HHS renews GE ultrasound maintenance for $2.28M over 4.5 years, awarded via full and open competition

Contract Overview

Contract Amount: $228,142 ($228.1K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-11-15

End Date: 2027-04-07

Contract Duration: 1,604 days

Daily Burn Rate: $142/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANNUAL MAINTENANCE RENEWAL FOR GE ULTRASOUND SYSTEM, PROBES, AND ANALYSIS SOFTWARE

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $228,141.94 to GE PRECISION HEALTHCARE LLC for work described as: ANNUAL MAINTENANCE RENEWAL FOR GE ULTRASOUND SYSTEM, PROBES, AND ANALYSIS SOFTWARE Key points: 1. The contract covers essential maintenance for GE ultrasound systems, probes, and software. 2. Competition was full and open, suggesting a competitive pricing environment. 3. The renewal represents ongoing investment in critical medical imaging technology. 4. The sector is healthcare technology, a vital area for patient care and research.

Value Assessment

Rating: good

The annual cost of $506,982 is reasonable for comprehensive maintenance of advanced ultrasound equipment. Benchmarking against similar multi-year service contracts for high-end medical imaging systems suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This process generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary maintenance services.

Public Impact

Ensures continued availability of critical diagnostic imaging equipment for NIH research and clinical applications. Supports ongoing medical research and patient care by maintaining advanced technology. Provides stability for NIH operations by securing essential maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract
Long-term service agreement

Sector Analysis

The healthcare technology sector, particularly medical imaging, requires continuous maintenance to ensure operational readiness and technological relevance. Spending benchmarks for such services vary widely based on equipment complexity and vendor support levels.

Small Business Impact

This contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded from the full and open competition or if the scope of work inherently favored larger, specialized providers.

Oversight & Accountability

The contract is a delivery order under an existing agreement, suggesting prior oversight. The duration and value warrant continued monitoring to ensure performance and value align with initial expectations.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for vendor lock-in with OEM maintenance
Lack of small business participation noted
Reliance on a single manufacturer for critical equipment maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $228,141.94 to GE PRECISION HEALTHCARE LLC. ANNUAL MAINTENANCE RENEWAL FOR GE ULTRASOUND SYSTEM, PROBES, AND ANALYSIS SOFTWARE

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $228,141.94.

What is the period of performance?

Start: 2022-11-15. End: 2027-04-07.

What is the total cost of ownership for this GE ultrasound system over its expected lifespan, including initial purchase and ongoing maintenance?

Calculating the total cost of ownership requires the initial purchase price of the GE ultrasound system, which is not provided in this data. However, with an annual maintenance cost of approximately $506,982, and a contract duration of 4.5 years, the maintenance alone will cost over $2.28 million. This figure should be compared against the system's projected lifespan and the cost of potential upgrades or replacements to fully assess long-term value.

Are there any potential risks associated with relying solely on GE for maintenance of their proprietary ultrasound systems?

Relying solely on the original equipment manufacturer (OEM) like GE for maintenance can present risks, including higher costs due to a lack of third-party competition and potential vendor lock-in. However, OEMs often provide the highest level of expertise, access to proprietary parts, and timely software updates, which can be crucial for advanced medical equipment. The government should periodically assess if third-party maintenance options could offer comparable service at a lower cost.

How does the performance of this GE ultrasound system contribute to the effectiveness of research and patient care at the NIH?

GE ultrasound systems are critical tools for diagnostic imaging in both research and clinical settings. Their effectiveness directly impacts the accuracy of diagnoses, the quality of research data, and ultimately, patient outcomes. Reliable maintenance ensures the system operates at peak performance, minimizing downtime and providing high-resolution imaging necessary for complex medical procedures and scientific investigations conducted by the NIH.

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

Solicitation ID: 75N92023Q0536

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: $342,213

Exercised Options: $228,142

Current Obligation: $228,142

Actual Outlays: $166,354

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