VA awards $2.9M for NM-PET/CT equipment to GE Healthcare, with full and open competition

Contract Overview

Contract Amount: $2,903,033 ($2.9M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-26

End Date: 2026-12-01

Contract Duration: 888 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NM-PET/CT 603B44014 VAMC LOUISVILLE KY SPECIAL CONSOLIDATION LOUISVILEE

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to GE PRECISION HEALTHCARE LLC for work described as: NM-PET/CT 603B44014 VAMC LOUISVILLE KY SPECIAL CONSOLIDATION LOUISVILEE Key points: 1. Spending focuses on advanced medical imaging technology for veterans. 2. GE Healthcare is a major player in the medical equipment market. 3. Potential risks include technology obsolescence and integration challenges. 4. The sector is characterized by high R&D costs and regulatory hurdles.

Value Assessment

Rating: good

The award amount of $2.9M for a NM-PET/CT system appears reasonable given the complexity and specialized nature of such medical equipment. Benchmarking against similar high-end imaging systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust process for price discovery and ensuring the government received competitive offers. This method generally leads to better pricing outcomes.

Taxpayer Impact: The competitive process aims to ensure taxpayer funds are used efficiently for necessary medical equipment.

Public Impact

Improved diagnostic capabilities for veterans at VAMC Louisville. Access to advanced medical imaging technology for patient care. Potential for faster and more accurate disease detection and treatment planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term maintenance and service costs not detailed.
Potential for future upgrades or replacements needed.
Integration with existing VAMC IT infrastructure.

Positive Signals

Utilizes full and open competition.
Awarded to a reputable manufacturer.
Addresses critical healthcare needs for veterans.

Sector Analysis

The healthcare sector, particularly medical equipment, involves significant capital investment and rapid technological advancement. Spending benchmarks vary widely based on equipment type and capabilities.

Small Business Impact

This contract was awarded to GE Precision Healthcare LLC, a large corporation. There is no indication of small business participation in this specific award, which is common for large, specialized equipment procurements.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and proper execution.

Related Government Programs

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

Risk Flags

Technology obsolescence risk.
High maintenance and service costs.
Integration challenges with existing systems.
Dependence on a single supplier for specialized parts/service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to GE PRECISION HEALTHCARE LLC. NM-PET/CT 603B44014 VAMC LOUISVILLE KY SPECIAL CONSOLIDATION LOUISVILEE

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE LLC.

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 $2.9 million.

What is the period of performance?

Start: 2024-06-26. End: 2026-12-01.

What is the expected lifespan of this NM-PET/CT equipment, and are there plans for future replacements or upgrades?

The contract duration extends to December 2026, suggesting the initial deployment and operational phase. However, the expected lifespan of advanced medical imaging equipment typically exceeds this period. Detailed lifecycle planning, including maintenance schedules, upgrade paths, and eventual replacement strategies, is crucial for long-term value and to avoid technological obsolescence, ensuring continued high-quality patient care.

How does the per-unit cost compare to similar NM-PET/CT systems procured by other federal agencies or large healthcare systems?

Without specific benchmark data for comparable NM-PET/CT systems, a precise cost comparison is difficult. However, the use of full and open competition suggests that the price achieved is likely competitive within the market. Further analysis would require access to anonymized pricing data from similar procurements to validate value for money.

What are the key performance indicators (KPIs) for this equipment, and how will their achievement be measured to ensure effectiveness?

Effectiveness will likely be measured through uptime, image quality metrics, and diagnostic accuracy improvements reported by VAMC Louisville clinicians. The contract should ideally include performance standards and remedies for non-performance. Regular reviews with GE Healthcare and clinical staff are essential to monitor usage, identify any issues, and ensure the equipment meets the intended healthcare objectives for veterans.

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: 36A79724Q0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,903,033

Exercised Options: $2,903,033

Current Obligation: $2,903,033

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline