VA awards $601.9M contract for irradiation apparatus manufacturing to GE Precision Healthcare LLC

Contract Overview

Contract Amount: $601,936 ($601.9K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-26

End Date: 2027-09-25

Contract Duration: 1,460 days

Daily Burn Rate: $412/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE TELEMETRY

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75217

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $601,936.07 to GE PRECISION HEALTHCARE LLC for work described as: GE TELEMETRY Key points: 1. Contract value represents a significant investment in specialized medical equipment. 2. Sole awardee suggests potential for limited competition or specialized capabilities. 3. Long contract duration of 4 years indicates a sustained need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award is a delivery order under a larger contract vehicle. 6. Geographic location in Texas may impact logistics and regional support.

Value Assessment

Rating: fair

The total contract value of $601.9 million over four years averages to approximately $150.5 million annually. Benchmarking this against similar contracts for large-scale medical equipment manufacturing is challenging without more specific details on the type and complexity of the irradiation apparatus. However, the scale of the award suggests a substantial procurement. The firm fixed-price nature of the contract provides cost certainty for the VA, but the value-for-money assessment hinges on the delivered quality and performance of the equipment over the contract's lifespan.

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. However, the data does not specify the number of bids received. A full and open competition is generally expected to yield competitive pricing and a wider range of solutions. The fact that it resulted in a single delivery order to GE Precision Healthcare LLC could imply that GE was the most advantageous offer, or that the specific requirements of this order narrowed the field of viable competitors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which should theoretically lead to better pricing and value. It ensures that the government explores the market broadly to secure the best possible deal.

Public Impact

The Department of Veterans Affairs is the primary beneficiary, receiving critical irradiation apparatus. This equipment is likely essential for medical treatments and diagnostics within VA facilities. The contract supports advanced manufacturing capabilities within the healthcare technology sector. Workforce implications may include specialized manufacturing roles and technical support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific apparatus becomes standard across VA facilities.
Reliance on a single manufacturer for critical medical equipment could pose supply chain risks.
Limited transparency on the number of bidders in the full and open competition.

Positive Signals

Awarded through full and open competition, suggesting market exploration.
Firm fixed-price contract type provides budget predictability for the VA.
Long-term contract indicates a sustained and critical need for the equipment.

Sector Analysis

The contract falls within the broader medical device manufacturing sector, specifically focusing on irradiation apparatus. This is a niche but critical area within healthcare technology, often involving complex engineering and stringent regulatory compliance. The market for such specialized equipment is typically dominated by a few key players with the necessary expertise and certifications. The size of this award suggests a significant market presence for GE Precision Healthcare LLC in this segment.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor is likely a large entity. Subcontracting opportunities for small businesses are not detailed in this data, but typically large federal contracts may include provisions for small business subcontracting goals.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight mechanisms would typically involve contract officers, program managers, and potentially quality assurance specialists to ensure adherence to specifications and delivery schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Procurement
Radiotherapy Equipment
Healthcare Technology Manufacturing
Department of Veterans Affairs Medical Services

Risk Flags

Potential for vendor lock-in
Supply chain dependency
Long-term performance risk
Limited competition visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $601,936.07 to GE PRECISION HEALTHCARE LLC. GE TELEMETRY

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 $601,936.07.

What is the period of performance?

Start: 2023-09-26. End: 2027-09-25.

What specific type of irradiation apparatus is being procured, and what are its primary applications within the VA healthcare system?

The provided data identifies the North American Industry Classification System (NAICS) code as 334517 for 'Irradiation Apparatus Manufacturing.' This code encompasses the production of devices that use ionizing radiation for various purposes. Within the healthcare context, this most commonly refers to equipment used in radiation therapy for cancer treatment (e.g., linear accelerators, cobalt-60 units) or for sterilization of medical equipment and supplies. The specific application within the VA system would dictate the precise technical specifications, safety protocols, and intended use, impacting patient care and operational efficiency.

How does the $601.9 million contract value compare to historical VA spending on similar irradiation apparatus?

To accurately compare this $601.9 million contract to historical VA spending, one would need to analyze past contract awards for irradiation apparatus, considering factors like the number of units procured, their specifications, and the duration of those contracts. Without access to detailed historical procurement data for this specific category, a direct comparison is difficult. However, the substantial value of this award suggests either a significant expansion of VA's radiation therapy or sterilization capabilities, or the replacement of a large fleet of aging equipment. It represents a considerable investment in a specialized area of medical technology.

What is the track record of GE Precision Healthcare LLC in delivering large-scale medical equipment contracts to federal agencies?

GE Precision Healthcare LLC, as part of the larger General Electric conglomerate, has a long-standing history of supplying complex medical equipment, including imaging and radiation therapy systems, to healthcare providers globally, including federal agencies. Assessing their track record specifically for large-scale irradiation apparatus contracts would involve reviewing their past performance on similar federal awards, including on-time delivery, adherence to specifications, and overall customer satisfaction ratings. While GE is a recognized leader, the success of this specific $601.9 million contract depends on their execution and the specific capabilities of their manufacturing division responsible for this award.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract?

Key performance indicators for this contract would likely focus on several critical areas. These would include adherence to technical specifications and quality standards for the irradiation apparatus, ensuring the equipment functions as intended for its medical applications. Delivery timelines are crucial, with penalties potentially associated with delays. Reliability and uptime of the installed equipment would be another vital KPI, especially for therapeutic devices. Furthermore, the contractor's responsiveness to service requests, maintenance support, and training provided to VA personnel would also be assessed to ensure the long-term operational success and value derived from this significant investment.

What are the potential risks associated with a single delivery order of this magnitude to one contractor?

A single delivery order of this magnitude to one contractor, even under full and open competition, carries several potential risks. Firstly, there's a risk of vendor lock-in, where the VA becomes heavily reliant on GE Precision Healthcare for this specific type of apparatus, potentially limiting future competitive options or negotiating leverage. Secondly, supply chain disruptions affecting GE could significantly impact the VA's ability to receive the critical equipment on time. Thirdly, if the equipment proves to have unforeseen issues or performance shortcomings, rectifying them might be more complex and costly when dealing with a single, established supplier. Finally, the concentration of such a large award could reduce opportunities for other capable manufacturers to enter or expand their presence within the VA market.

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: $763,873

Exercised Options: $601,936

Current Obligation: $601,936

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