VA awards $10.8M lease for endoscopy equipment to Olympus America Inc. under full and open competition

Contract Overview

Contract Amount: $10,757,776 ($10.8M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2025-05-31

Contract Duration: 1,338 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BASE YEAR ORDER OF A 3-YEAR ENDOSCOPY EQUIPMENT LEASE WITH FULL-SERVICE MAINTENANCE COVERAGE.

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.8 million to OLYMPUS AMERICA INC for work described as: BASE YEAR ORDER OF A 3-YEAR ENDOSCOPY EQUIPMENT LEASE WITH FULL-SERVICE MAINTENANCE COVERAGE. Key points: 1. The Department of Veterans Affairs (VA) is leasing endoscopy equipment for over $10.7 million. 2. Olympus America Inc. secured the contract through full and open competition. 3. The contract includes full-service maintenance coverage for the leased equipment. 4. This spending falls under the Surgical Appliance and Supplies Manufacturing sector.

Value Assessment

Rating: good

The lease price of $10.8 million over approximately 3.5 years appears reasonable for specialized medical equipment with maintenance. Benchmarking against similar multi-year leases for advanced endoscopy systems with service contracts would provide a more precise 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 that likely led to a fair market price. The use of a delivery order under a larger contract indicates a structured procurement approach.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for essential medical equipment.

Public Impact

Ensures VA facilities have access to up-to-date endoscopy equipment for patient care. Supports diagnostic and procedural capabilities within the VA healthcare system. The lease agreement provides predictable costs for equipment and maintenance over its term. Contributes to the operational readiness of surgical and medical departments.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Positive Signals

Full and open competition utilized
Includes comprehensive maintenance coverage
Supports critical healthcare services

Sector Analysis

Spending in the Surgical Appliance and Supplies Manufacturing sector, particularly for advanced medical equipment like endoscopes, is crucial for healthcare infrastructure. Benchmarks for similar leases are typically high due to technological sophistication and service requirements.

Small Business Impact

This contract was awarded to Olympus America Inc., a large corporation. There is no indication of specific provisions or set-asides for small businesses within this particular award.

Oversight & Accountability

The Department of Veterans Affairs managed this procurement. Oversight would involve ensuring adherence to contract terms, equipment performance, and maintenance schedules throughout the lease period.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lease vs. purchase cost analysis needed for long-term value assessment.
Specific performance metrics for maintenance are not detailed.
Potential for technology obsolescence over the lease term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.8 million to OLYMPUS AMERICA INC. BASE YEAR ORDER OF A 3-YEAR ENDOSCOPY EQUIPMENT LEASE WITH FULL-SERVICE MAINTENANCE COVERAGE.

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 $10.8 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-05-31.

What is the total cost of ownership over the full 3-year lease term, including potential renewal options?

The provided data reflects the base year order cost of $10,757,776.44. To determine the total cost of ownership, one would need to sum the costs for all three years of the lease, assuming the annual cost remains consistent. Information on any renewal options or associated costs would also be necessary for a complete picture.

Are there any performance metrics or service level agreements (SLAs) associated with the full-service maintenance coverage?

The contract specifies 'full-service maintenance coverage,' which typically implies a comprehensive support plan. However, the specific performance metrics and service level agreements (SLAs) are not detailed in the provided data. These would usually outline response times, repair guarantees, and uptime requirements for the leased equipment.

How does the cost of this lease compare to purchasing similar endoscopy equipment outright?

Directly comparing the lease cost to an outright purchase requires evaluating the equipment's lifespan, depreciation, maintenance costs over the purchase period, and the VA's financing options. Leases offer predictable budgeting and access to newer technology, while purchases may offer long-term cost savings if equipment is used beyond its initial expected life.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies 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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,757,776

Exercised Options: $10,757,776

Current Obligation: $10,757,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797P2065D

IDV Type: FSS

Timeline