VA awards $197K BPA call for telepathology maintenance to Philips North America LLC

Contract Overview

Contract Amount: $197,421 ($197.4K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2027-04-02

Contract Duration: 364 days

Daily Burn Rate: $542/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BLANKET PURCHASE AGREEMENT (BPA) FOR DIGITAL TELEPATHOLOGY SERVICE MAINTENANCE IN SUPPORT OF THE DEPARTMENT OF VETERANS AFFAIRS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $197,420.8 to PHILIPS NORTH AMERICA LLC for work described as: BLANKET PURCHASE AGREEMENT (BPA) FOR DIGITAL TELEPATHOLOGY SERVICE MAINTENANCE IN SUPPORT OF THE DEPARTMENT OF VETERANS AFFAIRS Key points: 1. Contract focuses on essential maintenance for digital telepathology services, crucial for diagnostic capabilities. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term maintenance agreement suggests a need for specialized vendor support. 4. Fixed-price contract type offers cost certainty for the VA. 5. The award falls under a Blanket Purchase Agreement, indicating a pre-negotiated framework.

Value Assessment

Rating: fair

This contract is a BPA Call for maintenance services. Without specific details on the scope of work or comparable maintenance contracts for similar digital telepathology equipment, a precise value-for-money assessment is challenging. The fixed-price nature provides some cost predictability. However, the lack of competition in this specific call warrants further investigation into whether the pricing reflects market rates for specialized equipment maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source BPA Call. This means that the Department of Veterans Affairs did not conduct a competitive bidding process for this specific call against the existing Blanket Purchase Agreement. While the BPA itself might have been competed, this individual call was not. This limits the opportunity for price discovery and potentially higher costs compared to a fully competed scenario.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates careful review of the pricing to ensure it is fair and reasonable.

Public Impact

Veterans will benefit from continued access to reliable diagnostic services through maintained telepathology equipment. The Department of Veterans Affairs ensures operational continuity for its pathology departments. Services are likely to be delivered at VA medical facilities within Maryland. This contract supports specialized technical roles related to medical equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this BPA call could result in above-market pricing.
Reliance on a single vendor for maintenance may create long-term dependency and limit future flexibility.
The specific scope of maintenance and its criticality to patient care require close monitoring.

Positive Signals

The award is under a BPA, suggesting a pre-existing framework that may have undergone competition.
Firm Fixed Price contract type provides budget certainty.
Maintenance ensures the continued operational readiness of critical diagnostic equipment.

Sector Analysis

The digital telepathology market is a niche within the broader healthcare technology sector, focusing on remote diagnostic capabilities. This contract addresses the maintenance needs for such specialized equipment, ensuring its reliability and uptime. Comparable spending in this area would involve other federal agencies or large healthcare systems procuring maintenance for advanced medical imaging and diagnostic systems, often involving significant investment in service contracts.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of digital telepathology equipment maintenance, it is likely that larger, established vendors like Philips North America LLC are best positioned to provide these services. There is no explicit indication of subcontracting opportunities for small businesses within this specific BPA call.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' contracting and program management offices. As a BPA Call, it is part of a larger, potentially competed BPA. Transparency would be enhanced by making the details of the BPA and the justification for the sole-source call publicly available. The VA's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Digital Health Services Contracts
Medical Diagnostic Equipment Support

Risk Flags

Sole-source award may limit price competition.
Potential for vendor lock-in.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $197,420.8 to PHILIPS NORTH AMERICA LLC. BLANKET PURCHASE AGREEMENT (BPA) FOR DIGITAL TELEPATHOLOGY SERVICE MAINTENANCE IN SUPPORT OF THE DEPARTMENT OF VETERANS AFFAIRS

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 $197,420.8.

What is the period of performance?

Start: 2026-04-03. End: 2027-04-02.

What is the specific scope of maintenance covered under this BPA Call, and how does it compare to industry standards for similar equipment?

The provided data does not detail the specific maintenance tasks included in this BPA Call. Typically, maintenance for digital telepathology systems can encompass preventative maintenance, corrective repairs, software updates, and calibration. Industry standards vary based on the complexity and age of the equipment. Without a detailed statement of work, it's difficult to benchmark the scope against market norms. However, given the $197,420.80 value over approximately one year, it suggests a comprehensive service agreement for critical equipment, likely including both scheduled checks and on-demand repair services to ensure high availability for diagnostic purposes.

What was the original competition strategy for the Blanket Purchase Agreement (BPA) under which this call was issued?

The provided data indicates this is a 'BPA CALL' and the contract type is 'NOT COMPETED UNDER SAP'. This suggests that the Blanket Purchase Agreement (BPA) itself may have been competed previously, potentially through a broader solicitation for maintenance services. However, this specific call against the BPA was not competed under the Simplified Acquisition Procedures (SAP). To understand the original competition, one would need to review the details of the parent BPA, including its solicitation history and award details, to ascertain if it was awarded competitively and what the original terms were.

How does the pricing of this BPA Call compare to other similar maintenance contracts for digital telepathology equipment awarded by the VA or other federal agencies?

A direct comparison of pricing is challenging without access to detailed pricing structures of comparable contracts. The value of this BPA Call is approximately $197,420 for a 364-day period. To assess value, one would need to identify other VA or federal contracts for maintenance of similar digital telepathology systems, considering factors like equipment model, age, service level agreements (SLAs), and contract duration. Given this is a sole-source call, a thorough review of the contractor's pricing proposal against established benchmarks or historical VA data for similar services would be necessary to determine if the price is fair and reasonable.

What is Philips North America LLC's track record in providing maintenance services for digital telepathology equipment to the federal government?

Philips North America LLC is a major medical technology company and a likely original equipment manufacturer (OEM) for the digital telepathology systems used by the VA. Their track record in providing maintenance for such equipment to the federal government would typically involve a history of successful contract performance, timely response to service calls, and effective resolution of technical issues. Specific performance metrics and past performance evaluations from previous government contracts would provide a more detailed understanding of their capabilities and reliability in this specialized service area.

What are the potential risks associated with a sole-source award for essential equipment maintenance, and how are they mitigated?

The primary risk of a sole-source award for essential equipment maintenance is the potential for inflated pricing due to the lack of competition. This can also lead to vendor lock-in, where the government becomes dependent on a single provider, potentially limiting flexibility and negotiation power in the future. Mitigation strategies include rigorous price analysis by the contracting officer to ensure the price is fair and reasonable, potentially through comparison with independent cost estimates or historical pricing. Additionally, clear performance standards and service level agreements (SLAs) in the contract can help ensure the quality of service, and periodic reviews of the contract can assess the continued need for sole-source justification.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 222 JACOBS ST, CAMBRIDGE, MA, 02141

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,783,596

Exercised Options: $197,421

Current Obligation: $197,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10X26A0004

IDV Type: BPA

Timeline