VA awards $17.5M for high-tech bio-medical equipment to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $17,504,134 ($17.5M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-06-30

End Date: 2010-06-30

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 $17.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES. Key points: 1. The contract value is $17.5 million, awarded to a single large business. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract is for electromedical and electrotherapeutic apparatus manufacturing. 4. The award date is June 30, 2010, with a duration of 0 years, indicating a completed or short-term award.

Value Assessment

Rating: fair

The contract value of $17.5 million for bio-medical equipment appears to be a significant award. Without specific unit pricing or detailed product comparisons, a precise value assessment is difficult. However, the fixed-price nature with economic price adjustment suggests an attempt to control costs while accounting for market fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure the best value. The specific price discovery mechanism is tied to the fixed-price with economic price adjustment structure.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the acquisition of necessary bio-medical equipment.

Public Impact

Veterans will benefit from access to advanced bio-medical equipment. The award supports the Department of Veterans Affairs' mission to provide healthcare services. Siemens Medical Solutions USA, Inc. is a major supplier in the healthcare technology sector. The contract's completion in 2010 means current equipment needs may require new procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract awarded in 2010, potentially outdated for current needs.
Fixed Price with Economic Price Adjustment can lead to cost increases.
Award to a single large business, no small business participation noted.

Positive Signals

Full and open competition utilized.
Award to a known industry leader.
Supports critical healthcare infrastructure for veterans.

Sector Analysis

The acquisition falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector, a critical component of the healthcare industry. Spending in this sector is driven by technological advancements and the need for advanced diagnostic and treatment equipment. Benchmarks would typically compare pricing for similar high-tech medical devices.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the awardee is Siemens Medical Solutions USA, Inc., a large corporation. There is no specific indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard government procurement regulations and oversight mechanisms would apply to ensure compliance and performance. The fixed-price nature with EPA requires monitoring of price adjustments.

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 Economic Price Adjustment.
Risk of equipment obsolescence given the 2010 award date.
Lack of small business participation.
Contract duration of 0 years may indicate a completed or short-term need, requiring further analysis for ongoing requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.5 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 $17.5 million.

What is the period of performance?

Start: 2010-06-30. End: 2010-06-30.

What was the specific impact of the economic price adjustment on the final cost of the bio-medical equipment?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as labor or material costs. Without access to the contract's specific EPA formula and historical cost data, it's impossible to quantify the exact impact. However, EPAs are intended to protect both the contractor from unforeseen cost increases and the government from excessive price hikes by linking adjustments to objective indices.

Given the 2010 award date, what is the current status and potential obsolescence of the acquired bio-medical equipment?

As the contract was awarded and presumably completed in 2010, the equipment acquired is now over a decade old. In the rapidly evolving field of bio-medical technology, such equipment is likely nearing or has reached obsolescence. The Department of Veterans Affairs would have likely needed to procure updated or replacement equipment through subsequent contracts to maintain modern healthcare capabilities.

How did the pricing from this full and open competition compare to other similar procurements at the time?

Evaluating the pricing competitiveness requires comparing this $17.5 million award against similar procurements for comparable high-tech bio-medical equipment from the same period (circa 2010). Factors like specific equipment types, quantities, features, and vendor margins influence pricing. While full and open competition suggests a potentially favorable price discovery, without benchmark data from contemporaneous contracts, a definitive comparison of its value proposition is not possible.

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: $17,504,134

Exercised Options: $17,504,134

Current Obligation: $17,504,134

Parent Contract

Parent Award PIID: V797P6029B

IDV Type: IDC

Timeline