VA awards $8.9M service maintenance agreement for irradiation apparatus to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $8,913,985 ($8.9M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-01

End Date: 2027-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICE MAINTENANCE AGREEMENT

Place of Performance

Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89086

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SERVICE MAINTENANCE AGREEMENT Key points: 1. The contract is for a significant duration (5 years) with a substantial value. 2. Siemens Medical Solutions USA, Inc. is a major player in medical equipment maintenance. 3. The contract's value is benchmarked against similar maintenance agreements in the sector. 4. Potential risks include vendor lock-in and the need for ongoing performance monitoring.

Value Assessment

Rating: good

The $8.9 million contract value over five years suggests a reasonable annual cost for specialized medical equipment maintenance. Benchmarking against similar service contracts for irradiation apparatus indicates this pricing is competitive.

Cost Per Unit: $488,400 per year (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the services.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for essential medical equipment maintenance for veterans.

Public Impact

Ensures continued operation and maintenance of critical medical equipment for veterans. Supports the Department of Veterans Affairs' mission to provide healthcare services. Maintains the availability of advanced diagnostic and treatment technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals.
Reliance on a single vendor for critical maintenance.

Positive Signals

Awarded through full and open competition.
Long-term contract provides budget stability.
Firms fixed price protects against cost overruns.

Sector Analysis

This contract falls within the healthcare sector, specifically for the maintenance of specialized medical equipment. Spending benchmarks for similar service agreements indicate that this award is within the expected range for such critical infrastructure.

Small Business Impact

The contract was awarded to a large business, Siemens Medical Solutions USA, Inc. There is no specific indication of small business participation in this particular award, which is common for specialized equipment maintenance contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Regular performance reviews and adherence to the terms of the firm fixed price agreement are key oversight mechanisms.

Related Government Programs

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

Risk Flags

Long contract duration may lead to vendor lock-in.
Potential for price escalation in future contract periods.
Reliance on a single vendor for critical equipment maintenance.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SERVICE MAINTENANCE AGREEMENT

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 $8.9 million.

What is the period of performance?

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

What is the potential impact of equipment obsolescence on this maintenance contract over its five-year term?

Equipment obsolescence could impact the contract by increasing the difficulty and cost of obtaining parts or specialized technical support. Siemens may need to provide workarounds or upgrades, potentially leading to scope changes or price adjustments if not managed proactively through contract clauses addressing technological advancements and end-of-life support.

How does the firm fixed price structure mitigate risks associated with fluctuating maintenance costs?

The firm fixed price structure locks in the cost for the duration of the contract, shielding the VA from unexpected increases in labor, parts, or operational expenses. This provides budget certainty and predictability, making it easier for the VA to manage its financial resources effectively for this critical service.

What mechanisms are in place to ensure the quality and timeliness of maintenance services provided by Siemens?

The VA likely employs performance metrics and service level agreements (SLAs) within the contract to ensure quality and timeliness. Regular performance reviews, user feedback mechanisms, and potential penalties for non-compliance would be standard oversight tools to hold Siemens accountable for meeting contractual obligations.

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: $8,914,585

Exercised Options: $8,913,985

Current Obligation: $8,913,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline