VA awards $392K for administrative corrections at VAMC Tampa, FL, with Accuray Inc

Contract Overview

Contract Amount: $3,921,382 ($3.9M)

Contractor: Accuray Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-15

End Date: 2026-09-30

Contract Duration: 533 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: RT LINAC STATION: VAMC TAMPA, FL PURCHASE ORDER: 36A79725N0093, 673B40032, 673B40036 REQUIREMENT: ADMINISTRATIVE CORRECTIONS

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53717

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to ACCURAY INCORPORATED for work described as: MODALITY: RT LINAC STATION: VAMC TAMPA, FL PURCHASE ORDER: 36A79725N0093, 673B40032, 673B40036 REQUIREMENT: ADMINISTRATIVE CORRECTIONS Key points: 1. Contract focuses on administrative corrections, not direct medical equipment purchase. 2. Sole-source award raises questions about competition and potential cost savings. 3. Limited competition may indicate a specific need or a lack of market alternatives. 4. Contract duration of over a year suggests ongoing administrative support requirements. 5. The award falls under the Irradiation Apparatus Manufacturing NAICS code, which may be a broad classification for this service. 6. Fixed-price contract type aims to control costs, but the absence of competition limits price benchmarking.

Value Assessment

Rating: questionable

The contract value of $392,138 for administrative corrections appears to be a specific allocation for services related to existing equipment or processes. Without more detail on the scope of 'administrative corrections,' it is difficult to benchmark against similar contracts. The sole-source nature of the award prevents a direct comparison of pricing against a competitive market, raising concerns about whether the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Accuray Incorporated, was solicited. This approach is typically used when a unique product or service is required, or when only one responsible source is available. The lack of competition means that the Department of Veterans Affairs did not benefit from a bidding process that could have driven down prices or offered alternative solutions.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding. The government's ability to negotiate favorable terms is diminished when only one provider is considered.

Public Impact

Veterans receiving services at the VAMC Tampa, FL, will indirectly benefit from improved administrative processes. The contract supports the operational efficiency of the Department of Veterans Affairs healthcare facility. Geographic impact is limited to the VAMC Tampa, FL facility. Workforce implications are likely internal to the VA or Accuray Inc., focused on administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings for taxpayers.
Lack of competition raises questions about the necessity of a sole-source justification.
The broad NAICS code (334517) might not accurately reflect the specific administrative services procured.
Contract duration of over a year without clear performance metrics makes oversight challenging.

Positive Signals

Firm fixed-price contract type helps to establish a clear cost ceiling.
Awarding to Accuray Inc. may leverage existing knowledge of their equipment or systems.
The contract addresses a specific requirement for administrative corrections, indicating a need for process improvement.

Sector Analysis

This contract falls under the Irradiation Apparatus Manufacturing sector (NAICS 334517), which typically involves the production of medical linear accelerators (LINACs) and related equipment. However, the service procured here is 'administrative corrections,' suggesting it might be related to the maintenance, support, or data management of such equipment rather than the purchase of new apparatus. Spending in this sector can be significant, driven by healthcare technology advancements and the need for specialized medical equipment in VA facilities.

Small Business Impact

The data indicates this contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award, it is unlikely to have provided opportunities for small businesses to compete for this specific service. Further investigation would be needed to determine if Accuray Inc. has small business subcontracting goals on other contracts or overall.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for the VAMC Tampa, FL. As a sole-source award, the justification for this procurement method would be subject to review. Transparency could be enhanced by publicly detailing the rationale for the sole-source award and the specific administrative corrections being undertaken. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Maintenance Contracts
VA Administrative Support Services
Accuray Inc. Service Contracts
Radiation Therapy Equipment Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Scope of 'administrative corrections' is unclear, hindering performance assessment.
NAICS code may not accurately reflect the service provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to ACCURAY INCORPORATED. MODALITY: RT LINAC STATION: VAMC TAMPA, FL PURCHASE ORDER: 36A79725N0093, 673B40032, 673B40036 REQUIREMENT: ADMINISTRATIVE CORRECTIONS

Who is the contractor on this award?

The obligated recipient is ACCURAY INCORPORATED.

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 $3.9 million.

What is the period of performance?

Start: 2025-04-15. End: 2026-09-30.

What specific 'administrative corrections' are being performed under this contract, and why are they necessary?

The provided data only specifies 'ADMINISTRATIVE CORRECTIONS' as the requirement. Without further details, it's impossible to ascertain the exact nature of these corrections. They could range from data entry and record updates to system configuration adjustments or process documentation. The necessity would depend on the specific issues identified within the VAMC Tampa's operations, potentially related to billing, patient records, equipment inventory, or compliance. A deeper dive into the contract's statement of work or related documentation would be required to understand the scope and justification for these administrative tasks.

What is the justification for awarding this contract on a sole-source basis to Accuray Incorporated?

Sole-source awards are typically justified when only one vendor can provide the required goods or services. For Accuray Incorporated, this could be due to proprietary technology, unique expertise related to their specific equipment (e.g., LINACs), or a lack of other qualified vendors capable of performing the specific administrative corrections needed. The Department of Veterans Affairs would have had to document this justification, likely citing reasons such as the need to maintain compatibility with existing Accuray systems, specialized knowledge of their administrative processes, or urgent requirements that precluded a competitive solicitation. This justification would be crucial for ensuring fair and reasonable pricing.

How does the $392,138 contract value compare to typical administrative support contracts within the VA or healthcare sector?

Benchmarking this $392,138 contract value for 'administrative corrections' is challenging without a precise definition of the services. Administrative support can vary widely in scope and cost. If these corrections are related to complex IT systems or specialized medical equipment management, the cost might be reasonable. However, if they involve more routine data processing or clerical tasks, the price could be considered high, especially given the sole-source nature. Comparisons would ideally be made with contracts for similar administrative functions, ideally competitively procured, within VA facilities or other large healthcare systems to assess value for money.

What is Accuray Incorporated's track record with the Department of Veterans Affairs, particularly for administrative or support services?

Accuray Incorporated is primarily known as a manufacturer of radiation oncology systems, such as LINACs. Their track record with the VA likely involves contracts for the purchase, installation, and maintenance of this equipment. Information on their performance in providing 'administrative corrections' specifically is less common and would require a review of past VA contract awards and performance evaluations for Accuray. Understanding their history with the VA for similar support services, beyond direct equipment provision, would provide insight into their capability and reliability for this current contract.

What are the potential risks associated with a sole-source award for administrative corrections, and how are they mitigated?

The primary risks of a sole-source award include potentially higher costs due to lack of competition, limited innovation from a single provider, and a reduced ability to negotiate favorable terms. For administrative corrections, risks could also involve the vendor not fully understanding the VA's specific needs or processes, leading to ineffective solutions. Mitigation strategies would involve rigorous negotiation of the contract terms, clear performance standards and deliverables, robust oversight by VA contracting officers, and potentially requiring the contractor to provide detailed justifications for their pricing and approach. Regular performance reviews would be essential to ensure the administrative corrections are effective and meet the VA's objectives.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36A79724Q0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 DEMING WAY, MADISON, WI, 53717

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,921,382

Exercised Options: $3,921,382

Current Obligation: $3,921,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79724D0003

IDV Type: IDC

Timeline