VA awards $4.2M for irradiation apparatus manufacturing, with Siemens Medical Solutions USA Inc. as the sole awardee

Contract Overview

Contract Amount: $4,197,776 ($4.2M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS PM - DETROIT

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS PM - DETROIT Key points: 1. The contract value of $4.2 million over three years suggests a moderate investment in specialized medical equipment. 2. Siemens Medical Solutions USA Inc. secured this award, indicating their established presence and capability in this niche market. 3. The contract is a delivery order under a larger agreement, implying a structured procurement process. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The absence of small business set-aside flags suggests the primary contract vehicle may not have prioritized this, or the specific item didn't lend itself to it. 6. The geographic focus on Michigan is noted, potentially serving a specific VA facility or region.

Value Assessment

Rating: good

The contract value of $4.2 million for irradiation apparatus manufacturing over three years appears reasonable for specialized medical equipment. Benchmarking against similar contracts is challenging without more specific details on the exact type and capabilities of the apparatus. However, the fixed-price structure suggests the VA has negotiated a defined cost for the deliverables, which is generally a positive sign for value. The award to a known entity like Siemens Medical Solutions USA Inc. implies a level of confidence in their pricing and product offering.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. While Siemens Medical Solutions USA Inc. was the sole awardee for this specific delivery order, the initial competition phase likely involved several interested parties. The level of competition at the initial stage is crucial for ensuring competitive pricing and innovation. The fact that it was full and open suggests a robust process was followed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and more innovative solutions, ultimately maximizing the value of federal spending.

Public Impact

Veterans receiving advanced medical treatments will benefit from the specialized equipment procured through this contract. The contract supports the delivery of irradiation apparatus, crucial for diagnostic and therapeutic procedures within the VA healthcare system. The primary geographic impact is within Michigan, likely serving a specific VA medical center or network of facilities. The contract supports the manufacturing sector, specifically in the production of high-tech medical devices, potentially impacting specialized engineering and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition on future delivery orders if the base contract is not actively managed or re-competed.
Reliance on a single manufacturer for critical equipment could pose supply chain risks if not managed proactively.
The specific capabilities and long-term support for the irradiation apparatus need to be clearly defined to ensure ongoing value.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent initial procurement process.
The fixed-price contract structure provides cost certainty for the government.
Siemens Medical Solutions USA Inc. is a reputable manufacturer with established expertise in medical technology.

Sector Analysis

The market for medical irradiation apparatus is a specialized segment within the broader healthcare technology sector. This sector is characterized by high research and development costs, stringent regulatory requirements, and a need for advanced manufacturing capabilities. Companies like Siemens Medical Solutions USA Inc. operate in a space where innovation and reliability are paramount. Spending in this area is driven by the need for advanced diagnostic and therapeutic tools to improve patient outcomes. Comparable spending benchmarks would typically be found within large healthcare systems or government procurements for similar specialized medical equipment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement likely focused on specialized capabilities or large-scale production that may be more readily available from larger corporations. While there's no direct indication of subcontracting opportunities for small businesses within this specific award notice, larger prime contractors often engage small businesses for various support services or components, though this is not guaranteed. The impact on the small business ecosystem is likely minimal for this specific award, but the overall VA procurement strategy may include separate initiatives to engage small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected or reported.

Related Government Programs

VA Medical Equipment Procurement
Irradiation Therapy Devices
Medical Imaging and Radiation Oncology Equipment
Federal Supply Schedule (FSS) Contracts
Department of Defense Medical Procurements

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Need for specialized installation, calibration, and maintenance services.
Ensuring long-term support and potential upgrade paths for the equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS PM - DETROIT

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 $4.2 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the specific type and intended use of the 'Irradiation Apparatus' being procured?

The provided data classifies the product under NAICS code 334517, 'Irradiation Apparatus Manufacturing.' This typically refers to equipment used for radiation therapy, sterilization, or industrial radiography. For the Department of Veterans Affairs (VA), the most probable use is in radiation oncology for cancer treatment or in sterilization processes for medical equipment. Without further details from the contract's statement of work, it's difficult to pinpoint the exact application. However, given the context of a healthcare provider like the VA, it strongly suggests equipment designed for patient treatment or medical supply management, requiring high precision and safety standards.

How does the $4.2 million contract value compare to historical VA spending on similar irradiation apparatus?

Comparing the $4.2 million contract value to historical VA spending requires access to detailed procurement databases and filtering for similar 'Irradiation Apparatus' procurements over the past several years. The current contract is a delivery order with a duration of 1095 days (3 years), totaling $4,197,776.33. This averages to approximately $1.4 million per year. To assess value, one would need to identify comparable contracts for similar equipment (e.g., linear accelerators, gamma irradiation units) awarded by the VA or other federal agencies. Factors like the specific capabilities, manufacturer, and contract type (e.g., firm-fixed-price vs. cost-plus) would influence price. A preliminary assessment suggests this is a significant but not extraordinarily large sum for specialized, high-tech medical equipment, especially if it involves multiple units or advanced features.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, as a firm-fixed-price contract for the manufacturing and delivery of irradiation apparatus, performance is primarily measured by the contractor's ability to deliver the specified equipment according to the technical specifications, within the agreed-upon timeline, and at the contracted price. The VA would likely have quality assurance surveillance plans (QASPs) in place to monitor adherence to specifications, delivery schedules, and any warranty or maintenance requirements post-delivery. Failure to meet these implicit or explicit performance standards could result in contract remedies, such as withholding payment or termination.

What is Siemens Medical Solutions USA Inc.'s track record with the VA for similar procurements?

Siemens Medical Solutions USA Inc. is a well-established provider of medical technology, and it is highly probable they have a significant track record with the Department of Veterans Affairs (VA) and other federal agencies. To assess their specific performance on similar procurements, one would need to analyze historical contract data. This would involve searching for previous awards to Siemens for irradiation apparatus, radiotherapy equipment, or related medical devices. Key aspects to review would include on-time delivery, adherence to specifications, any past performance issues or disputes, and overall satisfaction ratings if available through federal procurement databases. Given their market position, it's likely they have a history of successful contract performance, but a detailed review of past VA contracts would be necessary for a definitive assessment.

Are there any identified risks associated with the contractor or the nature of this specific equipment?

Potential risks associated with this contract include standard supply chain disruptions for specialized components, potential delays in manufacturing or delivery, and the inherent complexity of high-tech medical equipment requiring specialized installation, calibration, and maintenance. For the contractor, Siemens Medical Solutions USA Inc., risks could involve ensuring compliance with stringent VA procurement regulations and quality standards. Given the nature of irradiation apparatus, safety protocols during manufacturing, transport, and installation are critical. Furthermore, the long-term viability and support for the technology are considerations; the VA would need assurance of ongoing maintenance and potential upgrades throughout the equipment's lifecycle. The fixed-price nature also means Siemens bears the risk of cost overruns.

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: $4,197,776

Exercised Options: $4,197,776

Current Obligation: $4,197,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline