VA Awards $4.68M for RT LINAC System to Varian Medical Systems, Inc. for San Juan VAMC

Contract Overview

Contract Amount: $4,678,927 ($4.7M)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-27

End Date: 2027-06-30

Contract Duration: 945 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: RT LINAC PURCHASE ORDER: 672FC3007/672B3T012 STATION: VAMC SAN JUAN, PR REQUIREMENT: SEPTEMBER FY23 HTME + EXTENDED INSTALLATION CONSOLIDATION

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to VARIAN MEDICAL SYSTEMS, INC for work described as: MODALITY: RT LINAC PURCHASE ORDER: 672FC3007/672B3T012 STATION: VAMC SAN JUAN, PR REQUIREMENT: SEPTEMBER FY23 HTME + EXTENDED INSTALLATION CONSOLIDATION Key points: 1. The Department of Veterans Affairs (VA) is procuring a Radiation Therapy Linear Accelerator (RT LINAC) system. 2. The contract was awarded to Varian Medical Systems, Inc., a known provider in the medical equipment sector. 3. This is a sole-source award, raising questions about potential price discovery and competition. 4. The spending falls within the 'Irradiation Apparatus Manufacturing' NAICS code, indicating a specialized procurement.

Value Assessment

Rating: questionable

The contract value of $4.68 million for an RT LINAC system needs comparison against similar procurements. Without benchmark data, it's difficult to assess if this price is competitive, especially given the sole-source nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to obtain the best value.

Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if multiple vendors had been allowed to bid.

Public Impact

Veterans in San Juan, Puerto Rico, will benefit from upgraded radiation therapy capabilities. The procurement supports advanced cancer treatment services within the VA healthcare system. The award highlights the VA's ongoing investment in medical technology for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing due to lack of competition
Long delivery and installation period (945 days)

Positive Signals

Procurement of critical medical equipment
Supports veteran healthcare services
Award to established vendor

Sector Analysis

The procurement of an RT LINAC system falls under the broader healthcare equipment manufacturing sector. Spending benchmarks for such specialized medical devices can vary significantly based on technology, features, and vendor. The VA's investment here is consistent with efforts to modernize healthcare infrastructure.

Small Business Impact

This contract was awarded to Varian Medical Systems, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the VA obtained fair pricing and that this approach was justified. Transparency in the justification for not competing is crucial.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency on price justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to VARIAN MEDICAL SYSTEMS, INC. MODALITY: RT LINAC PURCHASE ORDER: 672FC3007/672B3T012 STATION: VAMC SAN JUAN, PR REQUIREMENT: SEPTEMBER FY23 HTME + EXTENDED INSTALLATION CONSOLIDATION

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 $4.7 million.

What is the period of performance?

Start: 2024-11-27. End: 2027-06-30.

What is the justification for this sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves demonstrating that only one vendor can meet the specific requirements, or that exceptional circumstances preclude full and open competition. The VA would need to provide documentation proving this, along with a price analysis comparing the proposed price to historical prices or independent cost estimates to establish reasonableness.

What are the specific risks associated with a sole-source procurement of high-value medical equipment like an RT LINAC?

The primary risk is paying a premium price due to the absence of competitive bidding. Other risks include potential vendor lock-in, limited negotiation leverage on terms and conditions, and a reduced incentive for the vendor to provide superior service or support. This can ultimately impact the value for taxpayer money.

How will the effectiveness of this RT LINAC system be measured to ensure it meets the VA's needs and provides value?

Effectiveness will be measured through performance metrics outlined in the contract, such as system uptime, accuracy of radiation delivery, and patient throughput. Post-installation reviews, user feedback from clinicians, and comparison of patient outcomes against established benchmarks will also be crucial in assessing the system's value and effectiveness.

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: 36A79724Q0003

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: $4,678,927

Exercised Options: $4,678,927

Current Obligation: $4,678,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79724D0005

IDV Type: IDC

Timeline