VA awards $24M contract for medical lab services to Foundation Medicine, Inc

Contract Overview

Contract Amount: $24,000,010 ($24.0M)

Contractor: Foundation Medicine, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-02

End Date: 2025-08-20

Contract Duration: 322 days

Daily Burn Rate: $74.5K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER FOR BASE YEAR

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02141

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.0 million to FOUNDATION MEDICINE, INC. for work described as: TASK ORDER FOR BASE YEAR Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. The contract is a delivery order under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. The duration of the task order is approximately 10.5 months. 5. The specific medical laboratory service code (621511) indicates a focus on diagnostic testing. 6. The awardee, Foundation Medicine, Inc., is a known entity in the molecular information services sector.

Value Assessment

Rating: good

The contract value of $24 million for a base year of services appears reasonable given the specialized nature of molecular diagnostics. Benchmarking against similar contracts for advanced laboratory services would provide a more precise value assessment. The firm-fixed-price structure is a positive indicator for cost control. Without specific per-unit data, a definitive value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below a certain threshold. The specific number of bidders is not provided, but the use of SAP generally encourages broad participation. This competitive environment is expected to drive price discovery and ensure the government receives competitive pricing for the required medical laboratory services.

Taxpayer Impact: The competitive award process under SAP is beneficial for taxpayers as it aims to secure services at the most advantageous prices possible, preventing potential overspending on essential medical diagnostics.

Public Impact

Veterans will benefit from access to advanced medical laboratory services. The contract supports the delivery of diagnostic testing crucial for patient care and treatment planning. Services are likely to be delivered within the Massachusetts region, based on the state code. The contract supports specialized roles within the medical laboratory field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Limited insight into the specific types of molecular diagnostics to be performed.
Potential for increased demand or scope creep impacting the base year value.

Positive Signals

Awarded under a competitive full-and-open process.
Firm-fixed-price contract type limits financial risk.
Awardee is a specialized company in the relevant field.
Delivery order under an existing IDIQ contract suggests established procurement pathways.

Sector Analysis

The healthcare sector, particularly the segment focused on diagnostic and molecular testing, is a rapidly evolving area. This contract falls within the medical laboratories sub-sector, which includes services like genetic testing, pathology, and clinical diagnostics. The market for these services is driven by technological advancements and increasing demand for personalized medicine. Foundation Medicine, Inc. operates in this specialized niche, providing advanced genomic profiling services.

Small Business Impact

The provided data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). As a delivery order under an IDIQ, subcontracting opportunities for small businesses may exist depending on the prime contractor's strategy and the nature of the services required. However, the direct award does not appear to have a specific small business set-aside component.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. As a delivery order under an existing IDIQ, the initial contract vehicle likely underwent significant review. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Services Contracts
Federal Healthcare Diagnostics and Laboratory Services
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contract Vehicles
Molecular Diagnostics and Genomic Services

Risk Flags

Potential for limited competition if only a few vendors can provide highly specialized molecular diagnostics.
Risk of technological obsolescence in a rapidly advancing field.
Dependence on contractor's specialized expertise and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.0 million to FOUNDATION MEDICINE, INC.. TASK ORDER FOR BASE YEAR

Who is the contractor on this award?

The obligated recipient is FOUNDATION MEDICINE, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2024-10-02. End: 2025-08-20.

What is Foundation Medicine, Inc.'s track record with federal contracts, particularly with the VA?

Foundation Medicine, Inc. has a history of federal contracts, primarily within the healthcare sector. While specific details on their track record with the Department of Veterans Affairs (VA) are not immediately available in this data, their presence in the market suggests experience with government procurement. A deeper dive into federal procurement databases like FPDS-NG or SAM.gov would reveal the extent and nature of their past federal awards, including performance history and any reported issues. Their specialization in molecular information services indicates a niche capability that the VA may be leveraging for specific diagnostic needs.

How does the $24 million award compare to similar medical laboratory service contracts awarded by the VA or other federal agencies?

Benchmarking this $24 million award requires comparing it to contracts for similar specialized medical laboratory services, particularly those involving molecular diagnostics or genomic profiling. The VA and other agencies like the Department of Defense and HHS procure such services. The value of comparable contracts can vary significantly based on the scope of services, duration, and the specific technologies employed. Given that this is a task order for a base year, its value should be assessed in context of the total potential value of the IDIQ contract and the specific needs it addresses. Without more granular data on the services rendered, a precise comparison is difficult, but the amount suggests a significant scope of specialized testing.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues, scope creep, and the rapidly evolving nature of molecular diagnostics technology. The firm-fixed-price contract type mitigates financial risk for the government by capping costs. The VA's oversight and the contractor's specialization in the field are intended to ensure adequate performance. Mitigation for technological obsolescence would rely on the contract's flexibility for future task orders or modifications, and the VA's ability to adapt its requirements as technology advances. The relatively short duration of the task order (approx. 10.5 months) also limits the exposure to long-term technological shifts.

How effective is the competitive process used for this contract in ensuring value for taxpayers?

The contract was competed under Simplified Acquisition Procedures (SAP), which is a full and open competition method for awards below a certain dollar threshold. This process is designed to encourage broad participation from qualified vendors, thereby fostering price competition. While the specific number of bidders is not disclosed, the use of SAP generally leads to price discovery and ensures that the government is likely receiving services at a competitive market rate. The firm-fixed-price nature of the award further enhances value by providing cost certainty to taxpayers.

What is the historical spending pattern for medical laboratory services by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently spends significant amounts on medical services, including laboratory diagnostics, to support its vast network of healthcare facilities and veteran population. Historical spending data would show a trend of increasing investment in advanced diagnostic capabilities, driven by medical advancements and the need for specialized testing. This spending is often distributed across various contract vehicles, including IDIQs, GSA schedules, and direct procurements, with a mix of competitive and sole-source awards. Analyzing past VA spending on similar National Service Codes (NSC) like 621511 would provide context for the $24 million award.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 150, SECOND STREET, CAMBRIDGE, MA, 02141

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,000,010

Exercised Options: $24,000,010

Current Obligation: $24,000,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0059

IDV Type: IDC

Timeline