VA awards $545K for XR US Purchase Order to FUJIFILM SONOSITE INC, enhancing medical equipment for VAMC Cleveland OH

Contract Overview

Contract Amount: $54,575 ($54.6K)

Contractor: Fujifilm Sonosite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-07-09

Contract Duration: 91 days

Daily Burn Rate: $600/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: MODALITY: XR US PURCHASE ORDER: 541B52199 STATION: VAMC CLEVELAND OH REQUIREMENT: SEP FY25 EQ CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54,575 to FUJIFILM SONOSITE INC for work described as: MODALITY: XR US PURCHASE ORDER: 541B52199 STATION: VAMC CLEVELAND OH REQUIREMENT: SEP FY25 EQ CONSOLIDATION Key points: 1. The contract value of $545,750 represents a specific investment in advanced medical technology. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a fixed-price contract type and a short duration. 4. Performance context is tied to the specific needs of VAMC Cleveland OH for FY25. 5. Sector positioning is within the medical equipment and supplies merchant wholesalers category.

Value Assessment

Rating: good

The contract value of $545,750 for XR US Purchase Order appears reasonable for specialized medical equipment. Benchmarking against similar contracts for XR systems or advanced medical devices would provide a clearer picture of value for money. The fixed-price nature of the contract, with economic price adjustment, offers some cost certainty while allowing for market fluctuations. Without specific unit details or comparison data, a definitive value assessment is challenging, but the amount seems aligned with typical procurements of this nature.

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 had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a robust marketplace for this type of medical equipment. This process is designed to foster price discovery and ensure the government receives competitive offers, potentially leading to better pricing and quality.

Taxpayer Impact: Taxpayers benefit from full and open competition through the likelihood of receiving the best possible price for the required medical equipment, as multiple vendors vie for the contract.

Public Impact

Veterans at the VAMC Cleveland OH will benefit from access to advanced XR technology for improved diagnostics and treatment. The contract supports the delivery of essential medical equipment to a specific Department of Veterans Affairs facility. Geographic impact is concentrated in Cleveland, Ohio, serving the veteran population in that region. Workforce implications may include training for medical staff on the new XR equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for economic price adjustments could increase the final cost beyond the initial estimate.
Dependence on a single vendor for specific XR technology might limit future flexibility.
Ensuring adequate training for staff on new equipment is crucial for effective utilization.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type provides cost predictability.
Specific requirement for FY25 ensures timely procurement of needed technology.

Sector Analysis

The medical equipment and supplies merchant wholesalers sector is a critical component of the healthcare industry, providing essential devices and consumables to healthcare providers. This contract falls within the broader category of healthcare technology procurement, where innovation and specialized equipment are increasingly important. Spending in this sector is driven by technological advancements, an aging population, and the need for efficient healthcare delivery. Comparable spending benchmarks would typically involve analyzing procurements of similar imaging or diagnostic equipment by other federal agencies or large healthcare systems.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses through set-asides is nil. However, the prime contractor, FUJIFILM SONOSITE INC, may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the award information. The overall impact on the small business ecosystem would depend on the subcontracting plans, if any, of the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the fixed-price contract structure and the defined delivery period. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this procurement.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Federal Healthcare Technology Spending
XR Technology in Government
Medical Device Contracts
Fixed-Price Supply Contracts

Risk Flags

Potential for cost overruns due to economic price adjustments.
Need for robust performance monitoring to ensure equipment effectiveness.
Ensuring adequate training for medical staff on new technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54,575 to FUJIFILM SONOSITE INC. MODALITY: XR US PURCHASE ORDER: 541B52199 STATION: VAMC CLEVELAND OH REQUIREMENT: SEP FY25 EQ CONSOLIDATION

Who is the contractor on this award?

The obligated recipient is FUJIFILM SONOSITE 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 $54,575.

What is the period of performance?

Start: 2026-04-09. End: 2026-07-09.

What is the track record of FUJIFILM SONOSITE INC with the Department of Veterans Affairs?

To assess FUJIFILM SONOSITE INC's track record with the Department of Veterans Affairs (VA), one would typically review their past contract awards, performance evaluations, and any reported issues. A search of federal procurement databases would reveal the volume and types of contracts awarded to this vendor by the VA. Analyzing the value and duration of these past contracts, along with any available performance metrics or past performance questionnaires, would provide insight into their reliability and ability to meet VA requirements. Information on any disputes, contract terminations, or quality issues would also be critical in forming a comprehensive view of their performance history with the VA. Without specific historical data for this vendor and agency, a definitive assessment cannot be made, but this is the methodology for such an analysis.

How does the $545,750 contract value compare to similar XR equipment procurements by the VA or other federal agencies?

Comparing the $545,750 contract value for this XR US Purchase Order requires access to historical procurement data for similar equipment. A thorough analysis would involve identifying contracts for XR systems, advanced imaging devices, or comparable medical technology awarded by the VA and other federal agencies (e.g., Department of Defense, HHS) within a relevant timeframe. Key comparison points would include the specific type and capabilities of the XR equipment, the quantity purchased, the contract duration, and the pricing structure (e.g., fixed-price, cost-plus). Benchmarking the per-unit cost or total contract value against these comparable procurements would reveal whether this award represents a fair market price, a cost-saving opportunity, or a potentially higher expenditure. Factors such as technological obsolescence, market demand, and vendor competition at the time of each award would also need to be considered for a nuanced comparison.

What are the primary risks associated with this fixed-price contract with economic price adjustment?

The primary risks associated with this fixed-price contract with economic price adjustment (EPA) center on potential cost increases. While the fixed-price component provides a baseline cost, the EPA clause allows for adjustments based on fluctuations in specific economic factors, typically related to labor or material costs. The main risk for the government is that these adjustments could lead to a final contract price significantly higher than initially anticipated, especially if inflation or market conditions are volatile. For the contractor, the risk lies in the EPA not fully covering unforeseen cost increases, potentially eroding profit margins. Effective risk mitigation involves clearly defining the economic factors and indices used for adjustment, setting reasonable caps on adjustments, and ensuring robust monitoring of market conditions to anticipate potential cost escalations.

How will the effectiveness of the XR equipment be measured at VAMC Cleveland OH?

The effectiveness of the XR equipment at VAMC Cleveland OH will likely be measured through a combination of performance metrics and clinical outcomes. Performance metrics could include equipment uptime, reliability, maintenance response times, and the speed and quality of image acquisition. Clinically, effectiveness would be assessed by how the new technology improves diagnostic accuracy, reduces patient recovery times, enhances treatment planning, and ultimately contributes to better patient care and satisfaction. The VA may establish specific Key Performance Indicators (KPIs) within the contract or through internal operational reviews to track these aspects. Feedback from clinicians utilizing the equipment and patient outcome data will be crucial for a comprehensive evaluation of its effectiveness.

What is the historical spending pattern for XR equipment or similar medical technology by the Department of Veterans Affairs?

Analyzing the historical spending pattern for XR equipment or similar medical technology by the Department of Veterans Affairs (VA) requires examining procurement data over several fiscal years. This would involve identifying all contracts awarded for XR systems, advanced imaging modalities, and related medical devices. Trends to look for include the total annual spending on such technologies, the average contract value, the number of awards, and the primary vendors receiving these contracts. Understanding whether spending has been increasing, decreasing, or remaining stable provides context for current procurement decisions. Furthermore, identifying any shifts in the types of technology being procured or the agencies within the VA that are the largest purchasers can reveal strategic priorities and technological adoption rates. This historical perspective is vital for budget planning, identifying potential cost-saving opportunities, and understanding the VA's long-term investment in advanced medical equipment.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

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: 36A79725Q0011

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fujifilm Holdings Corporation

Address: 21919 30TH DR SE, BOTHELL, WA, 98021

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

Financial Breakdown

Contract Ceiling: $54,575

Exercised Options: $54,575

Current Obligation: $54,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0002

IDV Type: IDC

Timeline