VA awards $18.8M for high-tech biomedical equipment, primarily for irradiation apparatus manufacturing

Contract Overview

Contract Amount: $18,850,267 ($18.9M)

Contractor: General Electric Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-09-30

End Date: 2009-09-30

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES.

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188, UNITED STATES OF AMERICA

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.9 million to GENERAL ELECTRIC COMPANY for work described as: HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES. Key points: 1. Contract awarded to General Electric Company for specialized biomedical equipment. 2. Focus on irradiation apparatus manufacturing suggests a need for advanced medical technology. 3. The contract duration is relatively short, ending on September 30, 2009. 4. This award falls under the broader category of medical equipment and supplies. 5. The specific NAICS code (334517) points to a niche manufacturing sector.

Value Assessment

Rating: fair

The contract value of $18.8 million for high-tech biomedical equipment is a significant investment. Without specific benchmarks for irradiation apparatus manufacturing, it's difficult to definitively assess value for money. However, given the specialized nature of the equipment, pricing would likely reflect advanced technology and research and development costs. Comparing this to similar, albeit potentially less specialized, medical equipment contracts could provide some context, but direct comparisons are challenging due to the specific product.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was issued as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. The term 'competitive' suggests a process designed to solicit bids from qualified suppliers. The number of bids received and the specific terms of the competition would further illuminate the level of market engagement and its impact on pricing. A competitive process generally aims to secure favorable terms for the government.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it encourages multiple suppliers to offer their best pricing and terms, potentially leading to cost savings compared to a sole-source procurement.

Public Impact

Veterans will benefit from access to advanced medical equipment, potentially improving diagnostic and treatment capabilities. The services delivered involve the provision of specialized biomedical equipment, specifically for irradiation apparatus. The geographic impact is likely concentrated around VA facilities that utilize this type of equipment. This contract supports the manufacturing sector, specifically within the high-tech biomedical equipment industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract awarded near the end of the fiscal year, potentially indicating rushed procurement.
  • The contract expired on September 30, 2009, suggesting a short-term need or a single project.
  • Lack of detailed performance metrics makes it difficult to assess the effectiveness of the equipment procured.

Positive Signals

  • Awarded through a competitive process, suggesting a degree of market vetting.
  • General Electric Company is a large, established manufacturer with a track record in complex equipment.
  • The contract addresses a specific need within the VA's medical technology infrastructure.

Sector Analysis

The contract falls within the broader medical device manufacturing sector, specifically focusing on irradiation apparatus. This is a specialized segment within the larger healthcare technology market, which is characterized by high R&D investment, stringent regulatory requirements, and significant technological advancements. The market size for such specialized equipment is difficult to pinpoint without more specific product details, but it is a critical component of advanced medical treatment and research.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a large contract awarded to a major corporation like General Electric, the primary focus is likely on established manufacturers capable of producing complex, high-tech equipment. Subcontracting opportunities for small businesses may exist within GE's supply chain, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public, though detailed performance and pricing justifications may be less accessible.

Related Government Programs

  • Medical Equipment Procurement
  • Veterans Health Administration Services
  • Biomedical Technology Acquisition
  • Irradiation Technology

Risk Flags

  • Potential for technological obsolescence
  • High maintenance and operational costs
  • Need for specialized user training
  • Integration with existing healthcare IT infrastructure

Tags

healthcare, biomedical-equipment, irradiation-apparatus, department-of-veterans-affairs, competitive-delivery-order, fixed-price-economic-price-adjustment, general-electric-company, high-tech, medical-devices, wisconsin

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.9 million to GENERAL ELECTRIC COMPANY. HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES.

Who is the contractor on this award?

The obligated recipient is GENERAL ELECTRIC COMPANY.

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 $18.9 million.

What is the period of performance?

Start: 2009-09-30. End: 2009-09-30.

What is the specific type of irradiation apparatus procured and its intended use within the VA?

The provided data indicates the contract is for 'HIGH TECH BIO-MEDICAL EQUIPMENT AND ACCESSORIES' with a specific NAICS code of '334517' (Irradiation Apparatus Manufacturing). While the exact model or specific application isn't detailed, irradiation apparatus in a medical context often refers to equipment used for radiation therapy (cancer treatment), sterilization of medical equipment, or certain diagnostic imaging techniques. Given the VA's mission, it's plausible this equipment is intended for patient care, such as advanced radiotherapy, or for ensuring the sterility of medical supplies used within VA hospitals and clinics.

How does the $18.8 million award compare to typical spending on similar irradiation apparatus by the VA or other federal agencies?

Benchmarking this $18.8 million award requires specific data on comparable irradiation apparatus procurements, which is not readily available in the provided summary. The cost of such specialized equipment can vary significantly based on technological sophistication, manufacturer, and intended application (e.g., linear accelerators for cancer treatment are multi-million dollar investments). Without knowing the precise nature of the 'irradiation apparatus,' a direct comparison is challenging. However, for high-value medical capital equipment, $18.8 million represents a substantial investment, suggesting a significant capability or a fleet purchase.

What was the competitive landscape for this delivery order, and how many bids were received?

The data classifies this contract as a 'COMPETITIVE DELIVERY ORDER,' implying that the opportunity was open to multiple bidders. However, the specific number of bids received is not provided in the summary data. A 'competitive delivery order' suggests that a broader contract vehicle may have already been established through a competitive process, and this order was placed against that existing agreement. To understand the competitive landscape fully, one would need to examine the specific solicitation and award details, including the number of proposals submitted and the evaluation criteria used.

What is General Electric Company's track record with the VA for similar biomedical equipment procurements?

General Electric Company (GE) is a major multinational conglomerate with a significant presence in the healthcare sector, including medical imaging and equipment manufacturing. While the provided data confirms GE as the awardee for this specific $18.8 million contract, it does not detail their broader track record with the VA for similar items. GE has historically supplied a wide range of medical equipment, including diagnostic imaging systems (MRI, CT scanners), patient monitoring systems, and potentially radiation therapy equipment, to various federal agencies, including the VA. A deeper analysis would involve reviewing historical contract data for GE and the VA within the relevant product categories.

What are the potential risks associated with procuring high-tech biomedical equipment like irradiation apparatus?

Procuring high-tech biomedical equipment, such as irradiation apparatus, carries several potential risks. These include technological obsolescence, where the equipment quickly becomes outdated; performance risks, where the equipment may not function as expected or requires frequent, costly maintenance; integration challenges, where the new equipment may not seamlessly interface with existing hospital IT systems; and training risks, requiring specialized and ongoing training for medical staff. Furthermore, the high cost of acquisition and maintenance makes budget overruns a significant concern. Ensuring robust warranties, service agreements, and adequate end-user training is crucial to mitigate these risks.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingIrradiation Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 3000 N GRANDVIEW BLVD, WAUKESHA, WI, 53188

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

Financial Breakdown

Contract Ceiling: $18,850,267

Exercised Options: $18,850,267

Current Obligation: $18,850,267

Parent Contract

Parent Award PIID: V797P6019B

IDV Type: IDC

Timeline

Start Date: 2009-09-30

Current End Date: 2009-09-30

Potential End Date: 2009-09-30 00:00:00

Last Modified: 2017-03-14

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