VA Leases Urology Scope for $2.6M, Competed Under SAP

Contract Overview

Contract Amount: $2,600,868 ($2.6M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2025-01-30

Contract Duration: 1,218 days

Daily Burn Rate: $2.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UROLOGY MEDICAL SCOPE LEASE WITH SERVICE

Place of Performance

Location: CENTER VALLEY, LEHIGH County, PENNSYLVANIA, 18034

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to OLYMPUS AMERICA INC for work described as: UROLOGY MEDICAL SCOPE LEASE WITH SERVICE Key points: 1. Spending is for a medical scope lease with service, indicating ongoing operational needs. 2. Olympus America Inc. is the sole awardee, raising questions about competition. 3. The contract is a firm fixed price, providing cost certainty. 4. Lease duration extends to January 2025, suggesting a medium-term requirement.

Value Assessment

Rating: fair

The lease cost of $2.6M over approximately 3.3 years appears reasonable for specialized medical equipment, but without specific scope details or comparable lease agreements, a precise valuation is difficult. Benchmarking against similar lease agreements for comparable medical devices would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting an expectation of lower value or simpler procurement. However, with only one awardee listed (Olympus America Inc.), the extent of actual competition is unclear and may have been limited.

Taxpayer Impact: Taxpayer funds are being used for leasing specialized medical equipment, which is a common practice for maintaining up-to-date technology in healthcare facilities. The cost-effectiveness depends on the necessity and utilization of the equipment.

Public Impact

Ensures VA medical centers have access to necessary urology diagnostic equipment. Supports patient care by providing advanced medical technology. Potential for increased wait times or reduced service if equipment is unavailable or outdated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite SAP.
Sole awardee may indicate market concentration or limited outreach.

Positive Signals

Firm fixed price contract provides cost predictability.
Lease ensures access to potentially advanced medical technology.

Sector Analysis

The healthcare sector, particularly within government agencies like the VA, frequently procures medical equipment through leases to manage technological obsolescence and capital expenditure. Spending benchmarks for such leases vary widely based on equipment type and service agreements.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Given the nature of specialized medical equipment, it is possible that larger, established manufacturers dominate the market, potentially limiting small business participation.

Oversight & Accountability

The contract was awarded as a delivery order under a larger agreement, suggesting some level of pre-existing oversight. Further review of the base contract and the justification for limited competition would be necessary for a comprehensive oversight assessment.

Related Government Programs

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

Risk Flags

Potential lack of robust competition.
Reliance on a single vendor for critical medical equipment.
Lease structure may not be the most cost-effective long-term solution compared to purchase.
Need for detailed performance metrics to validate value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to OLYMPUS AMERICA INC. UROLOGY MEDICAL SCOPE LEASE WITH SERVICE

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 $2.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-01-30.

What is the total cost of ownership over the lease term, including potential maintenance and upgrade costs not explicitly stated?

The total stated cost is $2.6M for the lease period. However, the contract type is 'FIRM FIXED PRICE', which typically includes all associated costs like service and maintenance. Without the full contract details, it's difficult to ascertain if any additional costs beyond the lease payment are anticipated. It's crucial to review the contract's scope of work to confirm all-inclusive pricing.

What specific factors led to only one vendor, Olympus America Inc., being awarded this contract under SAP?

The limited competition could stem from several factors. Olympus may be the sole manufacturer of this specific type of urology scope, or the only vendor capable of meeting the VA's technical specifications within the simplified acquisition threshold. Alternatively, the procurement process might not have adequately reached all potential vendors, or the solicitation itself may have inadvertently restricted competition.

How does the performance and utilization of this leased equipment compare to previous or alternative solutions used by the VA?

Performance and utilization data are not provided in the current dataset. To assess effectiveness, one would need to compare patient outcomes, procedure efficiency, equipment uptime, and user satisfaction metrics against historical data or benchmarks from similar VA facilities or other healthcare providers. This would help determine if the lease represents a value-driven solution for patient care.

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

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: $3,482,393

Exercised Options: $2,749,344

Current Obligation: $2,600,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26221D0030

IDV Type: IDC

Timeline