VA awards $1.13M for Olympus scope lease, extending services through May 2027

Contract Overview

Contract Amount: $1,132,840 ($1.1M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS SCOPE LEASE FSS BPA - OPTION YEAR 2 DELIVERY ORDER

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.1 million to OLYMPUS AMERICA INC for work described as: OLYMPUS SCOPE LEASE FSS BPA - OPTION YEAR 2 DELIVERY ORDER Key points: 1. Lease agreement provides essential surgical equipment for medical facilities. 2. Contract awarded via full and open competition, suggesting market-driven pricing. 3. Option year extension indicates satisfaction with current service delivery. 4. Fixed-price contract type limits cost escalation risks for the government. 5. Focus on medical instruments highlights a critical area of healthcare spending. 6. Geographic concentration in Pennsylvania for delivery. 7. No small business set-aside noted, potentially limiting broader participation.

Value Assessment

Rating: good

The contract value of $1.13M for a one-year lease of Olympus scope equipment appears reasonable, especially considering it's an option year extension, implying prior successful performance and pricing. Benchmarking against similar leases for specialized medical equipment would provide a more precise value assessment. The firm fixed-price structure is advantageous, protecting the VA from unexpected cost increases. The duration of the lease aligns with typical equipment lifecycles and operational needs.

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 competitive process is expected to drive fair market pricing and ensure the VA receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was available.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where providers compete on price and quality, leading to more cost-effective procurement outcomes.

Public Impact

Veterans will benefit from access to advanced surgical and medical instruments. The contract supports the delivery of essential medical services within VA facilities. Services are geographically focused within Pennsylvania. The contract supports the medical technology sector and associated maintenance workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
Absence of small business participation noted in the contract award.
Limited information on the specific model and features of the Olympus scopes being leased.
No explicit mention of performance metrics or service level agreements in the provided data.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type mitigates cost overrun risks.
Option year extension implies satisfactory past performance.
Contract supports critical healthcare services for veterans.
Long-term delivery period (through May 2027) provides service continuity.

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector (NAICS 339112), a critical component of the healthcare industry. This sector involves the production and distribution of a wide range of medical devices. Spending in this area is driven by the need for advanced diagnostic and therapeutic equipment in hospitals and clinics. Comparable spending benchmarks would involve analyzing the total federal procurement for similar medical equipment leases across different agencies.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting opportunities for small businesses. This suggests that the primary award went to a large business, and there may be limited direct impact on the small business ecosystem unless the prime contractor actively engages small businesses for subcontracting. Further investigation into the prime contractor's subcontracting plan would be necessary to assess the full impact.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for its procurements. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would typically involve performance reviews, adherence to contract terms, and potential recourse for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Leases
Medical Device Supply Chain
Healthcare Technology Contracts

Risk Flags

Lack of detailed performance metrics.
No explicit small business subcontracting noted.
Limited information on specific equipment models and features.
Potential for reduced competition in future option years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.1 million to OLYMPUS AMERICA INC. OLYMPUS SCOPE LEASE FSS BPA - OPTION YEAR 2 DELIVERY ORDER

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 $1.1 million.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the specific model and configuration of the Olympus scopes being leased under this contract, and how do they compare to current market offerings?

The provided data does not specify the exact model or configuration of the Olympus scopes. To assess their current market relevance and value, a detailed comparison with contemporary models from Olympus and competitors would be necessary. This would involve researching specifications, features (e.g., imaging resolution, articulation, sterilization compatibility), and current pricing for both purchase and lease options. Understanding the specific technological capabilities of the leased scopes is crucial for evaluating their suitability for the VA's intended medical procedures and ensuring they meet evolving clinical standards.

How does the annual cost of this lease compare to the purchase price of similar Olympus scope equipment, considering the lease duration?

The annual cost for this Olympus scope lease is approximately $1.13 million. To compare this to a purchase price, we would need the purchase price of the specific models being leased. A common financial analysis involves calculating the total lease cost over the contract period (approximately $1.13M for one year, extending to May 2027) and comparing it to the depreciated value of the equipment if purchased outright. If the lease term is significantly shorter than the equipment's useful life, leasing might be more cost-effective by avoiding obsolescence. Conversely, if the lease term approaches or exceeds the equipment's lifespan, purchasing could offer better long-term value, especially if the VA intends to retain the equipment beyond the lease period.

What performance metrics or service level agreements (SLAs) are associated with this contract to ensure optimal equipment functionality and maintenance?

The provided contract data does not detail specific performance metrics or Service Level Agreements (SLAs) for this Olympus scope lease. Typically, such contracts would include clauses regarding response times for maintenance and repairs, uptime guarantees, and quality of service standards. The absence of this information in the summary data raises a flag for potential oversight gaps. Without defined SLAs, it can be challenging to objectively measure the contractor's performance and ensure the VA is receiving the expected level of service and equipment availability, which is critical for patient care.

Have there been any past performance issues or contract disputes with Olympus America Inc. on similar VA contracts?

The provided data indicates this is an option year extension for a BPA call, suggesting a degree of satisfaction with past performance. However, it does not provide a comprehensive history of Olympus America Inc.'s performance on all VA contracts. A thorough review would require accessing historical contract data, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any records of disputes or corrective actions related to this or similar agreements. Without this deeper dive, it's difficult to definitively assess the contractor's overall track record.

What is the historical spending trend for Olympus scope leases or similar medical equipment at the Department of Veterans Affairs over the last five fiscal years?

The provided data only covers the current delivery order for an option year. To analyze historical spending trends, one would need to query federal procurement databases (like FPDS) for all contracts awarded to Olympus America Inc. for scope leases or similar medical instruments by the VA over the past five fiscal years. This would reveal patterns in contract values, durations, and the frequency of such awards. Understanding these trends can help identify potential increases or decreases in spending, justify budget requests, and benchmark current contract values against historical norms.

Are there alternative vendors or leasing arrangements that the VA considered or could explore to ensure continued competitive pricing for specialized medical equipment?

The contract was awarded under 'full and open competition,' implying that alternatives were theoretically available during the initial bidding process. However, the data doesn't specify if the VA actively solicited bids from a wide range of vendors for this specific option year or if it was a pre-negotiated extension. To ensure continued competitive pricing, the VA should periodically reassess the market, potentially conduct market research for new vendors or alternative equipment technologies, and ensure robust competition is maintained for future contract renewals or replacements. Relying solely on option years with a single vendor might reduce competitive pressure over time.

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

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: $1,132,840

Exercised Options: $1,132,840

Current Obligation: $1,132,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25024A0027

IDV Type: BPA

Timeline