VA awards $20.6M for high-tech bio-medical equipment to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $20,654,556 ($20.7M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-06-30

End Date: 2009-06-30

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

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 $20.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES. Key points: 1. The Department of Veterans Affairs (VA) awarded a significant contract for high-tech bio-medical equipment. 2. Siemens Medical Solutions USA, Inc. secured the contract, indicating potential market concentration. 3. The contract's fixed-price with economic price adjustment structure carries some inflation risk. 4. Spending in the Electromedical and Electrotherapeutic Apparatus Manufacturing sector is substantial. 5. The contract duration is zero, suggesting it might be a task order or a completed award.

Value Assessment

Rating: fair

The award amount of $20.6M is substantial for bio-medical equipment. Benchmarking against similar contracts for high-tech medical devices is necessary to assess value, as pricing can vary significantly based on specific technology and features.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to fully assess price discovery.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Veterans will benefit from access to advanced bio-medical equipment, potentially improving healthcare outcomes. The award to a single large vendor may limit future competition for related services or upgrades. Economic price adjustments could lead to higher costs for taxpayers if inflation rises significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause
Zero duration may indicate incomplete data or a specific contract type

Positive Signals

Awarded under full and open competition
High-tech equipment for veteran healthcare

Sector Analysis

The contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector, which is critical for modern healthcare. Spending in this sector is often high due to the advanced technology and specialized nature of the equipment.

Small Business Impact

The data indicates this contract was not awarded to small businesses, which is common for large, high-tech equipment procurements. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight of this contract would involve ensuring the delivered equipment meets specifications and that the economic price adjustments are applied fairly according to the contract terms. The VA's procurement processes are subject to federal regulations and oversight.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to EPA
Limited visibility into specific equipment types
Zero contract duration may require further clarification
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.7 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 $20.7 million.

What is the period of performance?

Start: 2009-06-30. End: 2009-06-30.

What specific types of high-tech bio-medical equipment were procured under this contract?

The provided data specifies 'HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES' and the North American Industry Classification System (NAICS) code 334510, which covers Electromedical and Electrotherapeutic Apparatus Manufacturing. However, it does not detail the exact models or types of equipment. Further investigation into the contract's statement of work or line item details would be required for specifics.

What is the potential risk associated with the economic price adjustment (EPA) clause in this contract?

The EPA clause allows for adjustments to the contract price based on fluctuations in economic factors, such as inflation. The primary risk is that significant increases in the cost of materials, labor, or other inputs could lead to higher overall spending for the government than initially anticipated, potentially exceeding budget allocations if not carefully monitored and managed.

How effective was the full and open competition in achieving optimal value for this bio-medical equipment purchase?

While full and open competition is designed to maximize value, its effectiveness depends on the number and quality of bids received. Without knowing the number of bidders or the specific pricing strategies employed, it's difficult to definitively assess the value achieved. The VA likely aimed for competitive pricing, but the final value is contingent on the market dynamics at the time of award.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft (UEI: 316067164)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,654,556

Exercised Options: $20,654,556

Current Obligation: $20,654,556

Parent Contract

Parent Award PIID: V797P6029B

IDV Type: IDC

Timeline