VA Awards $3.55M for XR Cath Lab Cardiac Equipment to Philips North America LLC

Contract Overview

Contract Amount: $3,551,759 ($3.6M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-28

End Date: 2026-12-01

Contract Duration: 886 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR CATH LAB CARDIAC PURCHASE ORDER: 603B44012 STATION: VAMC LOUISVILLE, KY REQUIREMENT: LOUISVILLE SPECIAL CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR CATH LAB CARDIAC PURCHASE ORDER: 603B44012 STATION: VAMC LOUISVILLE, KY REQUIREMENT: LOUISVILLE SPECIAL CONSOLIDATION Key points: 1. The Department of Veterans Affairs (VA) is procuring XR Cath Lab Cardiac equipment, a specialized medical device. 2. Philips North America LLC is the sole awardee, indicating a potential lack of broader market competition for this specific configuration. 3. The contract is a Firm Fixed Price delivery order, providing cost certainty for the VA. 4. The equipment falls under Irradiation Apparatus Manufacturing (NAICS 334517), a niche sector within medical technology.

Value Assessment

Rating: fair

The contract value of $3.55M for XR Cath Lab Cardiac equipment needs comparison against similar VA or DoD procurements to assess pricing fairness. Without benchmark data for this specific modality, it's difficult to definitively state if the price is excellent or concerning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract states 'FULL AND OPEN COMPETITION', suggesting multiple vendors could have bid. However, the award to a single vendor, Philips North America LLC, raises questions about the effectiveness of the competition in driving down price or ensuring the best value.

Taxpayer Impact: Taxpayer funds are being used for specialized medical equipment. The effectiveness of the competition in securing the best price will directly impact the overall value for taxpayers.

Public Impact

Veterans in Louisville, KY, will benefit from upgraded cardiac imaging capabilities, potentially leading to improved diagnostics and treatment. The acquisition of advanced XR Cath Lab technology signifies the VA's commitment to modernizing its medical infrastructure. This spending supports the medical device manufacturing sector, contributing to economic activity and innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the competitive landscape for this specific XR Cath Lab technology.
Potential for price escalation if competition was not robust despite being listed as 'full and open'.

Positive Signals

Award to a single, established vendor can ensure product compatibility and streamlined implementation.
Firm Fixed Price contract provides budget predictability.

Sector Analysis

The medical device sector, particularly specialized equipment like XR Cath Labs, is characterized by high R&D costs and significant regulatory hurdles. Spending benchmarks for such niche procurements are often difficult to establish due to proprietary technology and limited market players.

Small Business Impact

The award was made to Philips North America LLC, a large business. There is no explicit indication in the provided data that small businesses were involved as prime contractors or significant subcontractors in this specific procurement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability for the funds expended.

Related Government Programs

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

Risk Flags

Potential lack of robust competition despite 'full and open' designation.
High cost for specialized medical equipment requires careful justification.
Dependence on a single vendor for critical technology.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to PHILIPS NORTH AMERICA LLC. MODALITY: XR CATH LAB CARDIAC PURCHASE ORDER: 603B44012 STATION: VAMC LOUISVILLE, KY REQUIREMENT: LOUISVILLE SPECIAL CONSOLIDATION

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 $3.6 million.

What is the period of performance?

Start: 2024-06-28. End: 2026-12-01.

What specific features of this XR Cath Lab Cardiac equipment justify the $3.55M price point compared to alternative solutions?

The justification for the $3.55M price point likely lies in the advanced imaging capabilities, specialized software, and integration requirements of the XR Cath Lab technology. These systems often incorporate proprietary hardware and algorithms for enhanced diagnostic accuracy and procedural guidance in complex cardiac interventions, which command a premium in the market.

How effectively did the 'full and open competition' process ensure competitive pricing for this specialized medical equipment?

While the contract states 'full and open competition,' the award to a single vendor warrants further investigation into the bidding process. It's possible that only one vendor met the stringent technical specifications, or that the market for this highly specialized equipment is inherently limited, thus impacting the price discovery achieved through competition.

What is the expected impact of this new XR Cath Lab equipment on patient outcomes and VA healthcare efficiency?

The acquisition of advanced XR Cath Lab technology is expected to significantly improve diagnostic accuracy and enable more complex, minimally invasive cardiac procedures. This can lead to better patient outcomes, reduced recovery times, and potentially increased efficiency within the VA's cardiology services by offering state-of-the-art diagnostic and interventional capabilities.

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: 36A79724Q0008

Offers Received: 5

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: $3,551,759

Exercised Options: $3,551,759

Current Obligation: $3,551,759

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