-LINAC appears reasonable given the specialized nature of the equipment. Benchmarking against similar high-value medical device procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential medical equipment to support veterans' healthcare needs.

Public Impact

Enhances cancer treatment capabilities for veterans. Supports the Department of Veterans Affairs' mission to provide comprehensive healthcare. Potential for improved patient outcomes through advanced radiotherapy technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source reliance on Varian for future maintenance/upgrades.
Long contract duration may limit flexibility for technological advancements.

Positive Signals

Awarded via full and open competition.
Supports critical healthcare infrastructure for veterans.

Sector Analysis

The procurement falls within the Healthcare sector, specifically medical equipment for radiation therapy. Spending benchmarks for similar RT-LINAC systems vary widely based on features and manufacturer.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of delivery orders against an existing contract suggests a framework for accountability is in place.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in for future services/parts.
Long-term commitment may not align with rapid technological advancements.
Lack of detail on small business subcontracting.
No explicit mention of performance guarantees or SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to VARIAN MEDICAL SYSTEMS, INC. RT-LINAC FOR WEST PALM BEACH, FL

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 $4.9 million.

What is the period of performance?

Start: 2022-06-13. End: 2026-08-24.

What is the total contract value and duration for the base contract under which this delivery order was issued?

The provided data only details a specific delivery order for $4.86 million with a duration of 1533 days. Information regarding the base contract's total value, original awardee, and duration is not included in this dataset. Understanding the base contract is crucial for a complete picture of the overall commitment and potential future obligations.

Are there any performance metrics or service level agreements tied to this RT-LINAC delivery order?

The data specifies the award amount, vendor, and dates but does not detail specific performance metrics or service level agreements (SLAs). For critical medical equipment like an RT-LINAC, performance standards for uptime, calibration accuracy, and response times for maintenance are essential to ensure patient safety and treatment continuity. These should be clearly defined in the contract.

What is the anticipated impact of this RT-LINAC on patient wait times and treatment capacity at the West Palm Beach VA facility?

The acquisition of a new RT-LINAC is expected to significantly enhance the radiotherapy capabilities at the West Palm Beach VA facility, potentially reducing patient wait times and increasing treatment capacity. While the direct impact on wait times and capacity isn't quantified in the data, the investment in advanced technology suggests a strategic effort to improve patient throughput and access to timely cancer care.

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

Solicitation ID: 36A79722Q0004

Offers Received: 2

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: $4,856,123

Exercised Options: $4,856,123

Current Obligation: $4,856,123

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79719D0014

IDV Type: IDC

Timeline