VA Awards $2.6M GE Imaging Maintenance Contract to GE Healthcare for HAVAMC

Contract Overview

Contract Amount: $2,638,113 ($2.6M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE DIAGNOSTIC IMAGING EQUIPMENT MAINTENANCE AGREEMENT HAVAMC BASE PLUS 4

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23667

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to GE PRECISION HEALTHCARE LLC for work described as: GE DIAGNOSTIC IMAGING EQUIPMENT MAINTENANCE AGREEMENT HAVAMC BASE PLUS 4 Key points: 1. Contract awarded to GE Precision Healthcare LLC for diagnostic imaging equipment maintenance. 2. The agreement spans five years, from October 2020 to September 2025. 3. Full and open competition was utilized for this contract. 4. The contract value is $2,638,113.37. 5. The equipment falls under the Irradiation Apparatus Manufacturing sector.

Value Assessment

Rating: good

The contract value of $2.6M over five years appears reasonable for specialized diagnostic imaging equipment maintenance. Benchmarking against similar multi-year service agreements for complex medical devices would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure value for taxpayer dollars.

Taxpayer Impact: The use of full and open competition aims to secure the best possible price for the government, maximizing the value of taxpayer funds spent on essential medical equipment maintenance.

Public Impact

Ensures continued operation of critical diagnostic imaging equipment at HAVAMC. Supports patient care by maintaining advanced medical technology. Provides essential maintenance services for the Department of Veterans Affairs. Contributes to the readiness and operational capability of a VA medical facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years if not managed.
Dependence on a single vendor for specialized maintenance.

Positive Signals

Full and open competition utilized.
Long-term agreement ensures service continuity.
Supports critical healthcare services for veterans.

Sector Analysis

This contract falls within the Irradiation Apparatus Manufacturing sector, specifically for the maintenance of diagnostic imaging equipment. Spending in this sector is crucial for healthcare infrastructure, and benchmarks vary widely based on equipment complexity and service scope.

Small Business Impact

The contract was awarded to GE Precision Healthcare LLC, a large business. There is no indication of small business participation in this specific award, which is common for specialized equipment maintenance contracts.

Oversight & Accountability

The Department of the VA is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance, with oversight focused on service delivery and adherence to terms.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Vendor Lock-in
Potential for escalating costs over contract duration
Reliance on original equipment manufacturer for specialized parts and expertise
Service disruption risk impacting patient care

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to GE PRECISION HEALTHCARE LLC. GE DIAGNOSTIC IMAGING EQUIPMENT MAINTENANCE AGREEMENT HAVAMC BASE PLUS 4

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 $2.6 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What is the historical maintenance cost for this specific GE diagnostic imaging equipment at HAVAMC prior to this contract?

Historical maintenance cost data is crucial for validating the current contract's value. Understanding past expenditures, including any previous service agreements or ad-hoc repairs, allows for a direct comparison and assessment of whether the new contract represents cost savings, increased costs, or is in line with previous spending patterns for similar services.

Are there any performance metrics or service level agreements (SLAs) included in the contract to ensure timely and effective maintenance?

Performance metrics and SLAs are vital for ensuring the effectiveness of maintenance services. They define expected response times, repair durations, and equipment uptime guarantees. Without clearly defined and enforceable SLAs, the government risks suboptimal service, leading to equipment downtime and potential disruptions in patient care.

What is the potential impact on VA healthcare operations if GE Precision Healthcare LLC fails to meet its maintenance obligations under this contract?

Failure to meet maintenance obligations could lead to significant disruptions in diagnostic imaging services at HAVAMC, directly impacting patient care and treatment timelines. This could necessitate emergency repairs, temporary reliance on external facilities, or the use of less advanced equipment, all of which incur additional costs and reduce the quality of care provided to veterans.

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: 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: $3,397,529

Exercised Options: $2,638,113

Current Obligation: $2,638,113

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