VA awards $5.1M XR-CT upgrade to GE Healthcare, enhancing diagnostic capabilities at Lebanon VA

Contract Overview

Contract Amount: $51,000 ($51.0K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2028-09-30

Contract Duration: 913 days

Daily Burn Rate: $56/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR-CT UPGRADE REQUISITION: 539B50024 STATION LEBANON VA REQUIREMENT: EQUIPMENT UPGRADE

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $51,000 to GE PRECISION HEALTHCARE LLC for work described as: MODALITY: XR-CT UPGRADE REQUISITION: 539B50024 STATION LEBANON VA REQUIREMENT: EQUIPMENT UPGRADE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 913 days indicates a significant, multi-year upgrade project. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The award to GE Healthcare, a major player in medical imaging, suggests a focus on established technology and support. 5. This upgrade is likely to improve diagnostic accuracy and patient care for veterans. 6. The North American Industry Classification System (NAICS) code 334517 points to the manufacturing of irradiation apparatus, relevant to CT technology.

Value Assessment

Rating: good

The contract value of $5.1 million for an XR-CT upgrade appears reasonable for advanced medical imaging equipment, considering the scope and duration. Benchmarking against similar large-scale medical equipment procurements by the VA or other federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps mitigate cost overrun risks for the government. The award to GE Healthcare, a known entity in this field, suggests a potentially reliable solution, though it warrants comparison with bids from other major manufacturers to ensure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple vendors to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is beneficial for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs and encourage innovation among bidders.

Public Impact

Veterans receiving care at the Lebanon VA Medical Center will benefit from improved diagnostic imaging services. The upgrade is expected to enhance the accuracy and speed of diagnoses for a range of medical conditions. This investment supports the VA's mission to provide high-quality healthcare to its beneficiaries. The project may involve training for medical staff on the new XR-CT system, enhancing workforce skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The long contract duration could introduce risks related to technological obsolescence if not managed proactively.
Dependence on a single vendor for specialized equipment and potential maintenance could create future lock-in.

Positive Signals

Awarded through full and open competition, indicating a commitment to market-based procurement.
Fixed-price contract type provides cost certainty and budget predictability.
The upgrade addresses a clear need for enhanced diagnostic capabilities, directly benefiting patient care.
The chosen vendor, GE Healthcare, is a reputable provider of medical imaging technology.

Sector Analysis

The medical imaging equipment sector is characterized by high technological advancement and significant capital investment. Companies like GE Healthcare are major players, often competing on innovation, service, and established market presence. Federal agencies, particularly within the Department of Defense and Veterans Affairs, are substantial purchasers of such equipment to maintain state-of-the-art healthcare facilities. Spending in this area is driven by the need for accurate diagnostics, patient safety, and efficient healthcare delivery. This contract fits within the broader trend of federal healthcare modernization efforts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale equipment procurement likely involving specialized technology, it may be less conducive to direct small business participation unless through subcontracting. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award and if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its procurement processes, including contract management and performance monitoring. The fixed-price nature of this contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this contract. Regular performance reviews and acceptance testing are standard procedures to ensure the equipment meets specifications.

Related Government Programs

VA Medical Equipment Procurement
Radiology and Imaging Services Contracts
Department of Veterans Affairs Healthcare Modernization

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of technological obsolescence over the contract duration.
Dependence on a single vendor for critical equipment and support.
Need for robust training to ensure optimal utilization of new technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $51,000 to GE PRECISION HEALTHCARE LLC. MODALITY: XR-CT UPGRADE REQUISITION: 539B50024 STATION LEBANON VA REQUIREMENT: EQUIPMENT UPGRADE

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 $51,000.

What is the period of performance?

Start: 2026-04-01. End: 2028-09-30.

What is the track record of GE Precision Healthcare LLC in fulfilling similar federal contracts for medical imaging equipment?

GE Precision Healthcare LLC, a subsidiary of General Electric, has a substantial track record of supplying medical imaging equipment, including CT scanners, to federal agencies, particularly the Department of Veterans Affairs and the Department of Defense. Their experience typically spans large-scale installations, maintenance, and upgrades across numerous healthcare facilities. Historical data suggests they are a frequent awardee for such contracts due to their established product lines and service networks. A detailed review of past performance evaluations and contract completion records would be necessary to fully assess their reliability and adherence to specifications and timelines on similar federal procurements. This includes examining any past issues related to delivery delays, equipment malfunctions, or customer satisfaction reported by government agencies.

How does the awarded amount of $5.1 million compare to the typical cost of similar XR-CT upgrade projects in the federal sector?

The $5.1 million award for an XR-CT upgrade is within the expected range for advanced medical imaging systems, especially considering it includes installation, potential integration, and a multi-year service/support component. Federal contracts for high-end CT scanners can vary significantly based on specific features, imaging capabilities (e.g., spectral imaging, dose reduction technologies), and the duration of associated service agreements. Comparable procurements by agencies like the VA or Military Health System for similar upgrades have often ranged from several hundred thousand to several million dollars. Without specific details on the exact model and service package, a precise benchmark is difficult, but the awarded amount suggests a comprehensive solution rather than a basic system replacement. Further analysis would involve comparing this value against recent awards for comparable equipment from other leading manufacturers.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential delays in delivery or installation due to supply chain issues or site readiness, technological obsolescence given the multi-year duration, and performance issues with the equipment. The fixed-price contract type mitigates financial risk for the government but places it on the contractor. Mitigation strategies likely include detailed project management plans, phased delivery schedules, rigorous acceptance testing protocols, and performance-based service level agreements. The VA would also typically require performance bonds and have contingency plans for equipment failures. The contractor's established presence and product support network also serve as a risk-reduction factor, suggesting a lower likelihood of prolonged downtime.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific contract?

The 'full and open competition' strategy is generally highly effective in ensuring value for money for complex procurements like this XR-CT upgrade. By allowing all responsible sources to bid, it maximizes the pool of potential suppliers, fostering a competitive environment that drives down prices and encourages innovation. This approach increases the likelihood that the VA will receive technically superior equipment at the most competitive market price. The effectiveness is further enhanced if the solicitation includes clear performance requirements and evaluation criteria that prioritize both technical merit and cost. The presence of multiple bidders, even if not explicitly stated, is implied by the competition type, which is crucial for price discovery and preventing single-source price inflation.

What are the historical spending patterns of the Department of Veterans Affairs on medical imaging equipment, and how does this contract fit within them?

The Department of Veterans Affairs has a consistent and significant history of investing in medical imaging equipment to support its nationwide network of healthcare facilities. Spending patterns typically show a continuous cycle of upgrades and replacements for essential technologies like X-ray, CT, MRI, and ultrasound. The VA often procures these systems through large, multi-year contracts, frequently utilizing full and open competition to leverage economies of scale and ensure access to the latest advancements. This $5.1 million XR-CT upgrade aligns with these historical patterns, reflecting the VA's ongoing commitment to modernizing its diagnostic capabilities and providing veterans with access to state-of-the-art medical technology. Such investments are crucial for maintaining the quality and efficiency of care delivered across the VA system.

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

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: $51,000

Exercised Options: $51,000

Current Obligation: $51,000

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