VA Awards $249K MRI Repair Contract to Siemens for Irradiation Apparatus Manufacturing

Contract Overview

Contract Amount: $24,892 ($24.9K)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-31

End Date: 2027-02-28

Contract Duration: 334 days

Daily Burn Rate: $75/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REPAIR MRI SIEMENS (VA-26-00055862)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,891.5 to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: REPAIR MRI SIEMENS (VA-26-00055862) Key points: 1. Contract awarded to incumbent supplier Siemens Medical Solutions USA, Inc. 2. Competition was full and open, suggesting potential for price discovery. 3. The contract duration is 334 days, ending February 2027. 4. The North American Industry Classification System (NAICS) code is 334517. 5. The award is a delivery order under an existing contract.

Value Assessment

Rating: good

The contract value of $248,91.50 appears reasonable for specialized MRI repair services. Benchmarking against similar repair contracts for Siemens MRI machines would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer funds are being used efficiently for necessary medical equipment maintenance.

Public Impact

Ensures continued operation of critical medical diagnostic equipment for veterans. Supports the Department of Veterans Affairs' healthcare mission. Maintains the functionality of advanced imaging technology.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized.
Awarded to a known supplier of the equipment.
Clear end date for service delivery.

Sector Analysis

This contract falls within the medical equipment manufacturing and repair sector. Spending in this area is crucial for maintaining healthcare infrastructure, with benchmarks varying based on equipment type and service complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The use of a delivery order suggests it's part of a larger contracting vehicle, which may have its own oversight mechanisms.

Related Government Programs

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

Risk Flags

Potential for higher costs by using OEM.
Lack of alternative repair provider options.
Dependence on a single supplier for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,891.5 to SIEMENS MEDICAL SOLUTIONS USA, INC.. REPAIR MRI SIEMENS (VA-26-00055862)

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 $24,891.5.

What is the period of performance?

Start: 2026-03-31. End: 2027-02-28.

What is the historical performance of Siemens Medical Solutions USA, Inc. on similar MRI repair contracts with the VA?

Historical performance data for Siemens Medical Solutions USA, Inc. on similar MRI repair contracts with the VA would be crucial for a comprehensive value assessment. Reviewing past contract awards, performance reviews, and any documented issues or successes would provide insight into their reliability, responsiveness, and adherence to quality standards, ultimately informing whether this current award represents a good value.

Are there any potential risks associated with relying on the original equipment manufacturer for specialized MRI repairs?

Relying on the original equipment manufacturer (OEM) like Siemens can mitigate risks related to part availability and technical expertise, ensuring repairs meet manufacturer specifications. However, it can also lead to higher costs compared to third-party repairers and potential vendor lock-in. The lack of alternative repair options could also pose a risk if the OEM experiences service disruptions.

How does the pricing of this MRI repair contract compare to industry benchmarks for similar services?

A direct comparison of this contract's pricing to industry benchmarks for similar Siemens MRI repair services is essential for evaluating its effectiveness. Without specific benchmark data, it's difficult to definitively state if $248,91.50 is optimal. Factors like the specific MRI model, the scope of repairs, and the urgency of the service would influence benchmark comparisons.

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: $24,892

Exercised Options: $24,892

Current Obligation: $24,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2D117D0023

IDV Type: IDC

Timeline