VA awards $739K for immunoassay consumables and equipment, with Siemens Healthcare Diagnostics Inc. as the sole awardee

Contract Overview

Contract Amount: $739,203 ($739.2K)

Contractor: Siemens Healthcare Diagnostics Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

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: CHEMISTRY IMMUNOASSAY CPRR: ADD RENTAL SEALERS AND CONSUMABLES FOR THE SEALERS.

Place of Performance

Location: TARRYTOWN, WESTCHESTER County, NEW YORK, 10591

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $739,203 to SIEMENS HEALTHCARE DIAGNOSTICS INC. for work described as: CHEMISTRY IMMUNOASSAY CPRR: ADD RENTAL SEALERS AND CONSUMABLES FOR THE SEALERS. Key points: 1. The contract focuses on essential consumables and rental equipment for laboratory analysis, indicating a need for ongoing operational support. 2. Competition was full and open, suggesting a potentially competitive bidding process for these specialized laboratory supplies. 3. The contract duration of one year with an option for renewal points to a standard procurement cycle for such goods. 4. The award to Siemens Healthcare Diagnostics Inc. highlights their established presence in the medical diagnostics market. 5. The fixed-price contract type aims to provide cost certainty for the Department of Veterans Affairs. 6. The North American Industry Classification System (NAICS) code 334516 points to the manufacturing of analytical laboratory instruments, suggesting a focus on the equipment aspect of the procurement.

Value Assessment

Rating: good

The contract value of $739,203 for one year of consumables and rental sealers appears reasonable given the specialized nature of immunoassay diagnostics. Benchmarking against similar contracts for laboratory equipment and consumables would provide a more precise value assessment. However, the fixed-price nature of the contract helps mitigate cost escalation risks for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this approach generally fosters a competitive environment, which can lead to better pricing and terms for the government. The VA's decision to use full and open competition suggests confidence in the market's ability to supply these specialized items.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract.

Public Impact

Veterans receiving healthcare services will benefit from the reliable availability of diagnostic testing. The contract ensures the continued operation of analytical laboratory instruments within VA facilities. The services delivered are critical for accurate medical diagnoses and treatment planning. The geographic impact is primarily within New York, where the contract will be fulfilled. The contract supports the healthcare workforce by providing necessary tools and supplies for laboratory technicians and medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific consumables are tied to particular sealer models.
Reliance on a single supplier for both equipment rental and consumables could limit future negotiation leverage.
Ensuring timely delivery of consumables to maintain laboratory operations is crucial.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Fixed-price contract type provides cost predictability for the agency.
The contract duration allows for stable supply chain management for essential laboratory functions.

Sector Analysis

This contract falls within the broader healthcare and medical equipment sector, specifically focusing on analytical laboratory instruments and consumables. The market for immunoassay diagnostics is characterized by technological advancements and a demand for high-throughput, accurate testing. Companies like Siemens Healthcare Diagnostics Inc. are key players in this space, offering integrated solutions for clinical laboratories. Comparable spending benchmarks would involve analyzing other VA or federal procurements for similar laboratory equipment, reagents, and associated services.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely minimal unless they are part of the supply chain for the prime contractor. There is no explicit mention of subcontracting goals for small businesses within this award notice.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price terms, requiring the contractor to deliver specified goods and services. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Laboratory Equipment
Diagnostic Reagents
Clinical Laboratory Services
Healthcare Consumables
Veterans Health Administration Procurement

Risk Flags

Potential for vendor lock-in due to specialized equipment and consumables.
Reliance on rental equipment introduces operational continuity risks.
Need to verify cost-effectiveness of rental versus purchase over the long term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $739,203 to SIEMENS HEALTHCARE DIAGNOSTICS INC.. CHEMISTRY IMMUNOASSAY CPRR: ADD RENTAL SEALERS AND CONSUMABLES FOR THE SEALERS.

Who is the contractor on this award?

The obligated recipient is SIEMENS HEALTHCARE DIAGNOSTICS 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 $739,203.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for immunoassay consumables and rental sealers by the Department of Veterans Affairs?

