VA Awards $6M Olympus Lease & Maintenance Contract to Olympus America Inc

Contract Overview

Contract Amount: $6,056,565 ($6.1M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2025-09-30

Contract Duration: 730 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS FULL LEASE AND MAINTENANCE SERVICE

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to OLYMPUS AMERICA INC for work described as: OLYMPUS FULL LEASE AND MAINTENANCE SERVICE Key points: 1. Contract awarded to incumbent supplier, Olympus America Inc. 2. Full and open competition was utilized. 3. Potential for price escalation exists with firm-fixed-price contract. 4. Spending falls within the Surgical and Medical Instrument Manufacturing sector.

Value Assessment

Rating: fair

The contract price of $6,056,565.29 over two years for lease and maintenance of Olympus equipment appears reasonable given the specialized nature of medical instruments. Benchmarking against similar full-service contracts for high-value medical equipment is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific impact on price discovery requires further analysis of the bidding outcomes and the number of proposals received.

Taxpayer Impact: Taxpayer funds are being used for specialized medical equipment maintenance, which is essential for healthcare services. The competitive award aims to ensure fair pricing, but ongoing monitoring is needed.

Public Impact

Ensures continued access to critical medical equipment for VA facilities. Supports ongoing patient care by maintaining operational medical devices. Potential for cost savings through competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single supplier for specialized equipment maintenance.
Firm-fixed-price contract may not fully account for unforeseen cost increases.
Lack of detailed performance metrics in provided data.

Positive Signals

Awarded through full and open competition.
Contract duration is clearly defined.
Supports essential healthcare services.

Sector Analysis

This contract falls under the Surgical and Medical Instrument Manufacturing sector (NAICS 339112). Spending in this sector can vary significantly based on technological advancements and the specific needs of healthcare providers. The VA's spending aligns with typical procurement patterns for advanced medical equipment.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Olympus America Inc. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and accountability.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns if unforeseen maintenance issues arise.
Lack of detailed performance metrics for service quality.
Dependence on a single supplier for critical equipment.
Limited insight into subcontractor involvement for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to OLYMPUS AMERICA INC. OLYMPUS FULL LEASE AND MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is OLYMPUS AMERICA 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 $6.1 million.

What is the period of performance?

Start: 2023-10-01. End: 2025-09-30.

What is the benchmark cost for similar Olympus equipment lease and maintenance contracts across other federal agencies or large healthcare systems?

Benchmarking against similar contracts is crucial for validating the $6.06 million price tag. Without comparative data, it's difficult to definitively assess value for money. Research into publicly available contract databases and industry reports for comparable medical equipment maintenance agreements would provide necessary context for a thorough cost-benefit analysis.

What specific performance metrics are included in the contract to ensure the quality and timeliness of maintenance services?

The provided data does not specify performance metrics. Effective oversight requires clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to response times, equipment uptime, and repair quality. Without these, the VA's ability to hold Olympus America Inc. accountable for service delivery is limited, potentially impacting patient care and increasing long-term costs.

How does the firm-fixed-price structure impact the VA's ability to manage costs if unexpected maintenance issues arise?

A firm-fixed-price contract offers cost certainty upfront but can be disadvantageous if unforeseen, complex maintenance issues emerge that exceed the contract's scope or require specialized, costly interventions. The VA may face additional costs or lengthy negotiations if such scenarios occur, potentially negating initial cost-saving intentions. Flexibility clauses or contingency budgets might mitigate this risk.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL 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: 3500 CORPORATE PKWY, CENTER VALLEY, PA, 18034

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

Financial Breakdown

Contract Ceiling: $6,056,565

Exercised Options: $6,056,565

Current Obligation: $6,056,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0168

IDV Type: FSS

Timeline