VA awards $13.7M for high-tech biomedical supplies, with General Electric Company as the sole provider

Contract Overview

Contract Amount: $13,729,236 ($13.7M)

Contractor: General Electric Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-03-31

End Date: 2009-03-31

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HIGH TECH BIO-MEDICAL SUPPLIES 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 $13.7 million to GENERAL ELECTRIC COMPANY for work described as: HIGH TECH BIO-MEDICAL SUPPLIES AND ACCESSORIES. Key points: 1. The contract's value of $13.7 million for biomedical supplies suggests a significant investment in specialized equipment. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The contract duration, ending in March 2009, indicates a historical need for these supplies. 4. The specific product code (334517) points to irradiation apparatus manufacturing, a niche but critical area. 5. The award type 'DO' might indicate a priority rating, suggesting urgency or importance of the supplies. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $13.7 million contract is challenging without more specific details on the biomedical supplies procured. However, sole-source awards often carry a higher risk of inflated pricing compared to competitively bid contracts. The lack of transparency in pricing mechanisms for sole-source procurements makes it difficult to definitively assess value for money. Further analysis would require comparing the unit costs of these specific supplies to similar items procured through competitive means or by other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to General Electric Company. This means that the Department of Veterans Affairs did not solicit bids from multiple suppliers. Sole-source awards are typically justified when only one supplier can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. The lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these biomedical supplies due to the absence of competitive bidding. Without multiple offers, there is less assurance that the government secured the best possible price.

Public Impact

Veterans receiving care through the VA healthcare system are the primary beneficiaries of these high-tech biomedical supplies. The contract ensures the availability of critical medical equipment, likely for diagnostic or therapeutic purposes, supporting advanced medical treatments. The geographic impact is likely nationwide, as VA facilities across the country would utilize such supplies. The contract supports specialized manufacturing within the biomedical sector, potentially impacting a skilled workforce in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in pricing for sole-source contracts makes value assessment difficult.
Contract awarded in 2009, historical data may not reflect current market prices or needs.
Specific details on the 'DO' award type are needed to understand any priority or urgency implications.

Positive Signals

Ensures access to specialized, high-tech biomedical equipment for veteran healthcare.
General Electric Company is a reputable manufacturer, suggesting potential for quality products.
The contract addresses a specific need within the VA's medical supply chain.

Sector Analysis

The procurement falls within the broader healthcare and medical device manufacturing sector. This sector is characterized by high innovation, significant research and development investment, and stringent regulatory requirements. The specific product code (334517) relates to irradiation apparatus manufacturing, a specialized segment within medical equipment. Comparable spending benchmarks would depend heavily on the exact type and quantity of irradiation apparatus procured, but the $13.7 million figure suggests a substantial acquisition of advanced technology.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the nature of the specialized biomedical supplies, or the specific requirements of the contract, were likely better suited to larger, established manufacturers like General Electric Company. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Veterans Affairs. As a sole-source award, the VA would have been responsible for justifying the sole-source justification and ensuring the necessity and appropriateness of the procurement. Transparency is limited due to the sole-source nature. Accountability would stem from the VA's internal procurement regulations and potentially oversight from bodies like the Government Accountability Office (GAO) if protests or specific inquiries were raised. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Biomedical Supply Chain Management
Irradiation Apparatus Manufacturing Contracts
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Historical award data (2009) may not reflect current market conditions.
Specific product details are not provided, hindering in-depth analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.7 million to GENERAL ELECTRIC COMPANY. HIGH TECH BIO-MEDICAL SUPPLIES 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 $13.7 million.

What is the period of performance?

Start: 2009-03-31. End: 2009-03-31.

What specific type of irradiation apparatus was procured under this contract, and what is its intended use within the VA healthcare system?

The contract data specifies the product code NAICS 334517, which corresponds to 'Irradiation Apparatus Manufacturing.' This category typically includes equipment that uses radiation for medical, industrial, or scientific purposes. Within the VA healthcare system, such apparatus could be used for various applications, including sterilization of medical equipment and supplies (like gamma irradiation), cancer treatment (radiotherapy), or diagnostic imaging. Without more detailed contract line item information, the precise nature and application remain unspecified. However, the 'DO' award type might suggest a priority for critical medical functions such as sterilization or life-saving treatments, underscoring its importance to patient care and operational readiness within the VA.

Can the value of this $13.7 million contract be benchmarked against similar procurements for irradiation apparatus?

Benchmarking this $13.7 million contract is challenging without specific details on the exact type, quantity, and specifications of the irradiation apparatus procured. The product code 334517 is broad. However, given it was a sole-source award to General Electric Company, it is plausible that the price may be higher than if it had been competitively procured. To perform a robust benchmark, one would need to identify comparable contracts for similar irradiation equipment, ideally awarded through full and open competition, and compare unit costs, features, and warranty terms. Publicly available contract databases might offer some comparable data, but the unique nature of specialized medical equipment often limits direct comparisons, especially for sole-source awards where pricing justification is less transparent.

What are the potential risks associated with a sole-source award for critical biomedical supplies like irradiation apparatus?

Sole-source awards for critical biomedical supplies present several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. It also reduces the incentive for the sole provider to innovate or offer competitive pricing in the future. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the sole provider experiences production issues, quality control problems, or goes out of business, the government may face significant disruptions in obtaining essential equipment. The absence of competitive pressure can also diminish transparency in pricing and contract terms, making it harder for the government to ensure fair market value.

What is the track record of General Electric Company in supplying biomedical equipment to the federal government, particularly the VA?

General Electric Company (GE) has a long-standing and significant presence as a supplier to the federal government, including the Department of Veterans Affairs (VA). GE's Healthcare division is a major manufacturer of a wide range of medical technologies, including imaging equipment, diagnostic tools, and patient monitoring systems. While this specific contract was for irradiation apparatus, GE's broader portfolio aligns with the needs of federal healthcare providers. Historical data would likely show numerous contracts awarded to GE across various agencies for medical equipment. Assessing their track record would involve reviewing past performance evaluations, any documented issues with quality or delivery, and the overall volume and value of contracts awarded to ensure consistent performance and reliability.

How does the 'DO' award type impact the interpretation of this contract's urgency and importance?

The 'DO' award type typically signifies a priority rating assigned by a federal agency, often under the Defense Production Act (DPA). A DO rating indicates that the procurement is considered important for national defense, homeland security, or other critical national interests, and it requires the contractor to accept and prioritize the order over other non-rated orders. For this VA contract, a 'DO' rating suggests that the high-tech biomedical supplies, specifically irradiation apparatus, were deemed critical and urgent by the government. This could imply applications related to national security, emergency preparedness, or essential healthcare services that require immediate attention and guaranteed supply, potentially overriding other commercial or less critical government demands.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

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

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: $13,729,236

Exercised Options: $13,729,236

Current Obligation: $13,729,236

Parent Contract

Parent Award PIID: V797P6019B

IDV Type: IDC

Timeline