VA awards $3.4M for XR CT equipment, enhancing diagnostic capabilities in Asheville, NC

Contract Overview

Contract Amount: $3,428,295 ($3.4M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-18

End Date: 2027-09-30

Contract Duration: 681 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UPGRADE, 637-B59008 - 637-B59009, XR CT, ASHEVILLE, NC

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to GE PRECISION HEALTHCARE LLC for work described as: UPGRADE, 637-B59008 - 637-B59009, XR CT, ASHEVILLE, NC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 681 days indicates a significant period for equipment deployment and potential training. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The award is a delivery order, implying it's part of a larger contract vehicle. 5. The equipment category (Irradiation Apparatus Manufacturing) points to advanced medical imaging technology. 6. The contractor, GE PRECISION HEALTHCARE LLC, is a known entity in the medical equipment sector.

Value Assessment

Rating: good

The contract value of $3.4 million for XR CT equipment appears reasonable given the specialized nature of the technology. Benchmarking against similar federal procurements for advanced imaging systems would provide a more precise value-for-money assessment. The fixed-price nature of the contract offers cost predictability. However, without specific details on the exact specifications and included services (installation, maintenance, training), a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The VA likely sought to maximize competition to ensure they received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions, ultimately leading to more efficient use of public funds.

Public Impact

Veterans in the Asheville, NC region will benefit from improved diagnostic imaging services. The contract facilitates the acquisition of advanced XR CT equipment, enhancing medical diagnostic capabilities. This procurement supports the Department of Veterans Affairs' mission to provide comprehensive healthcare to veterans. The installation and operation of new equipment may have implications for local healthcare workforce training and utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance and service contracts are not competitively bid in the future.
Ensuring adequate training for VA staff to operate and maintain the new, advanced equipment is crucial for realizing its full potential.
The long-term operational costs, including maintenance and consumables, should be carefully monitored beyond the initial acquisition.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government.
The contractor, GE PRECISION HEALTHCARE LLC, is a reputable provider of medical imaging technology.
The acquisition of advanced XR CT equipment directly supports improved patient care for veterans.

Sector Analysis

The medical imaging equipment sector is characterized by high technological advancement and significant capital investment. Contracts for advanced systems like XR CT scanners are crucial for healthcare providers to maintain state-of-the-art diagnostic capabilities. The market includes a few dominant global players, making competition dynamics important. Federal agencies, particularly those serving large populations like the VA, are significant purchasers of such equipment, often leveraging large-scale contracts to achieve economies of scale.

Small Business Impact

This contract was awarded to GE PRECISION HEALTHCARE LLC and does not appear to have a small business set-aside. There is no explicit information regarding subcontracting opportunities for small businesses within this award. Further analysis would be needed to determine if the prime contractor has a history of engaging small businesses in their supply chain for similar procurements.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts, including this one. Accountability is typically managed through contract officers, performance monitoring, and adherence to the terms and conditions of the fixed-price delivery order. Transparency is facilitated through public contract databases where award information is made available. The VA Office of Inspector General (OIG) may conduct audits or investigations if concerns regarding performance or compliance arise.

Related Government Programs

Medical Equipment Procurement
Diagnostic Imaging Services
Veterans Health Administration Contracts
Advanced Medical Technology Acquisition

Risk Flags

Potential for technological obsolescence given the long delivery timeline.
Need for robust training and support plan to ensure effective utilization.
Long-term maintenance and service costs should be factored into total cost of ownership.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to GE PRECISION HEALTHCARE LLC. UPGRADE, 637-B59008 - 637-B59009, XR CT, ASHEVILLE, NC

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE LLC.

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 $3.4 million.

What is the period of performance?

Start: 2025-11-18. End: 2027-09-30.

What is the specific model of XR CT equipment being procured, and what are its key technical specifications compared to industry standards?