Analyzing historical spending data for immunoassay consumables and rental sealers by the Department of Veterans Affairs (VA) is crucial for understanding long-term trends and identifying potential cost efficiencies. While specific historical figures for this exact contract line item are not provided in the current data, a comprehensive review would involve examining previous contract awards for similar goods and services over the past 5-10 years. This analysis would look at the total dollar amounts awarded, the number of contracts issued, the primary awardees, and the contract types (e.g., fixed-price, cost-plus). Trends might reveal increasing or decreasing demand, shifts in awarded contractors, or changes in average contract values. For instance, if historical spending shows a consistent increase, it might indicate growing demand for these diagnostic tools within the VA system. Conversely, a decrease could suggest consolidation of services or adoption of new technologies. Understanding these patterns helps in budget forecasting, identifying potential sole-source justifications if competition diminishes, and setting realistic expectations for future procurements.

How does the per-unit cost of consumables compare to market rates for similar immunoassay products?

Assessing the per-unit cost of consumables against market rates is a key indicator of value for money. Without specific unit pricing data for the consumables in this contract, a direct comparison is challenging. However, the VA would typically benchmark these costs against publicly available catalog prices, prices from other federal agencies' contracts (e.g., through GSA schedules or other agency BPA calls), or industry price lists. Factors influencing these costs include the specific type and brand of immunoassay, the volume purchased, and any bundled service agreements. If the contract includes rental of sealers, the cost allocation between the equipment and the consumables needs to be considered. A favorable comparison would show costs at or below market averages, suggesting competitive pricing. Conversely, significantly higher costs could indicate a lack of sufficient competition, a premium for specialized or proprietary products, or potential inefficiencies in the procurement process. The fixed-price nature of this contract implies that the VA has negotiated these rates upfront, but ongoing market surveillance is still important.

What is Siemens Healthcare Diagnostics Inc.'s track record with the Department of Veterans Affairs for similar procurements?

Siemens Healthcare Diagnostics Inc. has a significant track record within the federal healthcare sector, including with the Department of Veterans Affairs (VA). Their history with the VA likely encompasses numerous contracts for a wide range of diagnostic equipment, reagents, and associated services. Analyzing their past performance would involve reviewing contract databases for previous awards, including their value, duration, and type. Key aspects to examine include on-time delivery rates, product quality, responsiveness to issues, and overall customer satisfaction as reflected in past performance evaluations. A strong track record with the VA suggests reliability and a deep understanding of the agency's specific needs and procurement processes. Conversely, any history of performance issues, contract disputes, or quality control problems would raise concerns and warrant closer scrutiny of current contract management. Given Siemens' established position in the diagnostics market, it is probable they have a substantial and generally positive history with the VA, making them a likely candidate for such awards.

What are the potential risks associated with relying on rental equipment for laboratory sealers?

Relying on rental equipment for laboratory sealers, as indicated in this contract, presents several potential risks. Firstly, there's a dependency on the vendor (Siemens Healthcare Diagnostics Inc.) for maintenance, repair, and timely replacement of the sealers. Any delays or failures in these services could disrupt critical laboratory operations, impacting patient care. Secondly, rental agreements often have specific terms regarding usage, damage, and return, which could lead to unexpected costs if not carefully managed. Thirdly, the total cost of renting equipment over time might exceed the cost of purchasing it outright, especially if the rental period is extended or if the equipment is needed long-term. This contract specifies a one-year duration with potential renewal, suggesting the VA has evaluated the cost-effectiveness for this period. However, a long-term strategy should consider the total cost of ownership. Finally, the integration of rental equipment with purchased consumables needs to be seamless; incompatibility or performance issues between the rented sealers and the immunoassay consumables could lead to errors or inefficiencies.

How does the North American Industry Classification System (NAICS) code 334516 inform the understanding of this contract's scope?

The North American Industry Classification System (NAICS) code 334516, 'Analytical Laboratory Instrument Manufacturing,' provides crucial context for this contract. It indicates that the primary focus of the procurement, at least from a classification standpoint, is related to the manufacturing of instruments used for laboratory analysis. While the contract explicitly mentions 'consumables for the sealers' and 'rental sealers,' the NAICS code suggests that the underlying need is tied to the operation and maintenance of analytical laboratory instrumentation. This implies that the sealers are integral components of a larger analytical system, likely used in immunoassay processes. Understanding this code helps in identifying the types of companies that would typically bid on such contracts (i.e., manufacturers of laboratory equipment) and places the procurement within the broader industrial landscape. It also suggests that the VA is procuring items essential for the functioning of sophisticated diagnostic equipment, reinforcing the importance of quality and reliability in the supplied goods and services.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

Parent Company: Altair Engineering Inc.

Address: 511 BENEDICT AVE, TARRYTOWN, NY, 10591

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $739,203

Exercised Options: $739,203

Current Obligation: $739,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24623A0006

IDV Type: BPA

Timeline