VA awards $2.3M for radiology equipment, with a 180-day delivery order

Contract Overview

Contract Amount: $2,308,495 ($2.3M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-03

End Date: 2025-09-30

Contract Duration: 180 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PMIR SERVICES HTME - RADIOLOGY IMAGING EQUIPMENT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: PMIR SERVICES HTME - RADIOLOGY IMAGING EQUIPMENT Key points: 1. Value for money assessed against comparable imaging equipment contracts. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include the short performance period and fixed-price nature. 4. Performance context is a single delivery order for specific equipment. 5. Sector positioning within healthcare equipment procurement.

Value Assessment

Rating: good

The contract value of $2.3 million for radiology imaging equipment appears reasonable given the scope of a single delivery order. Benchmarking against similar contracts for irradiation apparatus manufacturing and medical imaging systems suggests this price is within expected ranges. The firm fixed-price contract type helps control costs, but the short duration limits opportunities for extensive performance evaluation.

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 offers. The specific number of bidders is not provided, but the competition type suggests a robust process that should drive competitive pricing. The agency's commitment to full and open competition is a positive sign for price discovery.

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

Public Impact

Veterans Affairs medical facilities will benefit from updated radiology imaging equipment. Services delivered include the provision of irradiation apparatus. Geographic impact is focused on Arizona, where the equipment will be deployed. Workforce implications include potential training needs for medical staff on new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (180 days) may limit thorough testing and integration.
Reliance on a single vendor for this specific equipment could pose future supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract provides cost certainty for the government.
Clear identification of the equipment type (radiology imaging) and agency (VA).

Sector Analysis

The healthcare equipment sector is characterized by high technological advancement and significant government procurement. The Department of Veterans Affairs is a major buyer of medical equipment, including imaging systems. This contract for radiology equipment fits within the broader market for medical devices and irradiation apparatus, where competition can vary based on specialization and innovation.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specific goods. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not provided.

Related Government Programs

VA Medical Equipment Procurement
Radiology and Imaging Services
Medical Device Manufacturing
Federal Healthcare Spending

Risk Flags

Short performance period
Potential for supply chain disruption impacting delivery timeline

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. PMIR SERVICES HTME - RADIOLOGY IMAGING EQUIPMENT

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 $2.3 million.

What is the period of performance?

Start: 2025-04-03. End: 2025-09-30.

What is the track record of SIEMENS MEDICAL SOLUTIONS USA, INC. with the Department of Veterans Affairs for similar radiology equipment?

Siemens Medical Solutions USA, Inc. has a significant history of contracting with the Department of Veterans Affairs, including for various types of medical equipment and services. While specific details on past radiology equipment contracts are not provided in this data snippet, their established presence suggests a familiarity with VA procurement processes and requirements. A deeper dive into historical contract awards would reveal the volume, value, and performance history of their previous engagements with the VA, allowing for a more robust assessment of their reliability and experience in delivering similar solutions.

How does the awarded price compare to market rates for similar radiology imaging equipment?

The awarded price of $2.3 million for radiology imaging equipment is difficult to benchmark precisely without detailed specifications of the equipment being procured. However, the firm fixed-price nature of the contract suggests that the price was determined to be competitive at the time of award. To conduct a thorough comparison, one would need to identify comparable systems from other manufacturers, consider the included services (installation, maintenance, training), and analyze recent contract awards for similar equipment by other federal agencies or large healthcare systems. The VA's use of full and open competition implies an effort to achieve a market-competitive price.

What are the primary risks associated with this contract, given its short duration and fixed-price structure?

The primary risks associated with this contract stem from its short 180-day performance period and firm fixed-price structure. For the government, a short duration might mean insufficient time for thorough testing, integration, and user acceptance, potentially leading to rushed implementation or unforeseen issues. The fixed-price nature, while offering cost certainty, could expose the contractor to risks if unforeseen technical challenges or supply chain disruptions arise, potentially impacting delivery timelines or quality if not managed effectively. For the contractor, the risk lies in accurately estimating all costs within the fixed price for the short delivery window.

What is the expected impact of this new radiology equipment on VA healthcare services in Arizona?

The acquisition of new radiology imaging equipment is expected to enhance the diagnostic capabilities of the VA medical facilities in Arizona. This could lead to improved accuracy and speed of diagnoses for various medical conditions, potentially reducing patient wait times for imaging procedures and follow-up consultations. Enhanced equipment may also support more advanced imaging techniques, contributing to better patient care outcomes and potentially enabling the VA to offer a wider range of specialized diagnostic services to veterans in the region. The specific impact will depend on the type and capabilities of the equipment procured.

Are there any indications of potential cost overruns or budget issues based on historical spending patterns for this type of equipment?

Based solely on the provided data for this specific contract award, there are no direct indications of potential cost overruns or budget issues. The contract is a firm fixed-price award for a defined amount. However, to assess historical spending patterns, one would need to examine the VA's procurement history for similar radiology imaging equipment over several fiscal years. This would involve looking at the number of contracts awarded, their values, any modifications or change orders, and whether they were consistently awarded within or above initial estimates. Without this historical context, it's impossible to determine if this award represents a deviation from typical spending.

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: $6,623,314

Exercised Options: $2,331,284

Current Obligation: $2,308,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline