VA's $16.4M contract for biomedical accessories and supplies awarded to General Electric Company
Contract Overview
Contract Amount: $16,425,630 ($16.4M)
Contractor: General Electric Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2009-06-30
End Date: 2009-06-30
Number of Offers Received: 4
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Official Description: HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES.
Place of Performance
Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53188, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Veterans Affairs obligated $16.4 million to GENERAL ELECTRIC COMPANY for work described as: HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES. Key points: 1. The contract value of $16.4 million for biomedical accessories and supplies appears to be a significant investment in healthcare infrastructure. 2. Competition dynamics are unclear without further details on the bidding process, potentially impacting price discovery. 3. Risk indicators are moderate, given the fixed-price nature with economic price adjustment, which can introduce cost volatility. 4. Performance context is limited, but the contract's duration and specific deliverables would offer better insight. 5. Sector positioning places this contract within the broader healthcare and medical equipment supply chain.
Value Assessment
Rating: fair
Benchmarking the value of this $16.4 million contract for biomedical accessories and supplies is challenging without specific details on the items procured and their quantities. Comparing it to similar contracts would require access to a broader dataset of VA or other agency procurements for comparable goods. The fixed-price with economic price adjustment structure suggests an attempt to balance cost certainty with market fluctuations, but the ultimate value for money depends on the effectiveness of the price adjustment clauses and the actual market conditions experienced during the contract period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. A full and open competition would typically involve multiple bidders, leading to potentially lower prices and greater innovation. Limited competition or sole-source awards, conversely, might indicate unique capabilities or specific requirements, but could also lead to higher costs for the government. Understanding the number of bidders and the rationale for the competition type is crucial for assessing the effectiveness of the procurement process and its impact on price.
Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition generally drives down prices, ensuring that taxpayer dollars are used more efficiently. Limited competition may result in higher costs, requiring closer scrutiny of the justification and pricing.
Public Impact
Veterans will benefit from access to necessary biomedical accessories and supplies, supporting their healthcare needs. The contract ensures the availability of critical medical equipment components for the Department of Veterans Affairs. Geographic impact is likely nationwide, supporting VA facilities across the country. Workforce implications may include support for medical staff who rely on these supplies for patient care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to economic price adjustment clauses if market prices increase significantly.
- Lack of transparency regarding the competition process could mask inefficiencies or missed opportunities for better pricing.
- Dependence on a single contractor (General Electric Company) for a range of essential supplies could pose supply chain risks.
Positive Signals
- Award to a large, established company like General Electric suggests a degree of reliability and established supply chain capabilities.
- The contract's existence indicates proactive planning by the VA to ensure the availability of critical medical supplies.
- Fixed-price elements provide some baseline cost control, despite the economic price adjustment.
Sector Analysis
This contract falls within the healthcare sector, specifically concerning the procurement of medical devices and accessories. The market for biomedical equipment and supplies is substantial, driven by ongoing demand from healthcare providers, including government agencies like the VA. General Electric Company is a major player in this industry, known for a wide range of medical technologies. This contract represents a portion of the government's overall spending on healthcare supplies, which is critical for maintaining operational capacity within its healthcare system.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, General Electric Company, is a large corporation, and its engagement does not inherently create opportunities for small business participation unless specified in subcontracting goals, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is often enhanced through contract databases like FPDS, though detailed performance data and justification for competition type may require further inquiry. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Medical Equipment and Supplies Procurement
- Department of Veterans Affairs Healthcare Services
- Biomedical Device Manufacturing
- Federal Healthcare Spending
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Lack of detailed competition information raises questions about price discovery.
- Contract duration and specific performance metrics are not detailed, limiting performance risk assessment.
Tags
healthcare, department-of-veterans-affairs, medical-supplies, biomedical-accessories, fixed-price-economic-price-adjustment, general-electric-company, high-tech, irradiation-apparatus-manufacturing, wisconsin, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $16.4 million to GENERAL ELECTRIC COMPANY. HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES.
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 $16.4 million.
What is the period of performance?
Start: 2009-06-30. End: 2009-06-30.
What specific biomedical accessories and supplies were included in this $16.4 million contract, and what was the quantity of each item?
The provided data identifies the contract as being for 'HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES' under NAICS code 334517 (Irradiation Apparatus Manufacturing). However, it does not specify the exact list of accessories and supplies or their quantities. This level of detail is typically found in the contract's statement of work or line item details. Without this information, it is impossible to perform a granular cost analysis or understand the precise nature of the goods procured. The broad description suggests a range of items, potentially including components for medical imaging equipment, diagnostic tools, or therapeutic devices, but further documentation is needed for specifics.
How did the pricing of these biomedical accessories and supplies compare to market rates at the time of award?
Assessing the pricing comparison to market rates is difficult without knowing the specific items and quantities procured under this $16.4 million contract. The contract type is 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FP-EPA), which aims to balance cost certainty with market fluctuations. While the fixed-price component provides a baseline, the economic price adjustment allows for changes based on economic factors. To benchmark effectively, one would need to compare the unit prices of the specific items against industry catalogs, other government contracts for similar goods, or commercial price lists from the period of award (around June 2009). The effectiveness of the FP-EPA in controlling costs would depend on the specific indices used for adjustment and the actual market volatility experienced.
What was the track record of General Electric Company with the Department of Veterans Affairs prior to this contract award?
The provided data indicates that General Electric Company (GE) was awarded this $16.4 million contract by the Department of Veterans Affairs (VA) with an effective date of June 30, 2009. To assess GE's track record with the VA, one would need to examine historical contract data for GE with the VA leading up to and following this award. This would involve looking at the number of previous contracts, their values, the types of goods or services provided, and performance ratings, if available. A history of successful, on-time, and within-budget deliveries would suggest reliability, while a pattern of issues could indicate potential risks. Without access to this historical context, it's presumed GE was selected based on its qualifications and competitive standing at the time.
What are the potential risks associated with a fixed-price contract with economic price adjustment for biomedical supplies?
A Fixed Price with Economic Price Adjustment (FP-EPA) contract for biomedical supplies carries specific risks. For the government, the primary risk is potential cost escalation if the economic price adjustment clauses are triggered by significant increases in raw material costs, labor, or other economic factors. This can lead to the contract exceeding initial budget expectations. For the contractor, the risk is that the economic price adjustment might not fully compensate for unforeseen cost increases, potentially impacting profitability. Additionally, the complexity of calculating and verifying the economic price adjustments can add administrative burden and potential for disputes. Ensuring that the adjustment mechanisms are fair, transparent, and tied to objective economic indicators is crucial for mitigating these risks and achieving value for taxpayer money.
How does this contract fit into the broader context of federal spending on healthcare and medical supplies?
This $16.4 million contract for biomedical accessories and supplies awarded to General Electric Company by the Department of Veterans Affairs (VA) represents a component of the larger federal spending on healthcare. Federal agencies, particularly the VA, Defense Health Agency, and others, procure vast quantities of medical equipment, pharmaceuticals, and supplies annually to serve military personnel, veterans, and other beneficiaries. Spending in this category is substantial, often running into billions of dollars across the government. Contracts like this one are essential for maintaining the operational readiness of federal healthcare facilities. Its value should be considered relative to the overall federal healthcare budget and the specific needs of the VA's patient population.
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: $16,425,630
Exercised Options: $16,425,630
Current Obligation: $16,425,630
Parent Contract
Parent Award PIID: V797P6019B
IDV Type: IDC
Timeline
Start Date: 2009-06-30
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2017-03-14
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