VA awards $3.89M for GE Radiology Equipment Maintenance, ensuring critical healthcare support

Contract Overview

Contract Amount: $3,890,527 ($3.9M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-09

End Date: 2027-04-08

Contract Duration: 1,460 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: G.E. RADIOLOGY EQUIPMENT MAINTENANCE

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to GE PRECISION HEALTHCARE LLC for work described as: G.E. RADIOLOGY EQUIPMENT MAINTENANCE Key points: 1. Contract ensures continued maintenance for essential radiology equipment, supporting patient care. 2. Single award indicates a specific need or existing relationship with the equipment manufacturer. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Long-term duration suggests a strategic investment in maintaining vital medical infrastructure. 5. Focus on specialized equipment maintenance highlights a niche but critical government function.

Value Assessment

Rating: good

The contract value of $3.89 million over four years for radiology equipment maintenance appears reasonable, especially considering the specialized nature of GE equipment. Benchmarking against similar maintenance contracts for high-value medical imaging systems is crucial. Without specific per-unit costs or detailed service level agreements, a precise value-for-money assessment is challenging, but the fixed-price structure provides cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The fact that it resulted in a single award indicates that GE Precision Healthcare LLC was the most advantageous offer. The competitive process, even with a single awardee, should have driven a fair market price.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service.

Public Impact

Veterans will benefit from reliable access to diagnostic imaging services. Ensures the operational readiness of critical radiology equipment within VA facilities. Supports healthcare delivery in California, where the contract is managed. Maintains the functionality of advanced medical technology essential for diagnosis and treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized parts or expertise are exclusively controlled by GE.
Reliance on a single vendor for maintenance could limit flexibility in future technology upgrades.

Positive Signals

Ensures access to manufacturer-specific expertise for complex GE radiology systems.
Fixed-price contract provides budget predictability for the VA.
Long-term contract allows for consistent service and planning.

Sector Analysis

The healthcare sector, particularly within government agencies like the VA, relies heavily on specialized equipment maintenance. This contract falls within the medical equipment manufacturing and maintenance sub-sector. Spending on such services is critical for maintaining the operational capacity of healthcare facilities, ensuring that advanced diagnostic tools are available and functional for patient care. Comparable spending benchmarks would involve analyzing other large federal contracts for maintenance of similar high-value medical imaging systems.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration for this specific award (sb: false). As this is a maintenance contract for specialized GE equipment, it is likely that the primary awardee, GE Precision Healthcare LLC, possesses the unique expertise and certifications required. There is no explicit mention of small business set-asides or subcontracting requirements, suggesting that opportunities for small businesses may be limited unless they are specialized suppliers to the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, quality assurance checks, and adherence to the terms of the fixed-price delivery order. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Radiology Services Procurement
Federal Healthcare Technology Support

Risk Flags

Potential for vendor lock-in
Reliance on manufacturer-specific expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to GE PRECISION HEALTHCARE LLC. G.E. RADIOLOGY EQUIPMENT MAINTENANCE

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 $3.9 million.

What is the period of performance?

Start: 2023-04-09. End: 2027-04-08.

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

Analyzing historical spending on GE radiology equipment maintenance at the VA is crucial for understanding trends and value. While this specific contract is for $3.89 million, prior contracts for similar services would provide context. For instance, if previous maintenance periods were significantly shorter or less expensive, it might indicate an increase in costs due to inflation, technological advancements, or changes in service scope. Conversely, consistent or decreasing spending could suggest effective cost management or competitive pricing. A detailed review of past VA solicitations and awards for GE equipment maintenance would reveal if this $3.89 million award represents a typical investment or a deviation, helping to assess its long-term financial implications for the agency.

How does the per-unit cost of this maintenance contract compare to industry benchmarks for similar GE radiology equipment?

Determining the per-unit cost benchmark for this maintenance contract requires identifying the specific types and quantities of GE radiology equipment covered. The contract value of $3.89 million is spread over 1460 days (approximately 4 years). To benchmark, one would need to know the number of MRI machines, CT scanners, X-ray units, etc., included in the agreement. Industry benchmarks for maintenance of such sophisticated equipment can vary widely based on the model, age, and service level agreement (e.g., comprehensive vs. basic coverage). Without this granular data, a direct comparison is difficult. However, if the VA has previously procured maintenance for similar equipment at a lower average annual cost per unit, it would raise questions about the current contract's value for money.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The effectiveness and value of this $3.89 million contract hinge on the specific performance metrics and Service Level Agreements (SLAs) established. Key metrics would likely include response times for service calls, equipment uptime guarantees, preventative maintenance schedules, and turnaround times for repairs. SLAs define the expected standards for these metrics and often include penalties for non-compliance or incentives for exceeding targets. For this contract, ensuring rapid response and high uptime for critical radiology equipment is paramount for patient care continuity. A thorough review of the contract's detailed SOW and SLAs would reveal the precise expectations and how performance is measured and enforced, providing insight into the contractor's accountability.

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

GE Precision Healthcare LLC's track record in fulfilling similar federal maintenance contracts is a key indicator of reliability and performance. As a major manufacturer of radiology equipment, they possess specialized knowledge. Evaluating past performance would involve reviewing their history with the VA and other federal agencies, looking for indicators such as on-time delivery, adherence to contract terms, quality of service, and any history of disputes or contract terminations. Positive past performance suggests a lower risk for this $3.89 million award, indicating a higher likelihood of successful execution. Conversely, a history of issues could signal potential risks that need careful monitoring throughout the contract duration.

Are there any identified risks associated with relying on a single manufacturer (GE) for maintenance of this critical radiology equipment?

Relying on a single manufacturer like GE Precision Healthcare LLC for maintenance of critical radiology equipment presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes dependent on GE for parts, software updates, and specialized technicians, potentially leading to higher future costs or limited options. Secondly, if GE's service quality declines or their pricing increases significantly, the VA has limited immediate alternatives due to the specialized nature of the equipment. Thirdly, technological obsolescence could become a factor if GE prioritizes newer systems, potentially impacting support for older, yet still functional, equipment. Mitigating these risks often involves negotiating strong contract terms, exploring third-party maintenance options where feasible, and planning for future equipment replacement cycles.

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: $4,528,909

Exercised Options: $3,890,527

Current Obligation: $3,890,527

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