VA awards $8.7M for GE imaging maintenance, ensuring critical equipment uptime for veterans

Contract Overview

Contract Amount: $8,745,918 ($8.7M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-16

End Date: 2027-01-15

Contract Duration: 1,825 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE RADIOLOGICAL & IMAGING MAINTENANCE SERVICE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.7 million to GE PRECISION HEALTHCARE LLC for work described as: GE RADIOLOGICAL & IMAGING MAINTENANCE SERVICE Key points: 1. Contract ensures continued maintenance of vital radiological and imaging equipment. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Duration of 5 years provides long-term planning for essential medical services. 5. Focus on Texas facilities highlights regional impact on veteran care. 6. Contract value is modest relative to broader federal healthcare spending.

Value Assessment

Rating: good

The contract value of $8.7 million over five years for GE radiological and imaging maintenance appears reasonable given the critical nature of the equipment. Benchmarking against similar maintenance contracts for complex medical imaging systems is challenging without more specific data on the types and volume of equipment covered. However, the firm fixed-price structure provides cost predictability. The awarded amount is significantly lower than the benchmark of $4.79 million, suggesting a potentially favorable negotiation or a smaller scope than initially anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that GE Precision Healthcare LLC was selected based on merit and competitive terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging multiple vendors to offer their best prices and terms.

Public Impact

Veterans in Texas will benefit from reliable access to diagnostic imaging services. Ensures the operational readiness of essential medical equipment for patient care. Supports the healthcare infrastructure within Department of Veterans Affairs facilities in Texas. Maintains the functionality of advanced radiological and imaging technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized parts or knowledge are required beyond the contract scope.
Reliance on a single vendor for maintenance could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Long-term contract (5 years) allows for consistent service delivery and planning.
Awarded under full and open competition, suggesting a competitive selection process.

Sector Analysis

The market for medical equipment maintenance is a significant segment of the broader healthcare industry. This contract falls within the specialized area of radiological and imaging equipment, which requires highly skilled technicians and specific expertise. The size of this specific contract is $8.7 million, which is a modest portion of the overall federal spending on healthcare services and equipment maintenance. Comparable spending benchmarks for similar maintenance contracts can vary widely based on the type and quantity of equipment.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, though larger prime contractors often engage small businesses for various support services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, monitoring of service delivery against contract requirements, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Equipment Maintenance
Radiological Equipment Services
Healthcare Technology Management
Federal Healthcare Contracts

Risk Flags

Potential for price increases over the 5-year term if not adequately managed.
Dependence on a single vendor for critical equipment maintenance.
Risk of technological obsolescence if contract terms do not adapt.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.7 million to GE PRECISION HEALTHCARE LLC. GE RADIOLOGICAL & IMAGING MAINTENANCE SERVICE

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 $8.7 million.

What is the period of performance?

Start: 2022-01-16. End: 2027-01-15.

What is the specific type and quantity of GE radiological and imaging equipment covered under this contract?

The provided data does not specify the exact models or quantities of GE radiological and imaging equipment covered by this contract. This information is crucial for a precise assessment of value for money and for comparing it to other maintenance contracts. Understanding the scope, such as whether it includes MRI, CT scanners, X-ray machines, or ultrasound devices, and the number of units at each facility, would allow for a more accurate benchmark against industry standards and the reported benchmark value of $4.79 million.

How does the awarded price compare to historical spending on similar maintenance services for VA facilities?

Without historical spending data specific to this type of GE equipment maintenance at VA facilities, a direct comparison is not possible. The benchmark value of $4.79 million is provided, but its context (e.g., if it represents a prior contract, an estimated cost, or a different scope) is unclear. If the $4.79 million represents a previous contract or estimate for a similar scope, then the $8.7 million award might indicate an increase in costs, a broader scope, or simply a different market condition. Further analysis would require access to historical VA procurement data for comparable services.

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

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such contracts would include metrics related to response times for service calls, equipment uptime guarantees, preventative maintenance schedules, and parts availability. These KPIs are essential for the VA to monitor contractor performance and ensure that the maintenance services meet the required standards for critical medical equipment, ultimately impacting patient care.

What is the track record of GE Precision Healthcare LLC in fulfilling similar federal contracts?

Assessing the track record of GE Precision Healthcare LLC requires examining their past performance on federal contracts, particularly those involving maintenance of radiological and imaging equipment. This would involve reviewing contract performance reports, any past performance evaluations, and instances of contract disputes or awards. A positive track record with timely service, adherence to SLAs, and effective cost management would indicate a lower risk for this current contract. Conversely, a history of performance issues could raise concerns about the reliability of service delivery.

What is the potential risk associated with the 5-year duration of this contract?

A 5-year duration for a maintenance contract offers benefits like service continuity and potential price stability. However, it also carries risks. Technological advancements in radiological and imaging equipment could make the terms of this contract less optimal over time if it doesn't account for upgrades or new standards. Furthermore, a long-term commitment to a single vendor might reduce flexibility if market conditions change, new competitors emerge with better offerings, or if the vendor's performance declines significantly during the contract period. The VA would need robust oversight to mitigate these risks.

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: $9,681,809

Exercised Options: $8,745,918

Current Obligation: $8,745,918

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