VA Awards $2.3M for XR CT Scanner to GE Healthcare Under Full and Open Competition

Contract Overview

Contract Amount: $2,330,797 ($2.3M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-11

End Date: 2026-05-03

Contract Duration: 599 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: XR CT PURCHASE ORDER: EQ PO#554B33006 TKY PO#554B3303 STATION: VAMC AURORA CO REQUIREMENT: SEPT FY23 TKY CONSOLIDATION

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to GE PRECISION HEALTHCARE LLC for work described as: MODALITY: XR CT PURCHASE ORDER: EQ PO#554B33006 TKY PO#554B3303 STATION: VAMC AURORA CO REQUIREMENT: SEPT FY23 TKY CONSOLIDATION Key points: 1. The Department of Veterans Affairs is acquiring an XR CT scanner for VAMC Aurora, CO. 2. GE Precision Healthcare LLC secured the contract through full and open competition. 3. The contract has a fixed price with economic price adjustment clause. 4. This purchase aims to consolidate existing CT capabilities. 5. The award is a delivery order against a larger contract.

Value Assessment

Rating: good

The contract value of $2,330,796.97 appears reasonable for a specialized medical imaging device like an XR CT scanner, especially considering it's a delivery order against a potentially larger IDIQ contract. Benchmarking against similar high-end CT scanner procurements would provide a more precise 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 fair market value.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring efficient use of federal funds.

Public Impact

Veterans in Aurora, CO, will benefit from upgraded medical imaging technology. Improved diagnostic capabilities can lead to earlier and more accurate disease detection. The acquisition supports the VA's modernization efforts for healthcare infrastructure. This investment in advanced medical equipment underscores the VA's commitment to veteran care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases beyond initial projections.
Long-term maintenance and service costs for the XR CT scanner are not detailed.
Potential for obsolescence of technology over the contract duration.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Consolidation of CT capabilities may lead to operational efficiencies.
Delivery order against an existing contract suggests a streamlined procurement process.

Sector Analysis

The procurement falls within the 'Irradiation Apparatus Manufacturing' sector, specifically for advanced medical imaging equipment. Spending benchmarks for similar high-end CT scanners vary significantly based on features and manufacturer, but this award appears within a typical range for such specialized technology.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, GE Precision Healthcare LLC, is a large business. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The award is a delivery order against a contract, suggesting that the initial contract underwent a thorough review and oversight process. The VA's procurement system is designed to ensure accountability, but specific oversight details for this delivery order are not provided.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Economic Price Adjustment clause.
Lack of detail on long-term operational and maintenance costs.
Risk of technological obsolescence within the contract period.
No explicit mention of small business participation or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to GE PRECISION HEALTHCARE LLC. MODALITY: XR CT PURCHASE ORDER: EQ PO#554B33006 TKY PO#554B3303 STATION: VAMC AURORA CO REQUIREMENT: SEPT FY23 TKY 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 $2.3 million.

What is the period of performance?

Start: 2024-09-11. End: 2026-05-03.

What is the specific advantage of an XR CT scanner over traditional CT scanners for veteran care?

XR CT scanners, often referring to advanced multi-detector or cone-beam CT systems, offer enhanced imaging capabilities such as faster scan times, higher resolution, and potentially reduced radiation doses compared to older CT technologies. For veteran care, this translates to more precise diagnostics for a range of conditions, including complex trauma, oncological imaging, and orthopedic assessments, potentially leading to improved treatment outcomes and patient safety.

How does the 'economic price adjustment' clause mitigate or exacerbate risk for the VA?

The economic price adjustment (EPA) clause in this fixed-price contract allows for adjustments to the contract price based on fluctuations in specific economic factors, such as inflation or material costs. While it can mitigate the risk of contractor default due to unforeseen cost increases and ensure supply chain stability, it also introduces risk for the VA by potentially increasing the final contract cost beyond initial budget projections if those economic factors rise significantly.

What is the expected impact of this technology consolidation on VAMC Aurora's operational efficiency?

Consolidating CT capabilities with a new XR CT scanner is expected to streamline workflows, reduce equipment downtime, and potentially centralize maintenance and training efforts. This consolidation could lead to improved scheduling efficiency, faster patient throughput, and better utilization of technical staff. The overall impact should be a more efficient and effective diagnostic imaging service for the veterans served by VAMC Aurora.

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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $2,330,797

Exercised Options: $2,330,797

Current Obligation: $2,330,797

Actual Outlays: $1,599,951

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