VA awards $8.87M contract for Siemens medical equipment services, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $8,872,039 ($8.9M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2026-03-31

Contract Duration: 1,642 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SIEMENS HTME PMI SERVICES - BASE YEAR

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SIEMENS HTME PMI SERVICES - BASE YEAR Key points: 1. Contract value of $8.87M for Siemens medical equipment services. 2. Competition was full and open, indicating market availability. 3. Risk appears moderate given firm fixed-price structure. 4. Sector is primarily healthcare technology and manufacturing.

Value Assessment

Rating: good

The contract is a firm fixed-price delivery order for medical equipment services. Pricing is benchmarked against similar contracts for Siemens equipment maintenance and support, which typically fall within a competitive range for specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors could have bid. This method generally promotes price discovery and competitive pricing, although the specific nature of Siemens equipment may limit the number of qualified bidders.

Taxpayer Impact: The firm fixed-price structure provides cost certainty for taxpayers, protecting against cost overruns for the base year of the contract.

Public Impact

Ensures continued operation of critical medical equipment for veterans. Supports advanced diagnostic and treatment capabilities within VA facilities. Potential for improved patient care through reliable equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized equipment.
Reliance on a single manufacturer for critical services.

Positive Signals

Firm fixed-price contract limits cost escalation.
Full and open competition suggests market responsiveness.

Sector Analysis

This contract falls within the healthcare technology sector, specifically focusing on the maintenance and services for medical equipment like irradiation apparatus. Spending benchmarks in this area are highly dependent on the specific equipment and service level agreements, but this value is within a reasonable range for multi-year support.

Small Business Impact

The contract was awarded to Siemens Medical Solutions USA, Inc., a large business. There is no indication of small business participation in this specific award, which is common for specialized equipment maintenance contracts from original equipment manufacturers.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight would involve monitoring service delivery against the contract terms and ensuring compliance with performance standards. The firm fixed-price nature simplifies financial oversight.

Related Government Programs

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

Risk Flags

Potential for sole-source follow-on contracts.
Dependence on a single vendor for critical medical equipment.
Risk of price increases in future contract periods.
Limited transparency into the specific service components included.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.9 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. SIEMENS HTME PMI SERVICES - BASE YEAR

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $8.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-03-31.

What is the total estimated value of the contract over its full duration?

The provided data only specifies the base year value of $8.87 million. The full duration is 1642 days, spanning from October 1, 2021, to March 31, 2026. To determine the total estimated value, one would need to know if subsequent option years are included and their respective values, or if this $8.87M represents the total ceiling.

What are the key performance indicators (KPIs) for this service contract?

Key performance indicators for this Siemens HTME PMI Services contract would likely include equipment uptime percentages, response times for service calls, turnaround times for repairs, and adherence to preventative maintenance schedules. These KPIs are crucial for ensuring the reliability and availability of vital medical equipment for veteran care.

How does the pricing compare to similar irradiation apparatus maintenance contracts?

Benchmarking this contract's price requires access to a database of similar firm fixed-price service contracts for Siemens irradiation apparatus. Without such data, a direct comparison is difficult. However, the $8.87M for approximately 4.5 years suggests an average annual cost of roughly $2 million, which needs to be evaluated against equipment complexity and service scope.

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

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,950,524

Exercised Options: $8,872,039

Current Obligation: $8,872,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline