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Toshiba Medical wins $828 million DLA radiology contract

by Thomas Dworetzky , Contributing Reporter
Toshiba American Medical Systems has won a contract worth as much as $828 million for radiology systems, accessories and training from the Defense Logistics Agency.

The Tustin, California, company was awarded the deal after a competitive process in which a total of 27 responses were received by the agency, according to a statement.

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The firm-fixed-price, indefinite-delivery/indefinite-quantity contract is for five years, set to end Feb. 2, 2022. It has one five-year option.

The radiology systems will be used by the Air Force, Army, Navy, Marine Corps and federal civilian agencies.

Toshiba Medical will be changing its name during the length of the contract. Toshiba Medical Systems Corp. will become "Canon Medical Systems Corp." on or about the beginning of 2018, according to the company.

The Toshiba medical unit went to Canon in March, 2016, and the deal officially closed in December of that year.

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.

At that time, stated the company, it “received authorization to operate (ATO) with the U.S. Air Force for its entire MR portfolio. Toshiba achieved ATO status for its Vantage Titan 1.5T and Vantage Titan 3T MR systems last year. This latest authorization includes its Vantage Elan 1.5T MR system.”

Security of medical equipment in the new age of the “Internet of Things” as well as data security are growing in importance daily. “This authorization is an example of how Toshiba continues to develop technology that meets our customers’ needs with a highly secure MR system,” said Guy Poloni, director of Toshiba's MR Business Unit at the time.

To win ATO status, Toshiba systems had to meet Air Force and Defense Health Agency’s Platform Information Technology guidelines. To do that, the company upgraded its MR platform to include Microsoft Windows 7 and application whitelisting security software, to proactively identify and prevent viruses and malicious solicitations.”

Other radiological contracts from DLA recently include a potential 10-year, $570.9 million contract with Carestream Health awarded December 15th, 2016. It is for radiology systems, accessories and related training services.

Prior to that, the DLA 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.

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