VA awards $2.7M for XR CT Modality, with Siemens Medical Solutions as contractor

Contract Overview

Contract Amount: $2,742,048 ($2.7M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-22

End Date: 2026-03-11

Contract Duration: 1,024 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR CT PURCHASE ORDER: 541B22038 STATION: VAMC CLEVELAND, OH REQUIREMENT: ADMINISTRATIVE CORRECTIONS: SEPTEMBER 2022 CONSOLIDATION

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: MODALITY: XR CT PURCHASE ORDER: 541B22038 STATION: VAMC CLEVELAND, OH REQUIREMENT: ADMINISTRATIVE CORRECTIONS: SEPTEMBER 2022 CONSOLIDATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 1000 days indicates a long-term need for the equipment. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The specific equipment, XR CT Modality, points to advanced diagnostic imaging capabilities. 5. The award to a single vendor, Siemens Medical Solutions USA, Inc., warrants scrutiny for potential future sole-source awards. 6. The contract is a delivery order under a larger agreement, suggesting a pre-existing framework.

Value Assessment

Rating: good

The contract value of $2.7 million for an XR CT Modality purchase order appears reasonable for advanced medical imaging equipment. Benchmarking against similar procurements for specialized CT scanners would provide a more precise value assessment. The fixed-price nature of the contract is a positive indicator for cost control. However, without specific details on the exact specifications and included services, a definitive value-for-money judgment is challenging.

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 5 bids were received, which suggests a healthy level of competition for this requirement. A competitive process generally leads to better pricing and terms for the government, as vendors strive to offer the most attractive proposals.

Taxpayer Impact: The full and open competition for this $2.7 million contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award.

Public Impact

Veterans receiving care at the VAMC Cleveland, OH, will benefit from potentially improved diagnostic imaging services. The contract supports the acquisition of advanced medical technology, enhancing the hospital's diagnostic capabilities. The delivery order is expected to be completed by March 2026, ensuring timely access to the equipment. The procurement supports the healthcare sector within the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for future sole-source awards if this vendor becomes the primary provider for this modality.
Reliance on a single vendor for specialized equipment could lead to lock-in and reduced negotiation leverage in the future.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent initial process.
Fixed-price contract type helps manage budget predictability.
The equipment is for a critical healthcare function, directly benefiting patient care.

Sector Analysis

The procurement falls within the Healthcare sector, specifically focusing on medical equipment for diagnostic imaging. The market for advanced CT scanners and related modalities is dominated by a few key global manufacturers. This contract represents a specific investment in upgrading or acquiring specialized imaging technology within a Department of Veterans Affairs facility. Comparable spending benchmarks would involve analyzing other VA or large hospital system procurements for similar XR CT systems.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As the award went to a large corporation (Siemens Medical Solutions USA, Inc.), the primary focus is on the prime contractor's capabilities. Further investigation would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Procurement
Diagnostic Imaging Systems
Department of Veterans Affairs Healthcare Services
Capital Equipment Purchases

Risk Flags

Potential vendor lock-in
Reliance on single supplier for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. MODALITY: XR CT PURCHASE ORDER: 541B22038 STATION: VAMC CLEVELAND, OH REQUIREMENT: ADMINISTRATIVE CORRECTIONS: SEPTEMBER 2022 CONSOLIDATION

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $2.7 million.

What is the period of performance?

Start: 2023-05-22. End: 2026-03-11.

What are the specific technical specifications of the XR CT Modality being procured?

The provided data does not detail the specific technical specifications of the XR CT Modality. This information would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract. Understanding these specifications is crucial for evaluating the equipment's capabilities, its suitability for the VAMC Cleveland's needs, and for comparing it against alternative technologies or vendor offerings. Without these details, it's difficult to assess if the procured system represents the best available technology or if it meets the clinical requirements effectively.

How does the $2.7 million price compare to similar XR CT Modality procurements by the VA or other federal agencies?

A direct comparison of the $2.7 million price to similar XR CT Modality procurements requires access to a broader dataset of federal contract awards for comparable equipment. Factors such as specific model, included features (e.g., resolution, speed, radiation dose reduction technologies), warranty, service agreements, and installation costs can significantly influence price. While $2.7 million is a substantial investment, its reasonableness hinges on these variables. Benchmarking against other VA procurements or those from large healthcare systems would be necessary to determine if this represents a competitive price point for the capabilities offered.

What is Siemens Medical Solutions USA, Inc.'s track record with the Department of Veterans Affairs for similar medical equipment?

Siemens Medical Solutions USA, Inc. is a major global provider of medical imaging equipment. Their track record with the Department of Veterans Affairs likely includes numerous past awards for various imaging modalities, including CT scanners. To assess their performance specifically for XR CT Modality procurements, a review of past contracts, delivery performance, any reported issues or contract disputes, and user feedback from VA facilities would be beneficial. A history of successful, on-time deliveries and high-quality equipment would be positive indicators.

What are the potential risks associated with a fixed-price contract for advanced medical equipment?

While fixed-price contracts are generally favored for cost control, potential risks for advanced medical equipment include the contractor underestimating costs, leading to potential quality compromises or disputes if the scope of work is not precisely defined. For the government, the risk is paying a premium if the initial price was set too high due to lack of precise market knowledge or if the contractor includes significant contingency. However, for a well-defined requirement like equipment purchase, the risk of cost escalation is largely borne by the contractor, which is often a positive for the government's budget predictability.

How will the performance of this XR CT Modality be measured and evaluated by the VA?

The performance of the XR CT Modality will be measured against the technical specifications and requirements outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Key performance indicators (KPIs) might include image quality metrics, system uptime, diagnostic accuracy, radiation dose efficiency, and adherence to delivery and installation schedules. The VA contracting officer and technical representatives will be responsible for monitoring these aspects throughout the contract period. Acceptance testing upon delivery and installation is a critical phase for performance evaluation.

What is the historical spending trend for irradiation apparatus manufacturing (NAICS 334517) by the Department of Veterans Affairs?

The provided data indicates the NAICS code for this contract is 334517 (Irradiation Apparatus Manufacturing). To analyze historical spending trends for this category by the VA, one would need to query federal procurement databases (like FPDS or USASpending.gov) for all contracts awarded under this NAICS code by the Department of Veterans Affairs over several fiscal years. This analysis would reveal the overall investment in such equipment, identify key contractors, and show fluctuations in spending that might indicate changing technological needs or budget priorities within the VA's medical equipment acquisition strategy.

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: 36A79723Q0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,742,048

Exercised Options: $2,742,048

Current Obligation: $2,742,048

Actual Outlays: $2,193,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline