VA's $117.7M contract for biomedical equipment awarded to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $117,768,819 ($117.8M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-09-30

End Date: 2008-09-30

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES

Place of Performance

Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $117.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES Key points: 1. Contract awarded for medical, dental, and hospital equipment and supplies. 2. Siemens Medical Solutions USA, Inc. is the primary contractor. 3. The contract was awarded by the Department of Veterans Affairs. 4. This represents a significant investment in healthcare infrastructure for veterans. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The contract duration was 0 years, suggesting it was a one-time award or has expired.

Value Assessment

Rating: fair

The contract value of $117.7 million for biomedical equipment is substantial. Benchmarking this against similar contracts for high-tech biomedical equipment requires detailed market analysis of specific equipment types and quantities. Without specific product details, it's difficult to definitively assess value for money. However, the firm fixed-price nature suggests cost certainty for the VA, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. If it was competed, the number of bidders would be crucial to understanding price discovery. A limited or sole-source award might indicate a lack of market competition or specialized requirements. Further investigation into the solicitation process is needed.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices, ensuring that taxpayer funds are used more efficiently. Limited competition could lead to higher costs.

Public Impact

Veterans will benefit from access to advanced biomedical equipment and supplies. The Department of Veterans Affairs will receive essential medical equipment to support healthcare services. The contract supports the VA's mission to provide comprehensive healthcare to its beneficiaries. This spending likely supports jobs in the medical equipment manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition process.
Uncertainty about whether the $117.7M represents competitive pricing without market benchmarks.
The contract's expiration date (2008-09-30) suggests it is no longer active, raising questions about current equipment needs and procurement strategies.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to a known entity like Siemens Medical Solutions USA, Inc. may indicate established relationships and product familiarity.
Supports the critical healthcare needs of veterans.

Sector Analysis

This contract falls within the broader healthcare sector, specifically focusing on high-tech biomedical equipment and accessories. The market for such equipment is characterized by significant research and development, stringent regulatory requirements, and a concentration of specialized manufacturers. The VA's spending in this area is crucial for maintaining its healthcare facilities and ensuring veterans receive modern medical treatment. Comparable spending benchmarks would involve analyzing other large-scale procurements of medical devices by government agencies or large healthcare systems.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's impossible to assess the impact on the small business ecosystem. Large contracts for specialized equipment can sometimes limit opportunities for small businesses unless specific subcontracting goals are mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Inspector General reports related to VA spending could provide insights into accountability and transparency. The firm fixed-price nature offers some level of financial oversight by limiting cost overruns.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Federal Healthcare Spending
Biomedical Technology Acquisition
Medical Supplies and Equipment Contracts

Risk Flags

Lack of competition data
Expired contract date
No specific equipment details provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $117.8 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES

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 $117.8 million.

What is the period of performance?

Start: 2008-09-30. End: 2008-09-30.

What specific types of high-tech biomedical equipment and accessories were procured under this $117.7 million contract?

The provided data identifies the contract as being for 'HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES' and lists the North American Industry Classification System (NAICS) code as 423450, which corresponds to 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers'. However, the specific list of equipment procured is not detailed in the summary data. This level of detail is typically found in the contract's statement of work or line item details. Without this, it's challenging to assess the precise nature of the investment or compare it to specific market prices for individual items like MRI machines, diagnostic imaging equipment, or surgical robotics.

How does the $117.7 million contract value compare to historical spending by the VA on similar biomedical equipment?

To compare this $117.7 million contract value to historical VA spending, one would need to analyze past contracts for similar high-tech biomedical equipment and accessories, ideally from the same or similar NAICS codes (like 423450). This would involve searching federal procurement databases (e.g., FPDS-NG, USASpending.gov) for contracts awarded by the VA over several fiscal years. Key metrics for comparison would include the total dollar value of similar contracts, the types of equipment procured, the number of bidders, and the contract duration. Without this historical context, it's difficult to determine if $117.7 million represents an increase, decrease, or stable level of investment in this category.

What was the competitive landscape for this contract, and how many bids were received?

The provided summary data does not specify the level of competition or the number of bids received for this contract. The 'ct' field is empty, which might indicate the contract type was not fully captured or that it was not a standard competitive award. To assess the competitive landscape, one would need to consult the contract award details in a more comprehensive procurement database. If the contract was awarded through full and open competition with multiple bidders, it suggests a healthy market. Conversely, if it was a sole-source or limited competition award, it could indicate specialized requirements or a lack of market alternatives, potentially impacting price discovery and taxpayer value.

What are the potential risks associated with a $117.7 million contract for biomedical equipment awarded to a single vendor?

A significant risk associated with a large contract awarded to a single vendor, such as Siemens Medical Solutions USA, Inc. in this case, is vendor lock-in and potential over-reliance. If the contract was sole-source or limited competition, there's a risk that pricing may not be as competitive as it could be under broader market conditions. Other risks include potential supply chain disruptions if the vendor faces issues, and the possibility that the technology procured might become outdated quickly in the fast-evolving biomedical field. Ensuring robust contract management, performance monitoring, and clear exit strategies are crucial to mitigate these risks.

What is the track record of Siemens Medical Solutions USA, Inc. in fulfilling federal contracts, particularly for the Department of Veterans Affairs?

Siemens Medical Solutions USA, Inc. is a major player in the medical technology industry, and its track record with federal contracts, including those with the Department of Veterans Affairs, would need to be examined through federal procurement databases. Analyzing past performance ratings, contract modifications, past performance on similar large-scale equipment procurements, and any history of disputes or contract terminations would provide insight. A history of successful, on-time, and within-budget contract completions would indicate reliability, while a pattern of issues might raise concerns about their capacity or performance on this specific $117.7 million contract.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Contractor Details

Parent Company: Siemens Aktiengesellschaft (UEI: 316067164)

Address: 51 VALLEY STREAM PKWY, MALVERN, PA, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $117,768,819

Exercised Options: $117,768,819

Current Obligation: $117,768,819

Contract Characteristics

Consolidated Contract: Yes

Parent Contract

Parent Award PIID: SPM20002D8314

IDV Type: IDC

Timeline