VA awards $4.26M for Siemens medical equipment maintenance, ensuring critical care continuity

Contract Overview

Contract Amount: $4,263,239 ($4.3M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTIVE MAINTENANCE SERVICES SIEMENS MEDICAL EQUIPMENT AT THE SAN FRANCISCO VETERAN AFFAIRS MEDICAL CENTER.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: PREVENTIVE MAINTENANCE SERVICES SIEMENS MEDICAL EQUIPMENT AT THE SAN FRANCISCO VETERAN AFFAIRS MEDICAL CENTER. Key points: 1. Contract ensures operational readiness of vital medical equipment. 2. Siemens Medical Solutions USA, Inc. is the incumbent provider. 3. Performance period spans four years, indicating long-term service needs. 4. Fixed-price contract type limits cost escalation risks. 5. Competition was full and open, suggesting market-based pricing. 6. Geographic focus on San Francisco VA Medical Center.

Value Assessment

Rating: good

The contract value of $4.26 million over four years for preventive maintenance of Siemens medical equipment appears reasonable given the critical nature of the services. Benchmarking against similar contracts for specialized medical equipment maintenance is challenging without more specific details on the exact equipment covered and service levels. However, the firm fixed-price structure provides cost certainty for the VA. The absence of extensive performance history data in this snippet makes a definitive value assessment difficult, but the duration suggests a stable, ongoing need.

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 were eligible to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages vendors to offer their best terms. The VA's decision to use full and open competition suggests confidence in the market's ability to provide adequate service options at competitive rates.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of service options, maximizing the value of federal dollars spent on essential medical equipment maintenance.

Public Impact

Veterans receiving care at the San Francisco VA Medical Center benefit from reliable access to functioning medical equipment. Ensures the continuity of critical diagnostic and treatment services. Supports the operational efficiency of the San Francisco VA Medical Center. Maintains the readiness of specialized medical equipment for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for Siemens equipment.
Reliance on a single manufacturer for maintenance could limit flexibility in future equipment choices.

Positive Signals

Firm fixed-price contract provides budget predictability.
Long-term contract (4 years) suggests a stable and reliable service relationship.
Full and open competition indicates a healthy market for these services.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on the maintenance of complex medical equipment. The market for medical equipment maintenance is often specialized, with original equipment manufacturers (OEMs) like Siemens playing a significant role. Spending on medical equipment maintenance is a critical component of healthcare facility operations, ensuring patient safety and service availability. Comparable spending benchmarks would depend on the specific types and quantities of Siemens equipment maintained.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As it was awarded under full and open competition, it is unlikely to have been specifically set aside for small businesses. Further analysis would be needed to determine if Siemens Medical Solutions USA, Inc. has a subcontracting plan that includes small businesses for any portion of this maintenance work.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, adherence to service level agreements, and financial audits. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting potential cost overruns. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Medical Equipment Maintenance Contracts
Veterans Affairs Healthcare Services
Preventive Maintenance Agreements
Siemens Healthcare Solutions

Risk Flags

Potential for vendor lock-in
Reliance on single manufacturer for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. PREVENTIVE MAINTENANCE SERVICES SIEMENS MEDICAL EQUIPMENT AT THE SAN FRANCISCO VETERAN AFFAIRS MEDICAL CENTER.

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 $4.3 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the historical spending pattern for Siemens medical equipment maintenance at the San Francisco VA Medical Center?

Analyzing historical spending for Siemens medical equipment maintenance at the San Francisco VA Medical Center would require access to past contract awards and modifications. Without specific historical data, it's difficult to establish a trend. However, the current award of $4.26 million over four years suggests a consistent need for these services. If previous contracts were for similar durations and values, it indicates a stable maintenance requirement. Conversely, significant deviations from past spending could signal changes in equipment utilization, service needs, or market pricing. A detailed review of prior contracts would reveal if this award represents an increase, decrease, or stable level of investment in maintaining this critical equipment.

How does the cost per year of this contract compare to industry benchmarks for similar Siemens medical equipment maintenance?

The annual cost for this contract is approximately $1.065 million ($4.26 million / 4 years). Benchmarking this against industry standards for Siemens medical equipment maintenance is complex without knowing the exact models and quantities of equipment covered. Generally, preventive maintenance contracts can range from 5% to 15% of the equipment's acquisition cost annually. If the total value of the Siemens equipment at the San Francisco VA Medical Center is substantial, this percentage might fall within the typical range. However, specialized or high-volume equipment could command higher maintenance costs. A precise comparison would necessitate a detailed inventory of the equipment being serviced and its original purchase price, alongside data from third-party maintenance providers or industry reports specific to Siemens equipment.

What are the key performance indicators (KPIs) used to evaluate Siemens' performance under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, typical KPIs for medical equipment maintenance contracts include response time to service calls, equipment uptime percentage, completion rate of scheduled preventive maintenance tasks, and adherence to manufacturer-specified maintenance protocols. For a contract of this nature, the VA would likely monitor metrics such as the time taken to resolve equipment malfunctions, the percentage of time critical equipment is operational, and the successful completion of all preventive maintenance checks within the scheduled timeframe. Performance evaluations would also consider the quality of service provided by technicians and compliance with safety regulations. These KPIs are crucial for ensuring the reliability and availability of essential medical equipment for patient care.

What is the potential risk associated with relying on a single manufacturer (Siemens) for maintenance of critical medical equipment?

Relying on a single manufacturer like Siemens for the maintenance of critical medical equipment presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes dependent on Siemens for parts, service, and expertise, potentially leading to higher costs over time if competition is limited. Secondly, if Siemens experiences supply chain disruptions or internal issues, it could impact the availability of parts and service, leading to prolonged equipment downtime. Thirdly, specialized knowledge required for Siemens equipment might not be readily available from third-party service providers, limiting options for competitive bidding on future contracts or emergency repairs. This dependence necessitates careful contract management and potentially exploring multi-vendor strategies or in-house capabilities where feasible.

What is the track record of Siemens Medical Solutions USA, Inc. in fulfilling similar government contracts?

Siemens Medical Solutions USA, Inc. has a significant track record of fulfilling contracts with government entities, including the Department of Veterans Affairs and other healthcare providers within the federal system. Their experience typically encompasses the provision of advanced medical imaging and diagnostic equipment, as well as associated maintenance and service contracts. While specific performance details for every contract are not publicly itemized, their continued engagement in the federal healthcare market suggests a generally satisfactory performance history. Government contract databases often contain award and performance information, which would provide a more granular view of their past successes and any reported issues on similar maintenance agreements.

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: $5,460,783

Exercised Options: $4,263,239

Current Obligation: $4,263,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline