VA Awards $3.9M XR MRI Contract to Siemens for Augusta Facility

Contract Overview

Contract Amount: $3,898,706 ($3.9M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-12

End Date: 2026-05-18

Contract Duration: 888 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR MRI PURCHASE ORDER: 509B32017 STATION: VAMC AUGUSTA GA REQUIREMENT: JAN FY23

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: MODALITY: XR MRI PURCHASE ORDER: 509B32017 STATION: VAMC AUGUSTA GA REQUIREMENT: JAN FY23 Key points: 1. Contract awarded to a single, established vendor, Siemens Medical Solutions USA, Inc. 2. The purchase order is for an XR MRI system, a specialized medical device. 3. The contract duration is approximately 2.5 years, ending in May 2026. 4. The award was made under full and open competition. 5. The total award amount is $3,898,706.45.

Value Assessment

Rating: good

The $3.9M award for an XR MRI system appears reasonable given the specialized nature of the equipment. Benchmarking against similar advanced medical imaging 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 potentially better pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential medical equipment.

Public Impact

Veterans in Augusta, GA, will benefit from advanced XR MRI technology for improved diagnostics. The procurement supports the Department of Veterans Affairs' mission to provide quality healthcare. This investment in medical equipment signifies a commitment to upgrading healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Clear requirement for advanced medical technology.
Established vendor with likely relevant experience.

Sector Analysis

The procurement falls within the healthcare sector, specifically medical equipment manufacturing and supply. Spending on advanced diagnostic imaging like XR MRI is crucial for modern healthcare facilities.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor, Siemens Medical Solutions USA, Inc., is a large corporation, suggesting limited direct opportunities for small businesses in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Standard procurement regulations and contract management practices would apply to ensure performance and accountability.

Related Government Programs

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

Risk Flags

Potential for limited competition if 'XR MRI' is a niche technology.
Reliance on a single vendor for specialized equipment.
Need to confirm if pricing is competitive against market benchmarks.
Contract duration extends into FY26, requiring ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. MODALITY: XR MRI PURCHASE ORDER: 509B32017 STATION: VAMC AUGUSTA GA REQUIREMENT: JAN FY23

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 $3.9 million.

What is the period of performance?

Start: 2023-12-12. End: 2026-05-18.

What is the specific clinical advantage of an XR MRI over standard MRI for veteran care?

An XR MRI likely refers to an advanced MRI technology, potentially offering enhanced resolution, faster scan times, or specialized imaging capabilities (e.g., for specific anatomical regions or conditions). The clinical advantage would depend on the specific 'XR' designation, but generally, such advancements aim to improve diagnostic accuracy, enable earlier detection of diseases, and potentially reduce the need for more invasive procedures, ultimately benefiting patient outcomes for veterans.

Are there any identified risks associated with Siemens Medical Solutions USA, Inc. as a sole awardee in this competitive process?

While awarded under full and open competition, the fact that Siemens was the sole awardee warrants a review of the bidding process. Risks could include potential price inflation if competition was less robust than anticipated, or if Siemens holds a dominant market position for this specific technology. However, without further data on other bids or past performance, it's difficult to assess specific risks beyond standard vendor management.

How does this $3.9M investment align with the VA's overall medical equipment modernization strategy?

This $3.9M investment in an XR MRI system aligns with the VA's broader strategy to modernize its healthcare infrastructure and provide state-of-the-art medical technology to veterans. Such procurements are essential for maintaining diagnostic capabilities, improving patient care, and ensuring the VA remains competitive with civilian healthcare providers. The specific alignment would be detailed in the VA's capital investment and modernization plans.

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: 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: $3,898,706

Exercised Options: $3,898,706

Current Obligation: $3,898,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline