VA awards $33M for IntelliSpace CV Extension, a critical medical device, to Philips North America

Contract Overview

Contract Amount: $33,065 ($33.1K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-06

End Date: 2026-09-30

Contract Duration: 267 days

Daily Burn Rate: $124/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHILIPS HEALTHCARE INTELLISPACE CV EXTENSION

Place of Performance

Location: BUTLER, BUTLER County, PENNSYLVANIA, 16001

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33,064.6 to PHILIPS NORTH AMERICA LLC for work described as: PHILIPS HEALTHCARE INTELLISPACE CV EXTENSION Key points: 1. This contract represents a significant investment in advanced medical imaging technology for the VA. 2. The firm-fixed-price structure provides cost certainty for the government. 3. The single award suggests a potentially limited market for this specific extension or a strong incumbent advantage. 4. Performance is tied to a defined delivery order with a clear end date. 5. The contract falls within the broader category of medical equipment manufacturing and support.

Value Assessment

Rating: good

The contract value of $33.06 million for the IntelliSpace CV Extension appears reasonable given the specialized nature of medical imaging equipment. Without specific benchmark data for this exact extension or comparable systems, a direct per-unit cost analysis is challenging. However, the firm-fixed-price contract type generally indicates that the government has negotiated a set price, which can be advantageous if the contractor's costs are managed efficiently. The duration of the contract (267 days) suggests a focused delivery or implementation period.

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. However, the fact that it resulted in a single award to PHILIPS NORTH AMERICA LLC suggests that Philips was the most advantageous offeror based on the evaluation criteria. This could be due to technical superiority, past performance, or a competitive price. The level of competition, while open, may have been constrained by the specialized nature of the product.

Taxpayer Impact: Full and open competition, even with a single award, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives the best value. It prevents sole-source situations where prices could be inflated due to a lack of alternatives.

Public Impact

Veterans will benefit from potentially improved diagnostic capabilities through the IntelliSpace CV Extension. The contract supports the delivery of advanced cardiovascular imaging software and hardware. The primary geographic impact is within the VA healthcare system, likely serving facilities nationwide. This contract supports specialized roles within the healthcare technology sector, potentially involving installation, training, and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a proprietary system with limited interoperability.
Reliance on a single supplier for critical medical equipment maintenance and upgrades.
The specific performance metrics and their impact on patient care are not detailed in the provided data.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty.
Awarded through full and open competition, suggesting a competitive process.
The contract has a defined period of performance, allowing for structured implementation and evaluation.

Sector Analysis

This contract falls within the broader healthcare technology sector, specifically focusing on medical imaging and cardiovascular diagnostic systems. The market for such specialized equipment is often characterized by a few dominant players and high research and development costs. Spending in this area is crucial for modern healthcare providers to offer advanced diagnostic services. Comparable spending benchmarks would typically involve analyzing other large-scale procurements of similar imaging systems by government agencies or large hospital networks.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Given the specialized nature of the IntelliSpace CV Extension and the likely prime contractor, it is probable that the focus is on large, established manufacturers. Further investigation into the contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and financial accountability. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Procurement
Radiological Apparatus Manufacturing
Healthcare IT Systems
Cardiovascular Diagnostic Devices

Risk Flags

Potential vendor lock-in
Reliance on single supplier for critical technology
NAICS code may not fully represent product

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33,064.6 to PHILIPS NORTH AMERICA LLC. PHILIPS HEALTHCARE INTELLISPACE CV EXTENSION

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 $33,064.6.

What is the period of performance?

Start: 2026-01-06. End: 2026-09-30.

What is the specific function and clinical benefit of the Philips IntelliSpace CV Extension?

The Philips IntelliSpace Cardiovascular (CV) Extension is a software solution designed to enhance cardiovascular imaging and analysis. It integrates various imaging modalities (like CT, MRI, and echo) into a unified platform, allowing clinicians to visualize, measure, and analyze cardiac structures and function more effectively. The clinical benefits include improved diagnostic accuracy, more efficient workflow for cardiologists and radiologists, better patient management through comprehensive data review, and potentially aiding in treatment planning for cardiovascular diseases. This extension aims to provide a more complete picture of a patient's cardiovascular health, leading to more informed clinical decisions.

How does the $33 million contract value compare to historical VA spending on similar cardiovascular imaging systems?

Comparing the $33.06 million contract value for the IntelliSpace CV Extension to historical VA spending requires access to detailed historical procurement data for similar cardiovascular imaging systems. Without that specific data, a direct comparison is difficult. However, the value suggests a significant investment in advanced cardiovascular diagnostic capabilities. The VA has historically invested heavily in medical technology to serve its veteran population. This amount could represent a single large system procurement, a multi-year service contract, or a combination of hardware, software, and support for multiple facilities. Benchmarking against other large-scale imaging system awards within the VA or other federal health agencies would provide better context for value assessment.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, for a contract involving medical equipment like the IntelliSpace CV Extension, typical KPIs would likely include timely delivery and installation of the system, successful integration with existing hospital IT infrastructure (such as PACS and EMR systems), system uptime and availability, performance of diagnostic tools (e.g., image quality, processing speed), and user satisfaction through training and support. Measurement would likely involve acceptance testing, regular system performance monitoring reports, help desk ticket analysis, and potentially user surveys conducted by the VA's contracting officer's representative (COR).

What is Philips North America LLC's track record with the VA for providing similar medical imaging solutions?

Philips North America LLC has a significant track record of providing medical technology, including imaging systems and software solutions, to the Department of Veterans Affairs (VA) and other federal agencies. They are a major player in the healthcare technology market. While specific details of past performance on similar cardiovascular imaging contracts with the VA are not in the provided data, their established presence suggests they have successfully delivered and supported such systems previously. A thorough review of past performance evaluations and contract history within FPDS would offer a more granular understanding of their reliability, quality of service, and adherence to contract terms in previous VA engagements.

What are the potential risks associated with relying on a single vendor, Philips, for this critical cardiovascular imaging technology?

Relying on a single vendor, Philips, for the IntelliSpace CV Extension introduces several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes dependent on Philips' proprietary technology, making it difficult and costly to switch to alternative solutions in the future. Secondly, a lack of competition could lead to higher prices for future upgrades, maintenance, or consumables. Thirdly, if Philips experiences financial difficulties, supply chain disruptions, or decides to discontinue the product line, the VA could face significant challenges in maintaining and supporting the system. Lastly, the VA's negotiating power might be diminished in future dealings if Philips is the sole provider of this specific functionality.

How does the 'Irradiation Apparatus Manufacturing' NAICS code relate to the IntelliSpace CV Extension, and is it the most appropriate classification?

The North American Industry Classification System (NAICS) code 334517, 'Irradiation Apparatus Manufacturing,' appears to be a potentially mismatched or overly specific classification for the Philips IntelliSpace CV Extension. While some cardiovascular imaging technologies might involve radiation (e.g., CT scanners), the IntelliSpace CV Extension is primarily a software platform for image processing, analysis, and workflow management. It integrates data from various sources, not necessarily just radiation-emitting devices. A more fitting NAICS code might relate to 'Computer and Peripheral Equipment Manufacturing' (if hardware is central), 'Software Publishers,' or 'Medical Equipment and Supplies Manufacturing' (broader category). The current code might be a legacy assignment or reflect a component of the system not fully captured by the product name alone. Clarification on the specific hardware or components driving this classification would be beneficial.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

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: 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: $33,065

Exercised Options: $33,065

Current Obligation: $33,065

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