A major revamping of the bidding process for medical imaging equipment service contracts at VA hospitals is imminent. The Office of the Inspector General in the Department of Veterans Affairs produced a draft report last month recommending standardization of bid specifications for VA service work.
Standardization of bid requests will help prevent contracts that favor OEMs over independent service organizations, said Glen Bodis, an OIG auditor who helped develop the recommendations.
"We are recommending that all (VA) medical centers use a specification that is not restrictive and does not limit (service) awards to one specific contractor--in this case the OEM," Bodis told SCAN.
The draft report is being circulated within the Department of Veterans Affairs for comment. A final version should be issued within a month, Bodis said.
Initial reaction within the department appears favorable, according to Joel Cliff, staff assistant to Sen. H. John Heinz (R-PA). Heinz is a member of the Governmental Affairs Committee, which has executive branch oversight responsibilities. Heinz's office initiated a request to audit the VA service contracts on behalf of Imaging Equipment Services, a Pittsburgh ISO.
"One of the findings (of the OIG audit) was that specifications in over half the cases were too restrictive in making VA awards," Cliff said. "The (OIG) recommendation is that the biomedical division (of the Department of Veterans Affairs) develop a standard performance specification to be used for procurement at all VA hospitals."
IES is embroiled in litigation with Picker International over service issues (SCAN 3/27/91). One of the smaller company's charges against the imaging OEM involves Picker's alleged manipulation of VA bid specifications to block competition by ISOs. Etek, another ISO battling Picker in court, made the same allegation (SCAN 1/30/91).
"I want to thank the senator and encourage other (ISOs) to get involved like this. This is a victory for third parties and competition in government work," said Thomas Quinn, IES president.
Picker does not appear alarmed by potential changes in the VA service bidding process. Standardization of bids could actually be a welcome development, said Michael Peterson, Picker manager of public relations.
"If this is a move to make those bids consistent, it might be in order. It would make life a lot simpler for us. Local service managers would all be singing out of the same song book," he said.
Picker handles work with VA hospitals at the district level, so bids vary a great deal, said Thomas R. Shook, manager of national accounts for Picker's equipment service business.
"That is where contracts are negotiated. We have our relationship with the government at that (district) level," he said.
