VA awards $88K for anesthesia machine maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $88,197 ($88.2K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-13

End Date: 2025-06-12

Contract Duration: 1,095 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTATIVE MAINTENANCE SUPPORT FOR ANESTHESIA MACHINES

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93703

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $88,197.25 to GE PRECISION HEALTHCARE LLC for work described as: PREVENTATIVE MAINTENANCE SUPPORT FOR ANESTHESIA MACHINES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about whether the VA secured the best possible value. 3. The contract duration of three years suggests a need for ongoing, specialized maintenance. 4. The specific nature of anesthesia machine maintenance requires specialized skills and knowledge. 5. The award amount is relatively small, indicating a focused scope of work.

Value Assessment

Rating: fair

Benchmarking the value for this specific preventative maintenance contract is challenging without comparable sole-source awards. The price of $88,197.25 over three years appears reasonable for specialized medical equipment maintenance, but the lack of competition prevents a definitive assessment of whether it represents the best value for taxpayers. Without competitive bids, it's difficult to ascertain if the pricing is aligned with market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of Veterans Affairs did not solicit bids from multiple vendors. This approach limits the opportunity for price discovery and may result in higher costs compared to a fully competed contract. The absence of competition suggests potential barriers to entry or a specific justification for awarding to a single vendor.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes. This can lead to less efficient use of federal funds.

Public Impact

Veterans receiving care at VA facilities in California will benefit from the reliable functioning of anesthesia machines. Ensures the continued availability and safety of critical medical equipment for surgical procedures. Supports the operational readiness of VA healthcare facilities by maintaining essential diagnostic and treatment tools. Indirectly supports the healthcare workforce by ensuring they have reliable equipment to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about potential vendor lock-in.
Transparency in pricing and service delivery could be improved.

Positive Signals

Specialized maintenance ensures critical medical equipment is operational.
Contract addresses a clear need for ongoing support of anesthesia machines.
Long-term contract provides stability for essential healthcare services.

Sector Analysis

The healthcare equipment maintenance sector is critical for ensuring the operational efficiency and patient safety within medical facilities. This contract falls within the broader category of medical equipment repair and maintenance services, a niche requiring specialized technical expertise. The market for such services can be influenced by original equipment manufacturers (OEMs) and specialized third-party service providers. The value of this contract is modest within the overall federal spending landscape for healthcare services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the sole-source nature of the award. The primary contractor, GE Precision Healthcare LLC, is a large entity, indicating that the focus was on specialized technical capability rather than small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the terms and conditions of the purchase order, including service level agreements and performance standards. Transparency is limited due to the sole-source award, making it difficult for the public to scrutinize the procurement process and pricing.

Related Government Programs

Medical Equipment Maintenance Services
Anesthesia Machine Support
Veterans Affairs Healthcare Procurement

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for non-optimal pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $88,197.25 to GE PRECISION HEALTHCARE LLC. PREVENTATIVE MAINTENANCE SUPPORT FOR ANESTHESIA MACHINES

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 $88,197.25.

What is the period of performance?

Start: 2022-06-13. End: 2025-06-12.

What is the track record of GE Precision Healthcare LLC in providing maintenance services for anesthesia machines to the federal government?

GE Precision Healthcare LLC has a history of providing medical equipment, including anesthesia machines, and associated services to various government agencies. While specific details on their track record for this exact type of maintenance contract with the VA are not readily available in this data snippet, their position as a major manufacturer suggests they possess the requisite expertise. Further investigation into their past performance on similar federal contracts, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and capability in fulfilling this agreement.

How does the pricing of this contract compare to similar preventative maintenance contracts for anesthesia machines, if available?

Direct comparison of pricing for this specific preventative maintenance contract is difficult due to its sole-source nature and the limited data provided. Without access to pricing data from other VA facilities or comparable federal agencies that have competitively procured similar services, it's challenging to benchmark. Generally, sole-source contracts can be priced higher than competitively awarded ones. To assess value, one would need to compare the proposed service scope and frequency against industry standards and potentially obtain quotes from other qualified vendors for a similar service package.

What are the primary risks associated with awarding a sole-source contract for critical medical equipment maintenance?

The primary risks associated with awarding a sole-source contract for critical medical equipment maintenance include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or improve service quality, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their money. Furthermore, reliance on a single vendor can create vendor lock-in, making it difficult and potentially costly to switch providers in the future if performance issues arise or market prices decrease. This also limits the opportunity for small businesses to compete for this type of work.

What is the expected effectiveness of this contract in ensuring the operational readiness of anesthesia machines at VA facilities?

This contract is expected to be effective in ensuring the operational readiness of anesthesia machines at VA facilities by providing scheduled preventative maintenance and potentially addressing necessary repairs. The three-year duration suggests a commitment to ongoing support, which is crucial for complex medical equipment like anesthesia machines that require regular servicing to maintain performance and safety standards. The effectiveness will ultimately depend on the quality of service provided by GE Precision Healthcare LLC and the adherence to the terms outlined in the purchase order, including response times for any issues that may arise.

What are the historical spending patterns for anesthesia machine maintenance by the Department of Veterans Affairs?

Historical spending patterns for anesthesia machine maintenance by the Department of Veterans Affairs are not detailed in the provided data. However, given the critical nature of anesthesia machines in surgical procedures, it is reasonable to assume that the VA consistently allocates funds for their maintenance and repair across its network of facilities. Understanding past spending would require analyzing historical contract awards for similar services, including the number of contracts, their values, durations, and whether they were competitively or sole-source awarded. This would help identify trends, potential cost efficiencies, or areas where spending may have increased.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $116,835

Exercised Options: $88,197

Current Obligation: $88,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline