VA awards $14.87M for High Tech Bio-Medical Equipment to Varian Medical Systems

Contract Overview

Contract Amount: $14,869,086 ($14.9M)

Contractor: Varian Medical Systems, 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: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.9 million to VARIAN MEDICAL SYSTEMS, INC for work described as: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES Key points: 1. Spending on bio-medical equipment is a critical area for healthcare provision. 2. Varian Medical Systems is a significant player in this market. 3. The contract's duration and fixed-price nature suggest potential cost control. 4. The sector is characterized by high innovation and specialized manufacturing.

Value Assessment

Rating: fair

The award amount of $14.87 million for bio-medical equipment appears reasonable given the specialized nature of the products. Benchmarking against similar contracts for high-tech medical devices would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is 'FIRM FIXED PRICE', which helps manage costs. However, the competition method is not specified, making it difficult to assess if the VA secured the best possible price through a competitive process.

Taxpayer Impact: The impact on taxpayers depends heavily on the level of competition and the fairness of the negotiated price. Without competition details, the taxpayer impact is uncertain.

Public Impact

Ensures access to advanced medical equipment for veterans. Supports a key industry in medical technology manufacturing. Potential for long-term implications on veteran healthcare quality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition details
Potential for price overruns if competition was limited

Positive Signals

Firm Fixed Price contract type
Award to a known industry player

Sector Analysis

The Department of Veterans Affairs frequently procures medical equipment. Spending in this sector is driven by technological advancements and the need for specialized healthcare services, with benchmarks varying widely based on equipment type.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. Further analysis would be needed to determine if small businesses had opportunities to compete or subcontract.

Oversight & Accountability

Oversight would focus on contract performance, delivery schedules, and adherence to specifications. The VA's internal procurement processes and any post-award reviews are key accountability mechanisms.

Related Government Programs

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

Risk Flags

Lack of specified competition
Potential for price inflation without competitive pressure
Limited insight into specific equipment procured
Contract duration and renewal terms not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.9 million to VARIAN MEDICAL SYSTEMS, INC. HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES

Who is the contractor on this award?

The obligated recipient is VARIAN MEDICAL SYSTEMS, 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 $14.9 million.

What is the period of performance?

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

What was the competitive landscape for this contract?

The provided data does not specify the competition method used for this contract. Understanding whether it was full and open competition, limited competition, or a sole-source award is crucial for assessing the value and fairness of the price. This information is essential for determining if the VA effectively leveraged market forces to obtain the best possible terms.

What is the risk associated with the fixed-price contract type?

A firm fixed-price contract generally shifts cost risk to the contractor, which can be beneficial for the government. However, if the initial price was set too high due to limited competition or inadequate cost estimation, the government might still overpay. The risk lies in the accuracy of the initial pricing and the contractor's ability to perform within that budget.

How effective is this spending in meeting veteran healthcare needs?

The effectiveness hinges on whether the awarded bio-medical equipment directly addresses critical healthcare needs of veterans and if the equipment performs as expected. The VA's utilization data and patient outcomes post-implementation would be key indicators of effectiveness. Ensuring the equipment is state-of-the-art and reliable is paramount.

Industry Classification

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

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

Contractor Details

Address: 3100 HANSEN WAY, PALO ALTO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,869,086

Exercised Options: $14,869,086

Current Obligation: $14,869,086

Contract Characteristics

Consolidated Contract: Yes

Parent Contract

Parent Award PIID: V797P6003B

IDV Type: IDC

Timeline