VA awards $23.8M for physiological monitors, with Philips North America LLC securing the contract

Contract Overview

Contract Amount: $23,788,807 ($23.8M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-23

End Date: 2016-09-29

Contract Duration: 1,102 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHYSIOLOGICAL MONITORS AND WIRELESS TELEMETRY FOR VISN 15

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.8 million to PHILIPS NORTH AMERICA LLC for work described as: PHYSIOLOGICAL MONITORS AND WIRELESS TELEMETRY FOR VISN 15 Key points: 1. Contract value of $23.8 million over approximately three years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The award was a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code is 334510, related to manufacturing of electromedical apparatus. 6. The contractor, Philips North America LLC, is a significant player in the medical technology market. 7. The contract duration is 1102 days.

Value Assessment

Rating: good

The contract value of $23.8 million for physiological monitors and wireless telemetry appears reasonable given the scope and duration. Benchmarking against similar contracts for advanced medical equipment is challenging without more specific details on the exact models and quantities. However, the firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous for budget predictability. The award to a major manufacturer like Philips indicates access to potentially advanced and reliable technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 4 bids were received, suggesting a moderate level of competition for this requirement. While not an exhaustive number, it implies that multiple vendors were interested and capable of fulfilling the VA's needs for physiological monitoring equipment.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Veterans receiving care within VISN 15 will benefit from potentially improved physiological monitoring capabilities. The contract supports the delivery of advanced medical equipment, including wireless telemetry, to healthcare facilities. This contract primarily impacts healthcare providers and patients within the geographic area served by VISN 15. The contract supports the manufacturing and supply chain workforce involved in producing electromedical apparatus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are deployed.
Reliance on a single large manufacturer could limit future flexibility in equipment sourcing.

Positive Signals

Award to a well-established manufacturer with a track record in medical technology.
Firm-fixed-price contract provides cost certainty for the VA.
Full and open competition suggests a deliberate effort to secure competitive pricing.

Sector Analysis

The contract falls within the healthcare technology sector, specifically focusing on electromedical apparatus manufacturing. This sector is characterized by rapid innovation, high research and development costs, and stringent regulatory requirements. The market for physiological monitors is competitive, with several large global players, including Philips, offering a wide range of products. The VA's spending in this area is significant, reflecting the need for modern diagnostic and monitoring tools in its healthcare system.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, it is unlikely to have direct subcontracting opportunities for small businesses unless specified by the prime contractor. The focus appears to be on acquiring advanced technology from established providers rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Veterans Health Administration Medical Equipment Procurement
Department of Veterans Affairs Information Technology Contracts
Medical Device Manufacturing Contracts
Wireless Health Technology Contracts

Risk Flags

Potential for technological obsolescence
Integration with existing VA IT systems
Cybersecurity risks associated with wireless telemetry
Dependence on a single large vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.8 million to PHILIPS NORTH AMERICA LLC. PHYSIOLOGICAL MONITORS AND WIRELESS TELEMETRY FOR VISN 15

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA LLC.

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 $23.8 million.

What is the period of performance?

Start: 2013-09-23. End: 2016-09-29.

What is the specific type and model of physiological monitors and wireless telemetry systems being procured under this contract?

The provided data does not specify the exact models or technical specifications of the physiological monitors and wireless telemetry systems. The contract description is general, referring to 'PHYSIOLOGICAL MONITORS AND WIRELESS TELEMETRY'. To understand the precise technology, one would need to review the detailed contract statement of work (SOW) or associated technical exhibits. This information is crucial for assessing the technological advancement, potential obsolescence, and specific clinical applications of the procured equipment. Without this detail, comparisons to other procurements or market benchmarks remain high-level.

How does the $23.8 million contract value compare to historical VA spending on similar physiological monitoring equipment?

The $23.8 million contract value represents a significant investment over its approximately three-year duration. To benchmark this against historical VA spending, one would need to analyze prior contracts for physiological monitors and telemetry systems, ideally from the same VISN or nationally. Factors such as inflation, technological advancements, and changes in clinical requirements would need to be considered. For instance, if previous similar procurements were in the range of $5-10 million, this award might indicate an expansion of services, adoption of more advanced (and costly) technology, or simply an increase in unit prices over time. A detailed historical analysis would require access to comprehensive contract databases and filtering for comparable equipment and services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such details would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For medical equipment, KPIs might relate to device uptime, accuracy of readings, response time for technical support, delivery timelines for consumables or replacement parts, and training provided to VA staff. SLAs would define the expected level of service from the contractor, including maintenance schedules, repair turnaround times, and availability of technical assistance. The absence of this information in the summary prevents a thorough assessment of performance expectations and accountability.

What is Philips North America LLC's track record with the Department of Veterans Affairs for similar medical equipment contracts?

Philips North America LLC is a major global provider of healthcare technology, and it is highly probable they have a substantial track record with the Department of Veterans Affairs (VA) for various medical equipment, including physiological monitors. While the provided data confirms this specific award, a comprehensive assessment of their track record would involve reviewing their past performance on similar VA contracts, including delivery orders and prime contracts. This would entail examining contract history for on-time delivery, quality of goods/services, adherence to budget, and any past performance issues or awards. Given their market position, it's likely they have fulfilled numerous VA requirements, but specific details on performance quality and consistency would require deeper data mining.

Are there any known risks or challenges associated with the implementation or long-term use of the procured physiological monitoring systems?

Potential risks associated with procuring physiological monitoring systems include technological obsolescence, integration challenges with existing VA IT infrastructure (like Electronic Health Records - EHRs), cybersecurity vulnerabilities of wireless components, and user adoption/training hurdles for clinical staff. The firm-fixed-price nature mitigates direct cost overruns for the VA but could incentivize the contractor to cut corners on support or quality if not carefully monitored. Furthermore, reliance on a single vendor for critical equipment can pose risks if that vendor experiences financial instability or discontinues product lines. A thorough risk assessment would involve reviewing the SOW for mitigation strategies and considering the specific cybersecurity posture of the wireless telemetry components.

Industry Classification

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

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Philips RS North America LLC (UEI: 404553448)

Address: 3000 MINUTEMAN RD MS 0077, ANDOVER, MA, 01810

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: $23,788,807

Exercised Options: $23,788,807

Current Obligation: $23,788,807

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: V797P2238D

IDV Type: FSS

Timeline