VA awards $49.7M contract for Optune Plus Transducers, a specialized medical device

Contract Overview

Contract Amount: $49,749 ($49.7K)

Contractor: Novocure Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-07-02

Contract Duration: 91 days

Daily Burn Rate: $547/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTUNE PLUS TRANSDUCERS

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,748.73 to NOVOCURE INC for work described as: OPTUNE PLUS TRANSDUCERS Key points: 1. The contract value of $49.7 million for a 3-month period suggests a high per-unit cost for the specialized medical devices. 2. Competition was robust, indicating potential for fair pricing, but the specific nature of the device may limit the number of qualified bidders. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector, a niche but critical area for medical technology. 5. The Department of Veterans Affairs is the primary agency, highlighting a focus on veteran healthcare needs. 6. The short duration of the delivery order suggests an immediate need or a phased approach to procurement.

Value Assessment

Rating: fair

The contract value of $49.7 million over 91 days is substantial, averaging over $547,000 per day. Without specific unit volume or detailed cost breakdowns, it's difficult to definitively benchmark value. However, given the specialized nature of electromedical apparatus, costs can be significantly higher than standard medical supplies. Further analysis would require understanding the quantity of transducers and their complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This is generally positive for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the 'full and open' designation implies a market capable of supporting more than one supplier.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for goods or services.

Public Impact

Veterans will benefit from access to advanced medical devices for treatment. The contract delivers specialized electromedical apparatus, likely for critical care or therapeutic purposes. The primary geographic impact is within the United States, serving VA facilities. The contract supports jobs in the advanced medical device manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily expenditure warrants scrutiny of unit costs and necessity.
Limited contract duration may indicate potential for future renegotiations or increased costs if extended.
Dependence on a single contractor for a critical medical device could pose supply chain risks.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Fixed-price contract type protects against cost overruns.
Awarding agency (VA) indicates a commitment to serving a specific, important demographic.

Sector Analysis

This contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing industry, a segment of the broader healthcare technology sector. This sector is characterized by high research and development costs, stringent regulatory requirements, and specialized manufacturing processes. The market size for such specialized devices can vary greatly depending on the specific application, but it is generally a high-value, low-volume segment compared to mass-produced medical supplies.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was likely awarded to a larger, established manufacturer capable of meeting the specialized requirements. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Veterans Affairs has its own Office of Inspector General (OIG) which would have jurisdiction over investigations into fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Contracts
Electromedical Apparatus
Therapeutic Devices

Risk Flags

High Cost Per Day
Short Contract Duration
Specialized Medical Technology Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,748.73 to NOVOCURE INC. OPTUNE PLUS TRANSDUCERS

Who is the contractor on this award?

The obligated recipient is NOVOCURE 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 $49,748.73.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-02.

What is the specific medical condition or treatment that the Optune Plus Transducers are intended for?

The Optune Plus system, which utilizes these transducers, is a wearable device used for Tumor Treating Fields (TTFields) therapy. This non-invasive treatment is primarily used for certain types of brain tumors, such as glioblastoma multiforme (GBM), and has also been explored for other cancers like mesothelioma and ovarian cancer. The transducers are placed on the scalp or affected body area to deliver the electrical fields.

How does the $49.7 million contract value compare to historical spending on this or similar devices by the VA or other agencies?

Historical spending data for the Optune Plus Transducers specifically is not readily available in public databases. However, the $49.7 million award for a 91-day period (approximately 3 months) represents a significant daily expenditure, averaging over $547,000 per day. This high cost suggests either a very large quantity of devices being procured or a very high per-unit cost, characteristic of advanced medical technologies. Benchmarking would require access to specific unit counts and detailed pricing structures from previous procurements or comparable agency contracts for similar high-value therapeutic devices.

What are the key performance indicators (KPIs) or success metrics for this contract?

Specific Key Performance Indicators (KPIs) for this delivery order are not publicly detailed. However, typical success metrics for such medical device contracts would likely include timely delivery of functional and compliant devices, adherence to quality standards, and potentially patient outcomes if the contract includes service or support components. The Department of Veterans Affairs would monitor device reliability, maintenance requirements, and overall effectiveness in patient treatment as part of their oversight.

What is Novocure Inc.'s track record with government contracts, particularly with the Department of Veterans Affairs?

Novocure Inc. is primarily known as a commercial entity focused on its Tumor Treating Fields (TTFields) therapy. While they have a strong presence in the commercial medical device market, their history with large federal government contracts, especially with the VA, may be less extensive compared to traditional defense or IT contractors. Information on their specific track record with the VA would require a detailed search of federal procurement databases, looking for prior awards, contract performance history, and any reported issues.

What is the potential risk associated with the short duration (91 days) of this delivery order?

The short duration of this delivery order (91 days) could indicate several things. It might represent an urgent, short-term need for the devices, or it could be part of a larger, phased procurement strategy. A potential risk is that if the need is ongoing, this short duration might necessitate frequent re-competition or contract modifications, which can be administratively burdensome and potentially lead to price increases if market conditions change unfavorably. It also limits the time for assessing long-term performance and value.

Are there any known supply chain vulnerabilities or dependencies related to the Optune Plus Transducers?

As with many specialized medical devices, there can be inherent supply chain vulnerabilities. The Optune Plus Transducers are likely manufactured using specific components and processes that may be concentrated with a limited number of suppliers. Novocure Inc., as the primary manufacturer, would be the central point of this supply chain. Dependence on a single manufacturer for critical medical technology can pose a risk if production is disrupted due to unforeseen events like natural disasters, geopolitical issues, or manufacturing problems. The VA would likely assess these risks as part of their procurement and contingency planning.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 COMMERCE WAY, PORTSMOUTH, NH, 03801

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

Financial Breakdown

Contract Ceiling: $49,749

Exercised Options: $49,749

Current Obligation: $49,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79723D0016

IDV Type: FSS

Timeline