VA awards $21.8M to General Electric for high-tech bio-medical supplies

Contract Overview

Contract Amount: $21,815,106 ($21.8M)

Contractor: General Electric Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-12-31

End Date: 2008-12-31

Number of Offers Received: 23

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

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.8 million to GENERAL ELECTRIC COMPANY for work described as: HIGH TECH BIO-MEDICAL SUPPLIES AND ACCESSORIES Key points: 1. The contract value is $21.8 million. 2. General Electric Company is the sole awardee. 3. The contract is for high-tech bio-medical supplies and accessories. 4. The award was made by the Department of Veterans Affairs.

Value Assessment

Rating: fair

Pricing for high-tech bio-medical supplies can vary significantly based on specific product features and technological advancements. Without detailed product specifications and market comparisons, it's difficult to definitively assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, which limits competitive bidding. While sole-source contracts can be justified for unique capabilities or existing infrastructure, they often result in higher prices due to the lack of price discovery through competition.

Taxpayer Impact: The lack of competition in sole-source awards can lead to taxpayers potentially overpaying for goods and services.

Public Impact

Veterans will receive essential bio-medical equipment. The award supports a major defense contractor, General Electric. The contract duration is not specified, impacting long-term planning. The specific nature of 'high-tech' supplies warrants further clarification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Lack of detailed product specifications makes value assessment difficult.
  • Contract duration is not specified.

Positive Signals

  • Addresses critical bio-medical needs for veterans.
  • Award to a well-established company.

Sector Analysis

The healthcare sector, particularly bio-medical supplies, involves specialized technology and can have high acquisition costs. Spending benchmarks vary widely depending on the type of equipment and its technological sophistication.

Small Business Impact

This award does not appear to involve small businesses, as it is a sole-source contract awarded to a large corporation, General Electric.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The sole-source nature of the award suggests a need for robust justification and documentation to ensure fair pricing and necessity.

Related Government Programs

  • Electromedical and Electrotherapeutic Apparatus Manufacturing
  • Department of Veterans Affairs Contracting
  • Department of Veterans Affairs Programs

Risk Flags

  • Potential for overpayment due to sole-source award.
  • Lack of transparency regarding specific products and pricing.
  • Limited opportunity for small business participation.
  • Need for strong justification for sole-source procurement.
  • Unclear contract duration impacts long-term planning.

Tags

electromedical-and-electrotherapeutic-ap, department-of-veterans-affairs, wi, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.8 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 $21.8 million.

What is the period of performance?

Start: 2008-12-31. End: 2008-12-31.

What specific bio-medical supplies and accessories were procured under this contract, and what are their technical specifications?

The provided data lacks specific details on the bio-medical supplies and accessories. To assess value and effectiveness, a breakdown of the items, their quantities, and detailed technical specifications (e.g., model numbers, features, performance standards) is crucial. This information would allow for comparison with similar products in the market and evaluation of their suitability for veteran care.

What was the justification for awarding this contract on a sole-source basis instead of utilizing full and open competition?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For bio-medical equipment, this could be due to proprietary technology, unique compatibility requirements with existing VA systems, or specialized maintenance needs. A thorough review of the justification documentation is necessary to confirm the validity of the sole-source determination and ensure it was not driven by convenience or to avoid competitive processes.

How does the pricing of these high-tech bio-medical supplies compare to industry benchmarks for similar equipment, considering the sole-source nature of the award?

Assessing the pricing against benchmarks is challenging without specific product details. However, sole-source contracts inherently carry a higher risk of inflated prices due to the absence of competitive pressure. The VA should have conducted a price analysis, potentially using historical pricing, commercial price lists, or cost-plus-incentive-fee structures, to ensure the price paid was fair and reasonable, even without direct competition.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingElectromedical and Electrotherapeutic Apparatus Manufacturing

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

Contractor Details

Address: 3000 N GRANDVIEW BLVD, WAUKESHA, WI, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,815,106

Exercised Options: $21,815,106

Current Obligation: $21,815,106

Parent Contract

Parent Award PIID: SP020002D8325

IDV Type: IDC

Timeline

Start Date: 2008-12-31

Current End Date: 2008-12-31

Potential End Date: 2008-12-31 00:00:00

Last Modified: 2009-01-12

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