VA Awards $2.5M Philips Service Contract for Upstate NY Medical Centers

Contract Overview

Contract Amount: $2,498,953 ($2.5M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 02 UPSTATE PHILIPS SERVICE AND MAINTENANCE FOR ALBANY STRATTON VAMC BATH VAMC BUFFALO VAMC AND SYRACUSE FY2301

Place of Performance

Location: CANANDAIGUA, ONTARIO County, NEW YORK, 14424

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to PHILIPS NORTH AMERICA LLC for work described as: VISN 02 UPSTATE PHILIPS SERVICE AND MAINTENANCE FOR ALBANY STRATTON VAMC BATH VAMC BUFFALO VAMC AND SYRACUSE FY2301 Key points: 1. Contract awarded to Philips North America LLC, a known provider in the medical equipment sector. 2. The contract covers service and maintenance for irradiation apparatus across multiple VA facilities in New York. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is four years, aligning with typical service agreements for complex medical equipment.

Value Assessment

Rating: good

The contract value of $2.5 million over four years appears reasonable for specialized maintenance of medical equipment. Benchmarking against similar service contracts for irradiation apparatus would provide further validation.

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 method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award is expected to result in cost savings for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Ensures continued operation of critical medical equipment at four Veterans Affairs medical centers. Supports advanced diagnostic and treatment capabilities for veterans in upstate New York. Maintains the functionality of irradiation apparatus, vital for various medical procedures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future years if not adequately managed.
Reliance on a single vendor for maintenance could pose risks if service levels decline.

Positive Signals

Long-term service agreement provides budget predictability.
Competition ensures a baseline level of service quality.
Supports critical healthcare infrastructure for veterans.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on the maintenance of specialized medical equipment. Spending benchmarks for similar service contracts can vary significantly based on equipment type and vendor.

Small Business Impact

The awardee, Philips North America LLC, is a large corporation. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices are expected to be applied to ensure performance and value.

Related Government Programs

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

Risk Flags

Vendor Lock-in Risk
Service Quality Degradation
Potential for Unforeseen Repair Costs
Dependency on Specific Technical Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to PHILIPS NORTH AMERICA LLC. VISN 02 UPSTATE PHILIPS SERVICE AND MAINTENANCE FOR ALBANY STRATTON VAMC BATH VAMC BUFFALO VAMC AND SYRACUSE FY2301

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 $2.5 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the specific type of irradiation apparatus covered by this contract, and what is its criticality to patient care?

The specific type of irradiation apparatus is not detailed in the provided data, but it falls under NAICS code 334517 (Irradiation Apparatus Manufacturing). Such equipment is often critical for radiation therapy, sterilization, or imaging, directly impacting patient treatment and safety within the VA facilities.

How does the awarded price compare to industry benchmarks for similar maintenance contracts, considering the equipment's age and complexity?

Without specific details on the equipment's age, complexity, and the exact scope of services (e.g., preventative vs. corrective maintenance, response times), a precise benchmark comparison is difficult. However, the $2.5 million over four years suggests an average of $625,000 annually, which needs to be evaluated against market rates for comparable medical equipment service contracts.

What mechanisms are in place to ensure the effectiveness and responsiveness of Philips North America LLC's maintenance services throughout the contract period?

The contract likely includes performance standards, service level agreements (SLAs), and reporting requirements. The VA's contract officers and technical monitors will be responsible for tracking performance, addressing any service deficiencies, and ensuring compliance with the contract terms to guarantee effective and responsive maintenance.

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

Solicitation ID: 36C24222Q0962

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: $2,992,340

Exercised Options: $2,498,953

Current Obligation: $2,498,953

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