VA Awards $3.77M for XR MRI System to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $3,769,114 ($3.8M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-14

End Date: 2026-08-29

Contract Duration: 1,080 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: XR MRI PURCHASE ORDER: 648B38011 STATION: VAMC PORTLAND OR REQUIREMENT: JAN FY23 CONSOLIDATION

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: MODALITY: XR MRI PURCHASE ORDER: 648B38011 STATION: VAMC PORTLAND OR REQUIREMENT: JAN FY23 CONSOLIDATION Key points: 1. The Department of Veterans Affairs awarded a significant contract for an XR MRI system. 2. Siemens Medical Solutions USA, Inc. is the sole awardee, indicating a specific supplier relationship. 3. The contract value is substantial, requiring careful review of pricing and necessity. 4. The sector involves advanced medical equipment, crucial for patient care within the VA.

Value Assessment

Rating: fair

The contract value of $3.77M for an XR MRI system appears within a reasonable range for specialized medical equipment. However, without specific details on the system's capabilities and market comparables, a definitive assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the specific outcome here warrants scrutiny to ensure the best possible price was achieved.

Taxpayer Impact: Taxpayer funds are being utilized for advanced medical equipment to serve veterans. Ensuring competitive pricing and necessity maximizes the value of this investment.

Public Impact

Enhances diagnostic capabilities for veterans at VAMC Portland. Potential for improved patient outcomes through advanced imaging technology. Supports the VA's mission to provide comprehensive healthcare services. Investment in modern medical infrastructure for long-term care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation due to economic price adjustment clause.
Need to verify if this specific XR MRI model is the most cost-effective solution.

Positive Signals

Awarded under full and open competition.
Addresses a critical healthcare requirement for veterans.

Sector Analysis

The healthcare sector, particularly medical equipment procurement, involves high costs and specialized technology. Benchmarks for similar advanced imaging systems are essential for evaluating this award's competitiveness and value.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight processes should be in place to monitor delivery, performance, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to EPA.
Need for detailed justification of XR technology's added value.
Ensuring competitive pricing was achieved despite full and open competition.
Long-term maintenance and operational costs not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. MODALITY: XR MRI PURCHASE ORDER: 648B38011 STATION: VAMC PORTLAND OR REQUIREMENT: JAN FY23 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 $3.8 million.

What is the period of performance?

Start: 2023-09-14. End: 2026-08-29.

What is the specific technological advantage of this XR MRI system compared to standard MRI machines, and does it justify the cost?

The 'XR' designation suggests an advanced or extended reality MRI system, potentially offering enhanced visualization, simulation, or augmented reality features during scans. The justification for its cost hinges on whether these advanced capabilities translate into demonstrably better diagnostic accuracy, improved patient experience, or more efficient procedures that outweigh the premium over conventional MRI systems.

How will the economic price adjustment clause impact the final cost, and what are the triggers for adjustment?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as inflation or material costs. The specific triggers and formula for adjustment are detailed within the contract's terms. This clause introduces uncertainty regarding the final expenditure, potentially increasing the total cost beyond the initial award amount if economic conditions lead to significant price hikes.

What metrics will be used to assess the effectiveness of this XR MRI system in improving veteran healthcare outcomes?

Effectiveness will likely be measured through a combination of clinical and operational metrics. Clinically, this could include diagnostic accuracy rates, detection of specific conditions, and patient outcomes post-diagnosis. Operationally, metrics might involve scan times, patient throughput, system uptime, and user (clinician) satisfaction. Tracking these indicators over the contract period will provide insight into the system's value.

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: 36A79723Q0004

Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $3,769,114

Exercised Options: $3,769,114

Current Obligation: $3,769,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline