VA awards $1.16M for XR Cath Lab equipment to Philips, highlighting irradiation apparatus manufacturing needs

Contract Overview

Contract Amount: $1,163,777 ($1.2M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-24

End Date: 2026-10-05

Contract Duration: 376 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR CATH LAB PURCHASE ORDER: 589B53003 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.2 million to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR CATH LAB PURCHASE ORDER: 589B53003 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ CONSOLIDATION Key points: 1. The contract value of $1.16 million for XR Cath Lab equipment suggests a significant investment in advanced medical technology. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing and a wider range of vendor participation. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery is scheduled to commence in FY25, aligning with the Department of Veterans Affairs' strategic equipment consolidation plans. 5. The award to Philips North America LLC, a known entity in medical technology, provides a degree of performance predictability. 6. The North American Industry Classification System (NAICS) code 334517 points to specialized manufacturing capabilities required for this equipment.

Value Assessment

Rating: good

The $1.16 million award for XR Cath Lab equipment appears to be a standard procurement for specialized medical devices. Without specific benchmark data for comparable XR Cath Lab systems from Philips or other manufacturers, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the price was determined upfront and is not subject to change based on actual costs incurred by the contractor, which is a positive indicator for cost control. The duration of the contract (376 days) is reasonable for the delivery and potential installation of such equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a healthy level of interest and competition for this specialized medical equipment. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government, as vendors vie to win the contract.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and value for the XR Cath Lab equipment.

Public Impact

Veterans receiving care at the VAMC Columbia, MO, will benefit from access to advanced XR Cath Lab technology, potentially improving diagnostic accuracy and treatment outcomes. The procurement supports the Department of Veterans Affairs' goal of modernizing its medical facilities and consolidating essential equipment. The geographic impact is localized to Columbia, Missouri, directly serving the veteran population in that region. The acquisition of this specialized equipment may indirectly support healthcare professionals through enhanced tools and capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Philips' equipment requires proprietary consumables or maintenance not readily available from third parties.
Ensuring adequate training and support for medical staff to effectively utilize the new XR Cath Lab technology is crucial for realizing its full benefits.

Positive Signals

The use of a full and open competition process increases the likelihood of receiving competitive pricing and innovative solutions.
The firm fixed-price contract type provides cost certainty for the Department of Veterans Affairs, minimizing the risk of budget overruns.
Awarding to a known manufacturer like Philips may indicate a reliance on established technology and support infrastructure.

Sector Analysis

The medical equipment manufacturing sector, particularly for advanced diagnostic and interventional tools like XR Cath Labs, is characterized by high research and development costs, stringent regulatory requirements, and a relatively concentrated market of specialized players. The global market for medical devices is substantial, with significant growth driven by technological advancements and an aging population. This contract fits within the broader category of healthcare technology procurement, where the VA consistently invests to maintain and upgrade its medical infrastructure to serve veterans.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The primary contractor, Philips North America LLC, is a large corporation. Further analysis would be needed to determine if any subcontracting opportunities for small businesses exist within the execution of this contract, which could be a missed opportunity for small business participation in the healthcare technology supply chain.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its procurements, including contract administration and performance monitoring. The Inspector General's office provides an additional layer of oversight to ensure accountability and prevent fraud, waste, and abuse. Transparency is generally maintained through public contract databases like SAM.gov, where details of awards are published, allowing for public scrutiny.

Related Government Programs

Medical Equipment Procurement
Radiology and Imaging Equipment
Veterans Health Administration Services
Capital Equipment Purchases

Risk Flags

Potential for obsolescence if technology advances rapidly.
Dependence on contractor for maintenance and support.
Integration challenges with existing hospital systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.2 million to PHILIPS NORTH AMERICA LLC. MODALITY: XR CATH LAB PURCHASE ORDER: 589B53003 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ 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 $1.2 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-10-05.

What is the track record of Philips North America LLC in supplying similar XR Cath Lab equipment to other federal agencies or large healthcare systems?

Philips North America LLC is a well-established global leader in medical technology, including diagnostic imaging and interventional solutions. They have a significant history of supplying advanced medical equipment, such as cath labs and imaging systems, to various healthcare providers, including other federal agencies and large hospital networks. While specific data on prior XR Cath Lab sales to the VA or other federal entities isn't detailed here, their broad portfolio and market presence suggest a capacity to deliver complex systems. A deeper dive into their contract history with the government, potentially through resources like FPDS-NG or agency-specific procurement portals, would reveal the extent and success of their past performance in supplying comparable technologies, including any issues related to delivery, performance, or post-sale support.

How does the awarded price of $1.16 million compare to market rates for similar XR Cath Lab systems?

Benchmarking the $1.16 million price for this XR Cath Lab system requires access to detailed market data, including specific configurations, features, and service agreements offered by competitors. Without direct comparable contract awards or published price lists for similar systems from Philips or its competitors (e.g., Siemens Healthineers, GE Healthcare), a precise comparison is difficult. However, advanced imaging and interventional suites like XR Cath Labs are typically high-cost capital equipment, often ranging from hundreds of thousands to over a million dollars, depending on the technology's sophistication and integration capabilities. The firm fixed-price nature of this award suggests the VA negotiated a definitive cost. Further analysis would involve comparing this price against recent awards for similar systems, considering factors like system capabilities, warranty, and training packages.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential delays in delivery or installation, performance issues with the XR Cath Lab equipment, and inadequate training for medical staff. Given the specialized nature of the technology, integration challenges with existing hospital IT infrastructure could also pose a risk. Mitigation strategies likely involve the firm fixed-price contract terms, which incentivize timely completion and penalize delays. The VA's contract administration team would monitor progress against the schedule (delivery by 2026-10-05). Philips' established presence suggests a commitment to product quality and support. The VA should ensure robust acceptance testing protocols are in place and that comprehensive training plans are executed by the contractor to ensure staff proficiency and maximize the equipment's utility.

How effective is the full and open competition process in ensuring the VA obtains the best value for advanced medical equipment like XR Cath Labs?

The full and open competition process is generally considered the most effective method for the VA to ensure it obtains the best value for advanced medical equipment. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages vendors to offer their most advanced and cost-effective solutions. The fact that four bidders participated in this procurement indicates a robust level of competition. This process allows the VA to evaluate not only price but also technical capabilities, past performance, and support services, leading to a more informed decision that balances cost with overall value and long-term operational effectiveness. Without this broad competition, the VA might face higher prices or less suitable technology.

What are the historical spending patterns for similar medical imaging or cath lab equipment within the Department of Veterans Affairs?

The Department of Veterans Affairs has a consistent history of investing in advanced medical equipment, including diagnostic imaging and interventional suites like cath labs, to serve the veteran population across its network of facilities. Historical spending data would likely show significant, recurring investments in these areas, reflecting the VA's commitment to providing comprehensive healthcare. Specific spending patterns would vary year-to-year and by facility, influenced by equipment lifecycle, technological advancements, and strategic modernization initiatives. Analyzing past VA contracts for similar equipment (e.g., angiography systems, cardiac imaging devices) would reveal trends in contract values, types of equipment procured, and the primary manufacturers favored, providing context for the current $1.16 million award.

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: 36A79725Q0006

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: $1,163,777

Exercised Options: $1,163,777

Current Obligation: $1,163,777

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