VA awards $795K for RT-LINAC equipment to Varian Medical Systems, Inc. at VAMC Ann Arbor

Contract Overview

Contract Amount: $79,538 ($79.5K)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-03

End Date: 2026-04-09

Contract Duration: 1,345 days

Daily Burn Rate: $59/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: RT-LINAC PURCHASE ORDER: 506B20049 STATION: VAMC ANN ARBOR, MI REQUIREMENT: ARIA

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79,537.6 to VARIAN MEDICAL SYSTEMS, INC for work described as: MODALITY: RT-LINAC PURCHASE ORDER: 506B20049 STATION: VAMC ANN ARBOR, MI REQUIREMENT: ARIA Key points: 1. The VA is procuring essential medical equipment for radiation therapy. 2. Varian Medical Systems, Inc. is a significant player in the medical device market. 3. The contract value is relatively modest, suggesting a specific need or limited scope. 4. The sector is healthcare technology, specifically medical imaging and treatment devices.

Value Assessment

Rating: good

The award amount of $795,376.00 appears reasonable for a single unit of specialized medical equipment like an RT-LINAC. Benchmarking against similar procurements for irradiation apparatus would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The use of full and open competition is expected to result in a fair price for taxpayers, as it encourages multiple vendors to offer their best pricing.

Public Impact

Veterans at VAMC Ann Arbor will benefit from advanced radiation therapy treatment. This procurement supports the VA's mission to provide high-quality healthcare to veterans. The acquisition of new RT-LINAC technology can improve treatment precision and patient outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Delivery order under an existing contract.

Sector Analysis

The healthcare sector, particularly medical equipment manufacturing, is characterized by high innovation and significant capital investment. Spending benchmarks for such specialized equipment can vary widely based on technology and features.

Small Business Impact

The data indicates this contract was awarded to Varian Medical Systems, Inc., a large corporation. There is no specific indication of small business participation in this particular award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of a delivery order under an existing contract suggests some level of prior vetting and oversight.

Related Government Programs

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

Risk Flags

Potential for high maintenance costs over the equipment's lifecycle.
Dependence on a single vendor for specialized parts and service.
Risk of technological obsolescence if not the latest generation of equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79,537.6 to VARIAN MEDICAL SYSTEMS, INC. MODALITY: RT-LINAC PURCHASE ORDER: 506B20049 STATION: VAMC ANN ARBOR, MI REQUIREMENT: ARIA

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 $79,537.6.

What is the period of performance?

Start: 2022-08-03. End: 2026-04-09.

What is the expected lifespan and maintenance cost of this RT-LINAC unit?

The expected lifespan and associated maintenance costs for an RT-LINAC unit are critical factors in assessing the total cost of ownership beyond the initial purchase price. Understanding these details would allow for a more comprehensive value analysis and long-term budget planning for the VAMC.

Were there any significant technical requirements that limited the number of potential bidders despite full and open competition?

While the contract states 'full and open competition,' highly specialized equipment like an RT-LINAC may have stringent technical specifications that naturally limit the pool of qualified manufacturers. Further investigation into the specific technical requirements would clarify if the competition was truly broad or effectively narrowed by unique demands.

How does the performance and feature set of this RT-LINAC compare to other available models in the market?

A comparative analysis of the RT-LINAC's performance and features against market alternatives is essential to confirm that the selected model represents the best value and technological fit for the VAMC's needs. This ensures the investment aligns with current standards of care and future treatment capabilities.

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: UPGRADE

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

Financial Breakdown

Contract Ceiling: $79,538

Exercised Options: $79,538

Current Obligation: $79,538

Actual Outlays: $70,918

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