VA awards $1.26M for GE PACS equipment maintenance, with 650 bids received

Contract Overview

Contract Amount: $1,259,247 ($1.3M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-07-15

End Date: 2025-11-04

Contract Duration: 1,938 days

Daily Burn Rate: $650/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE&REPAIR SERVICES GE PACS EQUIPMENT

Place of Performance

Location: RIVIERA BEACH, PALM BEACH County, FLORIDA, 33410

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.3 million to GE PRECISION HEALTHCARE LLC for work described as: MAINTENANCE&REPAIR SERVICES GE PACS EQUIPMENT Key points: 1. High bid volume suggests strong market interest and potential for competitive pricing. 2. GE Precision Healthcare LLC is the sole awardee, indicating a potential single-vendor reliance. 3. The contract spans over 5 years, requiring ongoing budget allocation for maintenance. 4. Focus on medical equipment maintenance highlights critical infrastructure needs within the VA. 5. The firm fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The award price of $1.26M over approximately 5 years appears reasonable given the specialized nature of GE PACS equipment maintenance. Benchmarking against similar contracts for high-value medical equipment maintenance would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with a significant number of bids (650). This indicates a robust price discovery process and suggests the government likely secured a competitive price.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for essential medical equipment maintenance.

Public Impact

Ensures continued operation of critical diagnostic imaging equipment for veterans. Supports timely and accurate medical diagnoses for patient care. Maintains the functionality of advanced medical technology within VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Potential for vendor lock-in if GE is the only provider with necessary expertise.
Long contract duration could lead to price increases over time if not managed.
Reliance on a single equipment manufacturer for maintenance.

Positive Signals

High level of competition indicates a healthy market.
Firm fixed-price contract provides budget predictability.
Long-term contract ensures continuity of essential services.

Sector Analysis

This contract falls within the medical equipment maintenance sector, specifically for diagnostic imaging systems. Spending in this area is crucial for healthcare providers to maintain operational efficiency and patient care quality. Benchmarks for similar long-term maintenance contracts for specialized medical equipment can vary widely based on the technology's complexity and vendor support.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were available or utilized by the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be necessary to ensure the maintenance services meet quality standards and that the pricing remains competitive throughout the contract's duration.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole awardee is a large business.
Contract duration is over 5 years.
No specific small business set-aside.
High number of bids could indicate market saturation or aggressive pricing strategies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.3 million to GE PRECISION HEALTHCARE LLC. MAINTENANCE&REPAIR SERVICES GE PACS EQUIPMENT

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE 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 $1.3 million.

What is the period of performance?

Start: 2020-07-15. End: 2025-11-04.

What is the average annual cost per bid received for this contract?

With a total award of $1,259,247.23 over approximately 1938 days (roughly 5.3 years) and 650 bids, the average cost per bid is approximately $1,937.30. This metric helps contextualize the significant interest from potential vendors relative to the contract's total value, suggesting a competitive landscape where each bid represented a small fraction of the overall potential revenue.

What is the risk associated with relying on a single manufacturer for specialized equipment maintenance?

The primary risk of relying on a single manufacturer like GE for PACS equipment maintenance is potential vendor lock-in, leading to higher prices and less flexibility in service. It can also limit access to third-party maintenance providers who might offer more competitive pricing or specialized expertise. This necessitates strong contract management to ensure fair pricing and service levels.

How effectively does this contract ensure the continuous availability of critical diagnostic imaging services for veterans?

This contract is designed to ensure the continuous availability of critical diagnostic imaging services by providing dedicated maintenance and repair for GE PACS equipment. The multi-year duration and firm fixed-price structure aim to guarantee service continuity and budget predictability. However, effectiveness also depends on the contractor's performance and the VA's oversight in addressing any potential service disruptions promptly.

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

Solicitation ID: 36C24820F0127

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

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

Financial Breakdown

Contract Ceiling: $1,855,200

Exercised Options: $1,259,247

Current Obligation: $1,259,247

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline