VA awards $3.86M Siemens maintenance contract for irradiation apparatus, ensuring operational readiness

Contract Overview

Contract Amount: $3,857,000 ($3.9M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS IMAGERY SYSTEMS SOFTWARE, PREVENTATIVE MAINTENANCE, AND REPAIR SERVICE AGREEMENT (BASE + 4 YEARS)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS IMAGERY SYSTEMS SOFTWARE, PREVENTATIVE MAINTENANCE, AND REPAIR SERVICE AGREEMENT (BASE + 4 YEARS) Key points: 1. Contract value of $3.86M over 3 years. 2. Siemens Medical Solutions USA, Inc. is the sole awardee. 3. Risk of service disruption if maintenance is inadequate. 4. Spending falls within the Irradiation Apparatus Manufacturing sector.

Value Assessment

Rating: good

The contract price of $3.86M for 3 years of preventative maintenance and repair for Siemens imagery systems appears reasonable. Benchmarking against similar service agreements for complex medical equipment suggests this is within expected cost ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure fair market value for the services provided.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price for essential medical equipment maintenance.

Public Impact

Ensures continued operation of critical medical imaging equipment for veterans. Supports timely diagnosis and treatment for patients relying on these systems. Maintains the readiness and effectiveness of VA healthcare facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future option years.
Dependence on a single vendor for critical maintenance.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract limits cost overruns.
Long-term agreement ensures service continuity.

Sector Analysis

This contract falls under the Irradiation Apparatus Manufacturing sector, specifically for maintenance services. Spending benchmarks for similar medical equipment maintenance contracts suggest this award is within typical ranges for specialized services.

Small Business Impact

The contract was awarded to Siemens Medical Solutions USA, Inc., a large business. There is no indication of specific set-asides for small businesses in this award, which is common for specialized equipment maintenance.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract and delivery order structure provide a framework for accountability, but ongoing monitoring of service delivery is crucial.

Related Government Programs

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

Risk Flags

Vendor lock-in potential
Service quality dependency
Availability of specialized parts
Future price escalation risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS IMAGERY SYSTEMS SOFTWARE, PREVENTATIVE MAINTENANCE, AND REPAIR SERVICE AGREEMENT (BASE + 4 YEARS)

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 $3.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What is the specific scope of 'preventative maintenance and repair service' covered by this agreement?

The agreement likely covers routine inspections, calibration, software updates, and necessary repairs for Siemens imagery systems. Detailed service level agreements (SLAs) within the contract would define response times, parts availability, and specific maintenance procedures to ensure optimal equipment performance and minimize downtime for patient care.

What are the potential risks associated with relying on Siemens for maintenance of their own equipment?

The primary risk is vendor lock-in and potential lack of competitive pricing in future renewals. Additionally, if Siemens' service quality declines or parts become scarce, it could impact VA's ability to maintain critical imaging equipment, potentially delaying patient care. However, the initial full and open competition mitigates some of these concerns for the current period.

How does this contract contribute to the overall effectiveness of VA healthcare delivery?

This contract is crucial for maintaining the operational readiness of essential diagnostic imaging equipment, directly impacting the VA's ability to provide timely and accurate diagnoses to veterans. Reliable maintenance ensures that these systems are available when needed, supporting efficient patient flow and effective treatment planning, thereby enhancing the overall quality of care.

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: $8,458,473

Exercised Options: $3,857,000

Current Obligation: $3,857,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline