VA Awards $210K for XR Equipment to Philips, Consolidating SEP FY25 Needs

Contract Overview

Contract Amount: $210,746 ($210.7K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-07-09

Contract Duration: 91 days

Daily Burn Rate: $2.3K/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: 531B53006 STATION: VAMC BOISE ID 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 $210,746.12 to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR US PURCHASE ORDER: 531B53006 STATION: VAMC BOISE ID REQUIREMENT: SEP FY25 EQ CONSOLIDATION Key points: 1. The Department of Veterans Affairs (VA) is procuring XR equipment, with a significant portion allocated to Philips North America LLC. 2. This purchase order aims to consolidate requirements for September FY25, suggesting a strategic approach to equipment acquisition. 3. The contract is awarded under full and open competition, indicating a competitive bidding process. 4. The fixed-price contract with economic price adjustment introduces potential cost fluctuations over its term.

Value Assessment

Rating: good

The awarded amount of $210,746.12 appears reasonable for specialized XR equipment, especially considering it's a delivery order under a larger framework. Benchmarking against similar VA or DoD procurements for medical imaging or XR systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for taxpayers, ensuring funds are used efficiently for necessary medical equipment.

Public Impact

Veterans at VAMC Boise will benefit from updated XR equipment, potentially improving diagnostic capabilities and treatment. The consolidation of requirements may lead to streamlined procurement and deployment processes for the VA. This award highlights the VA's ongoing investment in advanced medical technologies to serve its patient population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns if inflation is higher than anticipated.
Specific details on the XR modality and its intended use are not provided, making it difficult to assess its necessity and impact.

Positive Signals

Awarded under full and open competition, ensuring a competitive process.
Consolidation of requirements suggests efficient planning by the VA.
Delivery order under a larger framework may indicate favorable terms or existing relationships.

Sector Analysis

The procurement falls under the 'Irradiation Apparatus Manufacturing' sector, which includes specialized equipment for medical imaging and treatment. Spending in this sector is often driven by technological advancements and the need for updated healthcare infrastructure.

Small Business Impact

While the awardee is Philips North America LLC, a large corporation, the contract type (delivery order) might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. It's important to review the base contract to determine if small business set-asides were utilized or if subcontracting opportunities exist.

Oversight & Accountability

The VA's procurement process, including the use of full and open competition, is subject to oversight by various government accountability offices. Tracking the performance and delivery against the contract terms ensures accountability.

Related Government Programs

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

Risk Flags

Potential for cost escalation due to economic price adjustment.
Lack of specific detail on the XR modality and its intended application.
Need to verify if small business participation was considered in the base contract or subcontracting.
Dependence on a single vendor (Philips) for this specific delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $210,746.12 to PHILIPS NORTH AMERICA LLC. MODALITY: XR US PURCHASE ORDER: 531B53006 STATION: VAMC BOISE ID REQUIREMENT: SEP 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 $210,746.12.

What is the period of performance?

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

What is the specific type of XR equipment being procured and how does it align with VAMC Boise's current and future medical needs?

The provided data does not specify the exact type of XR (eXtended Reality) equipment. It is listed under 'Irradiation Apparatus Manufacturing.' To assess value, understanding if this is for diagnostic imaging (like CT or X-ray) or therapeutic applications, and how it complements existing VAMC Boise capabilities, is crucial. Without this detail, its precise medical utility and necessity remain unclear.

What are the potential risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) contract type for this XR equipment purchase?

The FPEPA contract type introduces risk related to inflation. While the base price is fixed, the economic price adjustment clause allows for increases based on specified economic indicators. If inflation outpaces the adjustment formula, the VA could end up paying significantly more than initially budgeted, impacting overall cost-effectiveness and potentially requiring additional funding.

How effectively does this procurement leverage competition to ensure the best value for taxpayer dollars, given the specialized nature of XR equipment?

The award states 'FULL AND OPEN COMPETITION,' which is a strong indicator of effective competition. This suggests that multiple qualified vendors were invited to bid, allowing the VA to compare proposals based on technical merit and price. This process is designed to drive down costs and ensure the government receives optimal value for its investment in advanced medical technology.

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: 4

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

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: $210,746

Exercised Options: $210,746

Current Obligation: $210,746

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