VA awards $116,737 contract for bone densitometer to GE Precision Healthcare LLC

Contract Overview

Contract Amount: $116,737 ($116.7K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-09-30

Contract Duration: 547 days

Daily Burn Rate: $213/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY:NM BONE DEN REQUISITION: 539B50024 STATION: CINCINNATI VA MEDICAL CENTER REQUIREMENT BONE DOSIMETER

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $116,737.08 to GE PRECISION HEALTHCARE LLC for work described as: MODALITY:NM BONE DEN REQUISITION: 539B50024 STATION: CINCINNATI VA MEDICAL CENTER REQUIREMENT BONE DOSIMETER Key points: 1. The contract value appears reasonable for specialized medical equipment, but a direct comparison to similar recent procurements 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 contract duration of 547 days (approx. 1.5 years) is standard for equipment delivery and initial service periods. 4. This procurement supports the Cincinnati VA Medical Center's diagnostic imaging capabilities. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The North American Industry Classification System (NAICS) code 334517 indicates a focus on manufacturing irradiation apparatus.

Value Assessment

Rating: good

The contract value of $116,737 for a bone densitometer appears to be within a reasonable range for specialized medical imaging equipment. However, without specific details on the model, features, and included services (installation, training, maintenance), a precise benchmark is difficult. Comparing this price to other VA or federal procurements for similar bone densitometers, especially those awarded around the same time, would provide a clearer picture of value for money. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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 3 bids suggests a competitive environment, which typically leads to better pricing and terms for the government. The specific details of the solicitation and the evaluation process would further clarify the extent of the competition and how it influenced the final award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation, leading to more cost-effective government spending.

Public Impact

Veterans receiving care at the Cincinnati VA Medical Center will benefit from access to updated bone densitometry equipment for diagnosis and monitoring of bone health conditions. The contract ensures the availability of essential diagnostic imaging services, contributing to the overall quality of healthcare provided by the VA. The geographic impact is localized to the Cincinnati, Ohio area, serving the veteran population in that region. The contract may have implications for the workforce at the medical center, potentially requiring trained technicians to operate the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance and service are exclusively tied to GE Precision Healthcare.
Ensuring the selected model meets all current and future clinical needs of the Cincinnati VA Medical Center.
Verification of adequate training for medical staff to operate the new equipment efficiently and safely.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type, which limits the government's financial exposure.
Contract includes delivery and likely installation, providing a comprehensive solution.
The equipment supports critical diagnostic capabilities for veteran healthcare.

Sector Analysis

The medical imaging equipment sector is characterized by high technological advancement and significant capital investment. Companies like GE Precision Healthcare operate within a market that includes a few large, established players and numerous smaller specialized firms. Federal agencies, particularly the Department of Veterans Affairs, are significant purchasers of such equipment to maintain and upgrade their healthcare facilities. Spending in this sector is driven by the need for advanced diagnostic tools, replacement cycles for aging equipment, and the expansion of healthcare services. Benchmarks for similar bone densitometers can vary widely based on features, brand reputation, and bundled service agreements.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While GE Precision Healthcare LLC is a large business, the competition process itself may have allowed small businesses to participate as subcontractors or as prime contractors if they met the requirements. Further analysis would be needed to determine if subcontracting opportunities for small businesses were included or encouraged in the solicitation.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts, including this delivery order. Accountability is typically managed through contract officers, performance monitoring, and adherence to the terms and conditions of the firm fixed-price contract. Transparency is facilitated through public contract databases like SAM.gov, where basic award information is available. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract if concerns arise.

Related Government Programs

VA Medical Equipment Procurement
Diagnostic Imaging Services
Bone Densitometry Equipment
Federal Healthcare Contracts
GE Healthcare Products

Risk Flags

Potential for cost overruns if maintenance/service costs are not well-defined beyond the initial term.
Risk of equipment obsolescence if not selected with future needs in mind.
Dependence on a single vendor for specialized equipment and potential service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $116,737.08 to GE PRECISION HEALTHCARE LLC. MODALITY:NM BONE DEN REQUISITION: 539B50024 STATION: CINCINNATI VA MEDICAL CENTER REQUIREMENT BONE DOSIMETER

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE 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 $116,737.08.

What is the period of performance?

Start: 2026-04-01. End: 2027-09-30.

What specific model of bone densitometer was procured, and what are its key features and capabilities?

The provided data does not specify the exact model of the bone densitometer procured from GE Precision Healthcare LLC. To fully assess the value and suitability of this contract, it is crucial to identify the specific model. Key features to investigate would include its imaging technology (e.g., DXA, QCT), resolution, scan speed, radiation dose, patient throughput, and any advanced analytical software included. Understanding these specifications allows for a comparison against current clinical standards and the needs of the Cincinnati VA Medical Center. Without this information, it's difficult to determine if the $116,737 award represents a competitive price for the technology acquired or if it meets the advanced diagnostic requirements for veteran care.

How does the awarded price of $116,737 compare to similar bone densitometer procurements by the VA or other federal agencies in the last two years?

A comprehensive comparison of this $116,737 award against similar bone densitometer procurements by the VA or other federal agencies over the past two years is essential for a robust value-for-money assessment. Prices for bone densitometers can fluctuate significantly based on the manufacturer, model, specific features (e.g., advanced imaging capabilities, software packages), warranty terms, and bundled services like installation, training, and maintenance. If comparable contracts reveal similar systems awarded at substantially lower prices, it could indicate that this particular procurement may not have achieved optimal value. Conversely, if the price aligns with or is lower than benchmarks for comparable systems, it suggests a more favorable outcome for the government. Accessing detailed contract award data, including the specific equipment models and service inclusions, is necessary for an accurate benchmark.

What is the track record of GE Precision Healthcare LLC in supplying medical equipment to the federal government, particularly the VA?

GE Precision Healthcare LLC, as a subsidiary or division of a major healthcare technology company, likely has a substantial track record in supplying medical equipment to various government entities, including the Department of Veterans Affairs. Analyzing their past performance is critical. This involves reviewing previous contracts awarded to them, examining performance evaluations (if publicly available), and assessing any history of contract disputes, quality issues, or delivery delays. A strong past performance record with the VA suggests reliability and adherence to contractual obligations, which can be a positive indicator for this current award. Conversely, a history of performance problems might raise concerns about the contractor's ability to meet the requirements of this new contract effectively and on time.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include technical obsolescence of the equipment over its lifecycle, potential for higher-than-expected maintenance and service costs beyond the initial period, and the possibility of performance issues or delivery delays by the contractor. Given the firm fixed-price nature, the primary performance risk lies with GE Precision Healthcare LLC. Mitigation strategies typically involve clear contract language defining acceptance criteria, performance standards, and remedies for non-performance. The VA likely has contract officers monitoring progress and ensuring compliance. Furthermore, the competitive bidding process itself helps mitigate risks by selecting a vendor with a demonstrated capability. Post-delivery, the VA's internal quality assurance and clinical staff will play a role in verifying the equipment's performance and utility.

How does this procurement fit into the broader context of the VA's efforts to modernize its medical equipment and improve diagnostic capabilities for veterans?

This procurement of a bone densitometer for the Cincinnati VA Medical Center is a component of the VA's ongoing efforts to modernize its medical infrastructure and enhance diagnostic capabilities. The VA continually invests in upgrading its medical equipment to ensure veterans receive high-quality, up-to-date healthcare. Bone densitometry is crucial for diagnosing and managing osteoporosis and other bone-related conditions, which are prevalent in certain veteran populations. By acquiring new or updated equipment, the VA aims to improve diagnostic accuracy, enable earlier detection of diseases, and provide more effective treatment plans. This specific contract contributes to the overall goal of providing comprehensive and advanced medical services across the VA network, ensuring veterans have access to state-of-the-art diagnostic tools comparable to those in the private sector.

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: 36A79725Q0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

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

Financial Breakdown

Contract Ceiling: $116,737

Exercised Options: $116,737

Current Obligation: $116,737

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline