VA awards $115K for bone densitometry equipment to GE Healthcare, highlighting fixed-price contract with economic adjustments

Contract Overview

Contract Amount: $115,565 ($115.6K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-18

End Date: 2026-05-11

Contract Duration: 82 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: NM BONE DEN PURCHASE ORDER: 640B54012 STATION: VAMC PALO ALTO CA REQUIREMENT: JUN FY25 EQ CONSOLIDATION

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $115,565.08 to GE PRECISION HEALTHCARE LLC for work described as: MODALITY: NM BONE DEN PURCHASE ORDER: 640B54012 STATION: VAMC PALO ALTO CA REQUIREMENT: JUN FY25 EQ CONSOLIDATION Key points: 1. The contract utilizes a fixed-price structure with economic price adjustments, intended to mitigate inflation risks for essential medical equipment. 2. Competition was full and open, suggesting a robust market for this type of medical imaging technology. 3. The award to GE Precision Healthcare LLC indicates a specific market player meeting the VA's technical requirements. 4. The short duration of the delivery order (82 days) points to an immediate need for the specified equipment. 5. The North American Industry Classification System (NAICS) code 334517 categorizes the product under Irradiation Apparatus Manufacturing, providing industry context.

Value Assessment

Rating: good

The award amount of $115,565.08 appears reasonable for a single unit of bone densitometry equipment, especially considering it includes potential economic price adjustments. Benchmarking against similar VA or other federal procurements for comparable imaging systems would provide a more definitive value assessment. However, the fixed-price nature with EPA suggests an effort to control costs while accounting for market fluctuations.

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. The presence of 3 bidders suggests a competitive environment for this specific requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring that the awarded price reflects the best value achievable in the marketplace.

Public Impact

Veterans at the VAMC Palo Alto, CA, will benefit from updated or new bone densitometry equipment, improving diagnostic capabilities for osteoporosis and related conditions. The service delivered is the provision of specialized medical imaging equipment essential for diagnostic healthcare. The geographic impact is localized to the VAMC Palo Alto facility, directly serving the veteran population in that region. The contract supports the healthcare workforce at the facility by providing them with modern diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market conditions fluctuate significantly.
Reliance on a single vendor for a critical piece of medical equipment, even if competed, can pose supply chain risks.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
Fixed-price contract structure aims to provide cost certainty, with EPA mitigating extreme market volatility.
The equipment is for a critical healthcare function, directly supporting veteran well-being.

Sector Analysis

This contract falls within the broader medical equipment manufacturing and supply sector. The market for diagnostic imaging equipment, including bone densitometers, is characterized by technological advancements and specialized manufacturers. Federal agencies like the VA are significant purchasers of such equipment to maintain healthcare facilities. Comparable spending benchmarks would involve analyzing other procurements for similar imaging modalities across different federal health systems.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this particular delivery order. The award was made to GE Precision Healthcare LLC, a large entity. Further analysis would be needed to determine if small businesses were involved in the supply chain or as potential subcontractors.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its procurement processes, including this delivery order. Accountability is maintained through contract terms, performance monitoring, and payment processes. Transparency is generally provided through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this procurement.

Related Government Programs

VA Medical Equipment Procurement
Diagnostic Imaging Systems
Bone Densitometry Equipment
Federal Healthcare Spending

Risk Flags

Potential for price escalation due to Economic Price Adjustment clause.
Short delivery order duration may indicate urgent need, requiring close monitoring of delivery timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $115,565.08 to GE PRECISION HEALTHCARE LLC. MODALITY: NM BONE DEN PURCHASE ORDER: 640B54012 STATION: VAMC PALO ALTO CA REQUIREMENT: JUN FY25 EQ CONSOLIDATION

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 $115,565.08.

What is the period of performance?

Start: 2026-02-18. End: 2026-05-11.

What is the typical lifespan and expected utilization rate for bone densitometry equipment procured by the VA?

The typical lifespan for modern bone densitometry equipment can range from 7 to 15 years, depending on the model, maintenance, and technological obsolescence. Utilization rates vary significantly based on the patient volume of the specific VAMC. For a facility like Palo Alto, which serves a substantial veteran population, the equipment would likely be in high demand, potentially operating multiple hours per day. Regular maintenance and software updates are crucial to maximizing lifespan and ensuring accurate diagnostic performance. The VA's procurement strategy often considers total cost of ownership, including maintenance and potential upgrades, when selecting equipment.

How does the economic price adjustment (EPA) clause typically function in VA medical equipment contracts?

An Economic Price Adjustment (EPA) clause in a VA contract allows for an upward or downward revision of the contract price based on specified economic factors, most commonly changes in the Consumer Price Index (CPI) or specific industry cost indices. For this contract, it likely aims to protect both the government and the contractor from unforeseen inflation or deflation in the cost of components, labor, or manufacturing. The specific index and adjustment formula would be detailed in the contract's terms and conditions. This clause provides flexibility but requires careful monitoring to ensure fair pricing and prevent excessive cost increases for the taxpayer.

What is GE Precision Healthcare LLC's track record with the Department of Veterans Affairs?

GE Precision Healthcare LLC, as a major medical equipment provider, likely has a substantial history of contracts with the Department of Veterans Affairs. A review of federal procurement databases would reveal the extent and nature of their past awards, including the types of equipment supplied, contract values, and performance history. Analyzing these past engagements can provide insights into their reliability, pricing competitiveness, and ability to meet VA's stringent requirements. This specific award suggests continued business relationship and confidence in their offerings for diagnostic imaging.

Are there any known risks associated with the manufacturing or supply chain for irradiation apparatus like bone densitometers?

Risks associated with the manufacturing and supply chain for irradiation apparatus, including bone densitometers, can include reliance on specialized components, potential shortages of raw materials, geopolitical disruptions affecting global supply chains, and stringent regulatory compliance requirements. Manufacturers must adhere to FDA regulations and quality standards. For the VA, risks also include potential delays in delivery, equipment malfunctions requiring timely service, and the need for specialized training for VAMC staff. The fixed-price nature of this contract, coupled with an EPA, attempts to mitigate some financial risks, but operational and supply chain risks remain factors to monitor.

What is the strategic importance of maintaining up-to-date bone densitometry capabilities within the VA system?

Maintaining up-to-date bone densitometry capabilities is strategically vital for the VA system as it directly impacts the diagnosis and management of osteoporosis and related bone diseases, which are prevalent among aging veteran populations. Early and accurate diagnosis allows for timely intervention, reducing the risk of fractures, associated healthcare costs, and improving veterans' quality of life. Modern equipment offers enhanced precision, reduced radiation exposure, and faster scan times. Investing in current technology ensures the VA can provide state-of-the-art care, aligning with its mission to serve veterans effectively and efficiently.

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: 36A79725Q0010

Offers Received: 3

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

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: $115,565

Exercised Options: $115,565

Current Obligation: $115,565

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