VA Awards $3.5M for XR MRI Equipment to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $3,506,819 ($3.5M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-17

End Date: 2027-09-30

Contract Duration: 1,108 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: XR MRI, EQ 516-B40027, TKY 516-B40024, ST. PETERBURG, FL, CONSOLIDATION

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: XR MRI, EQ 516-B40027, TKY 516-B40024, ST. PETERBURG, FL, CONSOLIDATION Key points: 1. Contract awarded to a single, established vendor for specialized medical equipment. 2. The award utilizes a firm fixed-price contract, providing cost certainty. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration extends over three years, indicating a significant investment.

Value Assessment

Rating: good

The contract price of $3.5 million for XR MRI equipment appears reasonable given the specialized nature and vendor. Benchmarking against similar complex medical imaging systems 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 the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential medical equipment.

Public Impact

Veterans will receive advanced diagnostic imaging capabilities with the new XR MRI equipment. Improved medical imaging can lead to more accurate diagnoses and better patient outcomes. The investment supports the VA's modernization of healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single vendor for maintenance and support.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract provides budget predictability.
Modernization of critical medical technology.

Sector Analysis

The Department of Veterans Affairs is investing in advanced medical technology, specifically imaging equipment. Spending in this sector is driven by the need for state-of-the-art diagnostics to improve patient care and outcomes.

Small Business Impact

While this specific contract was awarded to a large corporation, the VA generally aims to include small businesses in its contracting opportunities through set-asides in other procurements. This award does not appear to directly benefit small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely delivery, quality of equipment, and adherence to the terms and conditions. Regular performance reviews are crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in for future upgrades and maintenance.
Reliance on a single supplier for specialized equipment.
Need for ongoing training and technical support.
Long-term cost of ownership beyond initial purchase.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. XR MRI, EQ 516-B40027, TKY 516-B40024, ST. PETERBURG, FL, 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 $3.5 million.

What is the period of performance?

Start: 2024-09-17. End: 2027-09-30.

What is the specific technological advantage of XR MRI over existing MRI technology for veteran care?

XR MRI technology, often referring to advanced imaging techniques like those incorporating AI or novel reconstruction algorithms, can potentially offer enhanced image resolution, faster scan times, or improved visualization of specific anatomical structures. This could lead to more precise diagnoses, reduced need for repeat scans, and ultimately better treatment planning for veterans.

What are the long-term maintenance and service costs associated with this Siemens XR MRI system?

Long-term maintenance and service costs are a critical consideration for specialized medical equipment. While the initial award is for the equipment, ongoing service contracts with Siemens will be necessary. These costs should be factored into the total cost of ownership and may represent a significant expenditure over the system's lifespan, potentially exceeding the initial purchase price.

How does the VA ensure the effective utilization and integration of this new XR MRI technology into its existing clinical workflows?

The VA ensures effective utilization through comprehensive training programs for radiologists and technicians, development of standardized operating procedures, and integration with existing Picture Archiving and Communication Systems (PACS). Post-implementation reviews and feedback mechanisms help identify and address any workflow challenges, ensuring the technology maximizes diagnostic efficiency and patient benefit.

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: 36A79724Q0007

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: $3,506,819

Exercised Options: $3,506,819

Current Obligation: $3,506,819

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline