VA awards $8.57M Olympus Endoscope Lease and Maintenance Program to Olympus America Inc

Contract Overview

Contract Amount: $8,572,184 ($8.6M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-01

End Date: 2025-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OLYMPUS ENDOSCOPE LEASE AND MAINTENANCE PROGRAM

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.6 million to OLYMPUS AMERICA INC for work described as: OLYMPUS ENDOSCOPE LEASE AND MAINTENANCE PROGRAM Key points: 1. The contract is a sole-source award to Olympus America Inc. 2. The total value is $8.57 million over approximately four years. 3. The contract covers lease and maintenance for endoscopes, a critical medical device. 4. The Department of Veterans Affairs is the awarding agency.

Value Assessment

Rating: fair

The contract value of $8.57 million for a four-year lease and maintenance program for endoscopes appears reasonable given the specialized nature of the equipment and the sole-source award. Benchmarking against similar contracts is difficult without more specific details on the scope of services and equipment models.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Olympus America Inc. This limits price discovery and potentially leads to higher costs compared to a competitive process. The rationale for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these endoscope services.

Public Impact

Ensures continued access to essential medical equipment for veteran healthcare. Potential for higher costs due to sole-source nature impacts budget allocation. Reliability of endoscope maintenance is crucial for patient safety and procedural continuity. Limited transparency in pricing due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
Limited transparency on the justification for sole-source procurement.

Positive Signals

Ensures continuity of critical medical equipment for veterans.
Firms fixed price contract provides cost certainty for the VA.

Sector Analysis

This contract falls within the healthcare sector, specifically related to medical equipment and services. Spending on medical devices and maintenance is a significant component of healthcare budgets, with benchmarks varying widely based on device type and service level agreements.

Small Business Impact

The contract was awarded to Olympus America Inc., a large corporation, and there is no indication of small business participation in this specific award. The procurement method did not facilitate opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained fair value. Further oversight is needed to understand the justification for not competing the requirement and to assess the long-term cost implications.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive bidding.
Lack of transparency regarding justification for sole-source.
Dependence on a single vendor for critical medical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.6 million to OLYMPUS AMERICA INC. OLYMPUS ENDOSCOPE LEASE AND MAINTENANCE PROGRAM

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 $8.6 million.

What is the period of performance?

Start: 2021-04-01. End: 2025-03-31.

What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' suggesting a sole-source or limited competition approach. A thorough review would require access to the contract file to ascertain the specific justification, such as unique capabilities, urgent need, or lack of market availability. Without this, it's difficult to assess if taxpayers received the best value or if competitive options were overlooked.

How does the per-unit cost of endoscope lease and maintenance compare to industry benchmarks for similar equipment and services?

Benchmarking the per-unit cost is challenging without detailed specifications of the endoscopes leased and the maintenance services included. However, given the sole-source nature, there is a heightened risk that the pricing may be above market rates. A comparative analysis with publicly available data or similar VA contracts awarded competitively would be necessary to determine cost-effectiveness.

What is the potential impact on veteran healthcare services if the maintenance or lease of these endoscopes is disrupted?

Disruption to endoscope lease or maintenance could significantly impact veteran healthcare by delaying or canceling diagnostic and surgical procedures. This could lead to longer wait times, increased patient discomfort, and potentially adverse health outcomes. The reliance on a single vendor for critical equipment underscores the importance of robust service level agreements and contingency planning.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26021P0261

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: $8,572,184

Exercised Options: $8,572,184

Current Obligation: $8,572,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline