VA awards $4.3M Olympus scope lease and service contract to Olympus America Inc

Contract Overview

Contract Amount: $4,269,681 ($4.3M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS SCOPE LEASE AND SERVICE

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.3 million to OLYMPUS AMERICA INC for work described as: OLYMPUS SCOPE LEASE AND SERVICE Key points: 1. Contract value represents a significant investment in surgical instrumentation for the VA. 2. Sole awardee suggests potential for limited competition or specialized product. 3. Fixed-price contract type aims to control costs for the government. 4. Contract duration of two years provides a stable period for service delivery. 5. Geographic focus on Georgia may indicate specific facility needs. 6. The contract falls under the Surgical and Medical Instrument Manufacturing NAICS code.

Value Assessment

Rating: good

The contract value of $4.3 million for a two-year lease and service of Olympus scopes appears reasonable given the specialized nature of medical equipment. Benchmarking against similar federal contracts for high-end surgical equipment is challenging without more specific details on the scope models and service levels. However, the firm fixed-price structure suggests an effort to lock in costs, which is generally a positive sign for value. The award to the original equipment manufacturer (OEM) is common for specialized equipment maintenance and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data does not specify the number of bids received, but the 'full and open' designation suggests a competitive process was initiated. The presence of multiple bidders, if applicable, would typically lead to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process, even if resulting in a single awardee, helps ensure that taxpayer funds are used efficiently by encouraging vendors to offer their best pricing and terms.

Public Impact

Veterans in Georgia will benefit from access to advanced surgical equipment. The contract supports the delivery of critical surgical and medical services. The primary geographic impact is within the state of Georgia. The contract may indirectly support specialized medical technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders received under full and open competition limits the assessment of competitive intensity.
The contract is awarded to the original equipment manufacturer, which can sometimes limit options for service or parts in the long run.

Positive Signals

The firm fixed-price contract type provides cost certainty for the VA.
The contract duration of two years allows for consistent service and equipment availability.
Awarded under full and open competition, suggesting a structured procurement process.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector (NAICS 339112) encompasses companies that produce a wide range of medical devices, from simple instruments to complex diagnostic and surgical equipment. This contract for Olympus scopes fits within the high-end segment of this market, where specialized technology and reliable service are paramount. Federal spending in this area is driven by the need for advanced medical capabilities within agencies like the VA, supporting patient care and medical readiness. Comparable spending benchmarks are difficult to establish without knowing the exact models and service agreements, but significant investments are common for state-of-the-art surgical technology.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for support services not detailed in this award.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a firm fixed-price contract, the primary accountability measure is the delivery of the specified lease and services according to the contract terms. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Leases
Medical Device Services Contracts
Federal Healthcare Spending

Risk Flags

Limited competition data available despite 'full and open' designation.
Specific equipment models and service details not provided for granular analysis.
No explicit small business subcontracting requirements mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.3 million to OLYMPUS AMERICA INC. OLYMPUS SCOPE LEASE AND SERVICE

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 $4.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What specific models of Olympus scopes are included in this lease and service agreement?

The provided data does not specify the exact models of Olympus scopes included in this lease and service agreement. This information is crucial for a detailed value assessment, as different models have varying capabilities, costs, and maintenance requirements. Understanding the specific equipment would allow for a more precise comparison to market rates and an evaluation of whether the selected technology aligns with current VA surgical needs and technological advancements. Without this detail, the assessment relies on general industry knowledge of high-end surgical instrumentation.

How many bids were received for this contract under full and open competition?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which means the solicitation was open to all responsible sources. However, the specific number of bids received is not provided in the summary data. A higher number of bids typically suggests a more competitive environment, which can lead to better pricing for the government. Conversely, a low number of bids, even under full and open competition, might indicate a niche market, specialized requirements, or limited vendor interest, potentially impacting price discovery and the overall value achieved for taxpayers.

What is the historical spending pattern for similar Olympus scope leases and services at the VA?

Historical spending data for similar Olympus scope leases and services at the VA is not detailed in the provided summary. Analyzing past contract values, durations, and competition levels for comparable equipment would offer valuable context for assessing the current $4.3 million award. Significant increases or decreases in spending compared to previous periods could signal changes in equipment needs, market pricing, or procurement strategies. Without this historical perspective, it is challenging to definitively benchmark the current contract's value and efficiency over time.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Olympus scope lease and service contract. These metrics are critical for evaluating the contractor's performance and ensuring the government receives the expected value. KPIs might include response times for service calls, equipment uptime guarantees, or training provisions. Robust SLAs ensure that the leased equipment remains operational and that maintenance services meet the high standards required for surgical procedures, directly impacting patient care and operational efficiency within the VA.

Does this contract include options for renewal or extension beyond the initial term?

The provided data indicates an initial contract period from April 1, 2025, to March 31, 2027, with a duration of 729 days (approximately two years). There is no explicit mention of renewal or extension options within this summary data. Federal contracts often include options, but their presence and terms would need to be verified in the full contract document. If options exist, they could extend the government's access to the equipment and services beyond the initial term, potentially offering continued value and stability, but also requiring careful management to avoid price increases or lock-in.

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

Offers Received: 1

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: $9,847,440

Exercised Options: $4,269,681

Current Obligation: $4,269,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0168

IDV Type: FSS

Timeline