VA awards $2.3M for Siemens imaging system PM services in New Orleans, LA

Contract Overview

Contract Amount: $2,303,778 ($2.3M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-28

End Date: 2027-03-27

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PM SERVICES FOR SIEMENS IMAGING SYSTEMS IN NEW ORLEANS, LA

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: PM SERVICES FOR SIEMENS IMAGING SYSTEMS IN NEW ORLEANS, LA Key points: 1. Contract focuses on essential maintenance and support for critical medical equipment. 2. Siemens Medical Solutions USA, Inc. is the incumbent provider, suggesting continuity. 3. The contract duration of five years indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award was made under full and open competition, allowing broad market participation.

Value Assessment

Rating: good

The contract value of $2.3 million over five years for PM services on Siemens imaging systems appears reasonable, especially considering the specialized nature of the equipment and the vendor's established relationship. Benchmarking against similar contracts for medical equipment maintenance is challenging without more specific details on the scope of services and the exact models of imaging systems. However, the fixed-price nature of the contract provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that Siemens Medical Solutions USA, Inc. was awarded the contract suggests they offered the best value among the competitors. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally positive for price discovery.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

Veterans in New Orleans, LA, will benefit from reliable access to diagnostic imaging services. The contract ensures the continued operational readiness of critical medical equipment at a VA facility. This supports the healthcare infrastructure within the New Orleans region. It maintains the availability of specialized medical technology for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for maintenance.
Reliance on a single vendor for critical equipment support could pose risks if the vendor faces financial or operational issues.

Positive Signals

Fixed-price contract helps control costs.
Long-term contract provides stability for service delivery.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on the maintenance and support of medical imaging equipment. The market for medical equipment maintenance is substantial, with many specialized service providers. This contract represents a portion of the Department of Veterans Affairs' broader spending on healthcare technology and operational support, ensuring the functionality of essential diagnostic tools.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The award to Siemens Medical Solutions USA, Inc., a large corporation, suggests that subcontracting opportunities for small businesses may be limited unless explicitly mandated or pursued by the prime contractor. Further analysis would be needed to determine if small business subcontracting plans were part of the award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Medical Equipment Maintenance Contracts
Diagnostic Imaging Services
Veterans Health Administration IT and Medical Support

Risk Flags

Potential for vendor lock-in
Reliance on single supplier for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. PM SERVICES FOR SIEMENS IMAGING SYSTEMS IN NEW ORLEANS, LA

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $2.3 million.

What is the period of performance?

Start: 2022-03-28. End: 2027-03-27.

What is the specific scope of 'PM Services' for Siemens Imaging Systems under this contract?

The 'PM Services' likely encompass routine preventive maintenance, calibration, and diagnostic checks for Siemens imaging systems. This includes scheduled inspections, cleaning, lubrication, and replacement of worn parts to ensure optimal performance and prevent unexpected breakdowns. The exact scope would be detailed in the contract's Statement of Work (SOW), specifying the types of systems covered (e.g., MRI, CT scanners, X-ray machines), the frequency of service, and any required response times for emergency service calls. This ensures the longevity and reliability of critical medical equipment, directly impacting patient care quality and availability.

How does the $2.3 million contract value compare to similar contracts for medical equipment maintenance?

Benchmarking this $2.3 million contract value requires comparing it against contracts for similar Siemens imaging systems (e.g., specific MRI or CT models) and similar service scopes (preventive maintenance, on-call repairs) within the Department of Veterans Affairs or other federal agencies. Factors like geographic location, service level agreements (SLAs), and the number of systems covered significantly influence pricing. Without access to a detailed database of comparable contracts with precise service details, a direct quantitative comparison is difficult. However, for a five-year term covering potentially multiple high-value imaging systems, $2.3 million suggests a moderate annual expenditure, likely reflecting the specialized nature of the equipment and the vendor's expertise.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for this contract would likely focus on ensuring the operational availability and reliability of the Siemens imaging systems. Common KPIs include response time for service requests (especially for unscheduled maintenance), equipment uptime percentage, completion rate of scheduled preventive maintenance tasks, and adherence to manufacturer specifications during service. Customer satisfaction surveys from the VA facility staff using the equipment may also be used. Meeting these KPIs is crucial for maintaining patient care continuity and ensuring the facility can perform necessary diagnostic procedures without interruption.

What is Siemens Medical Solutions USA, Inc.'s track record with the VA for similar services?

Siemens Medical Solutions USA, Inc. has a history of providing medical equipment and services to various federal agencies, including the Department of Veterans Affairs. Their track record with the VA for imaging system maintenance would typically be assessed through past performance evaluations included in the bidding process for this contract. Agencies often review a contractor's history of on-time delivery, quality of service, adherence to contract terms, and overall customer satisfaction on previous contracts. A positive past performance record is usually a significant factor in contract awards, especially for critical services like medical equipment support.

Are there any identified risks associated with relying on a single vendor for this type of specialized maintenance?

Yes, relying on a single vendor like Siemens for specialized maintenance carries inherent risks. These include potential vendor lock-in, where the government becomes dependent on the vendor's proprietary knowledge, parts, and pricing, making it difficult to switch providers. There's also the risk of price increases upon contract renewal, as competition might be limited if the vendor holds unique expertise or parts. Operational risks include potential service disruptions if the vendor experiences financial difficulties, labor shortages, or supply chain issues for critical replacement parts. Ensuring robust contract terms, including clear service level agreements and potentially price adjustment clauses, can help mitigate some of these risks.

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: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,838,284

Exercised Options: $2,303,778

Current Obligation: $2,303,778

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline