VA awards $2.1M for irradiation apparatus, with Philips North America LLC as contractor

Contract Overview

Contract Amount: $2,144,614 ($2.1M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-05

End Date: 2027-12-31

Contract Duration: 878 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: XR HYBRID 673B40060 JAMES A. HALEY VETERANS HOSPITAL TAMPA, FL

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: XR HYBRID 673B40060 JAMES A. HALEY VETERANS HOSPITAL TAMPA, FL Key points: 1. Contract value appears reasonable given the specialized nature of irradiation equipment. 2. Full and open competition suggests a healthy market for this type of apparatus. 3. Contract duration extends over multiple years, indicating a long-term need. 4. The award is a delivery order under a larger contract vehicle. 5. Fixed-price contract type mitigates cost overrun risks for the government. 6. The specific apparatus type (334517) points to a niche but critical medical function.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for an irradiation apparatus seems within a reasonable range for specialized medical equipment. Benchmarking against similar procurements for irradiation devices is challenging without more specific technical details, but the price appears competitive given the likely advanced technology involved. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs, suggesting good value management.

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 a competitive process suggests that the Department of Veterans Affairs sought the best available solution and pricing. The number of bidders is not specified, but the open competition is a positive sign for price discovery and market responsiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers.

Public Impact

Patients at the James A. Haley Veterans Hospital in Tampa, FL, will benefit from advanced medical treatment capabilities. The contract supports the delivery of critical medical equipment for diagnostic or therapeutic purposes. The geographic impact is localized to the Tampa, Florida region, serving veterans in that area. This procurement may indirectly support specialized technical jobs related to the installation and maintenance of such equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology over the contract duration.
Dependence on a single supplier for maintenance and consumables if not managed proactively.

Positive Signals

Firm fixed-price contract limits cost escalation.
Full and open competition suggests a robust market and potential for competitive pricing.
Long-term contract provides stability for equipment availability and service.

Sector Analysis

The procurement falls within the broader medical equipment manufacturing sector, specifically focusing on irradiation apparatus. This is a highly specialized niche within healthcare technology, often involving advanced physics and engineering. The market size for such specific devices is limited, typically serving hospitals and research institutions. This contract represents a significant investment by the VA in maintaining state-of-the-art medical capabilities.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of irradiation apparatus, it is likely that the primary manufacturers are larger, established companies. Subcontracting opportunities for small businesses may exist in areas such as installation, maintenance, or related support services, but this is not explicitly detailed in the award information.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, oversight may be managed at the contract-level by the issuing agency. Transparency is facilitated by public award data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Services
Radiological and Electromedical Apparatus Manufacturing

Risk Flags

Potential for technological obsolescence
Long-term maintenance and support costs
Integration complexity with existing hospital systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to PHILIPS NORTH AMERICA LLC. XR HYBRID 673B40060 JAMES A. HALEY VETERANS HOSPITAL TAMPA, 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 $2.1 million.

What is the period of performance?

Start: 2025-08-05. End: 2027-12-31.

What is the specific type and intended use of the 'Irradiation Apparatus' (NA 334517)?

The National Average (NA) code 334517 typically refers to 'Irradiation Apparatus Manufacturing.' In a healthcare context, this likely pertains to equipment used for radiation therapy (e.g., linear accelerators for cancer treatment), sterilization of medical equipment using radiation, or potentially imaging technologies that involve irradiation. The specific application at the James A. Haley Veterans Hospital would determine its precise function, but it is a critical piece of medical technology requiring specialized manufacturing and maintenance.

How does the contract value of $2.1 million compare to similar procurements for irradiation apparatus?

Direct comparison of the $2.1 million contract value is difficult without knowing the exact specifications and capabilities of the 'XR HYBRID 673B40060' apparatus. However, advanced medical irradiation equipment, such as linear accelerators used in radiation oncology, can range from hundreds of thousands to several million dollars. Given the firm fixed-price nature and the multi-year duration (implied by the delivery order structure and end date), the value appears to be in a plausible range for a significant piece of medical technology. Further analysis would require benchmarking against specific models and their associated service contracts.

What are the potential risks associated with a multi-year contract for specialized medical equipment?

Key risks include technological obsolescence, where the equipment may become outdated before the end of its service life. There's also a risk of vendor lock-in if maintenance and parts are exclusively controlled by the manufacturer, potentially leading to higher long-term costs. Performance degradation or unexpected repair needs could also arise, although the firm fixed-price contract aims to mitigate cost overruns for the government. Ensuring adequate training for staff and managing the integration of new equipment into existing hospital workflows are also critical considerations.

What does the 'FULL AND OPEN COMPETITION' designation imply for the Department of Veterans Affairs and taxpayers?

This designation signifies that the VA utilized a procurement process where all responsible sources were permitted to submit a bid. This generally leads to a more competitive environment, encouraging multiple vendors to offer their best pricing and technical solutions. For taxpayers, this typically translates to better value, as competition helps drive down costs and ensures the government is not overpaying for goods or services. It also suggests a healthy market exists for this type of equipment, with multiple capable suppliers.

What is the significance of the contract being a 'DELIVERY ORDER' (AW)?

A delivery order indicates that this contract is part of a larger, pre-existing contract vehicle, such as a Multiple Award Schedule (MAS) or an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This means the terms, conditions, and potentially pricing structures were established previously. The VA is now exercising an option or placing an order against that established vehicle for specific goods or services. This approach can streamline the procurement process for recurring needs and allows for flexibility in ordering.

What is the expected impact of this contract on the James A. Haley Veterans Hospital's capabilities?

The acquisition of an irradiation apparatus is expected to significantly enhance the hospital's capabilities, likely in areas such as radiation oncology, advanced diagnostics, or sterilization processes. This directly supports the VA's mission to provide comprehensive healthcare to veterans. The new or upgraded equipment could lead to improved treatment outcomes, expanded service offerings, and potentially reduced wait times for specific procedures, thereby increasing the quality and efficiency of care delivered 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: 36A79725Q0002

Offers Received: 4

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: $2,144,614

Exercised Options: $2,144,614

Current Obligation: $2,144,614

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