VA awards $79.5K contract for irradiation apparatus manufacturing software upgrade in Detroit, MI

Contract Overview

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

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-25

End Date: 2027-09-30

Contract Duration: 766 days

Daily Burn Rate: $104/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOFTWARE, 553-B50058, DETROIT, MI, UPGRADE

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: SOFTWARE, 553-B50058, DETROIT, MI, UPGRADE Key points: 1. Contract awarded for a software upgrade related to irradiation apparatus manufacturing. 2. The contract is a firm-fixed-price delivery order. 3. The vendor, VARIAN MEDICAL SYSTEMS, INC, is a specialized provider in this niche. 4. The contract duration is approximately 2 years. 5. The award was made by the Department of Veterans Affairs. 6. The contract was not competed, raising questions about price discovery.

Value Assessment

Rating: questionable

The contract value of $79,537.60 for a software upgrade appears reasonable for specialized equipment. However, without a competitive bidding process, it is difficult to benchmark the value against market rates or alternative solutions. The firm-fixed-price structure suggests the government has a clear understanding of the scope, which can help control costs if the initial estimate is accurate. Further analysis would require understanding the specific nature of the software and the upgrade's impact on the irradiation apparatus's functionality and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a unique product or service is required, or when there is a compelling justification for not seeking competition. The lack of competition means that the Department of Veterans Affairs did not benefit from potential price reductions or innovative solutions that might have emerged from a broader bidding process. The justification for this sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Taxpayers may have paid a higher price than necessary due to the absence of competitive pressure. Without multiple bids, there is less assurance that the selected vendor offered the best possible value for the government's investment.

Public Impact

The Department of Veterans Affairs will benefit from an upgraded software system for irradiation apparatus manufacturing. This upgrade is expected to improve the functionality and potentially the efficiency of the manufacturing process. The direct beneficiaries are likely the personnel operating and maintaining the irradiation apparatus. The geographic impact is localized to Detroit, MI, where the upgrade is being implemented.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure necessity and fairness.
Limited transparency into the selection process due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Specialized vendor likely possesses the necessary expertise for this niche upgrade.
Contract duration aligns with a typical software upgrade project timeline.

Sector Analysis

This contract falls within the broader manufacturing and technology sector, specifically related to specialized medical or industrial equipment. Irradiation apparatus are used in various fields, including medical treatment (radiotherapy) and industrial sterilization. The market for such specialized manufacturing software and upgrades is typically niche, often dominated by a few key players who develop proprietary systems. Benchmarking spending in this area is challenging without more specific details on the type of irradiation apparatus and its application.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the specialized nature of irradiation apparatus manufacturing and associated software, it is likely that the primary vendors are larger, established companies with specific expertise. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the successful delivery and implementation of the software upgrade as per the contract terms. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Manufacturing
Software Development Services
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award lacks competition
Potential for overpayment due to lack of competitive bidding
Limited transparency in vendor selection

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79,537.6 to VARIAN MEDICAL SYSTEMS, INC. SOFTWARE, 553-B50058, DETROIT, MI, UPGRADE

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: 2025-08-25. End: 2027-09-30.

What is the specific nature of the software being upgraded and its impact on the irradiation apparatus?

The provided data indicates the contract is for a 'SOFTWARE, 553-B50058, DETROIT, MI, UPGRADE' related to 'Irradiation Apparatus Manufacturing'. Without further details, it's difficult to ascertain the exact software function. However, irradiation apparatus are used for applications like radiotherapy in cancer treatment or industrial sterilization. A software upgrade could pertain to control systems, data logging, calibration, safety protocols, or user interface enhancements. The impact could range from improved precision and reliability in treatment delivery or sterilization processes, to enhanced data management for regulatory compliance, or increased operational efficiency and safety for the equipment and its operators. The specific designation '553-B50058' might be an internal VA or vendor part number that requires further lookup.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded as 'NOT COMPETED' (sole-source). Justifications for sole-source awards typically fall under specific exceptions in federal acquisition regulations, such as the existence of only one responsible source, or a compelling urgency that precludes competition. For specialized equipment like irradiation apparatus, the software controlling it might be proprietary to the manufacturer, VARIAN MEDICAL SYSTEMS, INC, making them the only viable source for an upgrade. Alternatively, there might be unique integration requirements or security protocols that only the original equipment manufacturer can address. A thorough review of the contract file would be necessary to understand the specific justification provided by the Department of Veterans Affairs for foregoing competition.

How does the $79,537.60 contract value compare to similar software upgrade contracts for specialized manufacturing equipment?

Benchmarking this $79,537.60 contract value is challenging without more specific details on the type of irradiation apparatus, the scope of the software upgrade, and the vendor's pricing structure. Software upgrades for highly specialized industrial or medical equipment can vary significantly in cost. Factors influencing price include the complexity of the software, the required integration with existing hardware, the level of customization, the vendor's labor rates, and the duration of the upgrade process. Given that this was a sole-source award, it's difficult to assess if this price represents fair market value. A competitive process would typically yield a range of bids, allowing for a more robust comparison and negotiation.

What is VARIAN MEDICAL SYSTEMS, INC's track record with the Department of Veterans Affairs and in providing similar services?

VARIAN MEDICAL SYSTEMS, INC is a known entity in the field of medical devices, particularly in radiation oncology. Their track record with the Department of Veterans Affairs (VA) would need to be examined through federal procurement databases like SAM.gov or FPDS. Such a review would reveal past contract awards, performance history, and any reported issues. Given their specialization, it is plausible they have a history of providing equipment and services, including software, to the VA. Assessing their performance on previous contracts, especially those involving software upgrades or maintenance for irradiation equipment, would provide insight into their reliability and capability for this current award.

What are the potential risks associated with a sole-source award for critical software upgrades?

Sole-source awards for critical software upgrades carry several risks. Firstly, the absence of competition can lead to inflated prices, meaning the government may overpay for the service. Secondly, without market pressure, the vendor may have less incentive to provide the highest quality service or to innovate. Thirdly, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, limiting future options and potentially increasing long-term costs. Finally, the justification for a sole-source award must be robust; if the justification is weak or incorrect, it raises concerns about the integrity of the procurement process and potentially exposes the government to suboptimal outcomes.

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: 36A79725N0328

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