VA awards $277K for Philips imaging equipment maintenance, with competition

Contract Overview

Contract Amount: $277,728 ($277.7K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-01

End Date: 2027-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $190/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTATIVE MAINTENANCE SERVICES ON PHILIPS IMAGING EQUIPMENT

Place of Performance

Location: HARLINGEN, CAMERON County, TEXAS, 78550

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $277,728.22 to PHILIPS NORTH AMERICA LLC for work described as: PREVENTATIVE MAINTENANCE SERVICES ON PHILIPS IMAGING EQUIPMENT Key points: 1. Contract awarded to Philips North America LLC for preventative maintenance. 2. The contract value is $277,728.22 over 4 years. 3. Competition method is 'Full and Open', suggesting potential for competitive pricing. 4. The sector is related to medical equipment maintenance, a critical healthcare service.

Value Assessment

Rating: good

The contract value appears reasonable for specialized equipment maintenance over a four-year period. Benchmarking against similar service contracts for Philips imaging equipment would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the best possible pricing through a competitive bidding process. This method aims to ensure fair market value is obtained.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Ensures continued operation of critical medical imaging equipment for veterans. Supports timely diagnosis and treatment for patients relying on this technology. Maintains the lifespan and reliability of expensive medical assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single vendor for specialized maintenance.

Positive Signals

Competitive award process.
Long-term service agreement ensures equipment availability.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on the maintenance of specialized medical equipment. Spending benchmarks in this area can vary widely based on equipment type and service level agreements.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure service delivery meets the terms and conditions. Performance metrics and regular reviews are standard oversight mechanisms.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for price escalation in future renewals.
Sole-source provider for specialized maintenance.
Limited visibility into specific maintenance procedures and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $277,728.22 to PHILIPS NORTH AMERICA LLC. PREVENTATIVE MAINTENANCE SERVICES ON PHILIPS IMAGING EQUIPMENT

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA 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 $277,728.22.

What is the period of performance?

Start: 2023-07-01. End: 2027-06-30.

What is the benchmark cost for similar preventative maintenance contracts for Philips imaging equipment?

A precise benchmark is difficult without access to a comprehensive database of similar contracts. However, industry averages for preventative maintenance on high-value medical equipment often range from 5-15% of the equipment's purchase price annually. This contract's value relative to the equipment's likely cost would be a key indicator.

What are the risks associated with relying on Philips North America LLC for maintenance?

The primary risk is vendor lock-in, potentially leading to higher costs in the future if competition diminishes. There's also a risk of service disruptions if the vendor faces internal issues. However, the full and open competition for this initial award mitigates some of these concerns by establishing a baseline price.

How effective is this contract in ensuring the operational readiness of VA imaging equipment?

This contract is likely effective in ensuring operational readiness, as preventative maintenance is designed to minimize downtime and extend equipment life. The four-year duration provides stability. Effectiveness would be further validated by tracking equipment uptime and maintenance response times.

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

Address: 22100 BOTHELL EVERETT HWY, BOTHELL, WA, 98021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $320,899

Exercised Options: $277,728

Current Obligation: $277,728

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0022

IDV Type: IDC

Timeline