VA Awards $14.2M Scope Lease Program Contract to Olympus America Inc

Contract Overview

Contract Amount: $14,233,695 ($14.2M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCOPE LEASE PROGRAM

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.2 million to OLYMPUS AMERICA INC for work described as: SCOPE LEASE PROGRAM Key points: 1. Contract awarded to a single vendor, Olympus America Inc. 2. The contract is for a Scope Lease Program, likely involving medical equipment. 3. The award value is $14,233,695.48. 4. The contract duration is 912 days. 5. The contract falls under the Electromedical and Electrotherapeutic Apparatus Manufacturing NAICS code.

Value Assessment

Rating: fair

The contract value of $14.2M for a 912-day lease program appears reasonable given the specialized nature of electromedical equipment. Benchmarking against similar lease programs for advanced medical devices would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though specific pricing details are not provided.

Taxpayer Impact: Taxpayer funds are being used for this lease program, with the expectation of receiving value for money through a competitive process.

Public Impact

Veterans will benefit from access to potentially updated or leased medical equipment through this program. The contract supports the Department of Veterans Affairs' mission to provide healthcare services. The award to Olympus America Inc. indicates a reliance on established medical equipment providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the leased equipment.
Potential for vendor lock-in if lease terms are not flexible.
Need to ensure ongoing maintenance and support are adequately covered.

Positive Signals

Awarded under full and open competition.
Clear contract duration and award value.
Supports critical healthcare needs for veterans.

Sector Analysis

The contract falls under the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. Spending in this sector is driven by healthcare demand and technological advancements in medical devices. Benchmarks for similar lease programs are not readily available but are typically significant due to equipment costs.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for high long-term costs associated with specialized medical equipment leasing.
Dependence on a single vendor for critical medical equipment.
Need for robust performance monitoring to ensure equipment meets clinical needs.
Risk of equipment obsolescence during the lease term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.2 million to OLYMPUS AMERICA INC. SCOPE LEASE PROGRAM

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 $14.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What specific types of electromedical equipment are included in this lease program, and how do they compare to current market offerings?

The provided data does not specify the exact electromedical equipment covered by the lease. A detailed inventory and comparison with current market offerings are crucial to assess if the VA is acquiring state-of-the-art technology or if the leased equipment is becoming obsolete. This information is vital for evaluating the program's long-term value and effectiveness in supporting patient care.

What is the total cost of ownership over the contract's lifespan, including potential maintenance, service, and end-of-lease obligations?

The current award value is $14.2 million for the lease period. However, the total cost of ownership requires a comprehensive analysis that includes any associated maintenance fees, service agreements, potential upgrade costs, and any penalties or buy-out options at the end of the lease term. Understanding these additional costs is essential for a complete financial picture.

How does the performance of Olympus America Inc. on previous VA contracts inform the risk assessment for this new award?

Assessing Olympus America Inc.'s past performance with the VA is critical for understanding potential risks. Reviewing historical data on contract delivery, quality of goods/services, and responsiveness to issues can provide insights into their reliability. A strong performance record would mitigate concerns, while a history of issues might warrant closer monitoring and contingency planning.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24824R0025

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: $20,889,053

Exercised Options: $14,233,695

Current Obligation: $14,233,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline