VA awards $9.27M for Draeger equipment maintenance, ensuring critical medical device uptime

Contract Overview

Contract Amount: $9,275 ($9.3K)

Contractor: Draeger Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $25/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DRAEGER EQUIPMENT PREVENTIVE MAINTENANCE

Place of Performance

Location: WEST ROXBURY, SUFFOLK County, MASSACHUSETTS, 02132

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9,274.6 to DRAEGER INC for work described as: DRAEGER EQUIPMENT PREVENTIVE MAINTENANCE Key points: 1. Contract ensures continuity of care by maintaining essential medical equipment. 2. Fixed-price structure provides cost certainty for the VA. 3. Full and open competition suggests a competitive bidding process. 4. Maintenance services are crucial for patient safety and operational efficiency. 5. The contract duration aligns with typical equipment lifecycle needs. 6. Geographic focus on Massachusetts ensures localized support.

Value Assessment

Rating: good

The contract value of $9.27 million over one year for preventive maintenance of Draeger equipment appears reasonable given the critical nature of medical devices. Benchmarking against similar contracts for specialized medical equipment maintenance is challenging without more specific data on the types and quantities of Draeger devices covered. However, the firm-fixed-price structure is a positive indicator for cost control. The award to Draeger Inc. suggests a focus on original equipment manufacturer (OEM) expertise, which can be beneficial for ensuring proper maintenance and warranty adherence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this specialized maintenance service. This competitive environment is expected to drive fair pricing and encourage contractors to offer competitive terms to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the maintenance of critical healthcare equipment, preventing inflated costs.

Public Impact

Veterans receiving care at VA facilities in Massachusetts will benefit from reliable access to medical equipment. Essential services include preventive maintenance and repair for Draeger medical devices. The geographic impact is concentrated in Massachusetts, ensuring timely service delivery. Healthcare professionals will have dependable equipment, supporting efficient patient care delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond the scope of preventive maintenance.
Dependence on a single OEM (Draeger Inc.) for specialized maintenance could limit alternative service options.
Ensuring consistent quality of service across all maintenance activities requires robust oversight.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Full and open competition suggests a competitive market for these services.
Award to an established provider (Draeger Inc.) implies specialized knowledge and experience.

Sector Analysis

This contract falls within the broader healthcare technology and medical equipment maintenance sector. The market for specialized medical device maintenance is often characterized by a mix of original equipment manufacturers (OEMs) and third-party service providers. Spending in this area is critical for healthcare systems to ensure patient safety and operational continuity. Comparable spending benchmarks would depend on the specific types and volume of Draeger equipment being serviced.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, there is potential for small businesses to participate as subcontractors if they possess the necessary specialized skills for Draeger equipment maintenance. However, the primary awardee is Draeger Inc., a potentially larger entity, which may limit direct subcontracting opportunities for small businesses unless specifically solicited.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. The Department of Veterans Affairs (VA) will be responsible for monitoring performance and ensuring compliance with the contract terms. While specific Inspector General (IG) jurisdiction is not detailed here, the VA OIG typically oversees VA contracts for fraud, waste, and abuse.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Draeger Medical Device Service Agreements
Federal Healthcare Technology Procurement
Preventive Maintenance Services for Critical Infrastructure

Risk Flags

Potential for vendor lock-in
Dependence on OEM for specialized maintenance
Ensuring consistent service quality requires oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9,274.6 to DRAEGER INC. DRAEGER EQUIPMENT PREVENTIVE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is DRAEGER INC.

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 $9,274.6.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the historical spending pattern for Draeger equipment maintenance by the VA?

Analyzing historical spending for Draeger equipment maintenance by the VA is crucial for understanding trends and identifying potential cost efficiencies or escalations. Without access to specific historical contract data for this particular equipment type and vendor, a precise analysis is not possible. However, federal agencies like the VA typically maintain multi-year contracts for essential services. If this $9.27 million contract represents a significant increase or decrease compared to previous years, it would warrant further investigation into the reasons, such as changes in equipment inventory, service scope, or market pricing. Consistent or escalating spending might indicate a growing reliance on this equipment or increasing maintenance costs, while a decrease could suggest improved efficiency or a shift in equipment strategy.

How does the pricing of this contract compare to similar maintenance agreements for specialized medical equipment?

Directly comparing the pricing of this $9.27 million contract for Draeger equipment maintenance to similar agreements is challenging without detailed information on the specific types and quantities of Draeger devices covered, as well as the scope of services (e.g., response times, included parts). However, the firm-fixed-price structure is generally favorable for the government, as it shifts the risk of cost overruns to the contractor. If this contract represents a significant portion of the VA's overall medical equipment maintenance budget or shows a notable deviation from industry benchmarks for similar OEM maintenance contracts, it would be a point of interest. The fact that it was competed under full and open competition with three bidders suggests that the pricing achieved is likely competitive within the market for specialized medical equipment servicing.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for a contract like this, focused on preventive maintenance of critical medical equipment, would typically revolve around ensuring the operational readiness and reliability of the devices. Essential KPIs would likely include: 1) Preventive Maintenance Completion Rate: The percentage of scheduled preventive maintenance tasks completed on time. 2) Equipment Uptime/Availability: The percentage of time the equipment is operational and available for use, excluding scheduled downtime for maintenance. 3) Mean Time Between Failures (MTBF): An average of the time elapsed between inherent failures of the equipment. 4) Mean Time To Repair (MTTR): The average time required to repair a piece of equipment after a failure. 5) Service Response Time: The time taken for the contractor to respond to a service request. Meeting these KPIs ensures patient safety and minimizes disruptions to clinical operations.

What is the track record of Draeger Inc. in fulfilling federal contracts for medical equipment maintenance?

Draeger Inc. is a well-established global manufacturer of medical and safety technology, including respiratory devices, anesthesia machines, and patient monitoring systems. Their track record in fulfilling federal contracts, particularly with agencies like the Department of Veterans Affairs (VA), is generally expected to be strong due to their specialization and OEM status. Federal contract databases often show a history of awards to major manufacturers like Draeger for equipment, parts, and maintenance services. While specific performance metrics for past contracts are not detailed here, their continued success in securing such awards suggests a satisfactory performance history. However, a thorough review would involve examining past performance evaluations and any documented issues or disputes on prior federal agreements.

What are the potential risks associated with relying on a single vendor for specialized medical equipment maintenance?

Relying on a single vendor, such as Draeger Inc., for specialized medical equipment maintenance presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government may become overly dependent on the vendor's pricing and service terms, potentially leading to higher costs over time if competition diminishes. Secondly, the quality and timeliness of service could be impacted if the vendor faces internal resource constraints or prioritizes other clients. Thirdly, innovation might be stifled, as alternative, potentially more cost-effective or technologically advanced, third-party maintenance solutions may not be viable. Finally, if the vendor experiences financial instability or ceases operations, it could create a significant disruption in maintaining critical medical equipment, impacting patient care.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24126Q0361

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3135 QUARRY RD, TELFORD, PA, 18969

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

Financial Breakdown

Contract Ceiling: $27,824

Exercised Options: $9,275

Current Obligation: $9,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline