VA Awards $4.5M Olympus Scopes Lease to Olympus America Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $4,527,925 ($4.5M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2026-04-30

Contract Duration: 1,125 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS SCOPES LEASE AND FULL-SERVICE / BRONX VAMC

Place of Performance

Location: BRONX, BRONX County, NEW YORK, 10468

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to OLYMPUS AMERICA INC for work described as: OLYMPUS SCOPES LEASE AND FULL-SERVICE / BRONX VAMC Key points: 1. The Department of Veterans Affairs (VA) has awarded a significant contract for Olympus scopes, valued at $4.5 million. 2. Olympus America Inc. secured the contract through a full and open competition, indicating a competitive bidding process. 3. The contract covers a lease and full-service agreement, suggesting a comprehensive solution for medical equipment needs. 4. The spending falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare provision.

Value Assessment

Rating: good

The contract's value of $4.5 million for a lease and full-service agreement appears reasonable given the specialized nature of medical equipment like Olympus scopes. Benchmarking against similar multi-year leases for advanced surgical equipment would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The existence of multiple bidders likely contributed to a more favorable price discovery process.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer funds are being utilized efficiently, with the government likely securing a fair market price for the leased equipment and associated services.

Public Impact

Veterans will benefit from access to advanced medical equipment, potentially improving diagnostic and surgical outcomes. The lease agreement ensures the VA has up-to-date technology without the large capital outlay of purchasing equipment outright. This contract supports the ongoing operations of the Bronx VAMC, ensuring critical medical services are available to veterans in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service and maintenance are heavily tied to the lease.
Need to monitor equipment utilization to ensure cost-effectiveness over the contract duration.

Positive Signals

Full and open competition promotes fair pricing.
Lease agreement allows for technology refresh without significant upfront capital.
Full-service aspect ensures maintenance and support are included.

Sector Analysis

The contract falls under the Surgical and Medical Instrument Manufacturing sector. Spending in this area is crucial for maintaining the operational capabilities of healthcare facilities, particularly within the VA system. Benchmarks for similar equipment leases and service contracts would provide further context.

Small Business Impact

The data indicates that this contract was not awarded to small businesses, as the prime contractor is Olympus America Inc. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this agreement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance, performance, and value for taxpayer money.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is substantial (over 3 years).
Sole manufacturer for specialized equipment could limit future options.
Reliance on a single vendor for service and maintenance.
Potential for price increases in subsequent contract periods if not locked.
Need to ensure equipment is fully utilized to justify cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to OLYMPUS AMERICA INC. OLYMPUS SCOPES LEASE AND FULL-SERVICE / BRONX VAMC

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 $4.5 million.

What is the period of performance?

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

What is the total cost of ownership over the contract's duration, including potential service escalations or unforeseen maintenance needs?

The total cost of ownership over the 1125-day (approximately 3-year) contract is $4,527,924.67. This figure represents the firm fixed price for the lease and full-service agreement. Potential escalations or unforeseen maintenance costs are not explicitly detailed in the provided data, but a comprehensive service agreement should mitigate many unexpected expenses. A thorough review of the contract's terms and conditions would be necessary to identify any clauses related to price adjustments or additional charges.

How does the per-unit cost of these Olympus scopes compare to similar models or competitor offerings in the current market?

Without specific details on the exact models of Olympus scopes being leased and their configurations, a direct per-unit cost comparison is challenging. However, the contract's award under full and open competition suggests that the pricing was deemed competitive. To perform a robust benchmark, one would need to identify the specific scope models and research their market prices, including lease and service costs from other manufacturers like Stryker or Karl Storz, considering factors like age, features, and warranty.

What is the expected impact of this lease agreement on the VA's overall budget for medical equipment and its ability to adopt new technologies?

This lease agreement allows the VA to access necessary medical equipment without a large upfront capital expenditure, preserving budget flexibility. By leasing, the VA can potentially benefit from technology refreshes at the end of the term, ensuring access to newer models. This approach can be more fiscally prudent than outright purchase, especially for equipment with a rapid obsolescence cycle, thereby enhancing the VA's capacity to adopt emerging medical technologies.

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: $4,527,925

Exercised Options: $4,527,925

Current Obligation: $4,527,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0168

IDV Type: FSS

Timeline