DoD Awards $22M for SOMATOM DEFINITION FLASH Medical Equipment to Foreign Wholesalers
Contract Overview
Contract Amount: $22,000,000 ($22.0M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2010-06-08
End Date: 2011-05-26
Contract Duration: 352 days
Daily Burn Rate: $62.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SOMATOM DEFINITION FLASH
Plain-Language Summary
Department of Defense obligated $22.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: SOMATOM DEFINITION FLASH Key points: 1. Significant award to foreign entities highlights global supply chain reliance. 2. Lack of competition raises questions about price discovery and value for taxpayer funds. 3. The $22M contract for medical equipment suggests a critical need within the Army. 4. Fixed-price contract type offers some cost certainty but may limit savings potential.
Value Assessment
Rating: questionable
The contract value of $22 million for medical equipment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar equipment procured through competitive means.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a potential sole-source or limited source award. This lack of competition likely hindered robust price discovery and may have resulted in a higher price than could have been achieved through open bidding.
Taxpayer Impact: The absence of competition for a $22 million contract raises concerns about potential overspending of taxpayer funds. A more competitive process could have yielded significant savings.
Public Impact
Taxpayers may have paid a premium due to the lack of competitive bidding. Reliance on foreign awardees for critical medical equipment could pose supply chain risks. The specific medical equipment, SOMATOM DEFINITION FLASH, is vital for military healthcare operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Award to foreign entity
- Potential for overpayment
Positive Signals
- Firm fixed price contract
- Specific medical equipment identified
Sector Analysis
The Department of Defense frequently procures medical equipment. Benchmarks for similar equipment vary widely based on technology and quantity, but competitive processes typically yield better pricing.
Small Business Impact
This contract was awarded to miscellaneous foreign awardees and does not appear to include provisions for small business participation. The focus was on fulfilling a specific equipment need, not necessarily on small business outreach.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the price paid was justified and that future procurements explore competitive options. Accountability for the justification of the non-competitive award is crucial.
Related Government Programs
- Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Award to foreign entities
- Potential for inflated pricing
- Limited transparency on justification for non-competition
Tags
medical-dental-and-hospital-equipment-an, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to MISCELLANEOUS FOREIGN AWARDEES. SOMATOM DEFINITION FLASH
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2010-06-08. End: 2011-05-26.
What was the justification for not competing this $22 million medical equipment contract?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would be needed to understand the specific circumstances, such as unique technical requirements, urgent need, or limited vendor availability, that precluded a competitive solicitation process for this significant award.
What are the potential risks associated with awarding $22 million in medical equipment contracts to foreign entities without competition?
Key risks include potential overpayment due to lack of price competition, extended delivery times due to international logistics, and potential supply chain vulnerabilities. Furthermore, relying on foreign sources for critical medical equipment could impact national security and readiness during geopolitical instability or trade disputes.
How does the firm fixed price contract type impact the overall value and effectiveness of this $22 million award?
A firm fixed price contract provides cost certainty for the government, as the contractor bears the risk of cost overruns. While this protects against unexpected price increases, it may not incentivize the contractor to offer the lowest possible price if competition is absent. The effectiveness hinges on whether the price negotiated was still reasonable despite the lack of competition.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $22,000,000
Exercised Options: $22,000,000
Current Obligation: $22,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-08
Current End Date: 2011-05-26
Potential End Date: 2011-05-26 00:00:00
Last Modified: 2020-02-12
More Contracts from Miscellaneous Foreign Awardees
- Additional Services Mca-Funded — $1.4B (Department of Defense)
- {piin: W27p4a05c0002} Bottled Water — $480.1M (Department of Defense)
- {piin: W91gy007c0053} Rule of LAW — $372.4M (Department of Defense)
- {piin: W91gdw07d4021} Reconstruction Security Support Services (rsss) — $188.8M (Department of Defense)
- {piin: W91gxy06c0094} AL Qudas GAS Turbine Expansion — $169.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)