VA Awards $3.47M BPA for VISN 4 Scopes to Olympus America Inc

Contract Overview

Contract Amount: $3,474,794 ($3.5M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-01

End Date: 2026-08-31

Contract Duration: 1,126 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BPA FOR VISN 4 SCOPES

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to OLYMPUS AMERICA INC for work described as: BPA FOR VISN 4 SCOPES Key points: 1. The contract is for surgical and medical instruments, a critical component of healthcare delivery. 2. Olympus America Inc. is a significant player in the medical device market. 3. The contract's duration and value present a moderate financial commitment. 4. The sector is characterized by high innovation and regulatory oversight.

Value Assessment

Rating: good

The contract value of $3.47M over approximately three years appears reasonable for specialized medical equipment. Benchmarking against similar BPAs for surgical scopes would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices for the required scopes.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary medical equipment.

Public Impact

Ensures VA facilities have access to essential surgical and medical instruments. Supports the operational needs of VISN 4 healthcare providers. Contributes to patient care by providing necessary medical technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the contract term.
Dependence on a single vendor for critical equipment.

Positive Signals

Awarded through full and open competition.
Supports a vital healthcare network.

Sector Analysis

This contract falls within the medical device manufacturing sector, which is highly regulated and technologically advanced. Spending in this area is driven by healthcare demand and innovation.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the vendor is a large corporation and the 'sb' field is false.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The BPA call structure allows for task-specific monitoring and accountability.

Related Government Programs

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

Risk Flags

Potential for price escalation.
Risk of technological obsolescence.
Dependence on a single supplier for critical equipment.
Need for ongoing utilization monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to OLYMPUS AMERICA INC. BPA FOR VISN 4 SCOPES

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 $3.5 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-08-31.

What is the projected utilization rate of these scopes across VISN 4 facilities?

The projected utilization rate is crucial for understanding the true value and necessity of this Blanket Purchase Agreement. High utilization would justify the expenditure, while low utilization might indicate overstocking or inefficient deployment of resources. Further analysis would require data on patient procedures and equipment usage patterns within VISN 4.

Are there any emerging technologies that could render these scopes obsolete before the contract end date?

The rapid pace of technological advancement in medical devices presents a risk of obsolescence. While Olympus is a leading manufacturer, continuous monitoring of industry trends and competitor innovations is essential. The VA should assess if the contract includes provisions for technology refresh or early termination if significantly superior alternatives emerge.

How does the pricing of these scopes compare to similar non-federal healthcare providers?

Comparing pricing against non-federal entities is vital for ensuring fair market value. If the VA is paying a premium, it could indicate a lack of aggressive negotiation or market shifts. Benchmarking against GSA schedules or large hospital group purchasing organizations would provide a clearer picture of cost-effectiveness.

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

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: $3,474,794

Exercised Options: $3,474,794

Current Obligation: $3,474,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24423A0023

IDV Type: BPA

Timeline