VA awards $2.46M for GE imaging equipment maintenance, ensuring critical healthcare services

Contract Overview

Contract Amount: $2,464,317 ($2.5M)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-01

End Date: 2027-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GE ASSURE POINT IMAGING EQUIPMENT PREVENTIVE MAINTENANCE SERVICES

Place of Performance

Location: BOISE, ADA County, IDAHO, 83702

State: Idaho Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to GE PRECISION HEALTHCARE LLC for work described as: GE ASSURE POINT IMAGING EQUIPMENT PREVENTIVE MAINTENANCE SERVICES Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for specialized medical equipment services. 3. Risk indicators include reliance on original equipment manufacturer for specialized maintenance. 4. Performance context is critical for maintaining operational readiness of diagnostic imaging equipment. 5. Sector positioning within healthcare services, specifically diagnostic imaging support.

Value Assessment

Rating: good

The contract value of $2.46 million over five years for preventive maintenance of GE imaging equipment appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for Original Equipment Manufacturer (OEM) maintenance reveals that pricing is often within a standard range, though direct comparisons are difficult without specific service level agreements. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs (VA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a single award does not necessarily imply limited competition, as it could reflect the most advantageous offer received. The competitive process is expected to drive fair pricing and ensure the VA secures a capable provider for essential maintenance services.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Veterans will benefit from reliable access to diagnostic imaging services. Essential maintenance services will be delivered to critical medical equipment. Geographic impact is focused on VA facilities within Idaho. Workforce implications include ensuring the availability of skilled technicians for equipment upkeep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond standard preventive maintenance.
Dependence on a single contractor for specialized GE equipment maintenance could limit flexibility.
Ensuring consistent service quality across all delivery orders requires diligent oversight.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive market for these services.
Long-term contract (5 years) allows for sustained equipment support and relationship building.

Sector Analysis

The healthcare sector, particularly the segment focused on medical equipment maintenance and support, is a critical component of healthcare delivery. This contract fits within the broader market for diagnostic imaging equipment services, which is dominated by original equipment manufacturers (OEMs) and specialized third-party service providers. Spending in this area is driven by the need to maintain high-value capital equipment, ensuring operational efficiency and patient safety.

Small Business Impact

The contract data indicates that this was not a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The primary contractor, GE Precision Healthcare LLC, is a large entity, suggesting that opportunities for small businesses would likely be through indirect channels or if subcontracting requirements were imposed.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is facilitated through contract award data publicly available. The VA's contracting officers and program managers are responsible for monitoring performance and ensuring compliance with the contract terms.

Related Government Programs

Medical Equipment Maintenance Contracts
Diagnostic Imaging Services
Veterans Health Administration Procurement
Preventive Maintenance Services

Risk Flags

Potential for sole-source reliance on OEM for parts and expertise.
Service quality consistency across multiple delivery orders needs monitoring.
Scope definition for 'preventive maintenance' versus 'repair' is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to GE PRECISION HEALTHCARE LLC. GE ASSURE POINT IMAGING EQUIPMENT PREVENTIVE MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE 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 $2.5 million.

What is the period of performance?

Start: 2022-03-01. End: 2027-02-28.

What is the track record of GE Precision Healthcare LLC in providing similar maintenance services to federal agencies?

GE Precision Healthcare LLC, as a subsidiary of General Electric, has a significant track record in providing medical equipment, including imaging systems, and associated maintenance services to various federal agencies, notably the Department of Defense and the Department of Veterans Affairs. Their experience typically encompasses a wide range of diagnostic imaging modalities such as MRI, CT, and X-ray equipment. Federal procurement databases often show numerous awards to GE entities for equipment sales, installation, and long-term service agreements. While specific performance metrics for past contracts are not detailed here, their established presence in the federal healthcare market suggests a capacity to meet the technical and logistical demands of such agreements. However, a deeper dive into past performance reviews and any documented issues or successes would be necessary for a comprehensive assessment.

How does the awarded price compare to market rates for similar preventive maintenance services for GE imaging equipment?

Determining precise market rates for specialized preventive maintenance of GE imaging equipment is complex due to variations in service scope, equipment models, geographic location, and contract duration. However, the $2.46 million awarded over five years, averaging approximately $492,000 annually, for a single delivery order suggests a substantial investment. Industry benchmarks indicate that OEM maintenance contracts can be costly, often ranging from 10% to 20% of the equipment's acquisition cost annually. Without knowing the specific types and number of GE imaging units covered, a direct comparison is challenging. The fact that the contract was awarded under full and open competition implies that the VA received bids and selected the most advantageous offer, which should theoretically align with competitive market pricing. Further analysis would require detailed equipment inventories and service level agreements from comparable contracts.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns if unexpected major repairs beyond routine preventive maintenance are required, dependence on a single OEM provider for specialized knowledge and parts, and ensuring consistent service quality across all locations. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature of the contract shifts some repair cost risk to the contractor, although scope limitations must be clearly defined. Reliance on the OEM is often unavoidable for specialized equipment, but the competitive bidding process aims to secure a provider committed to service quality. The VA's oversight, including performance monitoring and potential for future contract adjustments or re-competition, serves to mitigate risks related to service delivery and contractor performance.

What is the expected effectiveness of this contract in ensuring the operational readiness of critical diagnostic imaging equipment for veterans?

This contract is expected to be highly effective in ensuring the operational readiness of critical diagnostic imaging equipment for veterans. By securing dedicated preventive maintenance services from GE Precision Healthcare LLC, the Department of Veterans Affairs aims to minimize equipment downtime, prevent unexpected failures, and maintain optimal performance of these vital diagnostic tools. Regular maintenance is crucial for the longevity and accuracy of imaging equipment, directly impacting the quality and timeliness of diagnoses for veteran patients. The five-year duration provides sustained support, allowing for proactive identification and resolution of potential issues before they escalate, thereby contributing significantly to the VA's mission of providing consistent and high-quality healthcare.

How does this contract's spending compare to historical VA spending on imaging equipment maintenance?

Analyzing historical spending patterns for VA imaging equipment maintenance requires access to comprehensive procurement data over multiple fiscal years. This single contract award of $2.46 million over five years represents a specific investment for a defined scope of services in Idaho. To compare it effectively, one would need to aggregate similar maintenance contracts awarded by the VA nationally or regionally for GE equipment, or for comparable imaging modalities, across previous years. Factors such as inflation, changes in equipment inventory, and shifts in maintenance strategies (e.g., moving from in-house to contracted services) would influence historical trends. Without this broader dataset, it's difficult to ascertain if this particular award represents an increase, decrease, or stable level of spending relative to past investments in similar services.

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

Solicitation ID: 36C26022N0256

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,464,317

Exercised Options: $2,464,317

Current Obligation: $2,464,317

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0024

IDV Type: IDC

Timeline