VA awards $2.48M for robotic surgical systems, with delivery orders extending through March 2027

Contract Overview

Contract Amount: $2,481,202 ($2.5M)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-10

End Date: 2027-03-09

Contract Duration: 729 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICE DA VINCI ROBOTIC SYSTEMS THROUGHOUT VISN 12.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to SDV OFFICE SYSTEMS LLC for work described as: SERVICE DA VINCI ROBOTIC SYSTEMS THROUGHOUT VISN 12. Key points: 1. Contract value appears reasonable for specialized surgical equipment over a multi-year period. 2. Full and open competition suggests a healthy market for these advanced systems. 3. Potential risks include technology obsolescence and the need for specialized maintenance. 4. Performance context is critical for ensuring effective utilization of robotic systems in patient care. 5. This contract positions the VA within the advanced medical technology sector.

Value Assessment

Rating: good

The contract value of $2.48 million for robotic surgical systems over approximately two years seems within a reasonable range for this type of specialized medical equipment. Benchmarking against similar contracts for da Vinci systems or comparable robotic surgical platforms would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the overall value is contingent on the utilization rates and clinical outcomes achieved.

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 were likely invited to bid. This approach generally fosters competitive pricing and encourages innovation. The specific number of bidders is not provided, but the open competition suggests a market where several companies can offer these advanced systems, leading to better price discovery for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers for its procurements.

Public Impact

Veterans receiving care within VISN 12 will benefit from access to advanced robotic surgical technology. The contract facilitates the delivery of surgical services, potentially improving patient outcomes and recovery times. The geographic impact is focused on facilities within VISN 12, serving veterans in that region. Workforce implications include the need for trained surgical teams and support staff to operate and maintain the robotic systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high maintenance and service costs associated with robotic surgical systems.
Need for specialized training for medical staff to effectively utilize the technology.
Risk of technology becoming outdated if not regularly updated or replaced.

Positive Signals

Access to state-of-the-art surgical technology can lead to improved patient outcomes.
Robotic surgery can enable less invasive procedures, potentially reducing recovery times.
The contract ensures continuity of care for veterans requiring these advanced surgical interventions.

Sector Analysis

The market for surgical robotic systems is a specialized segment within the broader medical device industry. Companies like Intuitive Surgical dominate this space, but competition is growing. This contract fits within the VA's strategy to modernize its surgical capabilities and provide advanced care. Comparable spending benchmarks would involve looking at other large healthcare systems or government agencies procuring similar robotic platforms.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Given the specialized nature of robotic surgical systems, it is likely that the primary awardee is a large business with established manufacturing and distribution capabilities. Further analysis would be needed to determine if small businesses are involved in the supply chain or service provision.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would include performance monitoring against delivery schedules and service level agreements. Transparency is generally maintained through contract databases, though specific operational details may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Equipment Procurement
Surgical Technology Contracts
Robotic Surgery Systems
Veterans Health Administration Services

Risk Flags

Potential for high lifecycle costs (maintenance, upgrades).
Dependence on specialized technical support.
Risk of technology obsolescence.
Need for ongoing staff training and proficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to SDV OFFICE SYSTEMS LLC. SERVICE DA VINCI ROBOTIC SYSTEMS THROUGHOUT VISN 12.

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 $2.5 million.

What is the period of performance?

Start: 2025-03-10. End: 2027-03-09.

What is the track record of SDV OFFICE SYSTEMS LLC in providing advanced medical equipment, specifically robotic surgical systems, to federal agencies?

Information regarding SDV OFFICE SYSTEMS LLC's specific track record in providing advanced medical equipment, particularly robotic surgical systems, is not readily available in the provided data. The company's primary NAICS code (339112 - Surgical and Medical Instrument Manufacturing) suggests manufacturing capabilities, but it does not detail their experience with large-scale robotic system deployments or service contracts for the VA. Further investigation into the contractor's past performance, including any previous contracts for similar equipment, client references, and any reported issues or successes, would be necessary to fully assess their capabilities and reliability for this specific requirement.

How does the awarded price of $2.48 million compare to market rates for similar da Vinci robotic surgical systems or comparable platforms over a two-year period?

The awarded price of $2.48 million for robotic surgical systems over approximately two years requires detailed market benchmarking. The cost of da Vinci systems, for instance, can vary significantly based on the model, included features, service contracts, and the number of robotic arms. Acquisition costs alone can range from $1 million to over $2 million, with substantial annual service fees. Without knowing the specific system procured, the duration of the service component, and the exact number of units or associated services, a precise comparison is difficult. However, if this figure includes the system acquisition and a comprehensive service package for the duration, it appears to be within the expected range for high-end surgical robotics, especially considering the competitive bidding process.

What are the primary risks associated with the long-term use and maintenance of robotic surgical systems procured by the VA?

Several risks are associated with the long-term use and maintenance of robotic surgical systems. Technological obsolescence is a significant concern, as advancements in robotics can quickly render current systems outdated, potentially impacting the quality of care or efficiency. High maintenance and service costs are also a risk; these systems are complex and require specialized technicians, often leading to substantial annual service contracts that can exceed initial purchase prices. Furthermore, the need for continuous training and skill development for surgical teams is crucial. A lack of adequately trained personnel can lead to underutilization or improper use of the technology. Finally, ensuring the reliability and uptime of these critical systems is paramount, as any malfunction during surgery could have severe consequences.

What is the expected impact of these robotic surgical systems on patient outcomes and surgical procedure efficiency within VISN 12 facilities?

The expected impact of these robotic surgical systems on patient outcomes and surgical procedure efficiency within VISN 12 facilities is generally positive, assuming effective implementation and utilization. Robotic surgery often enables minimally invasive procedures, which can lead to smaller incisions, reduced blood loss, less pain, and shorter hospital stays compared to traditional open surgery. This can translate to faster recovery times for veterans. Furthermore, the enhanced precision and dexterity offered by robotic systems can improve surgical outcomes in complex procedures, potentially reducing complications. The efficiency gains may come from reduced operative times for certain procedures and improved visualization for surgeons. However, realizing these benefits depends heavily on the specific procedures being performed, the surgeon's proficiency with the technology, and the integration of the robotic system into the overall surgical workflow.

How does this contract align with the VA's broader strategy for adopting advanced medical technologies to improve veteran healthcare?

This contract aligns with the VA's broader strategy to adopt advanced medical technologies to improve veteran healthcare by investing in state-of-the-art surgical equipment. The VA has been actively seeking to modernize its facilities and clinical capabilities to provide veterans with access to the best available treatments. Robotic surgery represents a significant technological advancement that can enhance the quality, precision, and minimally invasive nature of surgical interventions. By procuring these systems, the VA demonstrates a commitment to offering cutting-edge care, potentially improving patient outcomes, reducing recovery times, and enhancing the overall patient experience. This aligns with the agency's goal of ensuring veterans receive high-quality, efficient, and effective healthcare services comparable to or exceeding civilian standards.

Industry Classification

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

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

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: $6,754,622

Exercised Options: $2,501,322

Current Obligation: $2,481,202

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