VA Awards $1.3M for Siemens Equipment PM at Louisville VAMC, Ensuring Critical Medical Device Functionality

Contract Overview

Contract Amount: $1,327,404 ($1.3M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LOU VAMC IR AND CATH LAB SIEMENS EQUIPMENT PM

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40206

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: LOU VAMC IR AND CATH LAB SIEMENS EQUIPMENT PM Key points: 1. The contract focuses on preventative maintenance for essential medical equipment, directly impacting patient care. 2. Siemens Medical Solutions USA, Inc. is the sole incumbent provider, raising questions about long-term competition. 3. The firm fixed-price contract structure aims to control costs for this critical service. 4. This spending falls within the broader healthcare equipment maintenance sector, vital for hospital operations.

Value Assessment

Rating: good

The $1.33M award for Siemens equipment maintenance appears reasonable given the duration and critical nature of the equipment. Benchmarking against similar, specialized medical equipment maintenance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although the award notice states 'FULL AND OPEN COMPETITION,' the incumbent provider is Siemens. Further investigation is needed to confirm if other qualified vendors were solicited and if the pricing reflects competitive offers or a standard service agreement.

Taxpayer Impact: Taxpayer funds are being used to ensure the reliable operation of vital medical equipment, which is essential for veteran healthcare services and avoids potentially higher costs associated with equipment failure or emergency repairs.

Public Impact

Ensures continued operation of critical diagnostic and treatment equipment for veterans. Supports the healthcare infrastructure at the Louisville VAMC. Maintains the functionality of specialized medical devices, preventing potential disruptions in patient care. Invests in the longevity and reliability of expensive medical technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited future competition if Siemens remains the sole qualified service provider.
Reliance on a single manufacturer for maintenance could lead to price increases over time.

Positive Signals

Addresses a critical need for equipment maintenance.
Firm fixed-price contract provides cost certainty.
Long-term contract (3 years) ensures consistent service.

Sector Analysis

This contract falls under the healthcare sector, specifically focusing on the maintenance of complex medical equipment like irradiation apparatus. Spending benchmarks for such specialized maintenance are often high due to the technical expertise and proprietary nature of the equipment.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Given the specialized nature of Siemens equipment maintenance, it is likely that only the original equipment manufacturer or highly specialized third-party service providers could perform the work.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under larger indefinite-delivery/indefinite-quantity contracts would apply, focusing on performance and adherence to the contract terms.

Related Government Programs

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

Risk Flags

Potential lack of true competition
Reliance on OEM for maintenance
Risk of price escalation over contract term
Criticality of equipment necessitates reliable maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. LOU VAMC IR AND CATH LAB SIEMENS EQUIPMENT PM

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $1.3 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is the specific type of Siemens equipment covered by this contract, and what is its criticality to patient care at the Louisville VAMC?

The contract specifies 'LOU VAMC IR AND CATH LAB SIEMENS EQUIPMENT PM,' indicating maintenance for Siemens equipment related to the Irradiation (IR) and Cardiac Catheterization (Cath Lab) departments. This equipment is critical for diagnostic imaging, interventional procedures, and potentially life-saving treatments for cardiovascular conditions, making its reliable functioning paramount for patient safety and effective healthcare delivery.

What steps were taken to ensure genuine full and open competition, given that Siemens is the manufacturer?

While the contract states 'FULL AND OPEN COMPETITION,' the manufacturer's involvement raises questions. The VA should have actively solicited bids from other qualified service providers, including independent service organizations (ISOs) specializing in Siemens equipment, or demonstrated that only Siemens possessed the necessary technical expertise, parts, or proprietary information to perform the maintenance adequately and competitively.

How does the annual cost of this maintenance contract compare to industry benchmarks for similar specialized medical equipment?

Without specific details on the exact equipment models and their age, a precise benchmark is difficult. However, annual maintenance for complex diagnostic and interventional systems like those in an IR or Cath Lab can range significantly, often from 5% to 15% of the equipment's initial purchase price. The $1.33M over three years ($~442k/year) needs to be evaluated against the original cost and typical service agreements for comparable Siemens systems.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,991,076

Exercised Options: $1,327,404

Current Obligation: $1,327,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline