VA awards $2.68M for XR modality equipment in Dallas, TX, with delivery expected by April 2026

Contract Overview

Contract Amount: $268,240 ($268.2K)

Contractor: Fujifilm Sonosite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-08-18

Contract Duration: 131 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR US PO# 549B50689 STATION: DALLAS, TX REQ: SEP FY25 CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $268,240 to FUJIFILM SONOSITE INC for work described as: MODALITY: XR US PO# 549B50689 STATION: DALLAS, TX REQ: SEP FY25 CONSOLIDATION Key points: 1. The contract value of $2.68 million for XR modality equipment appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract is a delivery order under a larger agreement, indicating potential for future task orders. 4. The equipment is for medical, dental, and hospital use, aligning with the VA's mission to serve veterans. 5. The fixed-price contract type shifts performance risk to the contractor, FUJIFILM SONOSITE INC. 6. The contract duration of 131 days for delivery is relatively short, implying a focused procurement.

Value Assessment

Rating: good

The award of $2.68 million for XR modality equipment to FUJIFILM SONOSITE INC. appears to be within a reasonable range for specialized medical equipment. Benchmarking against similar procurements for advanced imaging or diagnostic tools would provide further context, but the fixed-price nature of the contract suggests a defined cost structure. The VA's selection of a known supplier for medical equipment also indicates a degree of confidence in the value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a moderate level of competition for this specific delivery order. While not an exceptionally high number, it suggests that the market was engaged and that the VA received multiple offers, which is generally conducive to price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to ensure that the government secures the best possible value for the funds expended on this critical medical equipment.

Public Impact

Veterans receiving care at VA facilities in Dallas, TX, will benefit from access to advanced XR modality equipment. The contract supports the provision of essential medical, dental, and hospital equipment and supplies. The geographic impact is focused on the Dallas, Texas region, serving the local veteran population. The acquisition of new medical technology can indirectly support healthcare professionals by providing them with advanced tools for diagnosis and treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on maintenance and support services for the new XR equipment.
Reliance on a single supplier for this specific modality could pose future supply chain risks if not managed proactively.

Positive Signals

The use of full and open competition suggests a robust process for selecting the best value.
The fixed-price contract type provides cost certainty for the VA.
The award to a known entity in the medical equipment sector may indicate reliability and established performance.

Sector Analysis

The procurement falls within the Healthcare sector, specifically concerning medical equipment. The market for XR (Extended Reality) and related medical imaging technologies is rapidly evolving, with significant investment in innovation. The VA's spending in this area is crucial for maintaining state-of-the-art healthcare facilities for veterans. Comparable spending benchmarks would typically involve analyzing other large federal or private healthcare systems' acquisitions of similar advanced diagnostic or therapeutic equipment.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in this award notice. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem for this particular procurement.

Oversight & Accountability

As a delivery order under a larger contract, oversight is likely managed through the existing contract vehicle's administrative structure. The Department of Veterans Affairs has established procurement oversight processes, and Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to this award. Transparency is facilitated by the public nature of contract award data, allowing for analysis and scrutiny.

Related Government Programs

VA Medical Equipment Procurement
Department of Veterans Affairs IT and Medical Services
Federal Healthcare Technology Acquisition
Medical Imaging Equipment Contracts

Risk Flags

Delivery Timeline Risk
Equipment Performance Risk
Contractor Responsibility Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $268,240 to FUJIFILM SONOSITE INC. MODALITY: XR US PO# 549B50689 STATION: DALLAS, TX REQ: SEP FY25 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 $268,240.

What is the period of performance?

Start: 2026-04-09. End: 2026-08-18.

What is the track record of FUJIFILM SONOSITE INC. with the Department of Veterans Affairs for similar medical equipment?

FUJIFILM SONOSITE INC. has a history of providing medical equipment to various government agencies, including the Department of Veterans Affairs. Analyzing past awards to this contractor for similar modalities, such as ultrasound or other imaging systems, would reveal their performance history, delivery timeliness, and any reported issues. A review of contract databases and performance assessment reports (if publicly available) would provide a clearer picture of their reliability and experience specifically within the VA system. This context is crucial for understanding the risk associated with this new award and assessing the likelihood of successful delivery and performance.

How does the awarded price of $2.68 million compare to market rates for similar XR modality equipment?

A precise comparison of the $2.68 million award to current market rates for XR modality equipment requires detailed specifications of the technology procured and access to current market pricing data. XR modality can encompass a range of technologies, from diagnostic imaging to therapeutic applications. Benchmarking would involve identifying comparable systems from other manufacturers, considering factors like features, capabilities, warranty, and service agreements. Without specific technical details of the equipment and a comprehensive market analysis, it is challenging to definitively state if this price is above, below, or at market. However, the use of full and open competition suggests an effort to achieve a competitive price.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential delays in delivery, equipment malfunction, or inadequate training and support. Given that this is a delivery order for equipment with a defined delivery period (ending April 2026), timely delivery is a key performance indicator. Mitigation strategies likely include the fixed-price contract type, which incentivizes the contractor to complete the work within budget and on schedule. The VA's procurement process also typically involves pre-award evaluations of contractor responsibility and may include performance bonds or warranties. Post-award, the VA will monitor delivery progress and conduct inspections to ensure the equipment meets specifications.

What is the expected impact of this XR modality equipment on veteran healthcare services in the Dallas area?

The acquisition of new XR modality equipment is expected to enhance the diagnostic and treatment capabilities available to veterans receiving care at VA facilities in Dallas, Texas. XR technologies can offer advanced visualization, simulation, or therapeutic applications, potentially leading to more accurate diagnoses, improved patient outcomes, and more efficient healthcare delivery. This could translate to reduced wait times for certain procedures, access to cutting-edge treatments, and an overall improvement in the quality of care provided to the local veteran population. The specific impact will depend on the exact nature and application of the XR technology being procured.

How does this $2.68 million award fit into the VA's overall spending on medical equipment over the past five years?

This $2.68 million award represents a specific investment in XR modality equipment for a particular location. To understand its place within the VA's overall medical equipment spending, one would need to analyze the VA's historical budget allocations and actual expenditures on medical equipment over the past five years. This would involve looking at aggregate spending across all categories of medical equipment, as well as specific spending trends for advanced imaging and technology. This single award, while significant for its purpose, is likely a small fraction of the VA's total annual medical equipment budget, which can run into billions of dollars.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $268,240

Exercised Options: $268,240

Current Obligation: $268,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0002

IDV Type: IDC

Timeline