VA Awards $9.1M for MIMICS 3D Software to Materialise USA LLC, Sole Source

Contract Overview

Contract Amount: $91,564 ($91.6K)

Contractor: Materialise USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-21

End Date: 2027-09-20

Contract Duration: 729 days

Daily Burn Rate: $126/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MIMICS 3D SOFTWARE: MIMICS BASE, ANALYSIS, DESIGN, VIEWER PROFESSIONAL

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $91,564 to MATERIALISE USA LLC for work described as: MIMICS 3D SOFTWARE: MIMICS BASE, ANALYSIS, DESIGN, VIEWER PROFESSIONAL Key points: 1. Significant award for specialized 3D medical imaging software. 2. Sole-source procurement limits competitive pricing opportunities. 3. Potential risk of overpayment due to lack of competition. 4. IT sector spending on specialized software is common.

Value Assessment

Rating: questionable

The award of $9.1 million for MIMICS 3D software appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the price is fair compared to similar software solutions available on the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced price discovery.

Taxpayer Impact: Taxpayers may be overpaying for this software due to the absence of a competitive bidding process.

Public Impact

Veterans may benefit from advanced medical imaging capabilities enabled by this software. The VA's reliance on a single vendor for this critical software raises concerns about long-term cost and vendor lock-in. Lack of transparency in pricing due to sole-source award impacts public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competitive pricing
Potential for vendor lock-in

Positive Signals

Supports advanced medical imaging for veterans
Long-term contract provides stability

Sector Analysis

This award falls within the IT sector, specifically for specialized medical imaging software. Spending on such niche software can be substantial, but competitive procurement is crucial for cost-effectiveness.

Small Business Impact

The contract was awarded to Materialise USA LLC, a likely large business. There is no indication of small business participation in this sole-source award, missing an opportunity to support small businesses.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the vendor is meeting all contractual obligations.

Related Government Programs

Software Publishers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competition
Potential for overpricing
No small business participation noted
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $91,564 to MATERIALISE USA LLC. MIMICS 3D SOFTWARE: MIMICS BASE, ANALYSIS, DESIGN, VIEWER PROFESSIONAL

Who is the contractor on this award?

The obligated recipient is MATERIALISE USA 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 $91,564.

What is the period of performance?

Start: 2025-09-21. End: 2027-09-20.

What is the justification for the sole-source award of MIMICS 3D software?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further details from the VA, it's difficult to ascertain the specific reasons. However, sole-source contracts often raise concerns about whether a thorough market analysis was conducted to confirm the absence of competition.

What are the risks associated with a sole-source procurement for specialized software?

Sole-source procurements carry risks such as inflated pricing due to the absence of competitive pressure, potential vendor lock-in, and reduced innovation. The government may not achieve the best possible value. Furthermore, it limits opportunities for other vendors to compete and potentially offer more cost-effective or advanced solutions.

How can the VA ensure value for money in this sole-source contract?

The VA can ensure value by conducting rigorous price negotiations, establishing clear performance metrics, and seeking independent cost analyses if possible. Regular contract reviews and market research for potential future competition are also essential to mitigate risks and identify opportunities for better value in subsequent procurements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26125Q0207

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Materialise

Address: 44650 HELM CT, PLYMOUTH, MI, 48170

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

Financial Breakdown

Contract Ceiling: $243,106

Exercised Options: $91,564

Current Obligation: $91,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline