VA awards $904,886 for Irradiation Apparatus Manufacturing to Philips North America LLC

Contract Overview

Contract Amount: $904,886 ($904.9K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-09

End Date: 2026-09-30

Contract Duration: 295 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: XR CT 621B40010 TKY 621B40011 JAMES H. QUILLEN VAMC MTN HOME, TN

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $904,886.3 to PHILIPS NORTH AMERICA LLC for work described as: XR CT 621B40010 TKY 621B40011 JAMES H. QUILLEN VAMC MTN HOME, TN Key points: 1. The contract is for Irradiation Apparatus Manufacturing, valued at $904,886. 2. Philips North America LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract duration is 295 days.

Value Assessment

Rating: good

The award amount of $904,886 for irradiation apparatus manufacturing appears reasonable given the specialized nature of the equipment. Benchmarking against similar complex medical equipment contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process, aiming to secure the best value for the required irradiation apparatus.

Public Impact

Enhances medical treatment capabilities at James H. Quillen VA Medical Center. Supports advanced diagnostic and therapeutic procedures for veterans. Ensures the VA maintains state-of-the-art medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance and service costs not fully detailed.
Dependence on a single supplier for critical equipment.

Positive Signals

Awarded through full and open competition.
Utilizes a firm fixed-price contract type, providing cost certainty.
Supports critical healthcare infrastructure for veterans.

Sector Analysis

The healthcare sector, particularly within the Department of Veterans Affairs, frequently procures specialized medical equipment. Spending benchmarks for irradiation apparatus can vary significantly based on technological advancements and specific functionalities required.

Small Business Impact

While this specific contract was awarded to a large corporation, the VA generally aims to include small businesses in its contracting opportunities through set-asides in other procurements. This particular award does not appear to directly benefit small businesses.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms to ensure contract compliance and performance. Regular performance reviews and audits are standard procedures for such procurements.

Related Government Programs

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

Risk Flags

Potential for high lifecycle costs.
Dependence on a single manufacturer.
Need for detailed performance validation against alternatives.
Ensuring long-term serviceability and parts availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $904,886.3 to PHILIPS NORTH AMERICA LLC. XR CT 621B40010 TKY 621B40011 JAMES H. QUILLEN VAMC MTN HOME, TN

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 $904,886.3.

What is the period of performance?

Start: 2025-12-09. End: 2026-09-30.

What is the expected lifespan of this irradiation apparatus and what are the associated maintenance costs?

The expected lifespan and associated maintenance costs for the irradiation apparatus are critical factors for long-term value assessment. While the initial award focuses on procurement, understanding the total cost of ownership, including service agreements and potential upgrades, is essential for taxpayers. Further details on maintenance plans and projected lifecycles would provide a more comprehensive financial picture.

How does the performance of this specific Philips model compare to other irradiation apparatuses available on the market?

Comparing the performance of this specific Philips model against market alternatives is crucial for ensuring the VA is acquiring the most effective and technologically advanced solution. Evaluating factors like radiation output, imaging quality, patient comfort, and safety features against competing products will confirm if the chosen apparatus offers optimal clinical benefits and represents a sound investment for veteran care.

What contingency plans are in place if Philips North America LLC is unable to fulfill its contractual obligations?

Contingency plans for supplier default are vital for maintaining continuity of care. The VA should have protocols in place, such as identifying alternative suppliers or having backup equipment options, to mitigate disruptions. Understanding these backup strategies ensures that veteran healthcare services remain uninterrupted, even in unforeseen circumstances with the primary contractor.

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: 36A79725Q00012

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: $904,886

Exercised Options: $904,886

Current Obligation: $904,886

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