VA Awards $677K for Blood Products to American National Red Cross, Sole Source

Contract Overview

Contract Amount: $677,563 ($677.6K)

Contractor: American National RED Cross, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-15

End Date: 2027-05-14

Contract Duration: 364 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BLOOD PRODUCTS

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $677,563.21 to AMERICAN NATIONAL RED CROSS, THE for work described as: BLOOD PRODUCTS Key points: 1. Significant contract value for blood products. 2. Sole source award to a single provider. 3. Potential for higher costs due to lack of competition. 4. Focus on essential healthcare services for veterans.

Value Assessment

Rating: fair

The contract is a firm-fixed-price delivery order. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar blood products.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning competition was not sought. This limits price discovery and may result in less favorable pricing for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially leading to inefficient use of funds.

Public Impact

Ensures critical blood supply for veterans' healthcare needs. Reliance on a single supplier raises concerns about long-term availability and price stability. Potential impact on other healthcare providers if this supplier's capacity is limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for inflated pricing.
Dependence on a single supplier.

Positive Signals

Ensures supply of critical medical materials.
Contract supports essential healthcare services.

Sector Analysis

The Department of Veterans Affairs consistently spends significant amounts on healthcare services and supplies, including blood products. Benchmarks for blood product procurement vary widely based on type and volume, but competitive bidding typically drives down costs.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source award to a large, established organization. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification for lack of competition was valid and that the pricing is reasonable. Further review of the justification documentation is recommended.

Related Government Programs

Blood and Organ Banks
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for price gouging
Supplier dependency risk
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $677,563.21 to AMERICAN NATIONAL RED CROSS, THE. BLOOD PRODUCTS

Who is the contractor on this award?

The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.

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 $677,563.21.

What is the period of performance?

Start: 2026-05-15. End: 2027-05-14.

What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly documented?

The provided data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. A comprehensive review of the contract file would be necessary to ascertain the specific justification (e.g., unique capabilities, urgent need) and confirm its adequacy and proper documentation according to federal acquisition regulations.

How does the pricing of these blood products compare to industry benchmarks or previous competitively awarded contracts for similar items?

Without access to specific product details and market data, a direct price comparison is challenging. However, the absence of competition suggests the possibility of prices being higher than what might be achieved through a competitive process. Benchmarking against similar sole-source contracts or historical competitive data for the VA would be informative.

What measures are in place to ensure the quality and timely delivery of blood products under this sole-source arrangement?

Standard contract clauses for quality assurance and timely delivery would apply. The VA's quality assurance personnel would monitor performance. However, the sole-source nature means the government lacks the leverage of competitive pressure to enforce these terms, making vigilant oversight particularly crucial.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 431 18TH ST NW, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Tax Exempt, Domestic Shelter, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $677,563

Exercised Options: $677,563

Current Obligation: $677,563

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24424D0059

IDV Type: IDC

Timeline