VA Boise Awards $2.6M for XR MRI System to Siemens, Boosting Medical Imaging Capabilities

Contract Overview

Contract Amount: $2,635,883 ($2.6M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-21

End Date: 2027-09-01

Contract Duration: 588 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: XR MRI PURCHASE ORDER: EQ531B53002 TKY531B530003 STATION: VAMC BOISE ID REQUIREMENT: JAN FY25 TKY CONSOLIDATION

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: MODALITY: XR MRI PURCHASE ORDER: EQ531B53002 TKY531B530003 STATION: VAMC BOISE ID REQUIREMENT: JAN FY25 TKY CONSOLIDATION Key points: 1. The Department of Veterans Affairs (VA) is acquiring an XR MRI system for VAMC Boise. 2. Siemens Medical Solutions USA, Inc. secured the contract through full and open competition. 3. The purchase aims to enhance diagnostic imaging services for veterans. 4. The contract includes fixed price with economic price adjustment terms.

Value Assessment

Rating: good

The awarded price of $2,635,883.36 appears reasonable for a specialized XR MRI system, considering the complexity and advanced technology involved. Benchmarking against similar high-end medical equipment purchases would provide a more precise assessment.

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 had the opportunity to bid. This competitive process generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award ensures taxpayer funds are used efficiently for essential medical equipment, directly benefiting veteran healthcare.

Public Impact

Improved diagnostic capabilities for veterans at VAMC Boise. Potential for faster and more accurate medical diagnoses. Modernization of medical equipment within the VA healthcare system. Supports advanced medical research and treatment protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases.
Long-term maintenance and service costs not detailed.

Positive Signals

Acquisition of advanced medical technology.
Competitive procurement process.
Enhances veteran healthcare services.

Sector Analysis

The acquisition falls within the healthcare sector, specifically medical equipment manufacturing and distribution. Spending on advanced imaging systems like MRI is crucial for modern healthcare facilities, with benchmarks varying widely based on system specifications and features.

Small Business Impact

While the primary awardee is a large corporation (Siemens), the procurement process under full and open competition allows for potential subcontracting opportunities for small businesses in areas like installation, training, or support services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure proper execution and accountability throughout the contract period.

Related Government Programs

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

Risk Flags

Potential for cost increases due to EPA.
Long-term maintenance and upgrade costs.
Dependence on a single vendor for specialized equipment.
Integration challenges with existing IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. MODALITY: XR MRI PURCHASE ORDER: EQ531B53002 TKY531B530003 STATION: VAMC BOISE ID REQUIREMENT: JAN FY25 TKY CONSOLIDATION

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 $2.6 million.

What is the period of performance?

Start: 2026-01-21. End: 2027-09-01.

What is the expected impact of this XR MRI system on diagnostic accuracy and patient outcomes for veterans at VAMC Boise?

The XR MRI system is expected to significantly improve diagnostic accuracy by providing higher resolution images and advanced imaging techniques. This enhanced capability can lead to earlier detection of diseases, more precise treatment planning, and ultimately, better patient outcomes for veterans. The specific impact will depend on the clinical integration and utilization of the new technology by medical staff.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' clause in this contract?

The primary risk of an economic price adjustment (EPA) clause is that the contract price could increase over time due to fluctuations in market prices for labor, materials, or other economic factors. While intended to protect the contractor from unforeseen cost increases, it exposes the government to potential cost overruns beyond the initial fixed price, necessitating careful monitoring of economic indicators.

How does this investment align with the VA's broader strategy for modernizing medical technology and improving healthcare access for veterans nationwide?

This investment aligns with the VA's strategic goal of modernizing its medical infrastructure to provide state-of-the-art healthcare. By acquiring advanced imaging technology like the XR MRI, the VA enhances its diagnostic capabilities at a specific facility, contributing to the overall effort to improve healthcare access and quality for veterans. Such upgrades are crucial for maintaining a competitive edge in medical treatment and research.

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: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $2,635,883

Exercised Options: $2,635,883

Current Obligation: $2,635,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline