VA awards $3.2M for Da Vinci Surgical System, impacting surgical instrument manufacturing sector

Contract Overview

Contract Amount: $3,224,739 ($3.2M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-12-31

Contract Duration: 267 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DA VINCI 5 DUAL CONSOLE SYSTEM, INSTRUMENT AND ACCESSORIES

Place of Performance

Location: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to SDV OFFICE SYSTEMS LLC for work described as: DA VINCI 5 DUAL CONSOLE SYSTEM, INSTRUMENT AND ACCESSORIES Key points: 1. The contract for a Da Vinci surgical system represents a significant investment in advanced medical technology. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The award falls within the Surgical and Medical Instrument Manufacturing sector, a key area for healthcare innovation. 4. Potential risks include technology obsolescence and the need for ongoing maintenance and training.

Value Assessment

Rating: good

The award amount of $3,224,739 for a Da Vinci dual console system appears reasonable given the high cost of such advanced surgical platforms. Benchmarking against similar procurements would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential suppliers to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayer funds are being used for a critical healthcare technology, aiming to improve patient care and surgical outcomes. The competitive nature of the award should ensure efficient use of these funds.

Public Impact

Enhances surgical capabilities at VA facilities, potentially leading to better patient outcomes and reduced recovery times. Supports the advancement of robotic-assisted surgery within the Department of Veterans Affairs. Impacts the market for high-end surgical equipment and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high maintenance and training costs associated with complex robotic systems.
Risk of technology becoming outdated if not managed proactively.
Dependence on a single vendor for proprietary parts and service.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Investment in advanced medical technology to improve veteran healthcare.
Contract duration allows for planned integration and utilization.

Sector Analysis

This procurement falls under the Surgical and Medical Instrument Manufacturing sector. Spending in this area is crucial for modernizing healthcare infrastructure and adopting advanced treatment modalities. Benchmarks for similar robotic surgical systems can vary widely based on features and vendor.

Small Business Impact

While the primary awardee is SDV OFFICE SYSTEMS LLC, the nature of this high-value, specialized medical equipment procurement may limit direct participation by small businesses in the prime contract. However, small businesses could potentially be involved as subcontractors for support services or components.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and accountability. Performance monitoring will be key to verifying successful delivery and integration.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High initial cost of advanced surgical technology.
Ongoing maintenance and service contract expenses.
Need for specialized staff training and potential recruitment challenges.
Risk of technological obsolescence over the system's lifespan.
Dependence on vendor for proprietary parts and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to SDV OFFICE SYSTEMS LLC. DA VINCI 5 DUAL CONSOLE SYSTEM, INSTRUMENT AND ACCESSORIES

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS 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 $3.2 million.

What is the period of performance?

Start: 2026-04-08. End: 2026-12-31.

What is the projected return on investment for this Da Vinci system in terms of improved patient outcomes and cost savings?

Quantifying the ROI requires detailed analysis of patient data, procedure success rates, and comparison of costs versus traditional surgery. The VA would need to track metrics like reduced hospital stays, fewer complications, and shorter recovery periods to establish a clear return on this significant investment in advanced surgical technology.

What are the long-term maintenance and upgrade costs associated with this system, and how are they factored into the VA's budget?

Long-term costs typically include service contracts, replacement parts, software updates, and potential future upgrades. These are usually negotiated separately or included in initial contract terms. The VA's budget planning must account for these recurring expenses to ensure the system remains operational and effective throughout its lifecycle.

How will the VA ensure adequate training for surgical staff to maximize the benefits of this advanced system?

Ensuring adequate training involves comprehensive programs provided by the vendor, supplemented by internal training initiatives. The VA should establish clear training protocols, track staff proficiency, and potentially utilize simulation tools to ensure all relevant personnel are competent and comfortable operating the Da Vinci system.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 REDMOND DR UNIT C, FLETCHER, NC, 28732

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,224,739

Exercised Options: $3,224,739

Current Obligation: $3,224,739

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G25D0013

IDV Type: IDC

Timeline