VA awards $3.27M contract for RT-LINAC upgrade at Shreveport VAMC, highlighting irradiation apparatus manufacturing

Contract Overview

Contract Amount: $3,272,673 ($3.3M)

Contractor: Elekta Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-25

End Date: 2026-01-30

Contract Duration: 127 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: RT-LINAC PURCHASE ORDER: EQ 667B59009 TKY 667B59011 STATION: VAMC SHREVEPORT LA REQUIREMENT: SOLE SOURCE UPGRADE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30346

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to ELEKTA INC for work described as: MODALITY: RT-LINAC PURCHASE ORDER: EQ 667B59009 TKY 667B59011 STATION: VAMC SHREVEPORT LA REQUIREMENT: SOLE SOURCE UPGRADE Key points: 1. The contract value of $3.27 million for an RT-LINAC upgrade appears reasonable given the specialized nature of medical equipment. 2. Competition dynamics for this contract were limited, suggesting potential for price negotiation challenges. 3. Risk indicators are moderate, primarily related to the sole-source nature of the procurement and potential for vendor lock-in. 4. Performance context is tied to ensuring advanced radiation therapy services for veterans at the Shreveport VAMC. 5. Sector positioning places this contract within the medical equipment manufacturing and healthcare services industries.

Value Assessment

Rating: fair

The contract value of $3.27 million for an RT-LINAC upgrade is difficult to benchmark without specific details on the equipment model and included services. However, compared to general capital equipment purchases, specialized medical devices like RT-LINACs can command significant prices. The firm fixed-price structure offers cost certainty, but the lack of competitive bidding raises questions about whether the best possible value was achieved. Further analysis would require comparing this price to similar RT-LINAC procurements by other federal agencies or large healthcare systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Elekta Inc., was solicited. This approach is typically used when a specific product or service is required, and only one source can provide it, often due to proprietary technology or existing infrastructure compatibility. The limited competition means that the Department of Veterans Affairs did not benefit from a bidding process that could have driven down prices through market forces. This raises concerns about price discovery and whether alternative, potentially more cost-effective solutions were overlooked.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing competitive bidding, which is a primary mechanism for ensuring cost-effectiveness in government procurement. This can lead to higher prices than might be achieved in an open market.

Public Impact

Veterans receiving care at the VAMC Shreveport will benefit from an upgraded radiation therapy system, potentially leading to improved treatment outcomes. The services delivered include the procurement and likely installation/integration of a new RT-LINAC system. The geographic impact is localized to Shreveport, Louisiana, and the surrounding region served by the VAMC. Workforce implications may include training for medical staff on the new equipment and potential support roles for Elekta Inc. technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially overlooks more cost-effective alternatives.
Lack of open competition may result in a higher price than if multiple vendors had bid.
Dependence on a single vendor for specialized equipment can create long-term maintenance and upgrade challenges.
The specific model and capabilities of the RT-LINAC are not detailed, making value assessment difficult.

Positive Signals

Addresses a critical healthcare need for advanced cancer treatment for veterans.
Firm fixed-price contract provides cost certainty for the government.
Procurement is managed by the Department of Veterans Affairs, an agency with experience in healthcare acquisitions.
The upgrade ensures the VAMC remains equipped with modern medical technology.

Sector Analysis

The RT-LINAC (Real-Time Linear Accelerator) market is a specialized segment within the broader medical device industry, focusing on equipment used for radiation therapy in cancer treatment. This sector is characterized by high technological sophistication, significant research and development investment, and a relatively concentrated number of key manufacturers. Elekta Inc. is a major player in this field. Spending in this area is driven by the need for advanced medical technologies in healthcare facilities, including government-run hospitals like VA medical centers, to provide state-of-the-art patient care. Comparable spending benchmarks would involve looking at other large-scale procurements of similar radiotherapy equipment by healthcare systems.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large corporation (Elekta Inc.), there are no direct subcontracting opportunities for small businesses mandated by this specific contract. The impact on the small business ecosystem is minimal, as the procurement is focused on specialized, high-value medical equipment typically manufactured by larger, established firms.

Oversight & Accountability

Oversight for this contract will be primarily managed by the Department of Veterans Affairs (VA) procurement and medical equipment management teams. Accountability measures are embedded in the firm fixed-price contract terms, requiring Elekta Inc. to deliver the specified RT-LINAC system by the agreed-upon date. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. The VA Office of Inspector General may conduct audits or investigations if concerns regarding the procurement process or contract performance arise.

Related Government Programs

VA Medical Equipment Procurement
Radiation Therapy Equipment
Cancer Treatment Technologies
Medical Device Manufacturing
Sole Source Contracts

Risk Flags

Sole Source Procurement
Limited Competition
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to ELEKTA INC. MODALITY: RT-LINAC PURCHASE ORDER: EQ 667B59009 TKY 667B59011 STATION: VAMC SHREVEPORT LA REQUIREMENT: SOLE SOURCE UPGRADE

Who is the contractor on this award?

The obligated recipient is ELEKTA INC.

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 $3.3 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-01-30.

What is the specific model of the RT-LINAC being procured, and what are its key technical specifications compared to previous models or competitors?

The provided data does not specify the exact model of the RT-LINAC being procured by the Department of Veterans Affairs. The contract identifies the requirement as 'RT-LINAC PURCHASE ORDER: EQ 667B59009 TKY 667B59011'. To assess the technical specifications and compare them to previous models or competitors, one would need to access the detailed product specifications from Elekta Inc. or the VA's technical requirements document. Typically, RT-LINAC upgrades involve advancements in beam delivery precision, treatment planning software integration, patient positioning accuracy, and potentially reduced treatment times. Without this detailed information, it is challenging to ascertain the full scope of the upgrade's technological advancement and its comparative advantage in the market.

How does the awarded price of $3.27 million compare to the average market price for similar RT-LINAC systems, considering the sole-source nature of this award?

Determining the precise market price for this RT-LINAC is challenging due to the sole-source award and the lack of specific model details. However, RT-LINAC systems are highly specialized and expensive pieces of medical equipment. Prices can range significantly, often from $1 million to over $3 million, depending on the manufacturer, model, features, and associated service contracts. Given that this is a sole-source award to Elekta Inc., the Department of Veterans Affairs likely paid a premium compared to what might have been achieved through competitive bidding. Without access to Elekta's standard pricing or quotes from other vendors for comparable systems, it's difficult to definitively state if $3.27 million represents a fair market value, but the absence of competition inherently raises concerns about potential overpayment.

What is Elekta Inc.'s track record with the Department of Veterans Affairs and other federal agencies regarding the supply and maintenance of medical equipment?

Elekta Inc. is a known provider of radiation therapy equipment, and it is highly probable they have a track record with the Department of Veterans Affairs (VA) and other federal agencies. To assess this track record thoroughly, one would need to review historical contract data, performance evaluations, and any reported issues or successes from previous dealings. Key areas to examine would include on-time delivery, equipment reliability, effectiveness of maintenance and support services, and adherence to contract terms. A positive track record with the VA would suggest a lower risk associated with this current sole-source award, while a history of performance issues could indicate potential future problems. Accessing contract databases and agency performance reports would be crucial for a comprehensive evaluation.

What are the potential risks associated with a sole-source procurement for critical medical equipment like an RT-LINAC?

Sole-source procurements for critical medical equipment like an RT-LINAC carry several potential risks. Firstly, the absence of competition can lead to inflated prices, as the vendor faces no pressure to offer the most cost-effective solution. Secondly, it limits the government's ability to explore alternative technologies or solutions that might be more suitable or innovative. Thirdly, it can create vendor lock-in, making it difficult and expensive to switch providers for future upgrades, maintenance, or consumables. This dependence can also impact service response times and the availability of parts. Finally, without competitive benchmarking, it's harder to ensure the procured equipment represents the best value for taxpayer dollars and meets the highest standards of technological advancement available in the market.

How does this contract align with the VA's broader strategy for modernizing its healthcare infrastructure and providing advanced cancer care to veterans?

This contract for an RT-LINAC upgrade at the VAMC Shreveport aligns with the Department of Veterans Affairs' (VA) broader strategy to modernize its healthcare infrastructure and enhance cancer care services for veterans. Investing in state-of-the-art radiation therapy equipment is crucial for delivering effective and precise treatments for various forms of cancer. By upgrading to a newer RT-LINAC system, the VA aims to ensure that veterans have access to the latest medical technologies, potentially leading to improved patient outcomes, reduced side effects, and more efficient treatment delivery. This procurement reflects a commitment to maintaining high standards of care within the VA system and keeping pace with advancements in oncology.

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: 36A79725N0419

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elekta AB (publ)

Address: 400 PERIMETER CENTER TERRACE NE STE 50, ATLANTA, GA, 30346

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,272,673

Exercised Options: $3,272,673

Current Obligation: $3,272,673

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79725D0003

IDV Type: IDC

Timeline