VA Awards $3.77M for PCR Diagnostic Testing to Cepheid, Sole-Source Contract
Contract Overview
Contract Amount: $3,771,906 ($3.8M)
Contractor: Cepheid
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-04-11
End Date: 2026-03-31
Contract Duration: 354 days
Daily Burn Rate: $10.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: POLYMERASE CHAIN REACTION (PCR) DIAGNOSTIC TESTING FOR VISN 2 DOWNSTATE
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Veterans Affairs obligated $3.8 million to CEPHEID for work described as: POLYMERASE CHAIN REACTION (PCR) DIAGNOSTIC TESTING FOR VISN 2 DOWNSTATE Key points: 1. Contract awarded to Cepheid for essential diagnostic testing equipment. 2. Sole-source award raises questions about price discovery and competition. 3. Potential risk associated with reliance on a single supplier for critical medical equipment. 4. Spending falls within the analytical laboratory instrument manufacturing sector.
Value Assessment
Rating: fair
The contract value of $3.77M for diagnostic testing equipment appears reasonable given the specialized nature of PCR technology. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs compared to a fully competed procurement.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially leading to less efficient use of federal funds.
Public Impact
Ensures critical diagnostic capabilities for VISN 2 Downstate veterans. Potential for increased healthcare costs due to sole-source award. Highlights the VA's reliance on specific vendors for advanced medical technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for comparison.
- Potential for vendor lock-in.
Positive Signals
- Ensures availability of critical diagnostic equipment.
- Supports veteran healthcare services.
Sector Analysis
The Department of Veterans Affairs is procuring diagnostic testing equipment, which falls under the Analytical Laboratory Instrument Manufacturing sector. Spending in this sector can vary widely based on technological advancements and agency needs.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. Further analysis would be needed to determine if small businesses were excluded or had an opportunity to participate.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable and that future procurements explore competitive options where feasible.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price discovery.
- Risk of vendor dependency.
- Limited opportunities for small businesses.
Tags
analytical-laboratory-instrument-manufac, department-of-veterans-affairs, ca, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.8 million to CEPHEID. POLYMERASE CHAIN REACTION (PCR) DIAGNOSTIC TESTING FOR VISN 2 DOWNSTATE
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 $3.8 million.
What is the period of performance?
Start: 2025-04-11. End: 2026-03-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Agencies must document thorough market research to confirm no other sources exist. Without this documentation, it's difficult to assess if competitive strategies were adequately explored, potentially leading to missed opportunities for better pricing and innovation.
How does the unit cost of this PCR diagnostic equipment compare to similar government or commercial contracts?
Benchmarking the unit cost is challenging without access to comparable sole-source or competitively awarded contracts for similar PCR diagnostic equipment. The absence of competition makes it difficult to establish a fair market price. A thorough review of historical VA contracts or GSA schedules for related items could provide some context, but a direct comparison might be limited.
What is the long-term impact on the VA's ability to procure diagnostic testing solutions if reliance on a single vendor continues?
Continued reliance on a single vendor for critical diagnostic solutions can lead to vendor lock-in, reduced bargaining power, and potentially higher long-term costs. It may also stifle innovation if alternative technologies or suppliers are not explored. This could impact the VA's agility in adopting new diagnostic methods and ensuring cost-effectiveness in its healthcare services.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C24225Q0433
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Danaher Corporation
Address: 904, EAST CARIBBEAN DRIVE, 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: $3,771,906
Exercised Options: $3,771,906
Current Obligation: $3,771,906
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-04-11
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-02-25
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