VA Awards $87.5K for Getinge Steam Sterilizer Maintenance to Getinge USA Sales, LLC

Contract Overview

Contract Amount: $87,452 ($87.5K)

Contractor: Getinge USA Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-26

End Date: 2026-09-23

Contract Duration: 1,093 days

Daily Burn Rate: $80/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICES OF PREVENTIVE MAINTENANCE OF (4) GETINGE STEAM STERILIZERS

Place of Performance

Location: WAYNE, PASSAIC County, NEW JERSEY, 07470

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $87,451.55 to GETINGE USA SALES, LLC for work described as: SERVICES OF PREVENTIVE MAINTENANCE OF (4) GETINGE STEAM STERILIZERS Key points: 1. The contract is for preventive maintenance of four Getinge steam sterilizers. 2. The sole awardee is Getinge USA Sales, LLC, the original equipment manufacturer. 3. The contract duration is approximately three years, ending in September 2026. 4. The total award amount is $87,451.55. 5. The NAICS code is 811210 for Electronic and Precision Equipment Repair and Maintenance.

Value Assessment

Rating: fair

The pricing appears reasonable for specialized equipment maintenance over a three-year period. Benchmarking against similar OEM maintenance contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, likely due to the specialized nature of Getinge equipment requiring manufacturer-specific expertise. This limits price discovery and competition.

Taxpayer Impact: Taxpayer funds are used for essential medical equipment maintenance, ensuring operational readiness. The lack of competition may lead to higher costs than a competitive bid.

Public Impact

Ensures continued operation of critical sterilization equipment in VA facilities. Supports patient safety by maintaining reliable medical equipment. Potential for higher costs due to sole-source award. Limited transparency on pricing compared to competitive contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for higher pricing without competitive bidding

Positive Signals

Essential service for medical equipment
Award to OEM ensures specialized knowledge

Sector Analysis

This contract falls within the healthcare equipment maintenance sector. Spending benchmarks for similar specialized medical equipment maintenance can vary widely based on equipment type and service level agreements.

Small Business Impact

This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations apply, but the sole-source nature warrants scrutiny of justification and pricing.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for higher costs
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $87,451.55 to GETINGE USA SALES, LLC. SERVICES OF PREVENTIVE MAINTENANCE OF (4) GETINGE STEAM STERILIZERS

Who is the contractor on this award?

The obligated recipient is GETINGE USA SALES, 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 $87,451.55.

What is the period of performance?

Start: 2023-09-26. End: 2026-09-23.

What is the justification for the sole-source award, and was a market research conducted to confirm no other qualified vendors exist?

The justification for a sole-source award typically stems from the unique capabilities or proprietary nature of the product or service. In this case, Getinge USA Sales, LLC is the original equipment manufacturer for the steam sterilizers, implying specialized knowledge and parts are required. However, a thorough market research should have been conducted to confirm that no other entities possess the necessary qualifications and certifications to perform this maintenance, ensuring the sole-source determination is valid.

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

Without specific per-unit cost breakdowns or access to detailed industry benchmarks for Getinge steam sterilizer maintenance, a precise comparison is difficult. However, given the sole-source nature, it is prudent to assume the cost may be higher than if competitive bids were solicited. A benchmark analysis would involve comparing the annual maintenance cost per sterilizer against similar contracts for other high-end medical equipment maintenance, considering factors like service scope, response times, and included parts.

What is the potential impact on VA healthcare operations if this maintenance contract is not effectively managed or if Getinge USA Sales, LLC fails to perform?

Failure to effectively manage this maintenance contract or poor performance by Getinge USA Sales, LLC could lead to significant disruptions in VA healthcare operations. The steam sterilizers are critical for instrument sterilization, and their downtime directly impacts surgical schedules and patient care. Extended equipment failure could necessitate costly emergency repairs, outsourcing of sterilization services, or even temporary closure of certain procedures, ultimately affecting patient safety and access to 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: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 GEOFFREY WAY, WAYNE, NJ, 07470

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: $151,234

Exercised Options: $93,962

Current Obligation: $87,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline