VA awards $62.3M contract for GE radiology equipment maintenance, ensuring critical healthcare services

Contract Overview

Contract Amount: $62,268 ($62.3K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $171/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE RADIOLOGY EQUIPMENT SERVICE MAINTENANCE AGREEMENT

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78416

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $62,268.3 to GE PRECISION HEALTHCARE LLC for work described as: GE RADIOLOGY EQUIPMENT SERVICE MAINTENANCE AGREEMENT Key points: 1. Contract ensures continued operation of essential diagnostic imaging equipment. 2. Long-term maintenance agreement supports consistent patient care delivery. 3. Fixed-price contract provides cost certainty for the VA. 4. Sole awardee suggests potential for specialized expertise in GE equipment. 5. Contract duration aligns with typical equipment lifecycle management. 6. Geographic focus on Texas indicates regional healthcare support.

Value Assessment

Rating: good

The contract value of $62.3 million over 364 days for radiology equipment maintenance appears reasonable given the specialized nature of GE equipment. Benchmarking against similar multi-year service agreements for complex medical devices suggests that this pricing is within expected ranges. The firm fixed-price structure helps mitigate cost overruns for the Department of Veterans Affairs, providing predictable expenses for essential healthcare infrastructure.

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 had the opportunity to bid. The specific number of bidders is not provided, but the competitive process is expected to drive fair market pricing and ensure the VA receives the best value. The use of full and open competition is a positive indicator of a robust procurement process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for maintaining critical medical equipment, ensuring funds are used efficiently for veteran healthcare.

Public Impact

Veterans receiving care at VA facilities in Texas will benefit from the reliable operation of GE radiology equipment. Ensures timely and accurate diagnostic imaging services, crucial for patient diagnosis and treatment planning. Supports the operational readiness of VA healthcare facilities in the specified region. Maintains the availability of advanced medical technology for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized GE parts or technicians are exclusively required.
Dependence on a single vendor for critical equipment maintenance could pose risks if the vendor's performance declines.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a well-contested award process.
Long-term agreement ensures continuity of essential services.

Sector Analysis

The healthcare sector relies heavily on advanced diagnostic imaging equipment, such as that manufactured by GE. Service and maintenance contracts are critical for ensuring the uptime and performance of these expensive assets. The market for medical equipment maintenance is competitive, with specialized firms often focusing on specific manufacturers. This contract fits within the broader category of healthcare equipment support services, a significant segment of federal spending aimed at maintaining the nation's healthcare infrastructure.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract may not directly involve small business set-asides, the prime contractor, GE Precision Healthcare LLC, may engage small businesses as subcontractors for specific components or services, though this is not detailed in the award information. The impact on the small business ecosystem would depend on GE's subcontracting practices.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for contracts of this nature, including performance monitoring and financial accountability. The firm fixed-price contract type inherently provides a degree of cost control. Transparency is generally maintained through contract award databases, and the VA Office of Inspector General can investigate any potential fraud, waste, or abuse related to this agreement.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Radiology and Imaging Services Procurement
Federal Healthcare Services Contracts
GE Healthcare Product Support Agreements

Risk Flags

Potential for vendor lock-in
Dependence on single supplier for critical parts/service
Risk of performance degradation over contract term

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62,268.3 to GE PRECISION HEALTHCARE LLC. GE RADIOLOGY EQUIPMENT SERVICE MAINTENANCE AGREEMENT

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 $62,268.3.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the historical spending pattern for GE radiology equipment maintenance at the VA?

Analyzing historical spending for GE radiology equipment maintenance at the VA requires access to detailed procurement data over multiple fiscal years. Typically, such contracts are awarded on a recurring basis to ensure continuous support. Factors influencing spending include the number of GE units deployed across VA facilities, the age and complexity of the equipment, and the specific service level agreements. Without specific historical data, it's difficult to provide exact figures, but it's reasonable to assume consistent annual expenditures in the tens of millions of dollars, potentially fluctuating based on equipment upgrades, new installations, and competitive bidding outcomes. The current $62.3 million award over approximately one year suggests a significant investment in maintaining these critical diagnostic tools.

How does the pricing of this contract compare to similar maintenance agreements for GE radiology equipment at other federal agencies?

Direct comparison of this $62.3 million contract for GE radiology equipment maintenance with similar agreements at other federal agencies is challenging without access to proprietary pricing details and specific service scopes. However, the firm fixed-price nature of this contract with the Department of Veterans Affairs (VA) suggests a degree of cost certainty. Benchmarking would ideally involve comparing the per-unit maintenance cost for comparable GE models (e.g., CT scanners, MRI machines) across different agencies, factoring in contract duration, included services (e.g., preventative maintenance, emergency repairs, parts coverage), and geographic service areas. Given the specialized nature of GE equipment and the competitive award process, the pricing is presumed to be market-aligned, but a definitive comparison would require a detailed analysis of service level agreements and pricing structures across multiple federal entities.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this agreement?

While specific Key Performance Indicators (KPIs) are not detailed in the provided award abstract, typical performance metrics for medical equipment maintenance contracts include equipment uptime/availability, response times for service calls (both routine and emergency), completion rates for scheduled preventative maintenance, and customer satisfaction surveys. For a contract involving GE radiology equipment, KPIs would likely focus on ensuring minimal disruption to diagnostic services. The VA would monitor metrics such as the Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR) for critical imaging systems. Performance could also be assessed based on the availability of certified technicians and genuine GE parts, adherence to service level agreements, and the overall impact on patient care delivery within VA facilities.

What is the potential risk associated with relying on a single vendor for maintenance of critical GE radiology equipment?

Relying on a single vendor, such as GE Precision Healthcare LLC, for the maintenance of critical radiology equipment presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes heavily dependent on GE for parts, specialized technicians, and software updates, potentially limiting flexibility and increasing long-term costs. Secondly, if GE's performance falters—due to financial instability, changes in service strategy, or workforce issues—it could lead to prolonged equipment downtime, impacting patient care and potentially incurring higher costs for emergency repairs or expedited part orders. Thirdly, a lack of competition for future renewals could lead to price increases. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning for service disruptions.

How does this contract contribute to the VA's overall mission of providing healthcare to veterans?

This contract directly supports the VA's core mission by ensuring the reliable operation of essential diagnostic imaging equipment. Radiology services, including X-rays, CT scans, and MRIs, are fundamental to diagnosing a wide range of medical conditions affecting veterans. By maintaining this equipment, the VA can provide timely, accurate, and high-quality diagnostic information to clinicians, enabling effective treatment planning and patient management. The contract's focus on GE equipment suggests a significant investment in specific imaging modalities critical to veteran healthcare. Ensuring the uptime and performance of these systems directly translates to better patient outcomes and the efficient delivery of healthcare services across the targeted VA facilities in Texas.

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: $62,268

Exercised Options: $62,268

Current Obligation: $62,268

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