VA Awards $116.4K for Abiomed Machine Maintenance Across Three Facilities

Contract Overview

Contract Amount: $116,400 ($116.4K)

Contractor: Abiomed Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $160/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE OF 6 ABIOMED MACHINES. TWO EACH AT THE FOLLOWING: HINES VA HOSPITAL, JBVAMC, MILWAUKEE VAMC.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $116,400 to ABIOMED INC for work described as: MAINTENANCE OF 6 ABIOMED MACHINES. TWO EACH AT THE FOLLOWING: HINES VA HOSPITAL, JBVAMC, MILWAUKEE VAMC. Key points: 1. Contract covers maintenance for 6 Abiomed machines at Hines, JB, and Milwaukee VAMCs. 2. Sole source award to Abiomed Inc. raises questions about price discovery. 3. The 2-year contract term is standard for equipment maintenance. 4. No small business participation noted in this award.

Value Assessment

Rating: questionable

The $116,400 award for 6 machines over 2 years suggests a per-machine annual cost of $9,700. Benchmarking against similar specialized medical equipment maintenance contracts is difficult without more data, but the lack of competition warrants scrutiny.

Cost Per Unit: $9,700 per machine annually (estimated)

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source to Abiomed Inc., the original equipment manufacturer. This limits price negotiation and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: Without competitive pricing, taxpayers may be overpaying for essential medical equipment maintenance, diverting funds from other critical VA services.

Public Impact

Ensures continued operation of critical medical devices for veteran care. Potential for higher costs due to lack of competition impacts overall VA budget. Reliance on a single manufacturer for maintenance may limit future flexibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Ensures critical equipment uptime
Long-term maintenance agreement

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining advanced medical technology within the VA, but competitive sourcing is key to cost efficiency.

Small Business Impact

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

Oversight & Accountability

The sole-source nature of this award warrants careful review by VA oversight bodies to ensure the price is fair and reasonable, and to explore opportunities for future competition.

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 may lead to inflated costs.
Lack of competition limits price negotiation.
Potential for vendor lock-in.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $116,400 to ABIOMED INC. MAINTENANCE OF 6 ABIOMED MACHINES. TWO EACH AT THE FOLLOWING: HINES VA HOSPITAL, JBVAMC, MILWAUKEE VAMC.

Who is the contractor on this award?

The obligated recipient is ABIOMED 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 $116,400.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the justification for the sole-source award, and has the VA explored alternative maintenance providers or service contracts?

The justification for a sole-source award typically rests on the unique capabilities or proprietary nature of the product or service, often tied to the original manufacturer. The VA should have documented why Abiomed Inc. is the only viable option. Exploring alternative providers or service contracts is crucial to ensure fair pricing and avoid vendor lock-in, especially for essential equipment.

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

Without specific industry benchmark data for Abiomed machine maintenance, a direct comparison is challenging. However, the estimated annual cost of $9,700 per machine is substantial. The VA should have conducted a price analysis against comparable contracts or manufacturer service agreements to validate reasonableness, especially given the sole-source nature.

What is the long-term strategy for maintaining these critical medical devices to ensure cost-effectiveness and operational readiness?

The long-term strategy should involve assessing the total cost of ownership, including maintenance, and exploring options like competitive bidding for future contracts, multi-year agreements with performance incentives, or even in-house maintenance capabilities if feasible. Proactive planning can mitigate risks associated with sole-source reliance and ensure sustained operational readiness.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25225Q0244

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson & Johnson

Address: 22, CHERRY HILL DRIVE, DANVERS, MA, 01923

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $291,000

Exercised Options: $116,400

Current Obligation: $116,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline