VA awards $487K for LINAC upgrade at Jamaica Plain facility, enhancing cancer treatment capabilities

Contract Overview

Contract Amount: $487,207 ($487.2K)

Contractor: Varian Medical Systems, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-04

End Date: 2026-09-30

Contract Duration: 909 days

Daily Burn Rate: $536/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: LINAC (UPGRADE) PURCHASE ORDER: 523B31036 STATION: VAMC JAMAICA PLAIN REQUIREMENT: EQUIPMENT UPGRADE

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $487,206.64 to VARIAN MEDICAL SYSTEMS, INC for work described as: MODALITY: LINAC (UPGRADE) PURCHASE ORDER: 523B31036 STATION: VAMC JAMAICA PLAIN REQUIREMENT: EQUIPMENT UPGRADE Key points: 1. The contract focuses on upgrading existing Linear Accelerator (LINAC) equipment, suggesting a need for modernization rather than new acquisition. 2. Competition was robust, indicating a healthy market for this specialized medical equipment. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The upgrade is crucial for maintaining and improving radiation therapy services for veterans. 5. The vendor, Varian Medical Systems, is a significant player in the radiation oncology market. 6. The duration of the contract (909 days) aligns with typical equipment installation and upgrade timelines.

Value Assessment

Rating: good

The contract value of $487,206.64 for a LINAC upgrade appears reasonable given the specialized nature of the equipment and the vendor's market position. Benchmarking against similar LINAC upgrade contracts would provide a more precise value-for-money assessment, but the fixed-price structure suggests a pre-determined cost that limits potential overruns. The Department of Veterans Affairs (VA) is procuring this essential medical technology to ensure veterans receive up-to-date cancer treatment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of full and open competition is generally a positive sign for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the designation suggests a broad solicitation.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among vendors.

Public Impact

Veterans receiving cancer treatment at the Jamaica Plain VA facility will benefit from upgraded radiation therapy technology. The upgrade will enhance the precision and effectiveness of radiation treatments, potentially leading to better patient outcomes. This investment supports the VA's mission to provide comprehensive healthcare services to the nation's veterans. The project may involve specialized technicians for installation and maintenance, potentially creating or sustaining high-skilled jobs in the medical equipment sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future upgrades or maintenance are heavily reliant on Varian Medical Systems.
Ensuring the upgrade meets all current and future clinical needs and regulatory requirements.
Timeliness of delivery and installation to minimize disruption to patient care.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed-price contract type limits financial risk for the government.
Procurement of advanced medical technology to improve veteran healthcare.
Vendor is a recognized leader in the field, implying quality and expertise.

Sector Analysis

The market for medical imaging and radiation therapy equipment, including Linear Accelerators (LINACs), is a specialized segment within the broader healthcare technology sector. This contract falls under the manufacturing of irradiation apparatus. The global market for radiotherapy equipment is substantial, driven by the increasing incidence of cancer and advancements in treatment technologies. The Department of Veterans Affairs is a significant purchaser of such equipment to serve its patient population.

Small Business Impact

The contract was awarded to Varian Medical Systems, Inc., a large corporation, and there is no indication of a small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor may engage small businesses for subcontracting opportunities related to installation, maintenance, or ancillary services, though this is not specified in the provided data.

Oversight & Accountability

The contract is a delivery order under a larger framework, likely subject to the standard oversight mechanisms of the Department of Veterans Affairs procurement process. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases like FPDS. The VA Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Procurement
Radiation Oncology Equipment
Medical Device Manufacturing
Cancer Treatment Technology
Veterans Health Administration Services

Risk Flags

Potential for delivery delays impacting patient care.
Ensuring compatibility with existing IT infrastructure and medical records.
Adequacy of training for clinical staff on new equipment features.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $487,206.64 to VARIAN MEDICAL SYSTEMS, INC. MODALITY: LINAC (UPGRADE) PURCHASE ORDER: 523B31036 STATION: VAMC JAMAICA PLAIN REQUIREMENT: EQUIPMENT UPGRADE

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 $487,206.64.

What is the period of performance?

Start: 2024-04-04. End: 2026-09-30.

What is the track record of Varian Medical Systems, Inc. with the Department of Veterans Affairs for similar LINAC equipment procurements?

Varian Medical Systems, Inc. has a significant history of supplying medical equipment, including LINACs, to various government agencies, including the Department of Veterans Affairs. Analyzing past VA contracts awarded to Varian for LINACs or related radiotherapy equipment would reveal patterns in pricing, delivery timelines, and performance. A review of contract databases would likely show multiple awards, indicating a strong existing relationship and familiarity with VA requirements. Examining the value and scope of these previous contracts, as well as any reported issues or successes, would provide context for the current $487,206.64 award and help assess the contractor's reliability and suitability for this upgrade project.

How does the awarded price of $487,206.64 compare to market rates for LINAC upgrades of this nature?

Benchmarking the $487,206.64 award against market rates for similar LINAC upgrades requires access to detailed pricing data for comparable contracts, which is not fully available in the provided summary. However, LINACs are complex, high-cost medical devices, and upgrades often involve significant technological advancements and integration efforts. Prices can range widely based on the specific model, the extent of the upgrade (e.g., software, hardware components, beamline modifications), and the vendor. Given that Varian Medical Systems is a major manufacturer, and the contract is fixed-price, this figure likely represents a negotiated price reflecting the scope of work. Further analysis would involve comparing this cost to other VA or Department of Defense LINAC upgrade contracts, or consulting industry reports on radiotherapy equipment pricing.

What are the primary risks associated with this LINAC upgrade contract, and how are they being mitigated?

Key risks for this LINAC upgrade include potential delays in delivery or installation impacting patient care, technical integration challenges with existing infrastructure, and the possibility of unforeseen technical issues arising during the upgrade process. The Department of Veterans Affairs mitigates these risks through several mechanisms. The contract is awarded under full and open competition, encouraging vendors to propose realistic timelines and solutions. The fixed-price contract type shifts some financial risk to the contractor, incentivizing them to manage costs effectively. Furthermore, the contract duration of 909 days (approximately 2.5 years) allows for a structured implementation process. Specific mitigation strategies likely include detailed technical specifications, phased installation schedules, rigorous testing protocols, and performance-based payment terms.

What is the expected impact of this LINAC upgrade on the quality and efficiency of cancer treatment services at VAMC Jamaica Plain?

The upgrade of the LINAC is expected to significantly enhance the quality and efficiency of cancer treatment services at the Jamaica Plain VA Medical Center. Modern LINACs offer improved beam shaping capabilities, allowing for more precise targeting of tumors while minimizing radiation exposure to surrounding healthy tissues. This can lead to reduced side effects for patients and potentially more effective treatment outcomes. Enhanced efficiency may stem from faster treatment delivery times, improved system reliability reducing downtime, and potentially the ability to offer advanced treatment techniques that were not previously supported by the older equipment. Ultimately, this investment aims to provide veterans with access to state-of-the-art radiation therapy.

How does the historical spending by the VA on LINACs and related equipment compare to this specific award?

The Department of Veterans Affairs has a consistent history of investing in advanced medical equipment, including LINACs, to support its healthcare mission for veterans. Historical spending data would likely show significant annual expenditures on radiotherapy equipment, encompassing both new purchases and upgrades. Awards for LINACs can range from hundreds of thousands to several million dollars, depending on whether it's a new system acquisition or a major upgrade. The $487,206.64 award for this specific upgrade appears to be a moderate-sized contract within the broader context of VA's capital investments in oncology services. Analyzing trends in VA spending on LINACs over the past decade would reveal the agency's commitment to maintaining and modernizing its radiation therapy infrastructure.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 3100 HANSEN WAY, PALO ALTO, CA, 94304

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

Financial Breakdown

Contract Ceiling: $487,207

Exercised Options: $487,207

Current Obligation: $487,207

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79719D0014

IDV Type: IDC

Timeline