VA awards $7.7M for Imaging Systems Maintenance to Siemens, highlighting firm fixed price contract

Contract Overview

Contract Amount: $7,698,171 ($7.7M)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2025-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMAGING SYSTEMS MAINTENANCE BASE YEAR

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: IMAGING SYSTEMS MAINTENANCE BASE YEAR Key points: 1. Contract Value: $7.7 million for a base year of imaging system maintenance. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Siemens Medical Solutions USA, Inc. is the sole awardee, with potential single-source risk if competition falters. 4. Sector: Focuses on healthcare technology maintenance, crucial for patient care delivery.

Value Assessment

Rating: good

The $7.7 million base year cost for imaging systems maintenance appears reasonable given the specialized nature of the equipment and the vendor's expertise. Benchmarking against similar VA or other federal contracts for advanced medical equipment maintenance would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and potentially better terms for the government.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential healthcare services.

Public Impact

Ensures continued operation of critical medical imaging equipment for veterans. Supports patient diagnosis and treatment by maintaining advanced technology. Potentially impacts the quality and availability of healthcare services at VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent option years.
Dependence on a single vendor for critical maintenance services.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract limits cost overruns.
Long-term contract provides service stability.

Sector Analysis

This contract falls within the healthcare technology sector, specifically focusing on the maintenance of complex imaging systems. Spending benchmarks in this area are highly variable, depending on the type and age of the equipment, and the service level agreements required.

Small Business Impact

The data does not indicate any specific involvement or subcontracting opportunities for small businesses in this award. Further analysis would be needed to determine if small businesses were considered or could participate in future contract actions.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability would involve monitoring service delivery, adherence to contract terms, and performance metrics to ensure value for money.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in.
Reliance on a single supplier for critical equipment.
Risk of service disruptions if vendor performance declines.
Inflationary pressures impacting future option year costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.7 million to SIEMENS MEDICAL SOLUTIONS USA, INC.. IMAGING SYSTEMS MAINTENANCE 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 $7.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-09-30.

What is the projected cost for the full contract duration, including all option years, and how does it compare to industry benchmarks?

The provided data only details the base year cost of $7.7 million. To assess the full contract value, information on option years and their associated costs is required. Comparing this to industry benchmarks for similar imaging system maintenance contracts would reveal if the VA is achieving competitive pricing over the long term.

What are the key performance indicators (KPIs) for this maintenance contract, and how will Siemens' performance be measured?

The contract details do not specify the key performance indicators (KPIs) or the measurement methodology for Siemens' performance. Effective oversight requires clearly defined KPIs related to response times, equipment uptime, and repair quality. Regular performance reviews against these metrics are crucial for ensuring service effectiveness and accountability.

Are there any provisions for technology refresh or upgrades within this contract, or is it solely for maintenance of existing systems?

This contract appears to be focused on the maintenance of existing imaging systems, as indicated by the description 'IMAGING SYSTEMS MAINTENANCE'. There is no explicit mention of provisions for technology refresh or upgrades. Future contracts or modifications might be necessary to incorporate newer technologies.

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: $7,698,171

Exercised Options: $7,698,171

Current Obligation: $7,698,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline