HHS awards $510K for electronic equipment repair, extending existing service contract

Contract Overview

Contract Amount: $510,423 ($510.4K)

Contractor: GE Precision Healthcare LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-02

End Date: 2027-01-31

Contract Duration: 1,278 days

Daily Burn Rate: $399/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REPLACEMENT P.O. FOR G.E. NOVATION

Place of Performance

Location: LAWTON, COMANCHE County, OKLAHOMA, 73507

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $510,422.6 to GE PRECISION HEALTHCARE LLC for work described as: REPLACEMENT P.O. FOR G.E. NOVATION Key points: 1. Contract value appears reasonable for specialized repair services. 2. Limited competition due to the nature of the existing equipment. 3. No immediate risk indicators identified based on available data. 4. Contract supports ongoing maintenance for critical health equipment. 5. Positioned within the healthcare equipment maintenance sector.

Value Assessment

Rating: good

The award of $510,422.60 for electronic and precision equipment repair and maintenance appears to be a reasonable value for the services rendered. Benchmarking against similar contracts for specialized equipment maintenance suggests that pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, and the extension of an existing service indicates a potentially established and satisfactory working relationship.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely a sole-source or limited competition award. Given the nature of specialized equipment repair, it's common for original equipment manufacturers or authorized service providers to be the primary, if not sole, source of maintenance. This limits the opportunity for broad price discovery through multiple bids.

Taxpayer Impact: The limited competition means taxpayers may not benefit from the lowest possible price achievable through a fully open market. However, it ensures specialized expertise is retained for critical equipment.

Public Impact

Beneficiaries include healthcare providers within the Indian Health Service. Services delivered are essential for the maintenance and operational readiness of electronic and precision medical equipment. Geographic impact is focused on facilities served by the Indian Health Service in Oklahoma. Workforce implications include the need for skilled technicians to perform the repairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if market rates for specialized repair services rise significantly during the contract period.
Reliance on a single provider could lead to service disruptions if the contractor faces operational issues.

Positive Signals

Extension of an existing contract suggests satisfaction with past performance and service quality.
Firm-fixed-price contract provides budget predictability.
The contract is managed by the Indian Health Service, a dedicated agency for Native American health.

Sector Analysis

This contract falls within the broader Information Technology and Healthcare Equipment Maintenance sector, specifically focusing on the repair and upkeep of electronic and precision equipment. The market for such services is often characterized by specialized knowledge and manufacturer-specific expertise. Comparable spending benchmarks would typically involve analyzing contracts for maintenance of similar medical devices or complex electronic systems across federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was not competed under SAP, which often includes small business considerations. Therefore, there are likely no direct subcontracting opportunities for small businesses arising from this specific award. The impact on the small business ecosystem is minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Indian Health Service. Accountability is ensured through the firm-fixed-price structure, which obligates the contractor to perform the specified services within the agreed-upon budget. Transparency is facilitated by the availability of contract data, though detailed performance metrics are not provided in this summary.

Related Government Programs

Medical Equipment Maintenance Services
Healthcare IT Support
Federal Health IT Spending
Indian Health Service Procurement

Risk Flags

Limited competition may lead to higher costs.
Reliance on a single provider for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $510,422.6 to GE PRECISION HEALTHCARE LLC. REPLACEMENT P.O. FOR G.E. NOVATION

Who is the contractor on this award?

The obligated recipient is GE PRECISION HEALTHCARE LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $510,422.6.

What is the period of performance?

Start: 2023-08-02. End: 2027-01-31.

What is the historical spending pattern for electronic and precision equipment repair and maintenance by the Indian Health Service?

Analyzing historical spending patterns for electronic and precision equipment repair and maintenance by the Indian Health Service is crucial for understanding trends and budget allocation. While specific historical data for this exact contract is not provided, the Indian Health Service (IHS) consistently procures maintenance and repair services for its medical equipment. This spending is driven by the need to ensure the operational readiness and safety of diagnostic, therapeutic, and monitoring devices across its facilities. Past awards in this category often involve firm-fixed-price contracts, similar to the current award, to manage costs effectively. The total annual expenditure can fluctuate based on equipment lifecycle, technological upgrades, and the number of facilities managed by IHS. A deeper dive would require examining IHS's contract databases over several fiscal years to identify specific dollar trends, average contract values, and the prevalence of sole-source versus competed awards within this service category.

How does the pricing of this contract compare to similar repair services for medical equipment within the federal government?

Benchmarking the pricing of this $510,422.60 contract against similar federal medical equipment repair services requires access to a broader dataset of comparable contracts. However, given that this is a firm-fixed-price contract for electronic and precision equipment repair and maintenance, it suggests an effort to establish a predictable cost. The specific nature of 'Electronic and Precision Equipment Repair and Maintenance' (NAICS 811210) can encompass a wide range of devices, from basic diagnostic tools to complex imaging systems. Pricing is influenced by factors such as the criticality of the equipment, the required response time, the availability of specialized technicians, and whether the service is provided by the original equipment manufacturer (OEM) or an authorized third party. Without specific details on the equipment covered and the service level agreements, a precise comparison is difficult. However, the contract's duration (up to January 31, 2027) and value suggest a medium-sized service agreement. Federal procurement data often shows that OEM-provided maintenance can be more expensive than third-party services, but may offer advantages in terms of warranty adherence and specialized knowledge.

What are the potential risks associated with extending a sole-source or limited-competition contract for essential equipment maintenance?

Extending a sole-source or limited-competition contract for essential equipment maintenance carries several potential risks. Firstly, there's the risk of 'vendor lock-in,' where the government becomes overly reliant on a single provider, potentially leading to complacency and reduced service quality over time. Secondly, without competitive pressure, the pricing may not be as favorable as it could be in a more open market, potentially leading to higher costs for taxpayers. Thirdly, if the sole provider experiences financial difficulties, operational disruptions, or changes in its business strategy, it could significantly impact the availability of critical maintenance services, leading to equipment downtime and disruption of essential operations. Finally, there's a risk that the contractor may not be incentivized to innovate or improve their service offerings as aggressively as they might under competitive conditions.

How effective is the Indian Health Service in managing its equipment maintenance contracts to ensure optimal performance and value?

Assessing the overall effectiveness of the Indian Health Service (IHS) in managing its equipment maintenance contracts requires a comprehensive review of its procurement processes, contract administration, and performance monitoring mechanisms. The IHS, like many federal agencies, aims to ensure optimal performance and value through various means, including the use of firm-fixed-price contracts to control costs, establishing clear performance standards, and conducting regular oversight. The extension of this particular contract suggests a level of satisfaction with the current provider's performance. However, effectiveness can vary. Factors such as the availability of skilled contracting officers, the clarity of performance work statements, and the rigor of post-award surveillance play critical roles. Independent audits or Inspector General reports related to IHS procurement could provide more objective insights into their contract management effectiveness. Generally, agencies strive for a balance between ensuring service continuity and achieving competitive pricing, which can be challenging in specialized service areas.

What is the typical duration and value range for contracts related to electronic and precision equipment repair and maintenance within the federal government?

Contracts for electronic and precision equipment repair and maintenance within the federal government can vary significantly in duration and value, depending on the type of equipment, the agency, and the scope of services. Durations often range from one to five years, with options for extension. The value can span from small purchase orders for individual repairs to multi-million dollar contracts covering comprehensive maintenance programs for complex systems. For instance, maintenance contracts for IT infrastructure, medical devices, or specialized scientific instruments can be substantial. The $510,422.60 value and approximately 2.5-year duration (August 2023 - January 2027) of this specific IHS contract fall within a moderate range for specialized equipment maintenance. Larger contracts might cover entire fleets of vehicles, extensive IT networks, or high-value medical imaging equipment, often exceeding several million dollars annually.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 3000 NORTH GRANDVIEW BOULEVARD, WAUKESHA, WI, 53188

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $510,423

Exercised Options: $510,423

Current Obligation: $510,423

Actual Outlays: $297,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline