VA Awards $1.5M Irradiation Apparatus Contract to Philips North America LLC for Orlando Station

Contract Overview

Contract Amount: $150,660 ($150.7K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-23

End Date: 2026-04-20

Contract Duration: 209 days

Daily Burn Rate: $721/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODAILTY: RF-IR PO# 675B57011 STATION:ORLANDO

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $150,660 to PHILIPS NORTH AMERICA LLC for work described as: MODAILTY: RF-IR PO# 675B57011 STATION:ORLANDO Key points: 1. Contract awarded to a single, well-known vendor. 2. Fixed-price contract aims to control costs. 3. Limited small business participation noted. 4. Sector is specialized manufacturing for medical equipment.

Value Assessment

Rating: good

The contract value of $1.5M for irradiation apparatus appears reasonable given the specialized nature of the equipment and the vendor's established market position. Benchmarking against similar VA or DoD contracts for medical irradiation equipment would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential medical equipment.

Public Impact

Ensures availability of critical medical equipment for VA facilities. Supports advanced medical treatment capabilities. Potential for follow-on contracts for maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals.
Reliance on a single vendor for this specific apparatus.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.

Sector Analysis

This contract falls within the medical equipment manufacturing sector, specifically for irradiation apparatus. Spending in this area is critical for healthcare infrastructure, and benchmarks are often tied to technological advancements and specialized production costs.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Efforts should be made in future procurements to identify opportunities for small businesses to participate, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Standard procurement regulations and contract management practices should ensure proper execution and delivery.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in if this is a proprietary system.
Limited visibility into specific small business subcontracting.
Need for ongoing performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $150,660 to PHILIPS NORTH AMERICA LLC. MODAILTY: RF-IR PO# 675B57011 STATION:ORLANDO

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 $150,660.

What is the period of performance?

Start: 2025-09-23. End: 2026-04-20.

What is the expected lifespan and maintenance cost of the awarded irradiation apparatus?

The expected lifespan and associated maintenance costs for the irradiation apparatus are crucial factors in determining the long-term value of this $1.5M contract. Understanding these details will help assess the total cost of ownership beyond the initial purchase price and inform future budget planning for the VA.

Were there any significant technical challenges or unique requirements that limited the number of bidders?

Investigating potential technical challenges or unique requirements is important to understand why, despite full and open competition, the award went to a single entity. This could reveal specialized manufacturing needs or proprietary technology that inherently restricts the competitive landscape, impacting overall price competitiveness.

How does the performance of this Philips irradiation apparatus compare to similar equipment used by other federal agencies or healthcare providers?

Benchmarking the performance of this Philips irradiation apparatus against similar equipment used elsewhere is vital for assessing its effectiveness and value. Comparing operational efficiency, reliability, and clinical outcomes can validate the VA's procurement decision and identify best practices for future acquisitions in medical technology.

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: 36A79725N0439

Offers Received: 1

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: $150,660

Exercised Options: $150,660

Current Obligation: $150,660

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