VA awards $244K for irradiation apparatus, highlighting a need for specialized medical equipment

Contract Overview

Contract Amount: $243,980 ($244.0K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-10

End Date: 2026-06-08

Contract Duration: 118 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR US PURCHASE ORDER: 542B50004 STATION: VAMC COATESVILLE, PA REQUIREMENT: JUNE FY25 EQ CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $243,979.95 to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR US PURCHASE ORDER: 542B50004 STATION: VAMC COATESVILLE, PA REQUIREMENT: JUNE FY25 EQ CONSOLIDATION Key points: 1. The contract value appears reasonable for specialized medical equipment, but a direct comparison to similar apparatus is needed for a definitive value-for-money assessment. 2. Full and open competition was utilized, suggesting a healthy market for this type of equipment and potentially competitive pricing. 3. The relatively short duration of the contract (118 days) may indicate a specific, immediate need or a pilot program. 4. This award falls within the broader category of medical equipment manufacturing, a sector with consistent federal demand. 5. The contract is a delivery order against an existing contract, suggesting a streamlined procurement process for established needs.

Value Assessment

Rating: good

The award of $243,979.95 for an irradiation apparatus appears to be within a reasonable range for specialized medical equipment. Without specific details on the exact specifications of the apparatus and its intended use, a precise benchmark is difficult. However, compared to other federal procurements for similar high-value medical devices, this price point does not immediately raise concerns. Further analysis would involve comparing the unit price to market rates for comparable irradiation equipment and assessing if the awarded price reflects competitive pressures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of three bidders, as suggested by the 'no' field (though this typically refers to number of offers, not bidders), implies a degree of market interest and competition. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that federal funds are used efficiently for necessary equipment.

Public Impact

The primary beneficiaries are likely patients at the VAMC Coatesville, PA, who will receive care utilizing the new irradiation apparatus. The contract delivers a specific piece of medical equipment, an irradiation apparatus, essential for certain diagnostic or therapeutic procedures. The geographic impact is localized to the VAMC Coatesville facility in Pennsylvania. There are no immediate indications of significant workforce implications directly tied to this specific equipment purchase, though it supports existing medical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence if the technology rapidly advances.
Dependence on a single manufacturer (Philips) for potential future maintenance or upgrades, depending on contract terms.
Ensuring the apparatus meets all current clinical and safety standards for its intended use.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The equipment addresses a specific medical requirement for the VAMC.
The contract is a delivery order, indicating a potentially established relationship and streamlined process for acquiring necessary goods.

Sector Analysis

This contract falls within the Medical Equipment and Supplies Manufacturing sector, specifically related to irradiation apparatus. This sector is characterized by high technological innovation and significant federal investment, particularly through agencies like the Department of Veterans Affairs and the Department of Defense, to support healthcare services. Federal spending in this area is driven by the need for advanced diagnostic and therapeutic tools to serve veteran and military populations. Comparable spending benchmarks would involve analyzing other procurements for similar specialized medical devices across federal health agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business participation is likely minimal unless the prime contractor, Philips North America LLC, engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess any indirect benefits to the small business ecosystem.

Oversight & Accountability

As a delivery order under an existing contract, oversight is likely managed through the terms and conditions of the parent contract and the specific delivery order. The Department of Veterans Affairs is responsible for ensuring compliance with the contract's specifications, delivery schedule, and payment terms. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the VA contracting process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Irradiation Therapy Equipment
Medical Device Manufacturing
Federal Health IT and Equipment

Risk Flags

Potential for obsolescence
Need for specialized maintenance
Safety compliance for radiation equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $243,979.95 to PHILIPS NORTH AMERICA LLC. MODALITY: XR US PURCHASE ORDER: 542B50004 STATION: VAMC COATESVILLE, PA REQUIREMENT: JUNE FY25 EQ CONSOLIDATION

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 $243,979.95.

What is the period of performance?

Start: 2026-02-10. End: 2026-06-08.

What is the specific type and intended use of the 'irradiation apparatus' being procured?

The provided data identifies the requirement as 'Irradiation Apparatus Manufacturing' for 'EQ CONSOLIDATION' at VAMC Coatesville, PA. While the exact model or specific application isn't detailed, 'irradiation apparatus' typically refers to equipment used for radiation therapy (e.g., linear accelerators for cancer treatment) or sterilization/disinfection processes using radiation. The 'EQ CONSOLIDATION' note might suggest this is part of an effort to consolidate or upgrade existing equipment inventory. Understanding the precise function is crucial for assessing its clinical necessity and comparing its value against similar technologies.

How does the awarded price of $243,979.95 compare to market rates for similar irradiation apparatus?

Benchmarking this price requires detailed specifications of the apparatus. Irradiation equipment can range significantly in cost. For instance, a high-energy linear accelerator for cancer treatment can cost upwards of $1 million, while smaller units for sterilization might be considerably less. Given the $244K price point, this likely represents a mid-range or specialized unit, possibly for a specific diagnostic function or a smaller-scale therapeutic application. A thorough comparison would involve identifying comparable models from other manufacturers (e.g., Varian, Elekta) and checking their list prices or recent federal contract awards for similar items.

What is the track record of Philips North America LLC in supplying similar medical equipment to the federal government?

Philips North America LLC is a major global provider of healthcare technology, including diagnostic imaging, patient monitoring, and therapeutic devices. They have a significant history of supplying equipment to federal agencies, including the Department of Veterans Affairs and the Department of Defense. Their track record generally includes large-scale contracts for complex medical systems. Specific to irradiation apparatus, their involvement would depend on their product portfolio in that niche. Past performance evaluations and contract histories available through federal procurement databases (like FPDS or SAM.gov) would offer detailed insights into their reliability, quality, and pricing consistency for similar procurements.

What are the performance expectations and key performance indicators (KPIs) for this irradiation apparatus delivery order?

The provided data does not explicitly list performance expectations or KPIs. However, for a medical equipment contract, key performance indicators would typically revolve around timely delivery by the specified end date (June 8, 2026), successful installation and testing, adherence to all technical specifications and safety standards, and potentially a warranty period. The contract type, 'FIRM FIXED PRICE,' implies that the contractor, Philips North America LLC, is responsible for delivering the specified goods at the agreed-upon price, regardless of cost overruns. Performance would be measured against the technical requirements outlined in the parent contract and the delivery order.

How does this $244K award fit into the VA's overall spending on medical equipment in FY25 and previous years?

This $244K award represents a small fraction of the VA's total medical equipment budget, which typically runs into billions of dollars annually. The VA consistently procures a wide array of medical devices, from basic supplies to highly sophisticated diagnostic and therapeutic systems. Awards like this are part of a continuous cycle of equipment acquisition, replacement, and technological upgrades. Analyzing historical VA spending data for irradiation apparatus or similar high-value medical equipment would reveal trends in demand, average award values, and the prevalence of specific manufacturers. This single award suggests a specific, targeted need rather than a large-scale program initiative.

What are the potential risks associated with procuring irradiation apparatus, and how are they mitigated in this contract?

Potential risks include technological obsolescence, equipment malfunction, safety hazards associated with radiation, and the need for specialized maintenance. Mitigation strategies in this contract likely include the 'FIRM FIXED PRICE' structure, which shifts cost overrun risk to the contractor. The 'full and open competition' process helps ensure the selection of a reputable vendor with a proven product. Furthermore, the contract specifies a delivery date, implying acceptance testing will occur to verify functionality and safety before final payment. The VA's procurement regulations and the specific terms of the contract would detail warranty requirements and maintenance provisions, further mitigating risks.

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: 36A79725Q0010

Offers Received: 3

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: $243,980

Exercised Options: $243,980

Current Obligation: $243,980

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