VA Awards $2.94M Contract for Siemens Hcht Modalities Full-Service to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $2,942,911 ($2.9M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-01

End Date: 2026-10-31

Contract Duration: 364 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS HCHT MODALITIES FULL-SERVICE

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS HCHT MODALITIES FULL-SERVICE Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration is 364 days, indicating a short-term service requirement. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The awardee, Siemens Medical Solutions USA, Inc., is a known entity in the medical equipment sector. 5. The place of performance is Texas, potentially benefiting the local economy and workforce. 6. The contract is for Irradiation Apparatus Manufacturing, a specialized industrial category.

Value Assessment

Rating: good

The contract value of $2.94 million for a 364-day service period for SIEMENS HCHT MODALITIES FULL-SERVICE appears reasonable given the specialized nature of irradiation apparatus manufacturing and full-service support. Benchmarking against similar contracts for advanced medical equipment maintenance and service would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the contractor has adequately estimated costs, and the government is protected from cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, if applicable, would typically lead to more competitive pricing and better value for the government. The specific number of bidders is not provided, but the competition type suggests a robust process was followed.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better use of public funds.

Public Impact

Veterans receiving services at VA facilities in Texas will benefit from the continued availability and maintenance of critical medical equipment. The contract ensures the operational readiness of irradiation apparatus, vital for diagnostic and therapeutic procedures. The contract's performance in Texas may indirectly support local healthcare infrastructure and related employment. Specialized technicians and support staff employed by Siemens Medical Solutions USA, Inc. will be involved in fulfilling this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service requirements become highly specialized and difficult to transition.
Reliance on a single contractor for critical equipment maintenance could pose risks if performance issues arise.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Award to a known industry leader suggests a higher likelihood of successful performance.
Full and open competition indicates a deliberate effort to secure the best possible value.

Sector Analysis

The contract falls within the broader healthcare and medical equipment manufacturing sector. This sector is characterized by high technological advancement, stringent regulatory requirements, and significant investment in research and development. Siemens is a major global player in this industry, providing a wide range of medical technologies. Spending in this area is critical for maintaining advanced healthcare capabilities within federal agencies like the VA.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside. The focus appears to be on securing specialized services from a capable prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which penalizes contractor cost overruns. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

Medical Equipment Maintenance Contracts
Irradiation Apparatus Manufacturing Services
Department of Veterans Affairs Healthcare Procurement
Federal Medical Technology Contracts

Risk Flags

Potential for performance issues impacting critical medical services.
Risk of cost increases if contract scope is not precisely defined.
Dependence on a single vendor for specialized equipment maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS HCHT MODALITIES FULL-SERVICE

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $2.9 million.

What is the period of performance?

Start: 2025-11-01. End: 2026-10-31.

What is the track record of Siemens Medical Solutions USA, Inc. in fulfilling similar federal contracts, particularly for irradiation apparatus and full-service modalities?

Siemens Medical Solutions USA, Inc. has a significant history of providing medical equipment and services to federal agencies, including the Department of Veterans Affairs. Their experience encompasses a wide range of modalities, including imaging and treatment systems that utilize irradiation. While specific performance data for every contract is not publicly detailed, their established presence and continued awards suggest a generally reliable track record in delivering complex medical technology solutions and associated maintenance. Analyzing past performance evaluations and any reported issues on similar federal contracts would provide a more granular understanding of their capabilities and reliability in this specific domain.

How does the awarded value of $2.94 million for a 364-day service period compare to market rates for similar full-service contracts for Siemens HCHT modalities?

Benchmarking the $2.94 million contract value against market rates for similar full-service contracts for Siemens HCHT modalities requires detailed analysis of specific service inclusions, equipment models, and geographic locations. Full-service contracts typically encompass maintenance, repair, parts, and sometimes software updates, which can vary significantly in cost. Given that Siemens is a major manufacturer, their pricing might reflect premium service levels. A comprehensive comparison would involve obtaining quotes from other service providers for comparable equipment and service scopes, or analyzing historical data from similar federal or commercial contracts. Without this granular data, it's challenging to definitively state if the price is above or below market, but the firm fixed-price nature suggests the contractor believes it is competitive and profitable.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential performance failures by the contractor, leading to equipment downtime and impacting patient care; unexpected increases in the cost of parts or labor not fully accounted for in the fixed price; and potential obsolescence of the technology over time. Mitigation strategies include the firm fixed-price contract type, which places cost risk on the contractor. The Department of Veterans Affairs will likely have contract officers and technical representatives monitoring performance, conducting regular reviews, and ensuring adherence to service level agreements. The contract's relatively short duration (364 days) also limits long-term exposure to risks associated with technology changes or contractor performance issues.

How effective is the firm fixed-price contract type in ensuring value for money for this specific service requirement?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For a full-service contract like this, FFP shifts the responsibility for managing costs and potential overruns to Siemens Medical Solutions USA, Inc. This incentivizes the contractor to be efficient and control their expenses. The government benefits from cost certainty, as the total price is fixed regardless of the contractor's actual costs. However, for FFP to be truly effective, the initial price must be competitive and reflect a realistic estimate of the work required. If the scope is not perfectly defined, or if unforeseen issues arise, the contractor may seek to limit services or the government may need to negotiate change orders, potentially impacting the initial value proposition.

What is the historical spending pattern of the Department of Veterans Affairs on SIEMENS HCHT MODALITIES FULL-SERVICE or comparable services?

Analyzing the historical spending patterns of the Department of Veterans Affairs (VA) on SIEMENS HCHT MODALITIES FULL-SERVICE or comparable services is crucial for understanding trends and assessing the current award's context. Without access to specific historical VA procurement databases or detailed contract histories, it's difficult to provide precise figures. However, the VA consistently invests significant funds in medical equipment and maintenance to support its network of healthcare facilities. Spending on specialized modalities like those from Siemens is expected to be substantial, driven by the need for advanced diagnostic and therapeutic capabilities. Trends likely show a continuous requirement for such services, with spending fluctuating based on equipment replacement cycles, technological advancements, and budget allocations. This $2.94 million award should be viewed within the broader context of the VA's overall medical equipment procurement and maintenance budget.

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: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,894,622

Exercised Options: $2,942,911

Current Obligation: $2,942,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline