VA awards $146M for COVID-19 test kits and swabs to Cepheid under full and open competition
Contract Overview
Contract Amount: $146,265,755 ($146.3M)
Contractor: Cepheid
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-04-18
End Date: 2023-02-27
Contract Duration: 315 days
Daily Burn Rate: $464.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID 19 FLU TEST KITS AND SWABS
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Veterans Affairs obligated $146.3 million to CEPHEID for work described as: COVID 19 FLU TEST KITS AND SWABS Key points: 1. Significant contract value for essential medical supplies. 2. Cepheid is a major player in diagnostic testing. 3. Risk of supply chain disruption for critical health items. 4. Spending concentrated in the Healthcare sector.
Value Assessment
Rating: good
The contract value of $146M for test kits and swabs appears reasonable given the scale and ongoing demand for COVID-19 testing. Benchmarking against similar large-scale procurements for diagnostic supplies would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method is expected to yield fair market prices.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are receiving value for money, though the total cost reflects the high demand for these essential supplies.
Public Impact
Ensures continued availability of critical COVID-19 testing supplies for veterans. Supports public health efforts by maintaining testing capacity. Potential impact on the broader diagnostic testing market. Highlights the government's role in securing essential medical resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single supplier for a critical item.
- Potential for price increases if competition diminishes in the future.
- Supply chain vulnerabilities for imported components.
Positive Signals
- Competitive award process ensures initial price fairness.
- Contract supports a vital public health need.
- Clear contract type (Firm Fixed Price) provides cost certainty.
Sector Analysis
This contract falls within the Healthcare sector, specifically in medical diagnostics. Spending benchmarks for similar large-scale procurements of testing kits and related supplies are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses. The primary awardee, Cepheid, is a large corporation, suggesting limited direct benefit to small businesses in this specific contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The contract type and competitive award suggest a degree of accountability, but ongoing monitoring of delivery and quality is crucial.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Supply chain dependency
- Potential for price escalation
- Concentration of award to one vendor
- Geopolitical risks impacting supply
Tags
in-vitro-diagnostic-substance-manufactur, department-of-veterans-affairs, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $146.3 million to CEPHEID. COVID 19 FLU TEST KITS AND SWABS
Who is the contractor on this award?
The obligated recipient is CEPHEID.
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 $146.3 million.
What is the period of performance?
Start: 2022-04-18. End: 2023-02-27.
What is the projected per-unit cost of the test kits and swabs, and how does it compare to market rates?
The provided data does not detail the per-unit cost. To assess value, a breakdown of the total award amount by item quantity is needed. Comparing this to industry benchmarks for similar diagnostic supplies would reveal if the pricing is competitive and reflects fair market value for the government.
What are the primary risks associated with relying on Cepheid for this significant volume of COVID-19 testing supplies?
Key risks include potential supply chain disruptions affecting Cepheid's manufacturing or distribution, leading to shortages. Over-reliance on a single vendor could also reduce future negotiating leverage. Furthermore, unforeseen geopolitical events or raw material scarcity could impact production and delivery timelines.
How effective is this contract in ensuring sustained access to reliable COVID-19 testing for veterans?
The contract's effectiveness hinges on Cepheid's ability to consistently deliver high-quality test kits and swabs as per the contract terms. Its large value and duration suggest a significant commitment to ensuring access. Regular performance reviews and quality control checks by the VA will be critical indicators of its ongoing effectiveness.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10X22R0014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Danaher Corporation
Address: 904 CARIBBEAN DR, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $146,265,755
Exercised Options: $146,265,755
Current Obligation: $146,265,755
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-18
Current End Date: 2023-02-27
Potential End Date: 2023-02-27 00:00:00
Last Modified: 2023-10-18
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