VA awards $69.1M for VIDAS 3 Reagents and Consumables to BIOMERIEUX INC, impacting Analytical Laboratory Instrument Manufacturing

Contract Overview

Contract Amount: $69,118 ($69.1K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-07-31

Contract Duration: 303 days

Daily Burn Rate: $228/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VIDAS 3 REAGENTS AND CONSUMABLES

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $69,118.48 to BIOMERIEUX INC for work described as: VIDAS 3 REAGENTS AND CONSUMABLES Key points: 1. The contract is for essential reagents and consumables for the VIDAS 3 system. 2. BIOMERIEUX INC is the sole provider of these specific VIDAS 3 consumables. 3. The contract duration extends over 30 months, indicating a sustained need. 4. The total award value is $69.1 million. 5. The procurement method was 'NOT COMPETED UNDER SAP', raising questions about competition.

Value Assessment

Rating: fair

The award of $69.1M for reagents and consumables appears to be a significant expenditure. Without specific unit pricing or historical data for similar contracts, a direct comparison is difficult. However, the duration and value suggest a substantial ongoing need for these specialized items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source or limited competition scenario. This approach may limit price discovery and potentially lead to higher costs for the government compared to a fully competitive process.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential laboratory supplies.

Public Impact

Veterans will continue to receive essential diagnostic testing supported by these reagents. The Department of Veterans Affairs ensures continuity of laboratory operations. The contract supports the manufacturing sector for analytical laboratory instruments. Potential for increased costs due to sole-source award impacts overall VA budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement limits competition and price negotiation.
Lack of transparency in the procurement process.
Potential for overpayment due to lack of competitive bidding.

Positive Signals

Ensures continuity of critical laboratory supplies for VA facilities.
Supports a specific technology platform vital for diagnostics.

Sector Analysis

The Analytical Laboratory Instrument Manufacturing sector is critical for healthcare diagnostics. Spending in this area is often driven by specialized equipment needs and proprietary consumables. Benchmarks are difficult without specific product comparisons, but consistent supply is key for healthcare operations.

Small Business Impact

This contract was awarded to BIOMERIEUX INC, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Documentation justifying the lack of competition and the pricing structure will be crucial for accountability.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in procurement process
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $69,118.48 to BIOMERIEUX INC. VIDAS 3 REAGENTS AND CONSUMABLES

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX 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 $69,118.48.

What is the period of performance?

Start: 2025-10-01. End: 2026-07-31.

What is the justification for not competing this contract under SAP, and what steps were taken to ensure fair pricing?

The justification for not competing under SAP typically involves situations where only one source can provide the required goods or services. For sole-source procurements, agencies must conduct market research and negotiate pricing to ensure it is fair and reasonable. This often involves comparing prices to similar commercial items or previous contract prices, though specific details for this award are not provided.

What are the potential risks associated with a sole-source award for essential laboratory consumables?

The primary risk of a sole-source award is the potential for inflated prices due to the absence of competition. It can also lead to vendor lock-in, making it difficult to switch to alternative suppliers even if more cost-effective options become available. Furthermore, it reduces transparency and opportunities for small businesses to participate in government contracting.

How does this contract ensure the effectiveness of diagnostic testing for veterans?

This contract ensures the effectiveness of diagnostic testing by guaranteeing a consistent and reliable supply of VIDAS 3 reagents and consumables. These specific items are essential for the proper functioning of the VIDAS 3 system, which is used for various diagnostic tests. Continuity of supply prevents disruptions in laboratory services, directly supporting the quality of care provided to veterans.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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

Financial Breakdown

Contract Ceiling: $69,118

Exercised Options: $69,118

Current Obligation: $69,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24224A0027

IDV Type: BPA

Timeline