VA awards $2.46M for Azurion C20 Flex Arm system to Philips North America LLC

Contract Overview

Contract Amount: $2,464,416 ($2.5M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-28

End Date: 2027-09-20

Contract Duration: 1,453 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: XR HYBRID PURCHASE ORDER: 691B20027 STATION: VAMC LOS ANGELES, CA REQUIREMENT: AZURION. 7 C20 FLEX ARM THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.204-27.

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR HYBRID PURCHASE ORDER: 691B20027 STATION: VAMC LOS ANGELES, CA REQUIREMENT: AZURION. 7 C20 FLEX ARM THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.204-27. Key points: 1. The contract is for a specialized medical imaging system, Azurion C20 Flex Arm. 2. Philips North America LLC is the sole awardee, indicating a specific supplier relationship. 3. The contract includes a FAR clause, suggesting adherence to federal acquisition regulations. 4. The fixed-price with economic price adjustment structure may expose taxpayers to cost increases. 5. The sector is healthcare, specifically medical equipment manufacturing.

Value Assessment

Rating: fair

The contract value of $2.46M for a specialized medical imaging system appears within a reasonable range for such high-tech equipment. However, without specific details on the system's configuration and included services, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific awardee, Philips North America LLC, suggests that only a limited number of manufacturers may be capable of meeting the technical requirements.

Taxpayer Impact: The fixed-price with economic price adjustment clause introduces potential for cost escalation, which could increase the final taxpayer burden beyond the initial award amount.

Public Impact

Veterans will benefit from access to advanced medical imaging technology, potentially improving diagnosis and treatment. The award supports a major medical equipment manufacturer, contributing to the healthcare technology sector. Taxpayers may face increased costs due to the economic price adjustment clause, depending on market fluctuations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may lead to cost overruns.
Limited competition for specialized medical equipment could result in higher prices.
Long contract duration (2027) increases exposure to price volatility.

Positive Signals

Awarded under full and open competition.
Provides advanced medical technology to VA facilities.
Contract supports a key industry supplier.

Sector Analysis

This contract falls within the Healthcare sector, specifically for medical imaging equipment. Spending benchmarks for such specialized systems can vary widely based on technology, features, and service agreements, but $2.46M is a significant investment.

Small Business Impact

The data indicates the awardee is PHILIPS NORTH AMERICA LLC, a large corporation. There is no explicit mention of small business participation in this specific award, suggesting it was not a primary focus or requirement.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. The inclusion of FAR clause 52.204-27 suggests a focus on compliance and oversight related to federal acquisition regulations.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost escalation due to economic price adjustment.
Lack of detailed cost breakdown for value assessment.
Long contract duration increases risk exposure.
Limited information on specific system capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to PHILIPS NORTH AMERICA LLC. MODALITY: XR HYBRID PURCHASE ORDER: 691B20027 STATION: VAMC LOS ANGELES, CA REQUIREMENT: AZURION. 7 C20 FLEX ARM THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.204-27.

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA LLC.

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 $2.5 million.

What is the period of performance?

Start: 2023-09-28. End: 2027-09-20.

What specific components and services are included in the Azurion C20 Flex Arm system to justify the $2.46M price tag?

The provided data does not detail the specific components or services included in the Azurion C20 Flex Arm system. A comprehensive breakdown of the system's features, software, installation, training, and maintenance packages would be necessary to fully assess the value proposition and justify the $2.46M cost. Without this information, it's challenging to determine if the price is competitive relative to the offered capabilities.

How will the economic price adjustment clause be monitored to mitigate potential taxpayer cost increases?

The Department of Veterans Affairs will likely monitor the economic price adjustment (EPA) clause by referencing established economic indices or agreed-upon benchmarks outlined in the contract. Regular reviews of these indices will determine any price adjustments. Effective oversight involves ensuring that any price increases are directly tied to documented economic factors and do not exceed reasonable market fluctuations, thereby protecting taxpayer interests.

What is the expected impact of this new imaging system on patient care and diagnostic accuracy at VAMC Los Angeles?

The acquisition of the Azurion C20 Flex Arm system is expected to significantly enhance patient care at VAMC Los Angeles by providing advanced imaging capabilities. This technology typically offers improved image quality, faster scan times, and potentially reduced radiation exposure, leading to more accurate diagnoses and more effective treatment planning. Ultimately, this should translate to better health outcomes for veterans receiving care at the facility.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation 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

Solicitation ID: 36A79723Q0001

Offers Received: 5

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

Evaluated Preference: NONE

Contractor Details

Address: 22100 BOTHELL EVERETT HWY, BOTHELL, WA, 98021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,464,416

Exercised Options: $2,464,416

Current Obligation: $2,464,416

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0022

IDV Type: IDC

Timeline