VA Awards $79.5K for RT LINAC Upgrade at Dayton VAMC, Sole-Sourced to Varian Medical Systems

Contract Overview

Contract Amount: $79,538 ($79.5K)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-21

End Date: 2026-12-31

Contract Duration: 528 days

Daily Burn Rate: $151/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: RT LINAC UPGRADE STATION: VAMC DAYTON, OH PURCHASE ORDER: 36A79725N0326, 552B50024 REQUIREMENT: ADMINISTRATIVE CORRECTIONS

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79,537.6 to VARIAN MEDICAL SYSTEMS, INC for work described as: MODALITY: RT LINAC UPGRADE STATION: VAMC DAYTON, OH PURCHASE ORDER: 36A79725N0326, 552B50024 REQUIREMENT: ADMINISTRATIVE CORRECTIONS Key points: 1. The contract is a sole-source award for an RT LINAC upgrade, indicating a lack of competition. 2. The value of $79,537.60 is relatively small for a medical equipment upgrade, potentially limiting the scope of work. 3. The primary risk is the lack of competitive bidding, which could lead to suboptimal pricing. 4. The sector is healthcare, specifically medical equipment manufacturing and maintenance.

Value Assessment

Rating: questionable

The contract value of $79,537.60 for an RT LINAC upgrade appears low for such a significant piece of medical equipment. Without comparable contract data, it's difficult to assess if this price is competitive or reflects the true market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Varian Medical Systems, Inc. was the sole provider. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this upgrade.

Public Impact

Veterans at the Dayton VAMC may experience improved radiation therapy services. The upgrade could enhance the precision and effectiveness of cancer treatments. The sole-source nature of the award might limit future options for maintenance and upgrades from other vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Addresses a specific need for equipment upgrade
Clear delivery and performance period

Sector Analysis

The healthcare sector, particularly in medical equipment like RT LINACs, often involves specialized technology and high costs. While this award is small, upgrades to such systems are critical for patient care.

Small Business Impact

This contract was awarded to Varian Medical Systems, Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is the awarding agency. Oversight would involve ensuring the upgrade is completed according to specifications and within the contracted timeline and budget.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency on justification
Unclear value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79,537.6 to VARIAN MEDICAL SYSTEMS, INC. MODALITY: RT LINAC UPGRADE STATION: VAMC DAYTON, OH PURCHASE ORDER: 36A79725N0326, 552B50024 REQUIREMENT: ADMINISTRATIVE CORRECTIONS

Who is the contractor on this award?

The obligated recipient is VARIAN MEDICAL SYSTEMS, INC.

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 $79,537.6.

What is the period of performance?

Start: 2025-07-21. End: 2026-12-31.

What is the justification for the sole-source award, and why was competition not pursued for this RT LINAC upgrade?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only a specific vendor can meet. Without further documentation, it's unclear why competition was bypassed for this RT LINAC upgrade. This lack of transparency hinders an assessment of whether the government truly received the best value or if alternative solutions were overlooked.

How does the $79,537.60 price compare to industry benchmarks for similar RT LINAC upgrade components or services?

Benchmarking this specific price is challenging without detailed specifications of the upgrade. However, RT LINAC systems are complex and expensive. A $79,537.60 price point might represent a minor component, a specific service, or a limited scope of work. A thorough review would require comparing it against similar, competitively procured contracts for comparable upgrades or services to determine if it represents fair market value.

What is the expected impact of this upgrade on patient treatment effectiveness and wait times at the VAMC Dayton?

The expected impact of an RT LINAC upgrade is generally positive, aiming to improve treatment precision, reduce side effects, and potentially increase patient throughput. If the upgrade enhances the machine's capabilities or reliability, it could lead to more effective cancer treatments and possibly shorter wait times for veterans requiring radiation therapy. The specific benefits depend on the nature of the 'administrative corrections' and any associated hardware or software enhancements.

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: 36H79724R0002

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 3100 HANSEN WAY, PALO ALTO, CA, 94304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $79,538

Exercised Options: $79,538

Current Obligation: $79,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79724D0005

IDV Type: IDC

Timeline