VA awards $3.5M irradiation apparatus contract to Siemens Medical Solutions USA, Inc. for New Mexico

Contract Overview

Contract Amount: $3,513,626 ($3.5M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-09-30

Contract Duration: 547 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICE CONTRACT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SERVICE CONTRACT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 547 days indicates a medium-term service requirement. 3. Siemens Medical Solutions USA, Inc. is the sole awardee, highlighting their specific capability. 4. The fixed-price contract type aims to control costs for the government. 5. The contract is for irradiation apparatus manufacturing, a specialized technical service. 6. Awarded by the Department of Veterans Affairs, likely supporting healthcare services.

Value Assessment

Rating: good

The contract value of $3.5 million for a 547-day period appears reasonable for specialized medical equipment manufacturing. Benchmarking against similar contracts for irradiation apparatus would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to ensure cost predictability. The specific nature of the equipment implies a potentially high per-unit cost, but without detailed specifications, a direct comparison is difficult.

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 number of bidders is not specified, but the competitive nature of this award process generally leads to better price discovery and potentially more favorable terms for the government. The agency sought proposals from the broadest possible range of qualified contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

Veterans in New Mexico will benefit from potentially improved medical treatment capabilities. The contract supports the manufacturing of irradiation apparatus, crucial for certain medical procedures. The geographic impact is focused on New Mexico, where the apparatus will likely be deployed or serviced. This contract supports specialized manufacturing jobs within the medical technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier for specialized equipment maintenance.
The specific technical requirements may limit future competition if technology evolves rapidly.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps manage cost overruns.
Siemens is a known entity in medical solutions, suggesting a degree of reliability.

Sector Analysis

The contract falls within the Healthcare sector, specifically focusing on medical equipment manufacturing and related services. The market for irradiation apparatus is specialized, often dominated by a few key players due to high R&D costs and regulatory hurdles. Spending in this niche is driven by advancements in medical technology and the need for sophisticated diagnostic and therapeutic equipment within healthcare systems, including government facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on securing the best overall offer. There is no explicit information on subcontracting plans for small businesses, which may be a missed opportunity to engage the small business ecosystem in this specialized manufacturing area.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, quality assurance checks, and adherence to contract terms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Manufacturing
Healthcare Services Contracts
Department of Veterans Affairs Procurement
Irradiation Technology

Risk Flags

Potential for sole-source reliance if future needs are highly specific.
Technological obsolescence risk for specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SERVICE CONTRACT

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 $3.5 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-09-30.

What is the track record of Siemens Medical Solutions USA, Inc. with the Department of Veterans Affairs for similar contracts?

Siemens Medical Solutions USA, Inc. has a history of contracting with the Department of Veterans Affairs, often for medical equipment and related services. Analyzing past performance data, including contract values, durations, and any reported issues or successes, would provide insight into their reliability and capability. A review of their past VA contracts would reveal if they have successfully delivered similar irradiation apparatus or related technologies, and whether they have met performance expectations and quality standards. This historical context is crucial for assessing the risk associated with the current award and confirming their suitability for this specific requirement.

How does the awarded price compare to market rates for similar irradiation apparatus manufacturing services?

To assess the value for money, the awarded contract value of approximately $3.5 million for a 547-day period needs to be benchmarked against prevailing market rates for comparable irradiation apparatus manufacturing. This involves researching industry pricing for similar equipment, considering factors like technological specifications, capacity, and manufacturer reputation. If data on per-unit costs or project-based pricing for similar government or commercial contracts is available, it can be used for comparison. A significant deviation from market rates, either higher or lower, would warrant further investigation into the reasons behind it, such as unique contract requirements, competitive intensity, or potential cost efficiencies.

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

Key risks for this contract could include technical performance issues, potential delays in manufacturing or delivery, and the possibility of cost overruns if the fixed-price structure proves inadequate for unforeseen complexities. Given the specialized nature of irradiation apparatus, there's also a risk related to the contractor's ability to meet stringent quality and safety standards. Mitigation strategies likely involve robust performance monitoring by the VA, clear quality assurance protocols, and potentially performance bonds. The fixed-price nature itself acts as a cost mitigation tool for the government, shifting some of the financial risk to the contractor. Regular progress reviews and defined acceptance criteria are also critical.

How effective is the Department of Veterans Affairs in procuring specialized medical equipment like irradiation apparatus?

The effectiveness of the VA in procuring specialized medical equipment can be assessed by examining the outcomes of past procurements. Factors to consider include the timeliness of awards, the competitiveness of the bidding process, the quality and reliability of the equipment delivered, and the overall value for money achieved. Awards made through full and open competition, like this one, generally indicate a more effective procurement process. Analyzing the VA's success rate in meeting its medical equipment needs, the satisfaction levels of end-users (clinicians and patients), and the long-term operational performance of procured equipment would provide a comprehensive view of their effectiveness in this domain.

What has been the historical spending trend for irradiation apparatus by the Department of Veterans Affairs?

Analyzing historical spending data for irradiation apparatus by the VA is essential for understanding the agency's investment patterns and future needs. This involves reviewing contract databases to identify previous awards for similar equipment, noting the total amounts spent, the frequency of such procurements, and the primary contractors involved. A trend analysis would reveal whether spending in this category is increasing, decreasing, or remaining stable, which can inform budget planning and strategic sourcing. Understanding historical spending also helps in identifying potential market concentrations or shifts in technology adoption within the VA healthcare system.

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: $3,513,626

Exercised Options: $3,513,626

Current Obligation: $3,513,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline