VA awards $211,740 for Philips medical equipment repair, highlighting a sole-source contract for essential maintenance

Contract Overview

Contract Amount: $21,174 ($21.2K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-05-31

Contract Duration: 53 days

Daily Burn Rate: $400/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REPAIR OF PHILIPS EASY DIAGNOST ELEVA COLLIMATOR

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21,174 to PHILIPS NORTH AMERICA LLC for work described as: REPAIR OF PHILIPS EASY DIAGNOST ELEVA COLLIMATOR Key points: 1. The contract focuses on maintaining critical diagnostic equipment, ensuring continuity of care. 2. Sole-source procurement suggests limited market alternatives or specific vendor expertise required. 3. The firm-fixed-price structure provides cost certainty for the VA. 4. The short duration indicates a need for immediate or time-bound repair services. 5. This spending falls within the broader category of healthcare equipment maintenance.

Value Assessment

Rating: fair

The award of $211,740 for the repair of a Philips Easy Diagnostic ElevA Collitator appears to be a standard procurement for specialized medical equipment maintenance. Without direct comparable contract data for this specific model and service, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract provides cost predictability. The pricing should be benchmarked against historical repair costs for similar advanced diagnostic equipment and the manufacturer's standard service rates, if available, to ensure it aligns with market expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of Veterans Affairs identified Philips North America LLC as the only responsible source capable of providing the required repair services. This could be due to proprietary technology, specialized knowledge, or unique repair requirements for the Philips Easy Diagnostic ElevA Collitator. The lack of competition means that price discovery through a bidding process was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Sole-source awards limit opportunities for competitive bidding, which can result in taxpayers potentially paying a premium for goods and services compared to a fully competed procurement. This approach necessitates strong justification to ensure the government is not overpaying.

Public Impact

Veterans receiving care at VA facilities will benefit from the continued operational availability of essential diagnostic imaging equipment. The services delivered include the repair and maintenance of specialized medical technology, crucial for accurate diagnoses. The geographic impact is likely concentrated at the VA facility where the equipment is located, though the specific location is not detailed. This contract supports specialized technical roles within the healthcare sector, potentially involving certified biomedical technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of competition may reduce incentive for contractor to offer best possible price.
Dependence on a single supplier for critical equipment maintenance poses a risk of service disruption.
Contract duration is short, requiring potential for future sole-source awards if issues persist.

Positive Signals

Ensures availability of critical diagnostic equipment for veteran healthcare.
Firm-fixed-price contract provides cost certainty for the VA.
Specialized repair ensures equipment is maintained to manufacturer standards.
Contract awarded to a known entity, Philips, likely familiar with the equipment.

Sector Analysis

The healthcare sector relies heavily on specialized equipment for diagnostics and treatment. The market for medical equipment repair and maintenance is often characterized by original equipment manufacturers (OEMs) holding significant sway due to proprietary technology and service requirements. Spending on maintenance and repair services for high-value medical devices like diagnostic imaging equipment is a substantial component of hospital and healthcare system operating budgets. Benchmarks for such services can vary widely based on equipment complexity, age, and service level agreements.

Small Business Impact

This contract does not appear to involve a small business set-aside, as it was awarded sole-source to Philips North America LLC. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on specialized repair by the original equipment manufacturer, which typically does not lend itself to broad small business participation unless they are authorized service partners.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and contract management regulations. As a purchase order, it is subject to standard administrative oversight to ensure compliance with terms and conditions. Transparency is limited due to the sole-source nature, but the VA's internal audit and Inspector General's office would have jurisdiction to investigate any potential improprieties or inefficiencies if concerns arise regarding the necessity or cost of the service.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Philips Healthcare Service Agreements
Diagnostic Imaging Equipment Repair
Federal Healthcare Procurement

Risk Flags

Sole-source award
Potential for price escalation
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21,174 to PHILIPS NORTH AMERICA LLC. REPAIR OF PHILIPS EASY DIAGNOST ELEVA COLLIMATOR

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 $21,174.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-31.

What is the track record of Philips North America LLC in fulfilling federal contracts for medical equipment repair?

Philips North America LLC has a history of receiving federal contracts, primarily from agencies like the Department of Veterans Affairs and the Department of Defense, for the supply and maintenance of medical equipment. Analysis of past performance data, where available, would indicate their reliability in meeting delivery schedules, quality standards, and service level agreements. While specific details for this exact repair service are not provided, their established presence suggests a capacity to handle such requirements. However, a deeper dive into past contract performance metrics, including any reported issues, disputes, or contractor performance assessment reports (CPARS), would be necessary for a comprehensive evaluation of their track record.

How does the awarded price of $211,740 compare to similar contracts for the repair of advanced diagnostic equipment?

A precise comparison of the $211,740 award for the Philips Easy Diagnostic ElevA Collitator repair to similar contracts is challenging without access to a comprehensive database of comparable sole-source or competed repair services for advanced diagnostic equipment. Factors such as the specific components requiring repair, the age and condition of the unit, and the urgency of the service significantly influence pricing. Generally, repairs for complex imaging systems can range from tens of thousands to hundreds of thousands of dollars. Benchmarking against the manufacturer's standard service rates or historical repair costs for similar Philips models at other VA facilities would provide a more accurate assessment of value for money.

What are the primary risks associated with this sole-source contract for essential medical equipment repair?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, reduced incentive for the contractor to provide the most cost-effective solution, and a dependency on Philips North America LLC for critical maintenance. If Philips experiences service disruptions or significantly increases its prices in the future, the VA may have limited recourse. Furthermore, the sole-source nature prevents the VA from exploring potentially more innovative or cost-effective solutions from other qualified vendors. Ensuring robust contract oversight and performance monitoring is crucial to mitigate these risks.

How effective is the Department of Veterans Affairs in ensuring value for money on sole-source medical equipment repair contracts?

The effectiveness of the VA in ensuring value for money on sole-source medical equipment repair contracts can vary. While the VA has procurement regulations and oversight mechanisms in place, the inherent nature of sole-source awards presents challenges. Value is typically assessed through price reasonableness checks, which may involve comparing proposed prices to historical data, commercial price lists, or independent cost estimates. However, without competitive pressure, achieving optimal value is more difficult. The VA's Inspector General often highlights areas where cost savings could be realized, suggesting that continuous improvement in procurement strategies, especially for sole-source acquisitions, remains an ongoing objective.

What are the historical spending patterns for Philips medical equipment repair services within the VA?

Historical spending patterns for Philips medical equipment repair services within the VA would likely show consistent investment in maintaining their diagnostic imaging and other medical technology. The VA operates a large network of facilities, each requiring upkeep for sophisticated equipment. Spending on such services is typically driven by the installed base of Philips equipment, its age, and the frequency of required maintenance or repairs. Analyzing aggregated spending data over several fiscal years would reveal trends, identify major equipment categories driving costs, and potentially highlight periods of increased expenditure due to equipment upgrades or aging infrastructure.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,174

Exercised Options: $21,174

Current Obligation: $21,174

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline