VA awards $2.48M for Siemens imaging maintenance, ensuring critical equipment uptime at Birmingham VAMC

Contract Overview

Contract Amount: $2,475,771 ($2.5M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2027-02-28

Contract Duration: 729 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS IMAGING FULL-SERVICE MAINTENANCE BIRMINGHAM VAMC BIRMINGHAM, AL

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS IMAGING FULL-SERVICE MAINTENANCE BIRMINGHAM VAMC BIRMINGHAM, AL Key points: 1. Contract ensures continuity of care by maintaining essential diagnostic imaging equipment. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type helps control costs and provides budget certainty. 4. The contract duration of two years aligns with typical maintenance cycles. 5. This award is part of the VA's broader strategy to support veteran healthcare infrastructure.

Value Assessment

Rating: good

The contract value of approximately $2.48 million over two years for full-service maintenance of Siemens imaging equipment appears reasonable. Benchmarking against similar contracts for medical equipment maintenance is challenging without specific details on the exact models and scope of services. However, the firm-fixed-price structure is a positive indicator for cost control. The VA's commitment to maintaining its existing imaging fleet suggests a focus on operational efficiency and patient care.

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. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the method itself suggests a robust selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages market competition.

Public Impact

Veterans receiving care at the Birmingham VAMC will benefit from reliable access to diagnostic imaging services. The contract supports the continued operation of critical medical equipment, essential for diagnosis and treatment planning. The geographic impact is focused on Birmingham, Alabama, and surrounding areas served by the VAMC. This contract supports specialized technical roles in medical equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Reliance on a single manufacturer (Siemens) for maintenance could limit flexibility and potentially increase costs over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
Full and open competition suggests a competitive process that likely yielded a fair price.
Maintenance ensures operational readiness of critical healthcare equipment for veteran care.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on the maintenance of advanced medical imaging equipment. The market for such services is often dominated by original equipment manufacturers (OEMs) like Siemens, due to the specialized nature of the technology and proprietary knowledge required. Spending on medical equipment maintenance is a significant component of healthcare facility operating budgets, ensuring the longevity and reliability of multi-million dollar assets.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Siemens Medical Solutions USA, Inc. is a large business. There is no information on subcontracting plans for small businesses, but given the specialized nature of OEM maintenance, opportunities may be limited unless specific components or non-specialized services are outsourced.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts, including this one. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is generally maintained through contract databases like SAM.gov. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Siemens Healthcare Service Agreements
Diagnostic Imaging Equipment Support
Federal Healthcare Infrastructure Support

Risk Flags

Potential for vendor lock-in with OEM maintenance.
Dependence on specific manufacturer's parts and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS IMAGING FULL-SERVICE MAINTENANCE BIRMINGHAM VAMC BIRMINGHAM, AL

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $2.5 million.

What is the period of performance?

Start: 2025-03-01. End: 2027-02-28.

What is the historical spending pattern for Siemens imaging equipment maintenance at the Birmingham VAMC?

Analyzing historical spending for Siemens imaging equipment maintenance at the Birmingham VAMC requires access to past contract awards and modifications. Without specific historical data, it's difficult to establish a precise trend. However, the current award of approximately $2.48 million over two years suggests a consistent need for this service. If previous contracts were of similar value and duration, it indicates a stable, ongoing requirement. Conversely, significant deviations in value or duration could signal changes in equipment utilization, service scope, or market pricing. A deeper dive into prior contract databases would be necessary to confirm historical spending patterns and identify any anomalies or significant shifts in investment for this specific maintenance service.

How does the cost of this Siemens maintenance contract compare to similar contracts for other imaging equipment manufacturers at VA facilities?

Direct cost comparison between this Siemens maintenance contract and those for other imaging equipment manufacturers (e.g., GE, Philips) at VA facilities is complex without detailed service scope and equipment specifications. Factors such as the type of imaging modality (MRI, CT, X-ray), age of the equipment, complexity of the technology, and the comprehensiveness of the service agreement (e.g., parts included, response times) significantly influence pricing. Generally, full-service maintenance contracts for advanced imaging systems can range from 10% to 20% of the equipment's original purchase price annually. The VA's firm-fixed-price award of roughly $1.24 million per year for this Siemens contract should be evaluated against the specific equipment's value and the market rates for comparable OEM service agreements across the VA system to determine if it represents a competitive value.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this agreement?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided award abstract, typical performance metrics for medical equipment maintenance contracts include response time to service calls, equipment uptime/availability rates, adherence to preventive maintenance schedules, and resolution time for reported issues. The VA likely has established service level agreements (SLAs) within the contract that define acceptable performance thresholds for these KPIs. Contractor performance would be monitored through regular reporting, site visits, and potentially user feedback from the clinical staff at the Birmingham VAMC. Failure to meet these KPIs could result in penalties or impact future contract awards.

What is the potential risk associated with relying solely on Siemens for maintenance of their imaging equipment?

The primary risk associated with relying solely on Siemens for maintenance of their imaging equipment is vendor lock-in, which can lead to reduced negotiating power and potentially higher costs over time. If Siemens is the sole provider of parts, specialized technicians, and software updates, the VA may have limited options if pricing increases significantly or service quality declines. Furthermore, the VA is dependent on Siemens' business stability and commitment to supporting older equipment models. While full and open competition was used for this award, future procurements might face challenges if the market for third-party maintenance providers for these specific Siemens systems is limited, potentially leading to sole-source or limited competition scenarios.

How does this contract contribute to the VA's overall mission of providing healthcare to veterans?

This contract is crucial for the VA's mission by ensuring the operational readiness and reliability of essential diagnostic imaging equipment at the Birmingham VAMC. Medical imaging (such as CT scans, MRIs, and X-rays) is fundamental to diagnosing a wide range of conditions, planning treatments, and monitoring patient progress. By securing full-service maintenance, the VA guarantees that these critical systems are functional and available when needed by veteran patients. This directly supports the VA's commitment to providing timely, high-quality healthcare services, preventing delays in diagnosis and treatment, and ultimately contributing to better health outcomes for veterans.

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

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,175,967

Exercised Options: $2,475,771

Current Obligation: $2,475,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline