VA awards $5.77M for Siemens radiology equipment service, ensuring critical medical imaging uptime

Contract Overview

Contract Amount: $5,769,541 ($5.8M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2024-09-30

Contract Duration: 730 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS RADIOLOGY EQUIPMENT SERVICE PLAN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20422

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS RADIOLOGY EQUIPMENT SERVICE PLAN Key points: 1. Service contract ensures operational readiness of essential diagnostic equipment. 2. Single award indicates potential for specialized vendor relationship. 3. Fixed-price structure provides cost certainty for the duration of the contract. 4. Long-term service agreement mitigates risks associated with equipment failure. 5. Contract supports the VA's mission to provide healthcare to veterans. 6. Geographic focus on Washington D.C. ensures localized support.

Value Assessment

Rating: good

The contract value of $5.77 million over two years for Siemens radiology equipment service appears reasonable given the critical nature of the equipment and the specialized expertise required. Benchmarking against similar service contracts for complex medical imaging systems is challenging without more specific details on the exact equipment models and service levels. However, the firm fixed-price nature suggests a predictable cost for the VA, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it resulted in a single award indicates that Siemens Medical Solutions USA, Inc. was likely the most advantageous offer based on technical capabilities, price, or a combination thereof. The competitive process should have driven a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, ensuring the government receives optimal value for its investment.

Public Impact

Veterans receiving care at VA facilities in the Washington D.C. area will benefit from reliable access to diagnostic imaging services. Ensures the continued operation of essential radiology equipment, crucial for timely diagnosis and treatment planning. Supports the healthcare infrastructure of the Department of Veterans Affairs. Maintains the operational readiness of medical technology, indirectly supporting medical staff efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized equipment service needs.
Reliance on a single vendor for critical equipment maintenance could pose risks if the vendor's performance declines or if they exit the market.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term service agreement ensures continuity of care and equipment availability.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the broader healthcare equipment maintenance and services sector. The market for servicing specialized medical equipment like radiology systems is often dominated by original equipment manufacturers (OEMs) due to proprietary technology and required expertise. Spending in this area is critical for healthcare providers to maintain the uptime and performance of high-value assets, ensuring patient care is not disrupted.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a service contract for specialized medical equipment, it is likely that the primary contractor, Siemens Medical Solutions USA, Inc., possesses the unique capabilities required, potentially limiting opportunities for smaller, non-OEM service providers unless they are specialized subcontractors.

Oversight & Accountability

The contract is subject to the standard oversight mechanisms of the Department of Veterans Affairs. Performance will likely be monitored through contract administration and quality assurance processes. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Equipment Maintenance Services
Radiology and Imaging Equipment
Department of Veterans Affairs Healthcare Services
Federal Healthcare IT Contracts

Risk Flags

Potential vendor lock-in
Reliance on OEM for specialized parts and service

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS RADIOLOGY EQUIPMENT SERVICE PLAN

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 $5.8 million.

What is the period of performance?

Start: 2022-10-01. End: 2024-09-30.

What is the historical spending by the VA on Siemens radiology equipment service plans?

Analyzing historical spending by the Department of Veterans Affairs (VA) on Siemens radiology equipment service plans requires a review of past contract awards. Without access to a comprehensive database of all prior contracts, it's difficult to provide an exact figure. However, the current award of $5.77 million over two years suggests a significant ongoing investment in maintaining these critical assets. If this is a renewal or continuation of previous service agreements, it indicates a consistent need and potentially a stable, long-term relationship with the vendor for essential medical equipment support across VA facilities.

How does the pricing of this Siemens service contract compare to market rates for similar equipment maintenance?

Benchmarking the pricing of this $5.77 million Siemens radiology equipment service plan against market rates is complex without detailed specifications of the equipment covered, the scope of services (e.g., preventive maintenance, emergency repairs, parts included), and the service level agreements (SLAs). However, given that Siemens is the original equipment manufacturer (OEM), their service contracts often command a premium due to specialized knowledge, access to proprietary parts, and guaranteed response times. The firm fixed-price nature provides cost certainty for the VA. A thorough comparison would involve obtaining quotes from third-party service providers (if applicable and capable) or analyzing pricing from other federal agencies for comparable OEM service contracts.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this Siemens radiology equipment service plan are not detailed in the provided data. Typically, such contracts would include metrics related to equipment uptime, response times for service calls (especially for critical failures), repair completion times, and potentially availability of spare parts. The Department of Veterans Affairs would monitor these KPIs to ensure Siemens Medical Solutions USA, Inc. is meeting its contractual obligations. Failure to meet these SLAs could result in penalties or remedies outlined in the contract.

What is the track record of Siemens Medical Solutions USA, Inc. in fulfilling federal contracts for medical equipment maintenance?

Siemens Medical Solutions USA, Inc. has a significant track record of fulfilling federal contracts, particularly within the Department of Veterans Affairs and other healthcare-focused agencies. Their extensive experience as an Original Equipment Manufacturer (OEM) for radiology and other medical imaging equipment positions them as a primary provider for maintenance and service. Historical data from federal procurement systems would likely show numerous awards for similar service contracts. Evaluating their past performance would involve reviewing contract completion records, any reported disputes or terminations, and past performance evaluations submitted by contracting officers.

What is the potential risk associated with relying on a single vendor for critical radiology equipment maintenance?

Relying on a single vendor, such as Siemens, for critical radiology equipment maintenance presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes heavily dependent on Siemens for parts, expertise, and software updates, making it difficult and costly to switch providers. Secondly, if Siemens experiences financial difficulties, operational disruptions, or decides to discontinue support for specific models, the VA could face significant challenges in maintaining equipment uptime. Thirdly, a lack of competition for future service needs could lead to escalating costs over time. Mitigating these risks often involves negotiating strong contract terms, ensuring knowledge transfer, and exploring options for third-party maintenance or in-house capabilities where feasible.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: 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: $7,618,481

Exercised Options: $5,769,541

Current Obligation: $5,769,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline