VA awards $180K purchase order for EEG equipment to NIHON KOHDEN AMERICA, LLC

Contract Overview

Contract Amount: $179,887 ($179.9K)

Contractor: Nihon Kohden America, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-07-10

Contract Duration: 91 days

Daily Burn Rate: $2.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EEG EQUIPMENT NEUROLOGY

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92618

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $179,887.09 to NIHON KOHDEN AMERICA, LLC for work described as: EEG EQUIPMENT NEUROLOGY Key points: 1. The contract value appears reasonable given the specialized nature of EEG equipment. 2. Competition dynamics for this specific equipment type may be limited, potentially impacting price. 3. The short duration of the contract suggests a need for immediate or short-term supply. 4. Performance context is limited due to the nature of a purchase order for equipment. 5. This contract falls within the medical instrument manufacturing sector.

Value Assessment

Rating: good

The award of $179,887.09 for EEG equipment seems within a reasonable range for specialized medical devices. Benchmarking against similar federal contracts for EEG equipment would provide a more precise value-for-money assessment. However, the price appears competitive for a firm-fixed-price purchase order of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders. While the specific number of offers received is not detailed, SAP is designed for smaller procurements where full and open competition may not be feasible or cost-effective. The limited competition may mean less aggressive pricing than a full and open bid.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes lead to slightly higher prices compared to a broad, open competition, but it also ensures a more streamlined and efficient acquisition process for necessary equipment.

Public Impact

Veterans will benefit from access to advanced EEG diagnostic equipment. The equipment will support neurological diagnostics and patient care within VA facilities. The primary geographic impact is within the state of California, where the equipment will be deployed. This contract supports the healthcare workforce by providing essential tools for medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to impact long-term pricing strategies.
Reliance on a single vendor for specialized equipment could pose supply chain risks if not managed proactively.

Positive Signals

Award to a known entity in the medical device sector.
Firm-fixed-price contract provides cost certainty for the government.
Short contract duration allows for flexibility in future procurement decisions.

Sector Analysis

The market for surgical and medical instruments, including EEG equipment, is a significant segment of the healthcare industry. This contract fits within the broader trend of federal agencies procuring specialized medical technology to enhance patient care. Comparable spending benchmarks for EEG equipment can vary widely based on features and quantity, but this award appears to be for a specific set of devices rather than a large-scale system.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to NIHON KOHDEN AMERICA, LLC, a potentially larger entity, suggests that small business participation may be limited in this specific procurement.

Oversight & Accountability

As a purchase order under SAP, oversight is typically managed through the agency's internal procurement and financial management systems. The Department of Veterans Affairs has established oversight mechanisms for acquisitions, and the Inspector General's office provides an additional layer of accountability for fraud, waste, and abuse.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration
Neurology Services
Surgical and Medical Instrument Manufacturing

Risk Flags

Limited Competition
Potential for Price Increase due to Limited Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $179,887.09 to NIHON KOHDEN AMERICA, LLC. EEG EQUIPMENT NEUROLOGY

Who is the contractor on this award?

The obligated recipient is NIHON KOHDEN 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 $179,887.09.

What is the period of performance?

Start: 2026-04-10. End: 2026-07-10.

What is the track record of NIHON KOHDEN AMERICA, LLC with the Department of Veterans Affairs?

A review of federal procurement data indicates that NIHON KOHDEN AMERICA, LLC has received multiple awards from the Department of Veterans Affairs in the past, primarily for medical equipment and supplies. These awards span various contract types and values, suggesting an established relationship with the agency. While specific performance details for each contract are not publicly available, the consistent awarding of contracts implies a satisfactory performance history. Further analysis would involve examining past performance evaluations and any reported issues or disputes to provide a comprehensive assessment of their track record with the VA.

How does the awarded price compare to market rates for similar EEG equipment?

Directly comparing the awarded price of $179,887.09 to precise market rates for similar EEG equipment is challenging without detailed specifications of the purchased items. However, based on general market knowledge, this price point for a set of EEG equipment suitable for clinical use appears to be within a reasonable range. Factors influencing market price include the brand, model, specific features (e.g., number of channels, portability, advanced analysis software), and any bundled services like installation or training. Federal agencies often leverage their purchasing power, but the limited competition under SAP might mean the price is closer to commercial rates than if it were a large-scale, highly competitive bid.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low due to its nature as a firm-fixed-price purchase order for equipment with a short duration. Potential risks include the possibility of receiving equipment that does not fully meet the VA's evolving clinical needs if specifications were not precise, or potential delays in delivery if the vendor faces supply chain issues. Given the limited competition, there's also a minor risk that the price could be slightly higher than if a broader competition had been conducted. However, the short performance period (91 days) mitigates long-term risks related to obsolescence or changing technological requirements.

How effective is the Department of Veterans Affairs in procuring necessary medical equipment?

The Department of Veterans Affairs (VA) has a complex and extensive system for procuring medical equipment, aiming to provide state-of-the-art technology to veterans. Their effectiveness can be viewed through various lenses. On one hand, the VA manages a vast supply chain and awards billions in contracts annually, demonstrating significant capacity. They utilize a range of contracting methods, including competitive bidding and simplified acquisition procedures, to meet diverse needs. However, the VA has also faced scrutiny regarding procurement processes, including instances of delays, cost overruns, and challenges in adopting new technologies quickly. The effectiveness often depends on the specific equipment, the urgency of the need, and the clarity of requirements. This particular award for EEG equipment, being a relatively small purchase order, likely reflects a more streamlined and effective procurement process for immediate needs.

What are the historical spending patterns for EEG equipment by the VA?

Historical spending patterns for EEG equipment by the VA show a consistent need for these diagnostic tools to support neurological care for veterans. The VA procures EEG equipment through various contract vehicles, including purchase orders, indefinite-delivery/indefinite-quantity (IDIQ) contracts, and sometimes through larger medical equipment system awards. Spending levels can fluctuate year-to-year based on equipment replacement cycles, technological upgrades, and the expansion of neurological services across VA facilities. While specific aggregate spending figures for EEG equipment alone are not readily available without deep data mining, the recurring nature of these procurements indicates it's an essential category of medical technology for the agency. This $180K award represents a single instance within that broader spending context.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26226Q0524

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nihon Kohden America LLC

Address: 15353 BARRANCA PKWY, IRVINE, CA, 92618

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $179,887

Exercised Options: $179,887

Current Obligation: $179,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline