VA awards $910K for GE imaging equipment, highlighting a need for specialized medical technology

Contract Overview

Contract Amount: $910,784 ($910.8K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICE GE IMAGING EQUIPMENT.

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $910,783.67 to GE PRECISION HEALTHCARE LLC for work described as: SERVICE GE IMAGING EQUIPMENT. Key points: 1. The contract value is moderate, suggesting a focused procurement for specific imaging needs. 2. Competition was robust, indicating a healthy market for this type of medical equipment. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the order aligns with typical equipment deployment and service cycles. 5. This procurement supports the VA's mission to provide advanced healthcare to veterans.

Value Assessment

Rating: good

The contract value of approximately $910,783 for GE imaging equipment appears reasonable given the specialized nature of medical devices. Benchmarking against similar procurements for advanced imaging systems would provide a more precise value assessment. The firm fixed-price structure suggests the government has secured a defined cost, which is a positive indicator for value.

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 were likely invited to bid. The presence of a single award suggests that GE Precision Healthcare LLC offered the most advantageous proposal based on the evaluation criteria. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

Veterans will benefit from access to advanced GE imaging equipment, potentially improving diagnostic accuracy and treatment outcomes. The services delivered include the provision of specialized medical imaging apparatus. The geographic impact is focused on Illinois, where the equipment will be deployed. This contract supports the healthcare workforce by providing them with modern tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps control costs.
The contract supports the Department of Veterans Affairs' mission to serve veterans.
The equipment is from a reputable manufacturer (GE), implying quality and reliability.

Sector Analysis

The medical imaging equipment sector is a critical component of the healthcare industry, characterized by high technological advancement and significant capital investment. Spending in this area is driven by the need for accurate diagnostics and effective treatment across various medical specialties. This contract for GE imaging equipment fits within the broader market for medical devices and diagnostic tools, where innovation and performance are key differentiators.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary awardee is a large corporation, and the nature of specialized medical equipment manufacturing often involves large-scale production capabilities. Further analysis would be needed to determine if any small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a delivery order under a larger contract vehicle, oversight would focus on timely delivery, adherence to specifications, and performance standards. Transparency is generally maintained through contract award databases, and any specific Inspector General jurisdiction would be related to VA-wide procurement integrity and fraud prevention.

Related Government Programs

Medical Equipment Procurement
Diagnostic Imaging Services
Veterans Health Administration Contracts

Risk Flags

Potential vendor lock-in due to reliance on a single manufacturer for critical equipment.
Need for ongoing maintenance and service contracts, which represent future costs.
Dependence on GE's supply chain and production capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $910,783.67 to GE PRECISION HEALTHCARE LLC. SERVICE GE IMAGING EQUIPMENT.

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE LLC.

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 $910,783.67.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the typical lifespan and maintenance cost associated with this type of GE imaging equipment?

The typical lifespan for advanced medical imaging equipment like that manufactured by GE can range from 7 to 15 years, depending on the specific technology, usage intensity, and maintenance protocols. Maintenance costs can vary significantly but often include annual service contracts, replacement parts, and specialized technician labor. For a firm fixed-price contract of this nature, the initial purchase price likely reflects the equipment's value, but ongoing operational costs, including maintenance, are a separate consideration for the VA. Detailed information on specific models and their associated maintenance schedules and costs would require access to GE's product specifications and service agreements, which are not publicly available in this contract data.

How does the price of this contract compare to similar imaging equipment procurements by other federal agencies or healthcare providers?

Direct price comparison is challenging without knowing the exact model and specifications of the GE imaging equipment procured. However, the contract value of approximately $910,783 for a single delivery order suggests a significant piece of equipment or a package of related items. Federal procurement data, such as that found on SAM.gov or FPDS, can be searched for similar 'Irradiation Apparatus Manufacturing' (NAICS 334517) or specific imaging equipment keywords. Benchmarking against these publicly available contracts, while accounting for differences in technology, volume, and contract terms (e.g., delivery timelines, included services), would provide a clearer picture of whether this price is competitive within the broader market.

What are the potential risks associated with relying on a single manufacturer (GE) for critical imaging equipment?

Relying on a single manufacturer like GE for critical imaging equipment can introduce several risks. These include potential vendor lock-in, where the VA becomes dependent on GE for future upgrades, maintenance, and parts, potentially at non-competitive prices. There's also a risk if GE experiences production issues, supply chain disruptions, or decides to discontinue specific product lines. While this contract was competitively awarded, ongoing reliance could limit future flexibility. Mitigating these risks often involves negotiating comprehensive service agreements, exploring multi-vendor strategies for future procurements, and ensuring robust internal maintenance capabilities where feasible.

What specific performance metrics or service level agreements (SLAs) are likely included in this contract to ensure equipment functionality?

While the provided data does not detail specific performance metrics or SLAs, contracts for major medical equipment typically include clauses ensuring operational readiness and uptime. These might involve requirements for installation within a specified timeframe, successful calibration and testing, and minimum availability percentages (e.g., 95% uptime). Service Level Agreements often dictate response times for technical support and repairs, availability of spare parts, and potentially penalties for failing to meet these standards. The firm fixed-price nature of the award suggests the VA has defined expectations for the equipment's performance and the vendor's responsibilities.

Has GE Precision Healthcare LLC historically performed well on VA contracts, and are there any past performance concerns?

Assessing GE Precision Healthcare LLC's historical performance on VA contracts would require accessing detailed past performance evaluations, which are typically not publicly disclosed in full. However, a review of federal procurement databases (like FPDS or SAM.gov) could reveal the volume and types of contracts awarded to GE by the VA and other agencies. Searching for contract disputes, terminations, or negative performance reviews associated with GE Precision Healthcare LLC would provide insight into potential risks. Generally, large, established manufacturers like GE have extensive experience with government contracting, but individual contract performance can vary.

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: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,762,351

Exercised Options: $910,784

Current Obligation: $910,784

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline