VA awards $647K for irradiation apparatus, highlighting a 299-day delivery order for Orlando, FL

Contract Overview

Contract Amount: $647,044 ($647.0K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-04

End Date: 2026-06-30

Contract Duration: 299 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR US PO # 675B47011 STATION: ORLANDO, FL

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $647,043.6 to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR US PO # 675B47011 STATION: ORLANDO, FL Key points: 1. The contract value appears reasonable for specialized medical equipment, pending further benchmarking. 2. Full and open competition suggests a healthy market for this type of apparatus. 3. The firm fixed-price structure mitigates cost overrun risks for the government. 4. Delivery within 299 days is a key performance indicator for this order. 5. The contract falls within the broader medical equipment and apparatus manufacturing sector.

Value Assessment

Rating: good

The award of $647,043.60 for an irradiation apparatus seems within a reasonable range for specialized medical equipment. Without direct comparable contracts for the exact modality and location, a precise value-for-money assessment is challenging. However, the firm fixed-price contract type is favorable, as it caps the government's liability. The duration of the delivery order (299 days) suggests a standard procurement timeline for such equipment.

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 invited to bid. The presence of two bids suggests a competitive environment, which generally leads to better pricing and terms for the government. The agency's choice of full and open competition is a positive sign for market engagement and potential cost savings.

Taxpayer Impact: Full and open competition maximizes the opportunity for the government to receive the best value, as it encourages a wider range of suppliers to offer their best pricing and technical solutions, ultimately benefiting taxpayers.

Public Impact

Veterans receiving medical treatment at the Orlando, FL VA facility will benefit from this advanced irradiation apparatus. The contract ensures the delivery of critical medical equipment necessary for patient care. The geographic impact is localized to the Orlando, Florida region, serving the veteran population there. This procurement supports the healthcare workforce by providing them with necessary tools for treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance costs not fully detailed in this award.
Dependence on a single manufacturer for specialized parts could pose future supply chain risks.

Positive Signals

Firm fixed-price contract limits cost escalation risks.
Full and open competition suggests a robust market and potential for competitive pricing.
Clear delivery timeline (299 days) provides performance predictability.

Sector Analysis

The contract for an irradiation apparatus falls within the broader medical equipment manufacturing sector, a significant segment of the healthcare industry. This sector is characterized by high innovation, stringent regulatory requirements, and substantial government procurement. Comparable spending benchmarks would typically involve other procurements of similar high-value medical devices by federal agencies like the Department of Defense and other components of the VA.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though larger prime contractors may engage small businesses in their broader supply chains.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. Accountability is ensured through the firm fixed-price structure, which defines clear deliverables and payment terms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Equipment Procurement
Irradiation Therapy Devices
Federal Healthcare Contracts
Medical Apparatus Manufacturing

Risk Flags

Potential for long-term maintenance costs.
Dependence on specific manufacturer for parts/service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $647,043.6 to PHILIPS NORTH AMERICA LLC. MODALITY: XR US PO # 675B47011 STATION: ORLANDO, FL

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 $647,043.6.

What is the period of performance?

Start: 2025-09-04. End: 2026-06-30.

What is the specific type of irradiation apparatus being procured and its intended medical application?

The provided data identifies the procurement as an 'Irradiation Apparatus Manufacturing' under NAICS code 334517. While the specific modality is not detailed, irradiation apparatus are typically used in medical settings for treatments such as radiation therapy (oncology) or sterilization of medical equipment. The Department of Veterans Affairs (VA) likely procures this for its medical centers to support patient treatment protocols, potentially in areas like cancer care or diagnostic imaging requiring specialized radiation sources.

How does the awarded price of $647,043.60 compare to similar irradiation apparatus procurements by the VA or other federal agencies?

Benchmarking this specific award requires access to detailed contract data for similar irradiation apparatus. However, high-value medical equipment like irradiation devices can range significantly in price based on technology, features, and manufacturer. A $647,043.60 award for a 299-day delivery order suggests a substantial piece of equipment. Without comparable contract specifics (e.g., exact model, capabilities, installation, training), it's difficult to definitively state if this price is high or low. Further analysis would involve searching federal procurement databases for contracts with similar Product Service Codes (PSCs) and descriptions.

What are the key performance metrics and potential risks associated with this delivery order?

The primary performance metric is the timely delivery of the irradiation apparatus within the 299-day period specified in the delivery order. The firm fixed-price contract type mitigates financial risk for the government, as the contractor is obligated to deliver the specified goods at the agreed-upon price. Potential risks could include delays in manufacturing or delivery, technical issues upon installation, or the need for specialized training not fully covered. The contractor's track record with similar deliveries and the VA's quality assurance processes would be crucial in managing these risks.

What is the track record of PHILIPS NORTH AMERICA LLC in supplying similar medical equipment to the federal government?

Philips North America LLC is a well-established global healthcare technology company with a significant history of supplying medical equipment, including imaging and therapeutic devices, to various federal agencies, including the Department of Veterans Affairs and the Department of Defense. Their track record generally includes a wide range of products, from diagnostic imaging systems to patient monitoring and therapeutic devices. While specific performance data for this exact type of irradiation apparatus would require deeper analysis of past contracts, Philips is recognized as a major player in the federal healthcare market, often competing successfully for large-value contracts.

What is the historical spending pattern for irradiation apparatus by the Department of Veterans Affairs?

Historical spending patterns for irradiation apparatus by the VA would reveal the frequency and value of such procurements over time. Analyzing past VA contracts for similar equipment (e.g., radiation therapy units, linear accelerators, sterilization devices) would indicate whether this $647K award is an outlier or part of a consistent procurement trend. Factors like aging equipment replacement cycles, expansion of services, and technological advancements influence these spending patterns. A review of historical data could show if the VA is consolidating purchases, increasing investment in specific therapeutic areas, or relying on specific manufacturers.

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: 36A79725Q0002

Offers Received: 2

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: $647,044

Exercised Options: $647,044

Current Obligation: $647,044

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