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Thomas Dworetzky, Contributing Reporter | March 08, 2017
Hitachi Aloka Medical America, a subsidiary of Hitachi, has won a $162.8 million Defense Logistics Agency contract that could run for 10 years.
The firm will “provide radiology equipment, accessories and training support services to U.S. military and federal civilian agencies,” for a base period of five years that could be extended by five option years, according to the U.S. Department of Defense.
The competitive procurement deal will commit defense funds for use in Connecticut by Air Force, Army, Navy, Marine Corps and federal civilian agencies.
The firm, based in Wallingford, Connecticut, provides ultrasound systems for computed tomography, magnetic resonance imaging, optical topography and whole breast imaging used in cardiovascular, general imaging and radiology applications.
Hitachi
announced in January that it was forming a new Americas business group focused on “consolidating its various medical imaging offerings while expanding its focus on Healthcare Innovation & Informatics,” it said in a statement.
The move will shift Hitachi Aloka Medical America into Hitachi Medical Systems America, Inc.,” according to the company. It is slated to happen on April 1, 2017, at which time the new entity will then change its name to Hitachi Healthcare America Corp.
“We are focused on the long-term future of Hitachi’s health care commitment in the Americas and are taking deliberate, strategic actions to improve the company’s overall operations while enhancing our competitive position and future growth,” said Yasuhiko Taniguchi, senior vice president and general manager of Healthcare Division, Hitachi America.
The realignment will let the company increase products and service expertise in the region, it stated. “Integrating our medical imaging operations will allow us to accelerate the design and development of cost-effective health care technology and services offerings, while continuing to provide a superior level of service, and support to our customers and partners in the Americas,” said Donald Broomfield, president and CEO of Hitachi Medical Systems America. “The scale and scope of this new organization will also enable us to provide a growth platform to further advance our medical imaging solutions.”
In February, another Defense Logistics Agency contract
was won by Toshiba American Medical Systems, and worth as much as $828 million for radiology systems, accessories and training.
The Tustin, California, company was awarded the deal after a competitive process and has a contract for five years, set to end Feb. 2, 2022. It has one five-year option.
The radiology systems will also be used by the Air Force, Army, Navy, Marine Corps and federal civilian agencies.
In December, 2015, Toshiba's MR portfolio was the first to meet network security guidelines laid out by the U.S. Department of Defense, according to a company release.
Prior to these latest contracts, the Defense Logistics Agency had exercised a $1.8 billion contract option for radiology systems and related equipment with Siemens Medical Solutions.
It was the fifth option period of a potential eight-year contract, and ran through March, 2015.
