DoD awards $2.36M contract for Cath Lab equipment to Philips, with 5 years of performance
Contract Overview
Contract Amount: $2,358,725 ($2.4M)
Contractor: Philips North America LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-18
End Date: 2029-07-08
Contract Duration: 1,754 days
Daily Burn Rate: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 27
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8510889136!CATH LAB
Place of Performance
Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021
Plain-Language Summary
Department of Defense obligated $2.4 million to PHILIPS NORTH AMERICA LLC for work described as: 8510889136!CATH LAB Key points: 1. Contract awarded to a major medical equipment supplier. 2. Competition method appears robust, but specific details are limited. 3. Potential for price variation over the contract's 5-year duration. 4. Spending falls within the broad category of medical equipment.
Value Assessment
Rating: good
The awarded amount of $2.36M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar large-scale medical equipment procurements would be necessary for a precise value assessment, but the price appears reasonable for specialized cath lab equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely benefiting from a fair market price for essential medical equipment.
Public Impact
Ensures availability of critical medical equipment for military healthcare facilities. Supports advanced diagnostic and interventional procedures for service members. Potential for follow-on contracts or related equipment needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation.
- Reliance on a single vendor for critical equipment.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost overruns.
Sector Analysis
This contract falls under the 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers' sector. Spending in this area is crucial for maintaining healthcare infrastructure, with significant government investment typically seen in defense and veterans' affairs.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Philips North America LLC, is a large corporation, suggesting limited direct opportunities for small businesses in this specific award.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying prior oversight and approval. The Defense Logistics Agency's role suggests established procurement processes are being followed.
Related Government Programs
- Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (5 years).
- Potential for price increases over time.
- Dependence on a single supplier for critical equipment.
- Limited visibility into specific equipment details.
Tags
medical-dental-and-hospital-equipment-an, department-of-defense, wa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.4 million to PHILIPS NORTH AMERICA LLC. 8510889136!CATH LAB
Who is the contractor on this award?
The obligated recipient is PHILIPS NORTH AMERICA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2024-09-18. End: 2029-07-08.
What is the specific breakdown of equipment being procured and how does it align with current medical needs?
The contract ID 'CATH LAB' suggests equipment related to cardiac catheterization procedures. A detailed breakdown would reveal specific imaging systems, diagnostic tools, and consumables. Aligning this with current military medical needs ensures the procurement addresses critical requirements for cardiovascular care, potentially reducing reliance on external facilities and improving patient outcomes for service members.
Are there any identified risks associated with the long-term maintenance and support of this specialized equipment?
Long-term maintenance and support for specialized cath lab equipment can pose risks if not adequately addressed in the contract. This includes ensuring availability of spare parts, certified technicians, and timely service. Without clear provisions for these aspects, the government could face extended downtime, increased repair costs, or reliance on potentially expensive third-party maintenance providers, impacting operational readiness.
How will the effectiveness of this equipment be measured to ensure optimal patient care and procedural success?
Effectiveness can be measured through several key performance indicators (KPIs) tied to patient outcomes and procedural success rates. This includes tracking complication rates, diagnostic accuracy, patient recovery times, and the number of procedures performed. Regular reviews of these metrics, alongside user feedback from medical staff, will ensure the equipment is meeting its intended purpose and contributing to high-quality healthcare delivery.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 27
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: $2,358,725
Exercised Options: $2,358,725
Current Obligation: $2,358,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2D117D0014
IDV Type: IDC
Timeline
Start Date: 2024-09-18
Current End Date: 2029-07-08
Potential End Date: 2029-07-08 00:00:00
Last Modified: 2026-01-09
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