VA awards $23K for emergency cath lab repairs, highlighting critical equipment maintenance needs

Contract Overview

Contract Amount: $22,965 ($23.0K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-05-07

Contract Duration: 29 days

Daily Burn Rate: $792/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY CATH LAB2 NEW GEOMETRY PC REPAIRS.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,965.2 to PHILIPS NORTH AMERICA LLC for work described as: EMERGENCY CATH LAB2 NEW GEOMETRY PC REPAIRS. Key points: 1. Contract addresses essential medical equipment upkeep, ensuring patient care continuity. 2. Sole-source award suggests limited market options or specific vendor expertise required. 3. Short duration indicates a focused repair or maintenance task. 4. Fixed-price contract provides cost certainty for this specific repair. 5. Geographic focus on Florida for this critical medical service.

Value Assessment

Rating: fair

The contract value of $22,965.20 for emergency cath lab repairs appears reasonable for specialized medical equipment maintenance. However, without specific details on the nature of the repairs or the equipment model, a direct comparison to similar contracts is challenging. The fixed-price nature of the award offers cost predictability for this specific task. Benchmarking against typical repair costs for similar cath lab components would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, indicating that the Department of Veterans Affairs identified PHILIPS NORTH AMERICA LLC as the only capable provider for these specific emergency repairs. 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. The justification for a sole-source award would typically involve unique technical capabilities or proprietary technology.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage competitive bidding to secure the best possible price. This can result in a higher expenditure for the service provided compared to a competitively sourced contract.

Public Impact

Veterans in Florida requiring critical cardiac procedures benefit from maintained cath lab equipment. Ensures the availability of essential diagnostic and interventional cardiology services. Supports the operational readiness of VA medical facilities in Florida. Maintains employment for specialized technicians and biomedical engineers involved in equipment repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of competition may reduce incentive for vendor efficiency.
Dependence on a single vendor for critical equipment repair poses a supply chain risk.

Positive Signals

Addresses an urgent need for critical medical equipment repair, ensuring patient care.
Fixed-price contract provides budget certainty for this specific repair.
Focus on a specific geographic area (Florida) for targeted service delivery.

Sector Analysis

The healthcare sector, particularly within government agencies like the VA, relies heavily on specialized equipment for patient diagnosis and treatment. Cath labs are crucial for cardiology services, and their maintenance is paramount. Spending in this area often involves high-value, complex equipment requiring manufacturer-specific expertise for repairs. Benchmarking this contract against other VA or similar healthcare provider contracts for cath lab maintenance would reveal cost-effectiveness.

Small Business Impact

This contract was not competed under SAP and does not indicate any small business set-aside. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem related to this specific award. The focus appears to be on specialized repair services likely provided by the original equipment manufacturer or a highly specialized entity.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a purchase order, it falls under standard procurement regulations. Transparency is generally maintained through contract databases, though specific details of the sole-source justification may be limited. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Cardiac Catheterization Laboratory Services
Medical Device Repair and Servicing
Federal Healthcare Procurement

Risk Flags

Sole-source award may indicate lack of competition, potentially leading to higher costs.
Limited data on the specific nature of repairs and equipment hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,965.2 to PHILIPS NORTH AMERICA LLC. EMERGENCY CATH LAB2 NEW GEOMETRY PC REPAIRS.

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 $22,965.2.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-07.

What specific components or systems within the cath lab required emergency repair, and what was the nature of the malfunction?

The provided data does not specify the exact components or the nature of the malfunction within the cath lab that necessitated emergency repairs. The description 'EMERGENCY CATH LAB2 NEW GEOMETRY PC REPAIRS' is vague. Understanding the specific issue (e.g., imaging system failure, procedural equipment malfunction, software glitch) is crucial for assessing the necessity of the repair, the urgency, and the appropriateness of the vendor's solution. Without this detail, it's difficult to fully evaluate the technical aspects of the award and the value provided.

What is the historical spending pattern for cath lab repairs at this specific VA facility or within the VA system for similar equipment?

Historical spending data for cath lab repairs at this specific VA facility or across the VA system for similar equipment is not provided in the current data. Analyzing past expenditures on maintenance and repair for cath lab equipment would allow for a comparison to benchmark current spending. Understanding trends in repair frequency, types of repairs, and associated costs can reveal patterns of equipment reliability, potential needs for upgrades, or opportunities for more cost-effective maintenance strategies. Without this historical context, it is challenging to determine if the $22,965.20 award represents an anomaly or a typical expenditure.

What is the justification for awarding this contract on a sole-source basis to PHILIPS NORTH AMERICA LLC?

The justification for awarding this contract on a sole-source basis to PHILIPS NORTH AMERICA LLC is not detailed in the provided data. Typically, sole-source awards are made when a product or service is available only from a single responsible source, often due to proprietary technology, unique capabilities, or urgent and compelling circumstances where competition is not feasible. For medical equipment like cath labs, the original equipment manufacturer (OEM) often holds exclusive rights to parts, specialized knowledge, or diagnostic tools required for repairs. The VA would need to document the specific reasons why only Philips could perform this emergency repair to satisfy federal procurement regulations.

How does the $22,965.20 cost compare to industry benchmarks for emergency cath lab repairs of similar scope?

Comparing the $22,965.20 cost to industry benchmarks for emergency cath lab repairs is difficult without more specific information about the scope of work. Emergency repairs can vary significantly in cost depending on the complexity of the issue, the specific equipment model, and the urgency. If this cost covers a major component replacement or extensive troubleshooting for a critical system failure, it might be within a reasonable range for specialized medical equipment. However, if it represents a minor fix or routine maintenance performed under emergency conditions, it could be considered high. A detailed breakdown of labor, parts, and diagnostic fees would be necessary for a robust benchmark comparison against market rates.

What are the potential risks associated with relying on a sole-source provider for critical medical equipment maintenance?

Relying on a sole-source provider for critical medical equipment maintenance, such as cath lab repairs, presents several risks. Firstly, it eliminates competitive pressure, potentially leading to higher prices and reduced incentives for the vendor to provide efficient service. Secondly, it creates a dependency on a single vendor, which can lead to service disruptions if the vendor experiences financial difficulties, operational issues, or decides to discontinue support for certain equipment. Thirdly, it limits the VA's flexibility in choosing service providers and negotiating terms. This dependency can be particularly concerning for essential healthcare equipment where downtime can have severe consequences for patient care.

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

Solicitation ID: 36C24826Q0550

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: $22,965

Exercised Options: $22,965

Current Obligation: $22,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline