VA Spends $7,549 on Siemens Controller Repair for Salem Medical Center, No Competition

Contract Overview

Contract Amount: $7,549 ($7.5K)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-04-10

Contract Duration: 7 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EMERGENCY SIEMENS PDCM CONTROLLER SYSTEM REPAIR FOR THE SALEM VA MEDICAL CENTER.

Place of Performance

Location: SALEM, SALEM County, VIRGINIA, 24153

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7,549.34 to SIEMENS INDUSTRY INC for work described as: EMERGENCY SIEMENS PDCM CONTROLLER SYSTEM REPAIR FOR THE SALEM VA MEDICAL CENTER. Key points: 1. High cost for a short-term repair, suggesting potential urgency or lack of alternatives. 2. Sole reliance on Siemens Industry Inc. for critical infrastructure raises vendor lock-in concerns. 3. Limited duration of the contract (7 days) indicates a specific, immediate need. 4. Facilities Support Services sector often sees specialized repair needs, but competition is usually possible.

Value Assessment

Rating: questionable

The $7,549 cost for a 7-day repair of a Siemens controller system appears high when compared to typical IT maintenance contracts. Without a competitive bid, it's difficult to ascertain if this price reflects fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Siemens Industry Inc. This lack of competition limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding, as the VA did not explore alternative vendors or pricing.

Public Impact

Ensures continued operation of critical medical center infrastructure. Potential for higher costs due to lack of competition impacts budget allocation. Reliance on a single vendor could lead to future vulnerabilities if not managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High unit cost for short duration
Potential vendor lock-in

Positive Signals

Addresses an immediate operational need
Ensures continuity of services

Sector Analysis

This contract falls under Facilities Support Services, specifically for IT infrastructure maintenance at a VA medical center. Spending in this sector can vary widely, but emergency repairs often command premium pricing, though competition is generally encouraged.

Small Business Impact

The data does not indicate whether small businesses were considered or had the capability to perform this specialized repair. The award to a large corporation like Siemens suggests small business participation was unlikely.

Oversight & Accountability

The lack of competition raises questions about the oversight process for this emergency repair. Further review is needed to understand why alternative solutions or competitive bidding were not pursued.

Related Government Programs

Facilities Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of price competition
Potentially high cost for short duration
No indication of small business consideration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7,549.34 to SIEMENS INDUSTRY INC. EMERGENCY SIEMENS PDCM CONTROLLER SYSTEM REPAIR FOR THE SALEM VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY 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 $7,549.34.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-10.

What is the benchmark cost for similar Siemens PDCM controller system repairs, and was this price justified?

Benchmarking similar Siemens PDCM controller system repairs is challenging without access to proprietary pricing data or a competitive bidding process. However, the $7,549 cost for a 7-day emergency repair appears high. A thorough review of the vendor's quote, including labor and parts, against industry standards and previous VA contracts for similar services is necessary to determine if the price was justified.

What are the risks associated with a sole-source award for critical medical center infrastructure maintenance?

Sole-source awards for critical infrastructure pose several risks. They can lead to inflated prices due to a lack of competition, create vendor lock-in where the agency becomes overly dependent on a single provider, and limit the ability to leverage market dynamics for better terms. This dependency can also hinder innovation and potentially compromise service quality if the sole provider faces financial or operational issues.

How effective is this contract in ensuring the long-term operational stability of the Salem VA Medical Center's systems?

This contract is effective in addressing an immediate, short-term need for system repair, ensuring operational continuity for the 7-day period. However, its effectiveness in ensuring long-term stability is questionable due to the sole-source nature and the potential for recurring emergency repairs. A long-term strategy involving preventative maintenance, competitive service contracts, or system upgrades would be more effective.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 E DEERFIELD PKWY, BUFFALO GROVE, IL, 60089

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,549

Exercised Options: $7,549

Current Obligation: $7,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline