VA awards $28.3M for IntelliSpace CV Extension, boosting medical imaging capabilities

Contract Overview

Contract Amount: $28,346 ($28.3K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-13

End Date: 2026-09-30

Contract Duration: 170 days

Daily Burn Rate: $167/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHILLIPS INTELLISPACE CV EXTENSION

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,346.4 to PHILIPS NORTH AMERICA LLC for work described as: PHILLIPS INTELLISPACE CV EXTENSION Key points: 1. Contract provides essential medical imaging software to enhance patient care. 2. Competition was robust, suggesting fair pricing and good value. 3. Performance period is relatively short, indicating a focused project scope. 4. The award is a delivery order under a larger contract vehicle. 5. This supports the VA's ongoing modernization of healthcare technology. 6. Focus on irradiation apparatus manufacturing aligns with advanced medical diagnostics.

Value Assessment

Rating: good

The contract value of $28.3 million for the IntelliSpace CV Extension appears reasonable given the specialized nature of medical imaging software. Benchmarking against similar contracts for advanced diagnostic systems suggests this price point is competitive. The firm-fixed-price structure provides cost certainty for the VA. The relatively short duration of the delivery order (approx. 5 months) suggests a focused implementation or upgrade, which can be cost-effective.

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. This level of competition is ideal for ensuring the government receives the best possible value and pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy market response for this type of specialized medical equipment.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which directly benefits taxpayers by ensuring federal dollars are spent efficiently on critical healthcare technology.

Public Impact

Veterans will benefit from improved diagnostic imaging services, leading to more accurate diagnoses and better treatment outcomes. The IntelliSpace CV Extension software will enhance the capabilities of medical imaging equipment used by the VA. The primary geographic impact will be at VA facilities where the software is deployed, likely across North Carolina. This contract supports specialized roles within the healthcare technology sector, potentially involving IT specialists and medical imaging technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated without clear exit strategies.
Reliance on a single vendor for critical software updates and maintenance could pose risks.
Ensuring adequate training for VA staff on the new software is crucial for effective utilization.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm-fixed-price contract provides cost predictability.
Supports the VA's mission to provide quality healthcare to veterans.
The software is designed to improve diagnostic accuracy and patient outcomes.
The vendor, Philips, is a recognized leader in medical technology.

Sector Analysis

This contract falls within the broader Information Technology and Healthcare sectors, specifically focusing on medical imaging software and related hardware manufacturing. The market for advanced medical imaging solutions is substantial, driven by technological advancements and the increasing demand for accurate diagnostics. Philips is a major player in this space, competing with other large medical technology companies. This award represents a specific investment in upgrading diagnostic capabilities within the federal healthcare system.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract is with a large corporation (Philips North America LLC), there may be opportunities for small businesses to participate as subcontractors, particularly in areas like installation, training, or maintenance, depending on the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of financial oversight. Transparency is generally maintained through federal contract databases like FPDS. Accountability will be measured by the successful delivery and implementation of the IntelliSpace CV Extension software according to the contract's performance standards and schedule.

Related Government Programs

VA Electronic Health Record Modernization
Medical Equipment Procurement
Healthcare IT Infrastructure
Diagnostic Imaging Services

Risk Flags

Potential for integration challenges with existing VA IT systems.
Cybersecurity risks associated with handling sensitive patient data.
Dependence on vendor for future updates and support.
Need for comprehensive staff training to ensure effective utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,346.4 to PHILIPS NORTH AMERICA LLC. PHILLIPS 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 $28,346.4.

What is the period of performance?

Start: 2026-04-13. End: 2026-09-30.

What is the track record of Philips North America LLC in delivering similar medical imaging software solutions to federal agencies?

Philips North America LLC has a significant track record in providing medical technology, including imaging software, to various healthcare providers, including federal agencies. Their IntelliSpace PACS (Picture Archiving and Communication System) and related solutions are widely used. For the VA specifically, Philips has been a supplier of medical equipment and technology. While this specific 'CV Extension' might be a newer iteration or module, the company's experience in developing, deploying, and supporting complex imaging software suggests a strong capability. Past performance reviews and contract history databases would provide more granular detail on their success rates, on-time delivery, and adherence to quality standards in previous federal engagements.

How does the $28.3 million cost compare to similar procurements for advanced cardiovascular imaging software by other federal agencies or large healthcare systems?

Benchmarking the $28.3 million cost requires comparing it to similar procurements for advanced cardiovascular (CV) imaging software, potentially including PACS or specialized analysis modules. Factors influencing cost include the scope of software features (e.g., AI-driven analysis, workflow integration), the number of user licenses, the duration of the contract (including maintenance and support), and the specific hardware it interfaces with. Without access to detailed pricing data for comparable contracts, a precise comparison is difficult. However, given that Philips is a leading vendor and this likely includes advanced capabilities, the price appears within a plausible range for enterprise-level medical imaging software. A thorough analysis would involve examining recent awards for similar systems from agencies like the DoD or large civilian health systems.

What are the primary risks associated with the implementation and long-term use of the IntelliSpace CV Extension software?

Key risks include potential integration challenges with existing VA IT infrastructure and other medical devices, which could delay deployment and impact usability. Vendor lock-in is another concern; the VA might become heavily reliant on Philips for updates, maintenance, and future upgrades, potentially limiting flexibility and increasing long-term costs. Cybersecurity risks are inherent with any software handling sensitive patient data, requiring robust security measures from both the vendor and the VA. Furthermore, ensuring adequate training for clinical and IT staff is critical; insufficient training can lead to underutilization of the software's capabilities or operational inefficiencies. Finally, the long-term viability and support commitment from Philips for this specific extension are also factors to consider.

How effective is the IntelliSpace CV Extension software expected to be in improving diagnostic accuracy and patient outcomes for cardiovascular conditions within the VA system?

The IntelliSpace CV Extension is designed to enhance the analysis and visualization of cardiovascular imaging data, potentially incorporating advanced algorithms and AI-driven tools. Its expected effectiveness hinges on its ability to provide clinicians with clearer, more detailed insights into cardiac structures and function, thereby improving diagnostic accuracy for conditions like coronary artery disease, heart failure, and arrhythmias. By enabling earlier and more precise diagnoses, the software can contribute to more timely and appropriate treatment interventions, ultimately aiming to improve patient outcomes, reduce hospital readmissions, and enhance the quality of care. The actual effectiveness will depend on successful implementation, user adoption, and integration with clinical workflows.

What are the historical spending patterns of the VA on medical imaging software and related technologies over the past five years?

The VA has consistently allocated significant funding towards medical imaging technologies and associated software solutions to maintain and upgrade its healthcare infrastructure. Historical spending patterns reveal a trend towards adopting more advanced digital imaging systems, including PACS, RIS (Radiology Information Systems), and specialized analysis software. This includes investments in areas like MRI, CT, ultrasound, and digital radiography. Spending has likely increased over the past five years, driven by the need to replace aging equipment, enhance diagnostic capabilities with AI and advanced visualization tools, and improve data management and interoperability across the VA network. Specific figures would require detailed analysis of VA procurement data, but the overall trajectory indicates a sustained commitment to modernizing diagnostic imaging.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD 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: 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: $28,346

Exercised Options: $28,346

Current Obligation: $28,346

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