VA awards $2.3M for Irradiation Apparatus Manufacturing to Philips North America LLC
Contract Overview
Contract Amount: $2,327,560 ($2.3M)
Contractor: Philips North America LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-10-01
End Date: 2026-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: PHILIPS HTME PMI - BASE YEAR
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822
Plain-Language Summary
Department of Veterans Affairs obligated $2.3 million to PHILIPS NORTH AMERICA LLC for work described as: PHILIPS HTME PMI - BASE YEAR Key points: 1. Contract awarded to a single, established vendor. 2. Spending is concentrated within the Department of Veterans Affairs. 3. The contract duration spans five years. 4. The sector is manufacturing, specifically irradiation apparatus.
Value Assessment
Rating: fair
The contract value of $2.3M over five years appears reasonable for specialized manufacturing equipment. Benchmarking against similar irradiation apparatus contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award type is a delivery order, which may indicate a pre-existing or streamlined process for this specific vendor.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the final price is fixed.
Public Impact
Supports the Department of Veterans Affairs' medical equipment needs. Ensures availability of specialized manufacturing capabilities. Impacts the medical device manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific technical details for benchmarking.
- Delivery order award may limit transparency on initial price discovery.
Positive Signals
- Awarded under full and open competition.
- Clear vendor and agency identified.
Sector Analysis
This contract falls within the manufacturing sector, specifically for irradiation apparatus. Spending benchmarks for this niche area are not readily available, but it supports critical healthcare infrastructure.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting larger prime contractors are likely involved. Further analysis would be needed to determine small business subcontracting opportunities.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The contract type and duration will influence the level of ongoing monitoring required to ensure performance and value.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of detailed technical specifications.
- Potential for limited price discovery on delivery orders.
- Concentration of spending within a single vendor.
- No explicit small business participation noted.
Tags
irradiation-apparatus-manufacturing, department-of-veterans-affairs, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.3 million to PHILIPS NORTH AMERICA LLC. PHILIPS HTME PMI - BASE YEAR
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 $2.3 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-09-30.
What is the specific type and capability of the irradiation apparatus being procured, and how does it compare to market alternatives?
The provided data lacks specific technical details about the irradiation apparatus. Understanding its precise capabilities, intended use (e.g., sterilization, research), and comparing it to commercially available alternatives would be crucial for a thorough value assessment. Without this, it's difficult to determine if the $2.3M price point represents optimal value for the VA's specific needs.
What were the key factors that led to Philips North America LLC being selected under full and open competition for this delivery order?
While the contract states 'full and open competition,' the award being a 'delivery order' suggests it might be part of a larger contract or a pre-negotiated framework. Understanding the specific solicitation, the number of bids received, and the evaluation criteria used would clarify why Philips was chosen and if the pricing reflects the best possible outcome from the competitive process.
How will the performance and effectiveness of this irradiation apparatus be measured to ensure it meets the VA's operational requirements?
The effectiveness of the procured irradiation apparatus will likely be assessed through performance metrics outlined in the contract's statement of work. This could include uptime, output consistency, maintenance requirements, and user feedback. Regular reviews and acceptance testing by the VA will be critical to ensure the equipment functions as intended and provides long-term value.
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: $2,798,975
Exercised Options: $2,327,560
Current Obligation: $2,327,560
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
Start Date: 2021-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-15
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