VA awards $1.6M for Olympus urology scopes, lease, and maintenance to Olympus America Inc

Contract Overview

Contract Amount: $1,624,521 ($1.6M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2026-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS UROLOGY SCOPES LEASE AND FULL MAINTENANCE SERVICE

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11209

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.6 million to OLYMPUS AMERICA INC for work described as: OLYMPUS UROLOGY SCOPES LEASE AND FULL MAINTENANCE SERVICE Key points: 1. Leasing and maintenance of specialized medical equipment can offer predictable costs and access to the latest technology. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (over 3 years) indicates a need for sustained service. 5. The specific product category (surgical and medical instruments) is critical for healthcare delivery. 6. The award is a delivery order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $1.62 million over approximately 3.5 years for leasing and maintenance of urology scopes appears reasonable given the specialized nature of the equipment and services. Benchmarking against similar contracts for high-value medical equipment leases and maintenance is necessary for a definitive value assessment. However, the inclusion of full maintenance services alongside the lease suggests a comprehensive package that aims to ensure operational readiness and minimize downtime, which can be cost-effective in the long run by avoiding separate maintenance agreements and potential repair costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. This method is generally preferred as it maximizes the potential for competitive pricing and innovation. The number of bidders is not specified, but the use of this procurement method suggests that the Department of Veterans Affairs sought to leverage market competition to obtain the best value. The open competition likely contributed to price discovery and ensured that the awarded price reflects market conditions for such specialized equipment and services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of options, ultimately driving down costs and improving the value received for public funds.

Public Impact

Veterans receiving urological care will benefit from access to modern, well-maintained equipment. The contract ensures the availability of essential surgical and diagnostic tools for VA medical facilities. The services delivered include leasing of Olympus urology scopes and comprehensive maintenance. The geographic impact is primarily within the New York region, where the contractor is located, and where the VA facilities requiring these services are situated. The contract supports the healthcare workforce by providing them with reliable equipment to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if lease terms are restrictive or renewal options are not favorable.
Dependence on a single manufacturer for both equipment and maintenance could limit future flexibility.
Ensuring timely and effective maintenance response across all serviced locations is crucial.

Positive Signals

Award through full and open competition suggests a competitive pricing environment.
Inclusion of full maintenance services can lead to predictable operational costs and reduced downtime.
Fixed-price contract type helps control budget and mitigate cost escalation risks.

Sector Analysis

The market for surgical and medical instruments is a significant segment of the healthcare industry, characterized by technological advancements and specialized manufacturing. This contract falls within the medical device sector, specifically focusing on diagnostic and surgical equipment. Spending in this area is driven by the need for advanced medical technology in healthcare facilities, including government-run hospitals and clinics. Comparable spending benchmarks would involve analyzing other federal contracts for leasing and maintenance of similar high-value medical equipment, such as endoscopes, imaging devices, or surgical robots.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded through full and open competition, it is unlikely that small businesses were excluded, but there is no explicit mechanism to ensure their participation or benefit. Subcontracting opportunities for small businesses may arise if Olympus America Inc. chooses to engage them for specific services or components, but this is not guaranteed by the contract terms. The impact on the small business ecosystem would depend on whether Olympus leverages small business suppliers for maintenance or support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers responsible for medical equipment procurement and maintenance. Accountability measures are embedded in the contract terms, including service level agreements for maintenance and performance standards for the leased equipment. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract were to arise.

Related Government Programs

Medical Equipment Leasing
Surgical Instrument Maintenance
Veterans Affairs Healthcare Services
Medical Device Procurement
Federal Healthcare Contracts

Risk Flags

Potential for vendor lock-in
Dependence on single supplier for equipment and maintenance
Ensuring consistent maintenance quality across locations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.6 million to OLYMPUS AMERICA INC. OLYMPUS UROLOGY SCOPES LEASE AND FULL MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is OLYMPUS AMERICA 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 $1.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-09-30.

What is the track record of Olympus America Inc. in fulfilling federal contracts for medical equipment leasing and maintenance?

Olympus America Inc. has a history of engaging with federal agencies, including the Department of Veterans Affairs, for the provision of medical equipment and related services. Analyzing their past performance on similar contracts would involve reviewing contract databases for on-time delivery, quality of service, and any reported disputes or contract terminations. A positive track record would indicate a lower risk of performance issues. Conversely, a history of performance problems or contract disputes could signal potential risks for this current award. Specific details on their performance metrics for previous federal contracts would provide a clearer picture of their reliability and capability in meeting government requirements for specialized medical equipment.

How does the total contract value of $1.62 million compare to similar federal contracts for urology scopes and maintenance?

To benchmark the $1.62 million contract value, a comparative analysis with similar federal contracts for leasing and full maintenance of urology scopes or comparable endoscopic equipment is necessary. Factors such as the number of units leased, the duration of the lease (1278 days or approx. 3.5 years), the scope of maintenance services included (e.g., preventative, corrective, response times), and the specific models of Olympus scopes would need to be considered. Without access to a detailed database of comparable contracts, it's challenging to definitively state if this price is high or low. However, given the specialized nature of medical equipment and the inclusion of comprehensive maintenance, the value appears to be within a plausible range for such a service package over the contract's lifespan.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential equipment obsolescence during the lease term, performance failures of the equipment, or inadequate maintenance service delivery by Olympus America Inc. Another risk is the potential for price increases upon contract renewal if market conditions change unfavorably or if competition diminishes. Mitigation strategies are embedded in the contract structure: the fixed-price nature helps control costs, and the inclusion of full maintenance aims to ensure operational readiness. The Department of Veterans Affairs' oversight mechanisms, including performance monitoring and potential remedies for non-performance, also serve as mitigation. Furthermore, the initial full and open competition aims to secure favorable terms and pricing.

How effective is the inclusion of 'full maintenance service' in ensuring the operational readiness of urology scopes for the VA?

The inclusion of 'full maintenance service' is generally highly effective in ensuring the operational readiness of critical medical equipment like urology scopes. This typically encompasses preventative maintenance to minimize breakdowns, and corrective maintenance to quickly address any issues that arise. By bundling maintenance with the lease, the VA likely benefits from guaranteed response times and expert servicing directly from the manufacturer or an authorized provider. This reduces the administrative burden of managing separate maintenance contracts and minimizes the risk of equipment downtime, which is crucial for patient care and surgical scheduling. The effectiveness hinges on the specific terms of the maintenance agreement, including response times and coverage details.

What are the historical spending patterns of the Department of Veterans Affairs on urology equipment and maintenance?

Analyzing historical spending patterns of the Department of Veterans Affairs on urology equipment and maintenance would reveal trends in procurement methods, average contract values, and the prevalence of leasing versus purchasing. This data could indicate whether the VA has consistently relied on specific vendors, favored certain contract types (e.g., fixed-price, cost-plus), or experienced significant fluctuations in spending for these items. Understanding these patterns can help assess if the current $1.62 million award aligns with past expenditures or represents a significant shift. It can also highlight whether the VA has historically opted for bundled lease-and-maintenance agreements or separate contracts for equipment and service.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL 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: 3500 CORPORATE PKWY, CENTER VALLEY, PA, 18034

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: $1,624,521

Exercised Options: $1,624,521

Current Obligation: $1,624,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0168

IDV Type: FSS

Timeline