VA awards $52,000 contract for Impella Heart Controller Maintenance to ABIOMED INC

Contract Overview

Contract Amount: $52,000 ($52.0K)

Contractor: Abiomed Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2027-06-30

Contract Duration: 729 days

Daily Burn Rate: $71/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPELLA HEART CONTROLLER MAINTENANCE SERVICES

Place of Performance

Location: DANVERS, ESSEX County, MASSACHUSETTS, 01923

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $52,000 to ABIOMED INC for work described as: IMPELLA HEART CONTROLLER MAINTENANCE SERVICES Key points: 1. The contract is for maintenance services of specialized medical equipment. 2. ABIOMED INC is the sole manufacturer and likely the only provider of these maintenance services. 3. The award value is relatively small, suggesting a focused scope of work. 4. The Department of Veterans Affairs is the primary agency involved.

Value Assessment

Rating: fair

The contract value of $52,000 over two years appears reasonable for specialized medical equipment maintenance. Without specific details on the scope of services or the number of devices covered, a direct pricing comparison is difficult. However, given the specialized nature, pricing is likely driven by manufacturer costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This is common for maintenance of proprietary medical devices where only the original manufacturer can provide the necessary expertise and parts. This lack of competition limits price discovery and potentially leads to higher costs.

Taxpayer Impact: The taxpayer impact is limited due to the small contract value, but the lack of competition means the VA may not be achieving the best possible price.

Public Impact

Ensures continued availability of critical cardiac support devices for veterans. Supports the operational readiness of VA medical facilities. Maintains the functionality of advanced medical technology used in patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for higher costs due to lack of competitive bidding.

Positive Signals

Ensures critical equipment maintenance for veteran care.
Contract awarded to the original equipment manufacturer, likely ensuring quality service.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on the maintenance of advanced medical devices. Spending benchmarks for such specialized maintenance are highly variable, depending on the device's complexity and manufacturer's pricing structure. The VA's investment ensures the continued functionality of vital patient care equipment.

Small Business Impact

This contract was not awarded to a small business. The nature of maintaining proprietary medical equipment often necessitates contracts with the original equipment manufacturer, which are typically larger corporations.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the sole-source nature, oversight should focus on ensuring the scope of work is met and that the pricing, while not competed, is justified by the services provided.

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
Lack of competition
Potential for price escalation
Dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $52,000 to ABIOMED INC. IMPELLA HEART CONTROLLER MAINTENANCE SERVICES

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 $52,000.

What is the period of performance?

Start: 2025-07-01. End: 2027-06-30.

What is the specific scope of maintenance services covered under this contract?

The contract details are limited, but it pertains to maintenance services for the 'IMPELLA HEART CONTROLLER'. This likely includes routine checks, calibration, software updates, and repair of the controller unit, which is a critical component of the Impella heart pump system used for temporary cardiac support.

What is the justification for awarding this contract on a sole-source basis?

The sole-source justification likely stems from ABIOMED INC being the original equipment manufacturer (OEM) of the Impella Heart Controller. Maintenance and repair of such specialized, proprietary medical devices typically require unique technical knowledge, proprietary tools, and access to specific replacement parts only available from the OEM.

How does the VA ensure value for money in sole-source contracts for medical equipment maintenance?

In sole-source scenarios, value is often assessed by comparing the proposed price against historical pricing for similar services, manufacturer's published service rates, or industry benchmarks for comparable equipment. The VA may also negotiate service level agreements and performance metrics to ensure service quality justifies the cost.

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

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $130,000

Exercised Options: $52,000

Current Obligation: $52,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline