VA awards $10.66M for Analytical Laboratory Instruments, sole-sourced to Siemens Healthcare Diagnostics

Contract Overview

Contract Amount: $10,661 ($10.7K)

Contractor: Siemens Healthcare Diagnostics Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-11

End Date: 2023-09-10

Contract Duration: 1,825 days

Daily Burn Rate: $6/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF VIVA-E SERVICES

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10,660.5 to SIEMENS HEALTHCARE DIAGNOSTICS INC. for work described as: IGF::OT::IGF VIVA-E SERVICES Key points: 1. Spending is concentrated with a single vendor, Siemens Healthcare Diagnostics. 2. The contract covers a significant period, indicating a long-term need. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is Analytical Laboratory Instrument Manufacturing, crucial for healthcare diagnostics.

Value Assessment

Rating: questionable

The contract's value of $10.66M over five years, with no explicit price benchmarks provided, makes a direct comparison difficult. Without competitive bidding, it's hard to ascertain if this price reflects fair market value for analytical laboratory instruments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and competition, potentially leading to higher costs for the government and taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Veterans may experience delays or suboptimal diagnostic capabilities if the instruments are not state-of-the-art or competitively priced. The VA's reliance on a single supplier for critical laboratory equipment could pose a supply chain risk. Opportunities for small businesses in the analytical instrument sector are missed due to the sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration without clear price adjustments

Positive Signals

Addresses a specific need for analytical laboratory instruments
Potential for vendor expertise and reliability

Sector Analysis

The Analytical Laboratory Instrument Manufacturing sector is vital for healthcare, providing tools for diagnosis and research. Spending benchmarks vary widely based on instrument complexity and volume, but competitive procurement is standard for ensuring value.

Small Business Impact

The sole-source nature of this contract bypasses opportunities for small businesses that might offer competitive solutions in the analytical laboratory instrument market. This limits their ability to participate in government contracts.

Oversight & Accountability

Oversight is needed to ensure the VA is receiving adequate value and performance from this sole-source contract. Regular reviews of vendor performance and market prices are crucial for accountability.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for inflated pricing due to lack of competition.
Risk of vendor lock-in and limited future flexibility.
Missed opportunities for innovation from a competitive market.
Lack of transparency in the procurement process.
Potential for suboptimal equipment if not benchmarked against alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10,660.5 to SIEMENS HEALTHCARE DIAGNOSTICS INC.. IGF::OT::IGF VIVA-E SERVICES

Who is the contractor on this award?

The obligated recipient is SIEMENS HEALTHCARE DIAGNOSTICS 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 $10,660.5.

What is the period of performance?

Start: 2018-09-11. End: 2023-09-10.

What specific analytical laboratory instruments are being procured, and what is their criticality to VA healthcare operations?

The contract is for analytical laboratory instruments, likely encompassing a range of diagnostic equipment used in VA medical facilities. Their criticality stems from enabling accurate and timely patient diagnoses, guiding treatment decisions, and supporting medical research. Without detailed specifications, it's difficult to assess if the chosen instruments are the most advanced or cost-effective available.

What justification was provided for the sole-source award, and were alternative solutions or vendors ever considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. For this contract, the VA would need to demonstrate why Siemens Healthcare Diagnostics was the only viable option. Without this justification, it raises questions about whether competition was adequately explored or if there were barriers preventing other qualified vendors from participating.

How does the VA ensure the long-term effectiveness and value of this sole-source contract, given the lack of competitive pressure?

Ensuring long-term effectiveness and value in a sole-source contract requires robust performance management and continuous market surveillance. The VA should implement strict performance metrics, conduct regular reviews of the instruments' utility and maintenance, and periodically assess the market for potential cost savings or technological advancements. This proactive approach helps mitigate the risks associated with a lack of competition and ensures taxpayer funds are used efficiently.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25018Q9471

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 115 NORWOOD PARK S, NORWOOD, MA, 02062

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: $10,661

Exercised Options: $10,661

Current Obligation: $10,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline