VA awards GE Healthcare $2.8M for irradiation apparatus, extending service through May 2027

Contract Overview

Contract Amount: $2,822,358 ($2.8M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE MEDICAL SYSTEMS SERVICE

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to GE PRECISION HEALTHCARE LLC for work described as: GE MEDICAL SYSTEMS SERVICE Key points: 1. Contract value appears reasonable for specialized medical equipment servicing. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include reliance on a single vendor for critical equipment. 4. Performance context is within the Department of Veterans Affairs' healthcare provision. 5. This contract falls within the broader medical equipment and services sector.

Value Assessment

Rating: good

The contract value of approximately $2.8 million over three years for irradiation apparatus servicing appears to be within a reasonable range for specialized medical equipment maintenance. Benchmarking against similar contracts for large-scale medical equipment servicing would provide a more precise value-for-money assessment. However, given the critical nature of such equipment in healthcare settings, a fixed-price contract for a defined period suggests a degree of cost certainty for the agency.

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 specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition is generally expected to drive favorable pricing and ensure the government receives the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a marketplace where multiple vendors vie for the contract, potentially leading to lower prices and higher quality services.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable operation of irradiation apparatus. Services delivered include maintenance and repair of critical medical equipment. Geographic impact is likely concentrated at VA facilities within California, where the contractor is based. Workforce implications may include specialized technicians employed by GE Healthcare for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for maintenance.
Dependence on a single manufacturer for servicing critical medical equipment.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract provides cost predictability.
Long-term service agreement ensures equipment availability for patient care.

Sector Analysis

The medical equipment manufacturing and servicing sector is a significant part of the healthcare industry, characterized by high technological advancement and stringent regulatory requirements. Contracts for servicing specialized equipment like irradiation apparatus are crucial for maintaining the operational readiness of healthcare providers. Spending in this area is often driven by the need for specialized maintenance to ensure patient safety and equipment longevity, with costs varying based on equipment complexity and service scope.

Small Business Impact

This contract does not appear to have a small business set-aside. The prime contractor, GE PRECISION HEALTHCARE LLC, is a large entity. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether GE Healthcare engages small businesses for any support services or components, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price and timeframe. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Equipment Maintenance Contracts
Department of Veterans Affairs Healthcare Services
Irradiation Apparatus Procurement and Servicing

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 $2.8 million to GE PRECISION HEALTHCARE LLC. GE MEDICAL SYSTEMS SERVICE

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 $2.8 million.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the track record of GE PRECISION HEALTHCARE LLC with the Department of Veterans Affairs and other federal agencies?

GE PRECISION HEALTHCARE LLC has a history of contracts with the Department of Veterans Affairs and potentially other federal agencies, primarily related to medical equipment. Analyzing past performance data, including contract values, timeliness of delivery, quality of service, and any past disputes or terminations, would provide a comprehensive understanding of their reliability and capability. Federal procurement databases often contain this information, allowing for a detailed assessment of their track record in fulfilling government requirements for similar medical equipment and services.

How does the awarded price compare to market rates for similar irradiation apparatus servicing contracts?

To benchmark the $2.8 million contract value, a comparative analysis of similar irradiation apparatus servicing contracts awarded by federal agencies or large healthcare systems would be necessary. This would involve identifying contracts with comparable equipment types, service scopes (e.g., preventative maintenance, emergency repairs, parts replacement), contract durations, and geographic coverage. Factors such as the age and complexity of the specific irradiation apparatus, as well as the service level agreements, would also influence pricing. Without access to a broader dataset of comparable contracts, a precise market rate comparison is challenging, but the full and open competition suggests an effort to secure competitive pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

A primary risk is potential vendor lock-in, where the VA becomes heavily reliant on GE Healthcare for servicing due to specialized knowledge or proprietary parts for the irradiation apparatus. Another risk involves the potential for unexpected equipment failures or the need for costly repairs not fully covered by the fixed-price agreement, although the contract duration aims to mitigate this. Mitigation strategies likely include clearly defined service level agreements (SLAs) within the contract, performance monitoring by the VA, and potentially maintaining an inventory of critical spare parts. The initial full and open competition also helps mitigate risks by ensuring a competitive baseline.

How effective is the Department of Veterans Affairs in managing long-term service contracts for critical medical equipment?

The effectiveness of the VA in managing long-term service contracts for critical medical equipment can be assessed by examining equipment uptime rates, patient care continuity, and the overall cost-effectiveness of these agreements. The VA's extensive experience in healthcare provision suggests established processes for contract management, including performance reviews and technical oversight. However, challenges can arise with aging equipment, evolving technology, and ensuring competitive pricing over extended periods. Analyzing historical data on equipment performance and contract renewals within the VA system would provide insights into their management effectiveness.

What are the historical spending patterns for irradiation apparatus servicing within the Department of Veterans Affairs?

Historical spending patterns for irradiation apparatus servicing within the VA would reveal trends in contract values, durations, and the number of contracts awarded over time. This analysis could identify periods of increased or decreased investment in such services, potentially correlating with equipment upgrades, budget allocations, or changes in healthcare demand. Understanding these patterns helps in forecasting future needs and budgeting appropriately. Examining past VA solicitations and awards for similar services would provide the data needed to map these spending trends.

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: $5,014,979

Exercised Options: $2,822,358

Current Obligation: $2,822,358

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