VA Awards $2.1M for Azurion.7 F20 Catalyst to Philips North America LLC

Contract Overview

Contract Amount: $2,145,149 ($2.1M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-02-20

End Date: 2026-09-30

Contract Duration: 953 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURCHASE ORDER: 646B32002 MODALITY: XR CATH LAB LOCATION: VAMC PITTSBURGH, PA REQUIREMENTS: AZURION.7 F20 CATALYST

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to PHILIPS NORTH AMERICA LLC for work described as: PURCHASE ORDER: 646B32002 MODALITY: XR CATH LAB LOCATION: VAMC PITTSBURGH, PA REQUIREMENTS: AZURION.7 F20 CATALYST Key points: 1. Contract awarded to a single, established vendor (Philips). 2. Focus on specialized medical equipment (XR Cath Lab). 3. Potential for higher pricing due to limited vendor options for specific models. 4. IT/Healthcare sector with significant capital expenditure.

Value Assessment

Rating: fair

The contract price of $2,145,149.20 for the Azurion.7 F20 Catalyst appears to be within a reasonable range for high-end medical imaging equipment, though specific benchmarks are difficult without detailed configuration and service agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. However, the specific model 'Azurion.7 F20 Catalyst' may limit the number of actual bidders to those authorized to sell that particular Philips system.

Taxpayer Impact: Taxpayer funds are being used for essential medical equipment to serve veterans, representing a necessary investment in healthcare infrastructure.

Public Impact

Enhances diagnostic capabilities at VAMC Pittsburgh for veteran care. Ensures access to advanced medical technology for cardiac procedures. Supports the Department of Veterans Affairs' mission to provide healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized equipment.
Reliance on a single manufacturer for critical components and service.

Positive Signals

Awarded under full and open competition.
Supports veteran healthcare needs.
Firm fixed price contract limits cost overrun risk.

Sector Analysis

This contract falls within the Healthcare sector, specifically for advanced medical imaging equipment. Spending benchmarks for such specialized cath lab systems can vary widely based on modality, features, and vendor, but this represents a significant capital investment.

Small Business Impact

The contract was awarded to Philips North America LLC, a large corporation, and there is no indication of small business participation in this specific award. Opportunities for small businesses may lie in subcontracting or related support services.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency, responsible for oversight. The contract is a delivery order under a larger agreement, suggesting established procurement processes are in place.

Related Government Programs

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

Risk Flags

Potential for limited competition on specific, proprietary models.
Long-term reliance on a single vendor for service and parts.
High capital expenditure for specialized medical equipment.
Need for ongoing validation of performance against clinical needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to PHILIPS NORTH AMERICA LLC. PURCHASE ORDER: 646B32002 MODALITY: XR CATH LAB LOCATION: VAMC PITTSBURGH, PA REQUIREMENTS: AZURION.7 F20 CATALYST

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 $2.1 million.

What is the period of performance?

Start: 2024-02-20. End: 2026-09-30.

What is the total cost of ownership over the contract duration, including maintenance and service agreements?

The provided data only details the initial purchase price of $2,145,149.20. A comprehensive total cost of ownership analysis would require information on ongoing maintenance, service contracts, potential software updates, and training, which are not included in this award notice. This information is crucial for a complete value assessment.

How did the competition ensure the best possible price for this specific, potentially proprietary, medical system?

While advertised as 'full and open competition,' the award to Philips for a specific Azurion model suggests that only authorized resellers could bid. The VA likely relied on market research and potentially competitive bidding among authorized dealers to secure the best price for this specialized equipment, mitigating risks associated with single-brand systems.

What is the expected impact of this new equipment on patient throughput and diagnostic accuracy at VAMC Pittsburgh?

The acquisition of an advanced Azurion.7 F20 Catalyst system is expected to significantly improve diagnostic accuracy and potentially increase patient throughput in the cardiac catheterization lab. This upgrade should enable more complex procedures and faster diagnoses, directly benefiting veteran patient care and outcomes.

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: 36A79723Q0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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: $2,173,039

Exercised Options: $2,173,039

Current Obligation: $2,145,149

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