VA awards $3.06M contract for Irradiation Apparatus Manufacturing to Philips North America LLC

Contract Overview

Contract Amount: $3,056,731 ($3.1M)

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: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Manufacturing

Official Description: PHILIPS HTME PMI SERVICES - BASE YEAR

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to PHILIPS NORTH AMERICA LLC for work described as: PHILIPS HTME PMI SERVICES - BASE YEAR Key points: 1. Contract awarded to a single, well-known vendor, suggesting established relationship or specialized capability. 2. The contract value is moderate, indicating a specific need rather than a broad program. 3. Competition method is 'FULL AND OPEN', which is positive for price discovery. 4. The sector is manufacturing, specifically irradiation apparatus, which has niche applications.

Value Assessment

Rating: good

The contract value of $3.06M over 5 years appears reasonable for specialized manufacturing equipment. Benchmarking against similar contracts for irradiation apparatus 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, which generally allows for the best possible pricing through market forces. The award type is a delivery order, suggesting it's part of a larger framework or existing contract.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for the acquisition.

Public Impact

Ensures availability of specialized medical equipment for VA facilities. Supports a critical manufacturing sector, potentially impacting healthcare technology. The contract duration allows for stable supply and planning for VA operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if this is a sole-source follow-on.
Limited insight into the specific technology and its lifecycle cost.

Positive Signals

Awarded under full and open competition.
Contract awarded to a reputable company with industry presence.
Clear contract duration and value.

Sector Analysis

The contract falls within the manufacturing sector, specifically for irradiation apparatus. This type of equipment is often used in medical sterilization or research, suggesting a specialized application within the healthcare domain.

Small Business Impact

The data indicates the prime contractor is PHILIPS NORTH AMERICA LLC, a large business. There is no explicit information on small business subcontracting participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight would typically involve contract performance monitoring, quality assurance, and financial management to ensure compliance with terms and conditions.

Related Government Programs

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

Risk Flags

Lack of detailed technical specifications.
Absence of performance metrics.
Limited visibility into the competitive bidding process beyond the method.
Potential for long-term reliance on a single vendor for specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to PHILIPS NORTH AMERICA LLC. PHILIPS HTME PMI SERVICES - 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 $3.1 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the specific application and technical capability of the 'Irradiation Apparatus' being procured, and how does it align with VA's current and future healthcare needs?

The specific application of the irradiation apparatus is not detailed in the provided data. Typically, such equipment is used for sterilization of medical devices or in radiation therapy. Understanding the precise function is crucial to assess if it meets the VA's evolving healthcare demands and technological advancements, ensuring the investment supports critical patient care and operational efficiency.

Given the 'FULL AND OPEN COMPETITION' method, what was the range of bids received, and how does the awarded price compare to the independent government cost estimate?

While the contract was awarded under 'FULL AND OPEN COMPETITION', the provided data does not include the number of bids received or the range of pricing. To fully assess value for taxpayers, a comparison with the government's independent cost estimate and the pricing of competing proposals would be necessary to confirm competitive pressure effectively drove down costs.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure the effectiveness and reliability of the delivered irradiation apparatus?

The provided data lacks specific Key Performance Indicators (KPIs) for this contract. Effective oversight requires clearly defined metrics related to equipment performance, uptime, maintenance, and adherence to delivery schedules. The VA's ability to measure the effectiveness and reliability of the irradiation apparatus will depend on the presence and enforcement of these specific, measurable, achievable, relevant, and time-bound (SMART) criteria within the contract.

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: $3,056,731

Exercised Options: $3,056,731

Current Obligation: $3,056,731

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