VA awards $2.4M for GE Optima Maintenance, ensuring critical medical equipment uptime

Contract Overview

Contract Amount: $2,416,070 ($2.4M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2027-04-30

Contract Duration: 1,672 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 OPTIMA MAINTENANCE - ANN ARBOR

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to GE PRECISION HEALTHCARE LLC for work described as: GE OPTIMA MAINTENANCE - ANN ARBOR Key points: 1. Contract ensures continued operation of essential medical imaging technology. 2. Sole provider for GE Optima maintenance presents potential for higher costs. 3. Long-term contract (5 years) requires careful monitoring of service quality and pricing. 4. Spending aligns with typical healthcare equipment maintenance costs.

Value Assessment

Rating: good

The contract value of $2.4M over approximately 5.5 years suggests a reasonable annual cost for specialized medical equipment maintenance. Benchmarking against similar service contracts for high-value imaging systems 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, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and good value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential healthcare services.

Public Impact

Ensures uninterrupted patient care by maintaining critical diagnostic equipment. Supports the operational readiness of VA medical facilities. Provides access to specialized maintenance services for advanced medical technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required.
Reliance on a single manufacturer for maintenance can limit negotiation leverage.

Positive Signals

Full and open competition utilized.
Long-term contract provides budget certainty.
Essential service for patient care.

Sector Analysis

Spending in the healthcare sector for equipment maintenance is substantial, driven by the high cost and complexity of medical technology. This contract falls within the expected range for maintaining advanced imaging systems.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or could have been.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Regular performance reviews and adherence to contract terms are crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for high costs due to specialized nature of equipment.
Reliance on a single vendor for critical maintenance.
Need for ongoing performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to GE PRECISION HEALTHCARE LLC. GE OPTIMA MAINTENANCE - ANN ARBOR

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 $2.4 million.

What is the period of performance?

Start: 2022-10-01. End: 2027-04-30.

What is the benchmark cost for maintaining similar GE Optima systems across other federal agencies or healthcare providers?

Benchmarking the cost against similar GE Optima maintenance contracts within the federal government or the broader healthcare industry is crucial. This would involve analyzing contract data for comparable systems, considering factors like system age, usage intensity, and included service levels. Without this comparative data, assessing the true value for money is challenging.

What are the risks associated with relying on GE Precision Healthcare LLC for maintenance, given their specialized nature?

The primary risk is potential vendor lock-in, where the VA becomes overly dependent on GE for parts, expertise, and service, potentially leading to inflated prices or service delays. This dependency could also limit the VA's ability to leverage competitive pricing from third-party service providers if they exist and are capable.

How effectively does this contract ensure the long-term operational readiness and cost-efficiency of the VA's imaging equipment?

The contract's effectiveness hinges on the VA's diligent oversight of service delivery and pricing. While ensuring operational readiness is a direct benefit, cost-efficiency depends on the negotiated terms and ongoing market competitiveness. Regular performance evaluations and comparisons to industry standards are necessary to confirm long-term value.

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: $2,811,646

Exercised Options: $2,416,070

Current Obligation: $2,416,070

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