VA awards $85K for irradiation apparatus to GE Precision Healthcare, highlighting a specific need in medical equipment

Contract Overview

Contract Amount: $85,463 ($85.5K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-20

End Date: 2026-09-30

Contract Duration: 679 days

Daily Burn Rate: $126/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NM BONE DEN 671B30054 NORTH CENTRAL FEDERAL CLINIC (NCFC) SAN ANTONIO, TX

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $85,463.2 to GE PRECISION HEALTHCARE LLC for work described as: NM BONE DEN 671B30054 NORTH CENTRAL FEDERAL CLINIC (NCFC) SAN ANTONIO, TX Key points: 1. The contract value of $85,463.20 appears modest, suggesting a focused procurement for a specific medical device. 2. Competition dynamics for this contract are noted as 'FULL AND OPEN COMPETITION', indicating a broad market solicitation. 3. The contract duration of 679 days (approximately 22 months) suggests a medium-term need for the equipment. 4. The fixed-price contract type offers cost certainty for the government, transferring some risk to the contractor. 5. The procurement falls under the 'Irradiation Apparatus Manufacturing' category, pointing to specialized medical technology. 6. The award to GE Precision Healthcare LLC suggests a reliance on established, potentially specialized, medical equipment providers.

Value Assessment

Rating: good

The contract value of $85,463.20 for an irradiation apparatus is relatively small in the context of large federal procurements. Benchmarking this specific type of equipment is challenging without more detailed specifications, but the price appears reasonable for a specialized medical device. The firm fixed-price structure provides cost predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit offers. The presence of 3 bids suggests a moderate level of competition for this specialized equipment. While not a large number, it indicates that the market was aware of and responded to the solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. The fact that multiple vendors submitted bids suggests that the government was not limited to a single provider, which can help drive down costs.

Public Impact

Veterans receiving care at the North Central Federal Clinic in San Antonio, Texas, will benefit from the use of this irradiation apparatus. The contract ensures the availability of specialized medical equipment for diagnostic or therapeutic purposes. The geographic impact is localized to San Antonio, Texas, serving the specific needs of the VA clinic there. The contract supports the healthcare workforce at the VA clinic by providing them with necessary tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of irradiation technology over the contract period.
Dependence on a single supplier for maintenance and support of the specific apparatus.

Positive Signals

Awarded through full and open competition, suggesting market availability and potential for competitive pricing.
Firm fixed-price contract type provides budget certainty for the VA.
The contract addresses a specific medical need within the VA system.

Sector Analysis

The procurement of irradiation apparatus falls within the broader medical equipment manufacturing and healthcare technology sector. This sector is characterized by rapid innovation, high research and development costs, and stringent regulatory requirements. Federal spending in this area often supports the modernization of healthcare facilities and the adoption of advanced diagnostic and therapeutic tools. Comparable spending benchmarks would typically involve analyzing procurements for similar specialized medical devices across various federal agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless GE Precision Healthcare LLC utilizes small businesses in its supply chain for this product.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and ensuring compliance with the terms and conditions. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Services
Diagnostic Imaging Equipment
Radiation Therapy Equipment

Risk Flags

Potential for technological obsolescence
Dependence on contractor for specialized maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $85,463.2 to GE PRECISION HEALTHCARE LLC. NM BONE DEN 671B30054 NORTH CENTRAL FEDERAL CLINIC (NCFC) SAN ANTONIO, TX

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 $85,463.2.

What is the period of performance?

Start: 2024-11-20. End: 2026-09-30.

What is the specific type and intended use of the 'Irradiation Apparatus' being procured?

The specific type of 'Irradiation Apparatus' is not detailed in the provided data. However, within the medical context, irradiation apparatus can refer to a range of equipment used for therapeutic or diagnostic purposes. This could include linear accelerators for radiation therapy in cancer treatment, X-ray machines for imaging, or equipment for sterilization of medical supplies using radiation. The procurement by the Department of Veterans Affairs (VA) suggests it is intended for patient care within a federal healthcare clinic, likely for diagnostic imaging or therapeutic treatment, aligning with the agency's mission to serve veterans' health needs.

How does the $85,463.20 contract value compare to similar procurements for irradiation apparatus by the VA or other federal agencies?

Without specific details on the exact model and capabilities of the irradiation apparatus, a direct comparison of the $85,463.20 contract value is difficult. However, this amount appears to be on the lower end for significant medical equipment like linear accelerators, which can cost millions. It might represent a smaller, more specialized unit, a component, or a service contract related to such equipment. Federal procurement data for similar items would need to be analyzed by filtering for the Product Service Code (PSC) or North American Industry Classification System (NAICS) code related to irradiation apparatus and comparing award values over a relevant period. The modest value suggests this might be for a specific clinic's needs rather than a large-scale system-wide deployment.

What is GE Precision Healthcare LLC's track record with the federal government, particularly the VA, for similar equipment?

GE Precision Healthcare LLC, as part of GE HealthCare, has a significant track record of supplying medical equipment to the federal government, including the Department of Veterans Affairs. Analyzing historical contract data would reveal the extent and nature of their previous awards. This specific contract for an irradiation apparatus would be one data point. A review of past performance would assess their reliability, delivery timeliness, and the quality of equipment provided on prior VA contracts. Their established presence in the healthcare technology market suggests a level of experience and capability relevant to this procurement.

What are the potential risks associated with this contract, such as performance issues, delivery delays, or technological obsolescence?

Potential risks for this contract include performance issues if the delivered irradiation apparatus does not meet specifications or requires frequent repairs. Delivery delays could impact the clinic's ability to provide necessary services. Technological obsolescence is also a risk, as medical technology evolves rapidly; the apparatus might become outdated before the end of its expected useful life. Furthermore, reliance on a single contractor for maintenance and support could pose a risk if the contractor's service quality declines or if they exit the market. The firm fixed-price nature, while beneficial for cost control, could incentivize the contractor to cut corners on quality if not adequately monitored.

How does this contract fit into the VA's broader strategy for modernizing its medical equipment and improving healthcare delivery for veterans?

This contract, while small in dollar value, likely represents a component of the VA's ongoing efforts to maintain and upgrade its medical equipment inventory across its network of clinics and hospitals. Modernizing medical equipment is crucial for providing veterans with access to state-of-the-art diagnostic and treatment capabilities, aiming to improve health outcomes and patient satisfaction. Procurements like this ensure that even smaller clinics have access to specialized technology. It reflects a strategy of targeted investments to meet specific clinical needs, ensuring that the VA healthcare system remains capable of addressing a wide range of medical conditions faced by the veteran population.

What is the historical spending pattern for irradiation apparatus by the Department of Veterans Affairs over the last five fiscal years?

To determine the historical spending pattern for irradiation apparatus by the VA, a detailed analysis of federal procurement databases (like FPDS) would be necessary. This would involve filtering contracts by the VA as the awarding agency, and by relevant Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes associated with irradiation apparatus manufacturing or medical imaging/therapy equipment. Summing the award amounts over the last five fiscal years would reveal trends, total expenditure, and the frequency of such procurements. This analysis would help contextualize the current $85K award within the VA's overall investment in this technology.

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: 36A79724Q0002

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: $85,463

Exercised Options: $85,463

Current Obligation: $85,463

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