VA Awards $4.18M for GE Full-Service Maintenance, Irradiation Apparatus Manufacturing

Contract Overview

Contract Amount: $4,181,640 ($4.2M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-02-16

End Date: 2027-02-15

Contract Duration: 1,825 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE FULL-SERVICE MAINTENANCE BASE YEAR

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to GE PRECISION HEALTHCARE LLC for work described as: GE FULL-SERVICE MAINTENANCE BASE YEAR Key points: 1. Contract awarded to GE Precision Healthcare LLC for essential medical equipment maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. The specific Product Service Code (PSC) is missing, hindering deeper sector analysis.

Value Assessment

Rating: good

The award amount of $4.18M over 5 years appears reasonable for full-service maintenance of specialized medical equipment. Benchmarking against similar contracts for GE equipment would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific award mechanism (Delivery Order) suggests it might be part of a larger indefinite-delivery contract, but the price discovery for this specific order is assumed to be robust.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and potentially lower prices.

Public Impact

Ensures continued operation of critical medical imaging and treatment equipment for veterans. Supports advanced healthcare services within the Department of Veterans Affairs. Maintains the readiness and effectiveness of VA medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Missing Product Service Code (PSC) limits detailed analysis.
Small business participation is not indicated.

Positive Signals

Full and open competition utilized.
Long-term contract ensures service continuity.

Sector Analysis

This contract falls under the healthcare sector, specifically related to the maintenance of medical equipment like irradiation apparatus. Spending benchmarks for such specialized maintenance contracts can vary significantly based on equipment type and service level agreements.

Small Business Impact

There is no indication of small business participation in this contract. Further investigation may be needed to determine if opportunities were missed or if the nature of the service inherently favors larger, specialized providers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under potentially larger IDIQs would apply, focusing on performance and adherence to the firm-fixed-price terms.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Missing Product Service Code (PSC)
No indication of small business participation
Potential vendor lock-in risk
Lack of specific equipment details hinders deep analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to GE PRECISION HEALTHCARE LLC. GE FULL-SERVICE MAINTENANCE BASE YEAR

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 $4.2 million.

What is the period of performance?

Start: 2022-02-16. End: 2027-02-15.

What is the specific type of irradiation apparatus being maintained, and how does its criticality impact the maintenance cost?

The specific type of irradiation apparatus is not detailed in the provided data, which is crucial for understanding the maintenance complexity and associated costs. Criticality impacts the urgency and required response times for maintenance, potentially increasing labor and parts expenses. Without this information, a precise cost-benefit analysis is challenging.

How does the $4.18M award compare to industry benchmarks for similar GE full-service maintenance contracts over a 5-year period?

Benchmarking this $4.18M award against similar 5-year full-service maintenance contracts for comparable GE irradiation apparatus is difficult without more specific equipment details and market data. However, the award represents an average annual cost of approximately $836,000. This figure needs to be compared against industry averages for specialized medical equipment maintenance, considering factors like equipment age, usage intensity, and included service levels.

What is the potential risk associated with relying on a single vendor (GE Precision Healthcare LLC) for maintenance of critical medical equipment?

The primary risk of relying on a single vendor like GE Precision Healthcare LLC is potential vendor lock-in and reduced leverage in future negotiations. If GE is the sole manufacturer and service provider, the VA may face higher costs or limited options if issues arise. However, the use of full and open competition for this award suggests that, at the time of contract issuance, competitive options were available or sought.

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: $4,181,640

Exercised Options: $4,181,640

Current Obligation: $4,181,640

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