VA awards $1.05M contract for Xper IM Flex Cardio System support to Philips North America LLC

Contract Overview

Contract Amount: $105,276 ($105.3K)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-17

End Date: 2027-05-16

Contract Duration: 1,094 days

Daily Burn Rate: $96/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUPPORT AND SERVICE OF XPER IM FLEX CARDIO SYSTEM FOR VA NORTHERN CA

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $105,276 to PHILIPS NORTH AMERICA LLC for work described as: SUPPORT AND SERVICE OF XPER IM FLEX CARDIO SYSTEM FOR VA NORTHERN CA Key points: 1. Contract awarded to a single, established vendor for specialized medical equipment support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over three years, indicating a long-term need for these services. 4. The award amount is $1,052,760, representing a significant investment in medical infrastructure.

Value Assessment

Rating: good

The contract value of $1.05M over three years appears reasonable for specialized medical equipment support. Benchmarking against similar contracts for complex medical system maintenance would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under an existing contract suggests a structured procurement process.

Taxpayer Impact: Taxpayer funds are being used to ensure the continued operation of critical medical equipment, supporting veteran healthcare services.

Public Impact

Ensures continuity of care for veterans requiring cardiac imaging services. Supports the operational readiness of medical facilities within the VA Northern California health system. Maintains advanced medical technology, potentially improving diagnostic accuracy and patient outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future delivery orders if not managed closely.
Dependence on a single vendor for critical equipment maintenance.

Positive Signals

Awarded through full and open competition.
Long-term contract ensures service availability.
Supports critical healthcare infrastructure for veterans.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on the maintenance and support of advanced medical imaging equipment. Spending benchmarks for similar medical equipment service contracts vary widely based on system complexity and vendor.

Small Business Impact

The contract was awarded to Philips North America LLC, a large corporation. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of a delivery order under a competitive process suggests established oversight mechanisms are in place.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in due to specialized equipment.
Reliance on a single vendor for critical maintenance.
Need for ongoing price scrutiny for future delivery orders.
Ensuring adequate technical expertise within VA for oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $105,276 to PHILIPS NORTH AMERICA LLC. SUPPORT AND SERVICE OF XPER IM FLEX CARDIO SYSTEM FOR VA NORTHERN CA

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 $105,276.

What is the period of performance?

Start: 2024-05-17. End: 2027-05-16.

What is the historical performance of Philips North America LLC in supporting similar VA medical systems?

Assessing Philips North America LLC's past performance with the VA, particularly on similar Xper IM Flex Cardio systems or comparable imaging equipment, is crucial. This includes evaluating their track record for on-time service delivery, technical expertise, responsiveness to issues, and overall customer satisfaction. Past performance data can inform the current contract's value and mitigate potential risks associated with service disruptions or quality concerns.

How does the per-unit cost of service for this contract compare to industry benchmarks for similar cardio imaging systems?

A detailed cost-benefit analysis comparing the per-unit service cost under this contract to industry averages for comparable cardio imaging systems is essential. This involves examining the scope of services included (e.g., preventative maintenance, emergency repairs, parts) and the system's age and complexity. Benchmarking helps determine if the $1.05M award represents fair market value and identifies potential overspending or cost savings opportunities.

What are the potential risks if this specific cardio system experiences a critical failure and requires immediate, extensive repair beyond the contract's scope?

Critical failures beyond the contract's scope pose significant risks, including extended patient care disruptions, potential need for emergency, high-cost external repair services, and delays in acquiring necessary parts. The VA should have contingency plans, potentially involving backup equipment or pre-negotiated emergency service rates with Philips or alternative vendors, to mitigate the impact of such unforeseen events and ensure minimal disruption to veteran healthcare.

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: $210,552

Exercised Options: $105,276

Current Obligation: $105,276

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