VA awards $3.65M for XR MRI system at West Palm Beach facility, enhancing diagnostic capabilities

Contract Overview

Contract Amount: $3,652,731 ($3.7M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-15

End Date: 2026-06-30

Contract Duration: 684 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR MRI PURCHASE ORDER: EQ 548B30023 TKY 548B30044 STATION: VAMC WEST PALM BEACH, FLORIDA REQUIREMENT: MAGNETOM VIDA - SYSTEM WITH TURNKEY INSTALLATION

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: MODALITY: XR MRI PURCHASE ORDER: EQ 548B30023 TKY 548B30044 STATION: VAMC WEST PALM BEACH, FLORIDA REQUIREMENT: MAGNETOM VIDA - SYSTEM WITH TURNKEY INSTALLATION Key points: 1. The contract aims to procure advanced imaging technology, potentially improving patient outcomes and diagnostic accuracy. 2. Competition dynamics for specialized medical equipment can influence pricing and vendor selection. 3. Delivery timelines and installation requirements present potential execution risks. 4. This acquisition aligns with the VA's ongoing efforts to modernize its healthcare infrastructure. 5. The chosen modality, XR MRI, represents a significant technological advancement in medical imaging. 6. The contract's firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: good

The awarded amount of $3.65 million for a MAGNETOM VIDA XR MRI system with turnkey installation appears within a reasonable range for high-end medical imaging equipment. Benchmarking against similar procurements for advanced MRI systems by other federal agencies or large healthcare networks would provide a more precise value-for-money assessment. Factors such as included software, warranty, and service agreements significantly influence the overall cost and should be considered in a comprehensive value analysis.

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. The presence of four bidders suggests a reasonably competitive market for this type of specialized medical equipment. A higher number of bidders generally leads to more competitive pricing and a wider selection of solutions, though specialized equipment can sometimes limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government secures the best possible value for its investment in advanced medical technology.

Public Impact

Veterans receiving care at the VAMC West Palm Beach, Florida, will benefit from enhanced diagnostic imaging services. The acquisition of an XR MRI system will improve the facility's capacity for advanced radiological examinations. This investment supports the modernization of healthcare services provided by the Department of Veterans Affairs. The installation and operation of the new MRI system may require specialized technical support and training for VA staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential delays in installation or system calibration could impact patient care schedules.
Ensuring adequate training for medical staff on the new XR MRI technology is crucial for effective utilization.
Long-term maintenance and service costs for advanced imaging equipment can be substantial.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the VA.
Awarding to a single vendor for a complex system ensures integrated installation and support.
The acquisition addresses a specific need for advanced diagnostic imaging at the West Palm Beach VAMC.

Sector Analysis

The medical imaging equipment sector is characterized by high technological innovation and significant capital investment. Companies like Siemens are major players in this market, offering advanced MRI, CT, and X-ray systems. Federal agencies, particularly the Department of Defense and the Department of Veterans Affairs, are significant purchasers of such equipment to maintain state-of-the-art healthcare facilities. Spending in this category is often driven by the need to replace aging equipment, adopt new diagnostic capabilities, and improve patient outcomes.

Small Business Impact

This contract was awarded to Siemens Medical Solutions USA, Inc., a large business entity. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but could arise in areas such as installation support, maintenance, or related services, depending on the prime contractor's strategy.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its procurement processes, including contract award and administration. The Inspector General's office provides an independent layer of oversight to detect and prevent fraud, waste, and abuse. Transparency is generally maintained through public contract databases, though specific performance metrics and ongoing oversight details are not always publicly disclosed.

Related Government Programs

VA Medical Equipment Procurement
Advanced Diagnostic Imaging Systems
Radiological Apparatus Manufacturing
Department of Veterans Affairs Healthcare Modernization

Risk Flags

Potential for installation delays
Ensuring adequate staff training
Long-term maintenance cost management
Integration with existing IT infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. MODALITY: XR MRI PURCHASE ORDER: EQ 548B30023 TKY 548B30044 STATION: VAMC WEST PALM BEACH, FLORIDA REQUIREMENT: MAGNETOM VIDA - SYSTEM WITH TURNKEY INSTALLATION

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 $3.7 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-06-30.

What is the track record of Siemens Medical Solutions USA, Inc. in fulfilling similar federal contracts for advanced MRI systems?

Siemens Medical Solutions USA, Inc. has a substantial history of supplying medical equipment, including MRI systems, to federal agencies, particularly the Department of Veterans Affairs and the Department of Defense. Their track record typically involves delivering complex systems with installation and support services. While specific performance metrics for past contracts are not detailed here, their consistent presence in federal procurements suggests a capacity to meet government requirements. Analyzing past contract performance data, such as on-time delivery, adherence to specifications, and customer satisfaction ratings, would provide a more granular assessment of their reliability for this specific XR MRI purchase.

How does the awarded price of $3.65 million compare to market rates for similar XR MRI systems with turnkey installation?

The awarded price of $3.65 million for the MAGNETOM VIDA XR MRI system with turnkey installation needs to be benchmarked against current market rates for comparable high-end medical imaging equipment. Factors influencing this price include the specific configuration, software packages, warranty duration, and the scope of installation services. Independent market research, including quotes from other vendors for similar systems and analysis of recent sales data in the healthcare sector, would be necessary for a definitive comparison. However, for advanced MRI systems, this price point is not unusual, reflecting the sophisticated technology and comprehensive service package typically included.

What are the primary risks associated with the installation and operationalization of this advanced MRI system?

The primary risks associated with the installation and operationalization of this advanced MRI system include potential delays in delivery and installation due to supply chain issues or site preparation challenges. Technical risks involve ensuring seamless integration with existing hospital IT infrastructure and achieving optimal system calibration for accurate diagnostics. Furthermore, there's a risk related to user adoption and proficiency; adequate and timely training for radiologists, technicians, and support staff is critical to maximize the system's benefits and prevent errors. Finally, unforeseen maintenance issues or the need for specialized, costly repairs post-warranty represent ongoing operational risks.

What is the expected impact of this new XR MRI system on the diagnostic capabilities and patient care at VAMC West Palm Beach?

The acquisition of the MAGNETOM VIDA XR MRI system is expected to significantly enhance the diagnostic capabilities at the VAMC West Palm Beach. XR MRI technology offers advanced imaging features, potentially providing higher resolution, faster scan times, and improved visualization of soft tissues and complex anatomical structures compared to conventional MRI. This can lead to more accurate diagnoses, earlier detection of diseases, and better treatment planning for a wide range of conditions, including neurological disorders, musculoskeletal injuries, and oncological cases. Consequently, patients may benefit from more precise diagnoses, reduced need for invasive procedures, and improved overall quality of care.

How does this contract align with historical spending patterns for advanced medical imaging equipment within the VA?

This contract aligns with the Department of Veterans Affairs' historical spending patterns on advanced medical imaging equipment, which consistently includes significant investments in MRI, CT, and PET scanners. The VA prioritizes modernizing its healthcare facilities to provide state-of-the-art care to veterans. Procurements of high-end imaging systems like the MAGNETOM VIDA XR MRI are typical as the agency seeks to upgrade its technological infrastructure and expand its diagnostic service offerings. Analyzing VA's budget allocations and past contract awards for similar equipment would confirm that this $3.65 million expenditure is consistent with its strategic healthcare modernization initiatives.

What are the key performance indicators (KPIs) that will be used to evaluate the success of this contract and the installed system?

Key performance indicators (KPIs) for evaluating the success of this contract and the installed XR MRI system would likely include on-time delivery and installation, adherence to technical specifications, and successful system acceptance testing. Post-installation, KPIs would focus on system uptime and reliability, scan throughput (number of scans completed per day/week), diagnostic image quality metrics (e.g., signal-to-noise ratio, resolution), and patient and clinician satisfaction surveys. Furthermore, tracking the impact on diagnostic accuracy rates and the reduction in the need for alternative, potentially more invasive, diagnostic procedures would be crucial indicators of the system's clinical and operational success.

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: 36A79724Q0003

Offers Received: 4

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: $3,652,731

Exercised Options: $3,652,731

Current Obligation: $3,652,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline