VA awards $3.79M lease for medical scopes with service maintenance to Olympus America Inc

Contract Overview

Contract Amount: $3,786,594 ($3.8M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-01

End Date: 2023-12-31

Contract Duration: 1,094 days

Daily Burn Rate: $3.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SCOPE LEASE W/ SERVICE MAINTENANCE

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to OLYMPUS AMERICA INC for work described as: MEDICAL SCOPE LEASE W/ SERVICE MAINTENANCE Key points: 1. Contract awarded to a single, established vendor for specialized medical equipment. 2. Lease agreement includes service maintenance, ensuring operational readiness. 3. Spending is concentrated within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. 4. Potential for cost savings through competitive bidding under SAP, though specific details are limited.

Value Assessment

Rating: good

The contract value of $3.79M over three years for a medical scope lease with maintenance appears reasonable given the specialized nature of the equipment and the inclusion of service. Benchmarking against similar high-end medical equipment leases would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures) and awarded via a BPA Call. While SAP aims for efficiency, it may not always yield the most competitive pricing compared to full and open competition for high-value procurements.

Taxpayer Impact: Taxpayer funds are utilized for essential medical equipment for veterans. The use of SAP suggests an effort to streamline procurement, but the ultimate cost-effectiveness hinges on the pricing achieved through the BPA call.

Public Impact

Ensures VA medical facilities have access to necessary diagnostic and treatment equipment. Supports veteran healthcare services by providing up-to-date medical technology. The contract's duration ensures continuity of care and equipment availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not guarantee the best price.
Reliance on a single vendor for specialized equipment could pose future supply chain risks.

Positive Signals

Includes essential service maintenance, reducing operational downtime.
Supports critical healthcare needs for veterans.

Sector Analysis

This contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector, which involves the production and leasing of sophisticated medical devices. Spending in this sector is often characterized by high unit costs due to research, development, and specialized manufacturing.

Small Business Impact

The data indicates the award was made to Olympus America Inc., a large corporation. There is no explicit indication of small business participation in this specific award, suggesting opportunities may be missed for smaller specialized service providers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of BPA calls and SAP implies a streamlined oversight process, but requires diligent monitoring to ensure fair pricing and performance.

Related Government Programs

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

Risk Flags

Limited competition
Potential vendor lock-in
High specialized equipment cost
Reliance on specific manufacturer's service

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to OLYMPUS AMERICA INC. MEDICAL SCOPE LEASE W/ SERVICE MAINTENANCE

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 $3.8 million.

What is the period of performance?

Start: 2021-01-01. End: 2023-12-31.

What is the total cost of ownership over the lease term, including potential repair costs outside of the maintenance agreement?

The total contract value is $3.79M over approximately three years. To determine the total cost of ownership, one would need to factor in any potential costs beyond the included service maintenance, such as consumables, user training, or unforeseen repairs not covered by the agreement. A detailed breakdown of what the service maintenance contract explicitly covers is crucial for this assessment.

What was the competitive landscape during the BPA call, and were alternative vendors or equipment considered?

The contract was competed under SAP via a BPA Call, suggesting some level of competition was sought. However, the specific details of the competitive process, including the number of bids received and the evaluation criteria, are not provided. Understanding if alternative manufacturers or models were evaluated is key to assessing the value achieved.

How does the performance and reliability of these leased medical scopes compare to industry benchmarks and previous VA procurements?

Performance and reliability data are not included in the provided contract details. A thorough effectiveness assessment would require analyzing user feedback, maintenance logs, and equipment uptime statistics. Comparing these metrics against industry standards and the VA's historical experience with similar equipment would reveal its true effectiveness.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

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: $3,789,604

Exercised Options: $3,789,604

Current Obligation: $3,786,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26219A0033

IDV Type: BPA

Timeline