VA awards $2.6M for irradiation apparatus, highlighting GE Precision Healthcare's role in medical equipment

Contract Overview

Contract Amount: $2,646,752 ($2.6M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-27

End Date: 2026-12-08

Contract Duration: 833 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: LOUISVILLE CONSOLIDATION

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to GE PRECISION HEALTHCARE LLC for work described as: LOUISVILLE CONSOLIDATION Key points: 1. Contract value of $2.6 million represents a significant investment in specialized medical equipment. 2. Full and open competition suggests a robust market for these services, potentially driving competitive pricing. 3. The contract duration of over two years indicates a sustained need for these critical medical supplies. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award to GE Precision Healthcare LLC points to their established position in the medical technology sector. 6. This spending supports the Department of Veterans Affairs' mission to provide advanced healthcare services.

Value Assessment

Rating: good

The contract value of $2.6 million for irradiation apparatus appears reasonable given the specialized nature of the equipment and the contract duration. Benchmarking against similar contracts for advanced medical imaging or treatment devices would provide a clearer picture of value for money. However, the full and open competition suggests that pricing was likely scrutinized against market alternatives. The fixed-price nature of the award also provides cost certainty.

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 4 bidders suggests a healthy level of competition for this specialized equipment. This competitive environment is generally favorable for price discovery and ensures the government receives offers from a range of qualified suppliers.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

Veterans will benefit from access to advanced medical equipment, potentially improving diagnostic accuracy and treatment outcomes. The contract ensures the availability of critical irradiation apparatus for VA medical facilities. Geographic impact is primarily within the service areas of the VA facilities receiving the equipment, likely concentrated in Wisconsin given the 'st' code. The acquisition of this specialized equipment supports the healthcare workforce by providing them with necessary tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single vendor if follow-on contracts are not competed.
Ensuring adequate training and maintenance support for the specialized equipment is crucial.
The specific capabilities and limitations of the awarded irradiation apparatus need to be clearly defined to meet VA needs.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Fixed-price contract type provides cost certainty.
The contract supports critical healthcare infrastructure for veterans.
GE Precision Healthcare LLC is a known entity in the medical technology space.

Sector Analysis

The market for medical irradiation apparatus falls within the broader healthcare technology and medical device manufacturing sector. This sector is characterized by high innovation, significant R&D investment, and stringent regulatory requirements. Spending in this area is driven by the need for advanced diagnostic and therapeutic tools in hospitals and healthcare systems. Comparable spending benchmarks would involve analyzing procurements of similar high-value medical equipment by other federal agencies or large healthcare networks.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the supply chain or provide related services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, acceptance testing of the equipment, and adherence to delivery schedules. Accountability is ensured through the contract terms and conditions, including payment milestones tied to performance. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data may not be publicly available.

Related Government Programs

Medical Equipment Procurement
Radiology and Imaging Equipment
Veterans Health Administration Services
Department of Veterans Affairs Contracts

Risk Flags

Potential for obsolescence of technology over the contract lifespan.
Dependence on contractor for specialized maintenance and repair.
Ensuring interoperability with existing VA healthcare IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to GE PRECISION HEALTHCARE LLC. LOUISVILLE CONSOLIDATION

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 $2.6 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-12-08.

What is the track record of GE Precision Healthcare LLC with the Department of Veterans Affairs?

GE Precision Healthcare LLC has a history of contracts with the Department of Veterans Affairs, primarily in the area of medical equipment and technology. Analyzing past performance on similar contracts, including delivery timeliness, equipment reliability, and adherence to specifications, would provide insight into their capabilities. Reviewing any past performance issues or positive feedback from the VA would offer a more comprehensive understanding of their suitability for this current award. The fact that they were awarded this contract suggests a satisfactory performance history or a competitive offering that met the VA's requirements.

How does the value of this contract compare to similar irradiation apparatus procurements by other federal agencies?

Benchmarking this $2.6 million contract against similar procurements requires access to detailed data on comparable irradiation apparatus. Factors such as specific technical capabilities, age of the equipment, manufacturer, and contract duration significantly influence pricing. Without direct comparisons of like-for-like equipment, it's challenging to definitively assess value. However, the full and open competition suggests that the VA sought competitive bids, implying an effort to secure market-based pricing. Further analysis would involve identifying contracts with similar specifications and award dates across agencies like the Department of Defense or HHS.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays in delivery, equipment malfunction or underperformance, and the need for specialized maintenance and training. The VA mitigates these risks through the use of a firm fixed-price contract, which shifts some financial risk to the contractor. Contract clauses likely stipulate performance standards, acceptance criteria, and warranty provisions. The contractor's established presence in the market suggests a lower risk of non-performance. Mitigation also involves the VA's oversight, including inspection and acceptance processes, to ensure the equipment meets all specified requirements before final payment.

How effective is the Department of Veterans Affairs in procuring specialized medical equipment through competitive bidding?

The Department of Veterans Affairs generally employs competitive bidding processes for specialized medical equipment, as demonstrated by this contract's 'full and open competition' award. The effectiveness can be gauged by the number of bidders, the competitiveness of the pricing achieved, and the successful deployment of the equipment. While this specific award indicates a competitive process with four bidders, a broader assessment would involve analyzing a larger sample of VA medical equipment procurements to identify trends in competition levels, cost savings, and long-term equipment performance. The VA's mission-critical need for advanced technology necessitates effective procurement strategies.

What is the historical spending trend for irradiation apparatus by the Department of Veterans Affairs?

Analyzing historical spending trends for irradiation apparatus by the VA would reveal patterns in procurement volume, average contract values, and key suppliers over time. This specific contract of $2.6 million contributes to the VA's overall expenditure in this category. Understanding past spending can help identify fluctuations in demand, potential budget cycles, and the evolution of technology requirements. A trend analysis might show whether the VA is increasing, decreasing, or maintaining its investment in this type of equipment, and whether spending is concentrated with specific manufacturers or spread across multiple vendors.

What are the implications of a fixed-price contract for this type of specialized medical equipment?

A firm fixed-price contract for specialized medical equipment like irradiation apparatus offers significant advantages in cost certainty for the government. The contractor assumes the primary risk for cost overruns, meaning the VA knows the total expenditure upfront, assuming no contract modifications. This structure incentivizes the contractor to manage costs efficiently. For the VA, it simplifies budgeting and financial planning. However, it can sometimes lead to contractors incorporating higher contingency into their bids to cover potential risks, potentially increasing the initial price compared to cost-reimbursement contracts, though this is often offset by the reduced risk of unexpected cost increases.

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: 4

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: $2,646,752

Exercised Options: $2,646,752

Current Obligation: $2,646,752

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