Siemens Medical Solutions USA Inc. has exercised its third option year of a possible eight-year contract to supply the military and the Veterans Administration with up to $2 billion worth of medical imaging equipment.

The contract renewal, announced last month, holds a maximum $1.94 billion value for radiology products, and this year's option wraps up by March 30, 2013. The government said about 43 companies responded to its Web proposal for the contract.

In an email, the Defense Logistics Agency explained to DOTmed News that Siemens originally got the award three years ago for a one-year contract with options to extend the contract for seven years. The contract, awarded March 31, 2009, then held a maximum dollar value of $2.136 billion.

The DLA said the contract covers CT and MRI scanners, ultrasounds and X-ray systems for the Department of Defense, the Veterans Administration and other federal customers. So far, about $197 million in orders have been purchased for the Department of Defense and the VA, the DLA said.

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