The provided data does not specify the exact model of XR CT equipment. However, the North American Industry Classification System (NAICS) code 334517, 'Irradiation Apparatus Manufacturing,' suggests the equipment falls under a category that includes devices utilizing ionizing radiation for imaging or therapeutic purposes. To assess technical specifications, one would need to consult the detailed contract statement of work (SOW) or performance work statement (PWS). This document would outline requirements such as resolution, scan speed, radiation dose management features, patient throughput capabilities, and compatibility with existing hospital information systems (HIS) and Picture Archiving and Communication Systems (PACS). Comparing these specifications against current market offerings from manufacturers like GE Healthcare, Siemens Healthineers, Philips, and Canon Medical Systems would reveal if the procured system represents a leading-edge technology or a more standard offering.

How does the awarded price of $3.4 million compare to similar XR CT equipment procurements by the VA or other federal agencies?

Benchmarking the $3.4 million award requires comparing it against procurements of similar XR CT systems, considering factors like system specifications, included services (installation, training, maintenance agreements), and contract type. Without access to the detailed contract line items and the specific equipment model, a precise comparison is difficult. However, advanced CT scanners, especially those with specialized capabilities like XR (which could imply advanced spectral or photon-counting detectors), can range significantly in price. Federal agencies often negotiate volume discounts. A preliminary search of federal procurement data might reveal awards for similar systems in the $1 million to $5 million range, depending heavily on the technology's sophistication and the scope of the contract. The VA's large healthcare network might allow for competitive pricing, but the specific technology's novelty could also influence cost.

What is GE PRECISION HEALTHCARE LLC's track record with the VA and other federal agencies for delivering complex medical equipment?

GE PRECISION HEALTHCARE LLC, a subsidiary of General Electric, has a substantial history of supplying medical equipment, including imaging systems, to the federal government, particularly the Department of Veterans Affairs. Their track record typically involves delivering a wide array of diagnostic and therapeutic equipment. Performance data, including past performance evaluations and any contract disputes or terminations, would be available through federal procurement databases and agency-specific reporting systems. Generally, large, established manufacturers like GE have extensive experience in navigating federal contracting requirements, including installation, training, and post-delivery support. Reviewing contract histories for similar imaging equipment procurements would provide specific insights into their reliability, on-time delivery, and adherence to technical specifications in past federal engagements.

What are the potential risks associated with the long contract duration (681 days) for equipment delivery and implementation?

A contract duration of 681 days (approximately 22 months) for equipment delivery and implementation presents several potential risks. Firstly, technological obsolescence is a concern; medical imaging technology evolves rapidly, and equipment ordered today might be surpassed by newer models before it is even fully operational. Secondly, there's a risk of price escalation if the contract doesn't adequately lock in prices for all components or if unforeseen supply chain issues arise, although the fixed-price nature mitigates this to some extent. Thirdly, delays in delivery or installation can disrupt hospital operations and patient care schedules. Finally, ensuring adequate training and support throughout this extended period is critical; staff turnover or changes in operational needs could impact the effective utilization of the equipment upon final deployment. Robust project management and clear communication channels are essential to mitigate these risks.

How does this procurement align with the VA's broader strategy for modernizing its diagnostic imaging infrastructure across the healthcare system?

This procurement of XR CT equipment for the Asheville, NC facility aligns with the VA's ongoing strategy to modernize its diagnostic imaging infrastructure. The VA aims to provide veterans with access to the latest medical technologies, ensuring high-quality diagnostic capabilities comparable to leading civilian healthcare institutions. Modernizing imaging equipment is crucial for improving diagnostic accuracy, reducing patient radiation exposure, and increasing throughput. By investing in advanced systems like XR CT, the VA seeks to enhance its ability to detect and manage a wide range of medical conditions effectively. This specific award contributes to the overall goal of upgrading the technological capabilities within the VA network, supporting better patient outcomes and operational efficiency across its facilities.

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: 36A79726N0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,428,295

Exercised Options: $3,428,295

Current Obligation: $3,428,295

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline