VA awards $2.4M for irradiation apparatus manufacturing, with 151 days duration

Contract Overview

Contract Amount: $2,413,725 ($2.4M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-30

End Date: 2026-06-30

Contract Duration: 151 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NM SPECT CT 509B52002 TKY 509B52003 CHARLIE NORWOOD VA MEDICAL CENTER AUGUSTA, GA

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: NM SPECT CT 509B52002 TKY 509B52003 CHARLIE NORWOOD VA MEDICAL CENTER AUGUSTA, GA Key points: 1. Contract value appears reasonable given the scope of specialized medical equipment manufacturing. 2. Full and open competition suggests a healthy market for this type of service. 3. Potential risks include supply chain disruptions for specialized components. 4. Performance context is tied to the operational needs of a specific VA medical center. 5. This contract falls within the broader healthcare equipment and manufacturing sector. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $2.4 million for irradiation apparatus manufacturing seems aligned with industry standards for specialized medical equipment. Benchmarking against similar contracts for manufacturing or servicing of complex medical devices would provide a more precise value-for-money assessment. The fixed-price structure suggests the government has a clear understanding of costs, but the final value will depend on the contractor's efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters competitive pricing and encourages innovation. The presence of multiple bidders suggests a robust market for irradiation apparatus manufacturing services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the Charlie Norwood VA Medical Center and its patients, who will receive services supported by this equipment. The contract supports the delivery of essential healthcare services through the provision of specialized medical apparatus. The geographic impact is localized to Augusta, Georgia, where the VA medical center is located. Workforce implications include potential employment opportunities for skilled technicians and manufacturing personnel involved in producing or maintaining the apparatus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in delivery due to specialized manufacturing processes.
Ensuring the apparatus meets all stringent VA medical equipment standards.
Reliance on a single contractor for a critical piece of medical infrastructure.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Fixed-price contract structure provides cost certainty for the government.
Contract duration is clearly defined, allowing for focused execution.

Sector Analysis

This contract operates within the medical equipment manufacturing sector, a specialized area focused on producing devices for healthcare applications. The market for irradiation apparatus is niche, often involving high-technology components and stringent regulatory compliance. Comparable spending benchmarks would typically involve other procurements for large-scale medical imaging or treatment equipment, where costs can range significantly based on complexity and features.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information suggesting specific subcontracting requirements for small businesses. The award to Siemens Medical Solutions USA, Inc., a large corporation, suggests that the primary contractor is not a small business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods within the agreed timeframe and quality standards. Transparency is generally maintained through federal procurement databases, though specific operational details may be sensitive.

Related Government Programs

Medical Equipment Manufacturing
Veterans Affairs Healthcare Services
Irradiation Technology
Medical Apparatus Procurement

Risk Flags

Potential for supply chain delays
Ensuring adherence to stringent medical equipment safety standards
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. NM SPECT CT 509B52002 TKY 509B52003 CHARLIE NORWOOD VA MEDICAL CENTER AUGUSTA, GA

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $2.4 million.

What is the period of performance?

Start: 2026-01-30. End: 2026-06-30.

What is the track record of Siemens Medical Solutions USA, Inc. with the Department of Veterans Affairs for similar contracts?

Siemens Medical Solutions USA, Inc. has a significant history of contracting with the Department of Veterans Affairs (VA) and other federal agencies, particularly in the realm of medical equipment and technology. Their portfolio often includes diagnostic imaging systems, therapeutic devices, and related services. Analyzing past performance on similar contracts, specifically those involving irradiation apparatus or comparable complex medical systems, would reveal their reliability, adherence to schedules, and quality of delivered products. A review of past performance evaluations and any documented disputes or contract modifications would provide a clearer picture of their suitability for this specific award. While this contract is for manufacturing, their experience in installation, maintenance, and support of advanced medical equipment suggests a strong foundation.

How does the awarded price compare to market rates for similar irradiation apparatus?

Directly comparing the $2.4 million award to market rates for similar irradiation apparatus is challenging without specific details on the exact specifications, capabilities, and intended use of the equipment. The market for such specialized medical devices can vary widely. However, the fact that the contract was awarded under full and open competition suggests that the price was deemed competitive among the bidders. To perform a robust benchmark, one would need to identify comparable systems from other manufacturers, considering factors like radiation output, imaging resolution, treatment capabilities, and warranty terms. Industry reports or consultations with subject matter experts in medical device procurement could offer broader market insights. The fixed-price nature of this contract implies that the government sought a defined cost for a defined product.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract likely revolve around manufacturing timelines, quality control, and potential supply chain disruptions for specialized components. Given that this is for irradiation apparatus, ensuring the equipment meets stringent safety and efficacy standards set by regulatory bodies and the VA is paramount. Mitigation strategies typically include detailed technical specifications in the contract, phased delivery schedules with inspection points, performance bonds, and clear quality assurance clauses. The fixed-price nature shifts some financial risk to the contractor, incentivizing them to manage costs and timelines effectively. The VA's oversight and acceptance testing processes serve as critical mitigation steps to ensure the final product meets all requirements before full payment.

What is the expected impact of this contract on the VA's ability to provide healthcare services?

This contract is expected to directly enhance the VA's ability to provide specific healthcare services by ensuring the availability of essential irradiation apparatus. Depending on the function of the apparatus (e.g., for diagnostic imaging, radiation therapy, or sterilization), its successful delivery and implementation will support patient diagnosis, treatment, and safety protocols at the Charlie Norwood VA Medical Center. The timely procurement of this equipment is crucial for maintaining or expanding the range and quality of medical services offered, potentially reducing patient wait times for procedures requiring such technology and improving overall patient outcomes within the VA healthcare system.

How does this contract fit into the VA's overall spending patterns for medical equipment?

This $2.4 million contract for irradiation apparatus represents a specific investment within the VA's broader budget for medical equipment and technology. The VA consistently allocates significant funds towards acquiring, maintaining, and upgrading a wide array of medical devices to serve its large veteran population. Spending in this category is driven by the need to keep facilities equipped with state-of-the-art technology, replace aging equipment, and adapt to evolving medical practices. While this single contract is a modest portion of the VA's total medical equipment expenditure, it is indicative of the ongoing commitment to procuring specialized, high-value assets necessary for comprehensive healthcare delivery across its network of facilities.

What are the implications of the 151-day duration for the delivery and implementation of the apparatus?

A contract duration of 151 days (approximately five months) for the manufacturing and delivery of irradiation apparatus suggests a relatively focused and potentially expedited procurement timeline. This duration implies that the apparatus may be a standard model, or that the contractor has readily available manufacturing capacity and supply chains. For the VA, this shorter timeframe means the equipment could be operational relatively quickly, addressing an immediate need. However, it also places pressure on the contractor to meet the deadline without compromising quality. The VA will need efficient processes for acceptance testing and integration once the apparatus arrives to realize the benefits promptly.

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: 36A79725Q0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,413,725

Exercised Options: $2,413,725

Current Obligation: $2,413,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline