VA awards $17M contract for Philips ISCV Services, enhancing medical equipment maintenance

Contract Overview

Contract Amount: $17,006 ($17.0K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $47/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHILIPS ISCV SERVICES

Place of Performance

Location: LEEDS, HAMPSHIRE County, MASSACHUSETTS, 01053

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,006.4 to PHILIPS NORTH AMERICA LLC for work described as: PHILIPS ISCV SERVICES Key points: 1. Contract focuses on maintaining critical medical imaging equipment, ensuring operational readiness. 2. Philips North America LLC, a known entity in healthcare technology, is the awardee. 3. The contract duration of 364 days suggests a need for ongoing, reliable service. 4. Fixed-price contract type aims to control costs and provide budget predictability. 5. Awarded by the Department of Veterans Affairs, directly supporting veteran healthcare. 6. The specific service code (334517) relates to manufacturing of irradiation apparatus, indicating specialized equipment.

Value Assessment

Rating: good

The contract value of $17,006.4 is for a one-year period, which appears reasonable for specialized medical equipment maintenance services. Benchmarking against similar contracts for imaging equipment maintenance would provide a more precise value-for-money assessment. However, given the critical nature of the equipment and the fixed-price structure, the VA is likely receiving a defined service level for a set cost. The award to a major manufacturer like Philips suggests access to original parts and expertise.

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 had the opportunity to bid. This competitive process is expected to drive fair pricing and encourage vendors to offer their best terms. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for essential medical equipment maintenance, ensuring funds are used efficiently.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable operation of advanced medical imaging equipment. Services ensure the availability of diagnostic tools like irradiation apparatus, crucial for timely and accurate diagnoses. The contract supports the VA's mission to provide comprehensive healthcare services to its beneficiaries. Geographic impact is likely nationwide, wherever VA facilities utilize the specified Philips equipment. The contract supports specialized technical roles within the healthcare sector, potentially involving highly skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized parts or knowledge are exclusively held by Philips.
Reliance on a single manufacturer for maintenance could lead to higher costs over time if competition diminishes.
Ensuring adequate service response times for critical equipment across multiple VA facilities requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type provides cost certainty for the VA.
Contracting with a major manufacturer like Philips likely ensures access to genuine parts and manufacturer-trained technicians.
The contract duration indicates a commitment to sustained operational readiness of vital medical equipment.

Sector Analysis

The healthcare technology sector, particularly medical equipment maintenance and services, is a significant market. This contract falls within the broader category of healthcare support services, which are essential for the functioning of hospitals and clinics. The market for servicing advanced medical devices like irradiation apparatus is specialized, often dominated by original equipment manufacturers (OEMs) or certified third-party service providers. Spending in this area is driven by the need to maintain high-tech diagnostic and therapeutic equipment, ensuring patient safety and diagnostic accuracy.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of maintaining advanced medical equipment manufactured by Philips, it is likely that the primary awardee is the manufacturer itself or a highly specialized service provider. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though larger contractors often engage small businesses for ancillary services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include performance reviews, monitoring of service delivery against contract requirements, and financial audits. The fixed-price nature of the contract provides a degree of financial oversight by limiting the potential for cost overruns. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Philips Healthcare Service Agreements
Irradiation Apparatus Service and Repair
Federal Healthcare Technology Procurement

Risk Flags

Potential for high cost of specialized parts
Reliance on OEM for service and support
Ensuring adequate service response times across VA facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,006.4 to PHILIPS NORTH AMERICA LLC. PHILIPS ISCV SERVICES

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 $17,006.4.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending by the VA on Philips ISCV services or similar equipment maintenance?

Analyzing historical spending patterns for the Department of Veterans Affairs (VA) on Philips ISCV services or comparable medical equipment maintenance is crucial for understanding value and trends. Without specific historical data for this exact service code and vendor, we can look at broader VA spending on medical equipment maintenance. The VA consistently allocates significant funds to maintain its vast array of medical equipment, which is essential for providing care to veterans. This spending is often influenced by the types of technology deployed, the age of the equipment fleet, and the service contracts in place. For instance, major imaging equipment like MRI, CT scanners, and X-ray machines require regular, often expensive, maintenance. Contracts with original equipment manufacturers (OEMs) like Philips are common due to the need for specialized knowledge, proprietary parts, and adherence to strict performance standards. Examining past contract awards for similar services, including their duration, value, and competition levels, can reveal whether the current $17 million award for a one-year term represents an increase, decrease, or stable level of investment compared to previous periods. Fluctuations in spending could be attributed to new technology adoption, equipment replacement cycles, or changes in contracting strategies, such as shifting from sole-source to competitive bidding.

How does the pricing of this contract compare to market rates for similar Philips ISCV services?

Assessing the pricing of this $17 million contract against market rates for similar Philips ISCV services requires detailed benchmarking. The contract is for a one-year term (364 days) and is a Firm Fixed Price (FFP) award. FFP contracts are generally advantageous for the buyer as they establish a ceiling on costs. To compare pricing, one would ideally look at other VA contracts, or contracts from other federal agencies and even large private healthcare systems, that procure similar maintenance services for comparable Philips equipment (e.g., specific models of irradiation apparatus or imaging systems). Key metrics for comparison would include the cost per service visit, hourly rates for technicians, cost of replacement parts, and comprehensive maintenance package pricing. Factors influencing price include the scope of services (e.g., preventative maintenance only vs. full service including repairs), geographic coverage, and required response times. Given that Philips is a major Original Equipment Manufacturer (OEM), their pricing might be at a premium compared to third-party service providers, but this often reflects the quality of service, access to genuine parts, and manufacturer expertise. Without access to a comprehensive database of comparable service contracts, a precise market rate comparison is challenging, but the full and open competition suggests the VA aimed to achieve competitive pricing.

What are the potential risks associated with relying on Philips for these critical ISCV services?

Several potential risks are associated with relying on Philips for critical ISCV (Irradiation Apparatus and related services) maintenance. A primary risk is vendor lock-in; if the VA becomes heavily dependent on Philips for parts, software updates, and specialized technicians, it could limit future flexibility and potentially lead to escalating costs over time. Competition might diminish if Philips holds exclusive rights to necessary components or diagnostic tools. Another risk involves service responsiveness and uptime guarantees. While the contract specifies a duration, the actual performance in terms of timely repairs and minimizing equipment downtime is crucial. Delays could significantly impact patient care. Furthermore, the cost of maintenance provided by an OEM can sometimes be higher than that offered by independent service organizations (ISOs), although OEMs often provide a higher level of assurance regarding parts and expertise. Ensuring that the contract terms adequately address service level agreements (SLAs), including penalties for non-performance, is vital to mitigate these risks. Finally, the VA must ensure robust internal oversight to verify that the services provided meet the contracted standards and that pricing remains competitive throughout the contract lifecycle.

What is the track record of Philips North America LLC in fulfilling federal contracts, particularly within the VA?

Philips North America LLC has a substantial track record of fulfilling federal contracts, including numerous awards from the Department of Veterans Affairs (VA). As a leading global provider of healthcare technology, Philips frequently engages with government agencies to supply and service medical equipment. Their experience spans a wide range of products, from diagnostic imaging systems to patient monitoring devices and critical care equipment. Within the VA system, Philips has been a consistent supplier and service provider, contributing to the operational readiness of medical facilities nationwide. Analyzing their past performance on similar contracts is key. This includes reviewing contract completion data, any instances of disputes or contract terminations, and performance evaluations (if publicly available through systems like the Federal Procurement Data System - FPDS). Generally, large, established companies like Philips have well-developed processes for managing government contracts, including compliance, logistics, and technical support. However, like any large contractor, there may be instances of performance issues on specific contracts, which underscores the importance of the VA's ongoing oversight and performance management throughout the life of this current award.

How does this contract align with the VA's overall strategy for medical equipment management and modernization?

This $17 million contract for Philips ISCV services aligns with the VA's broader strategy to ensure the reliable operation and modernization of its medical equipment fleet. The VA's mission necessitates maintaining state-of-the-art diagnostic and therapeutic capabilities to provide high-quality care to veterans. Contracts like this, focused on maintaining critical equipment such as irradiation apparatus, are fundamental to operational continuity. By securing services through full and open competition with a fixed-price structure, the VA aims to achieve cost-effectiveness and predictability in its equipment maintenance budget. Furthermore, by contracting with a leading manufacturer like Philips, the VA ensures access to the latest technical expertise, genuine replacement parts, and potentially, upgrade pathways. This supports the VA's objective of modernizing its technology infrastructure and ensuring that healthcare providers have access to reliable, up-to-date equipment. The duration of the contract (one year) suggests a need for ongoing, consistent support rather than a one-time purchase, reflecting a strategic approach to long-term equipment lifecycle management.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $17,006

Exercised Options: $17,006

Current Obligation: $17,006

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