VA awards $738K task order for GI/Pulmonary equipment to Olympus America Inc

Contract Overview

Contract Amount: $738,057 ($738.1K)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEW GI/PULMONARY TASK ORDER

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $738,056.84 to OLYMPUS AMERICA INC for work described as: NEW GI/PULMONARY TASK ORDER Key points: 1. Task order awarded under an existing BPA, suggesting potential for streamlined procurement. 2. The contract is for surgical and medical instruments, a critical area for healthcare delivery. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The awardee, Olympus America Inc., is a known entity in the medical device market. 5. The duration of the task order is one year, allowing for regular reassessment of needs. 6. The contract is not set aside for small businesses, indicating a focus on established vendors.

Value Assessment

Rating: good

The contract value of $738,056.84 for a one-year period for GI/Pulmonary equipment appears reasonable given the specialized nature of medical devices. Benchmarking against similar task orders for Olympus products or comparable manufacturers would provide a more precise value assessment. However, the firm-fixed-price structure suggests that the government has negotiated a definitive price, mitigating cost overrun risks. The specific equipment procured will heavily influence the true value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific mechanism used (BPA Call) suggests that a broader contract vehicle was already in place, allowing for competitive calls against it. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive process was intended.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple vendors to offer their best pricing.

Public Impact

Veterans will benefit from access to necessary GI and Pulmonary diagnostic and treatment equipment. The services delivered include the provision of specialized medical instruments. The geographic impact is likely concentrated in Pennsylvania, where the contract is managed or the equipment is delivered. The contract supports the healthcare workforce within the VA system by providing essential tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the exact equipment and quantities makes it difficult to fully assess value.
Potential for vendor lock-in if this equipment requires specialized training or consumables from the same vendor.
The contract does not appear to include specific small business subcontracting goals.

Positive Signals

Awarded under a pre-competed BPA, suggesting efficiency in the procurement process.
Firm-fixed-price contract type provides cost certainty for the government.
Olympus America Inc. is a reputable manufacturer in the medical device industry.

Sector Analysis

The medical device manufacturing sector is highly specialized and competitive, with significant R&D investment. Companies like Olympus America Inc. are key players, providing essential equipment for diagnostics and treatment across various medical specialties, including gastroenterology and pulmonology. Federal spending in this area supports the healthcare needs of specific populations, such as veterans, and ensures access to advanced medical technologies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements. This suggests that the primary focus was on obtaining the best value from established, potentially larger, manufacturers. The absence of set-aside provisions means that opportunities for small businesses to participate in this specific procurement are limited, though they may compete on other contracts or through subcontracting if opportunities arise.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a firm-fixed-price award under a BPA call, oversight would focus on ensuring delivery of specified equipment according to the contract terms and schedule. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Contracts
Pulmonary Diagnostic Equipment
Gastroenterology Equipment
Medical Device Manufacturing Contracts

Risk Flags

Potential for vendor lock-in
Technology obsolescence risk
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $738,056.84 to OLYMPUS AMERICA INC. NEW GI/PULMONARY TASK ORDER

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 $738,056.84.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of Olympus America Inc. with the Department of Veterans Affairs?

Olympus America Inc. has a history of contracts with the Department of Veterans Affairs, primarily for the provision of medical equipment, including endoscopes and related surgical instruments. Reviewing past performance data, including any quality or delivery issues, would provide insight into their reliability. The current award, being a task order under a larger vehicle, suggests a continued positive or acceptable relationship. Analyzing the total value and duration of previous VA contracts with Olympus can help contextualize the current award's significance and assess the agency's reliance on this vendor for specific medical technologies.

How does the pricing of this task order compare to similar contracts for Olympus GI/Pulmonary equipment?

A precise comparison of pricing requires access to detailed pricing data for comparable contracts, which is not fully available in the provided summary. However, the firm-fixed-price nature of this $738,056.84 task order for a one-year period suggests that the VA has negotiated a set price for the equipment. To benchmark effectively, one would need to compare the unit prices of specific instruments (e.g., endoscopes, biopsy forceps) against other VA or federal contracts awarded to Olympus or its competitors for similar items. Factors like volume discounts, contract duration, and included services (maintenance, training) significantly influence price comparisons.

What are the primary risks associated with this contract award?

Key risks include potential over-reliance on a single vendor (Olympus America Inc.) for critical GI/Pulmonary equipment, which could lead to price increases in future procurements or limited flexibility. There's also a risk related to the rapid evolution of medical technology; the equipment procured might become outdated quickly, impacting long-term value. Ensuring proper maintenance and training for VA staff on the specific Olympus equipment is crucial to mitigate operational risks and maximize the utility of the investment. Finally, the lack of specific small business subcontracting goals might limit broader economic participation.

How effective is the current procurement vehicle (BPA Call) for acquiring specialized medical equipment?

The use of a Blanket Purchase Agreement (BPA) call for this task order suggests an effective strategy for streamlining the acquisition of recurring needs for specialized medical equipment. BPAs allow agencies to pre-negotiate terms and conditions with vendors, and then issue calls against that agreement for specific orders. This method can reduce administrative burden and lead times compared to new contract actions for each requirement. The 'full and open competition' designation for the underlying BPA indicates that the initial competition was broad, aiming to secure competitive pricing and a wide range of potential suppliers. The effectiveness of this specific call depends on the competitive nature of the bids received against the BPA.

What is the historical spending trend for GI/Pulmonary equipment by the Department of Veterans Affairs?

Historical spending data for GI/Pulmonary equipment by the VA would reveal trends in demand, technology adoption, and vendor relationships. Analyzing past years' spending on similar categories can indicate whether this $738K task order represents an increase, decrease, or stable level of investment. It can also highlight shifts towards specific types of equipment or a change in reliance on particular manufacturers like Olympus. Understanding these trends is vital for budget forecasting, strategic sourcing, and identifying potential areas for cost savings or technology upgrades within the VA's healthcare system.

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

Solicitation ID: 36C244-25-AP-3470

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: $2,289,297

Exercised Options: $738,057

Current Obligation: $738,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24423A0023

IDV Type: BPA

Timeline