VA awards $1.66M for surgical instruments to Olympus America Inc. under full and open competition

Contract Overview

Contract Amount: $1,657,058 ($1.7M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-27

End Date: 2027-06-01

Contract Duration: 459 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCOPE PURCHASE

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.7 million to OLYMPUS AMERICA INC for work described as: SCOPE PURCHASE Key points: 1. Contract awarded to a single vendor, Olympus America Inc. 2. Spending is within the Surgical and Medical Instrument Manufacturing NAICS code. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract is a delivery order with a fixed price structure.

Value Assessment

Rating: good

The contract value of $1.66M for surgical instruments appears reasonable given the duration of 459 days. Benchmarking against similar contracts for specialized medical equipment 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is positive for taxpayers as it aims to secure the best value through a competitive process.

Public Impact

Ensures availability of critical surgical and medical instruments for VA facilities. Supports healthcare delivery to veterans by providing necessary equipment. The award to a known manufacturer like Olympus suggests a focus on established product lines and reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single supplier for specific instrument needs.

Positive Signals

Awarded through full and open competition.
Fixed price contract limits cost overruns.
Long-term contract provides supply chain stability.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is characterized by innovation and high-quality standards. Spending in this sector supports advanced medical technologies and patient care.

Small Business Impact

The contract was awarded to Olympus America Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance with terms and conditions.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for sole-source reliance in future if competition diminishes.
Price volatility in the medical instrument market.
Dependence on a single manufacturer's product line.
Ensuring long-term availability of specialized instruments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.7 million to OLYMPUS AMERICA INC. SCOPE PURCHASE

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 $1.7 million.

What is the period of performance?

Start: 2026-02-27. End: 2027-06-01.

What is the specific type of surgical and medical instruments being procured, and how critical are they to VA operations?

The data indicates the procurement falls under NAICS code 339112 (Surgical and Medical Instrument Manufacturing). While specific instrument types aren't detailed, this category typically includes a wide range of devices from scalpels to complex diagnostic equipment. Their criticality is high, as they are essential for performing surgeries and medical procedures, directly impacting the quality and scope of care provided to veterans.

How does the awarded price compare to market benchmarks for similar Olympus instruments or comparable products from competitors?

A direct comparison requires detailed product specifications and current market pricing. However, given the full and open competition, the price achieved is presumed to be competitive. Further analysis would involve comparing the per-unit cost of specific instruments against catalog prices and quotes from other manufacturers like Medtronic or Becton Dickinson for similar functionalities.

What is the VA's strategy for ensuring continued access to these instruments beyond the current contract, especially if Olympus remains the primary supplier?

The VA's strategy likely involves monitoring market dynamics and planning for future procurements. This could include exploring alternative suppliers, encouraging competition in future solicitations, or negotiating long-term agreements that include provisions for price stability and supply chain resilience. Proactive market research and engagement with industry partners are key to ensuring sustained access.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,657,058

Exercised Options: $1,657,058

Current Obligation: $1,657,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0168

IDV Type: FSS

Timeline