VA awards $900K for analytical lab instruments, with Roche Diagnostics Corporation as the sole awardee

Contract Overview

Contract Amount: $900,000 ($900.0K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CPT CHEMISTRY/IMMUNOCHEMISTRY

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $900,000 to ROCHE DIAGNOSTICS CORPORATION for work described as: CPT CHEMISTRY/IMMUNOCHEMISTRY Key points: 1. The contract value of $900,000 for a 6-month period suggests a significant per-unit cost or extensive service requirement. 2. Competition was full and open, indicating a broad market search, but only one awardee was selected. 3. The fixed-price contract type aims to control costs, but the specific pricing structure needs further review. 4. The contract is for analytical laboratory instruments, a critical component for diagnostic services within the VA. 5. The awardee, Roche Diagnostics Corporation, is a major player in the diagnostics market, suggesting established capabilities. 6. The short duration of 182 days may indicate a need for immediate deployment or a pilot phase.

Value Assessment

Rating: fair

The contract value of $900,000 for a 182-day period is substantial. Without specific details on the instruments or services provided, a direct comparison to similar contracts is difficult. However, the average annual spending on analytical laboratory instruments by the VA is significantly higher, suggesting this particular award might be for a specific, high-value need or a limited scope. The firm fixed-price nature is positive for cost control, but the per-unit cost needs to be benchmarked against market rates for similar instruments and services to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for market engagement. However, the fact that only one awardee, Roche Diagnostics Corporation, was selected from this broad competition warrants further investigation. It could imply that only one vendor met all the stringent requirements, or it might suggest potential limitations in the bidding pool for this specific type of advanced analytical instrumentation.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by encouraging multiple bids and potentially lower prices, the single awardee scenario here means taxpayers may not have realized the full benefit of price discovery that a more competitive outcome could have provided.

Public Impact

Veterans will benefit from potentially improved diagnostic accuracy and faster turnaround times for laboratory tests. The contract supports the delivery of essential clinical laboratory services within the Department of Veterans Affairs. The geographic impact is likely concentrated within VA facilities in Indiana, where the contract is being performed. This contract may indirectly impact the healthcare workforce by ensuring access to necessary diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition despite 'full and open' status, as only one awardee was selected.
Lack of detailed per-unit cost information makes it difficult to assess true value for money.
The short contract duration could indicate a rushed procurement or a need for further justification of long-term solutions.

Positive Signals

Awarded under 'full and open' competition, suggesting an attempt to solicit broad market interest.
Firm fixed-price contract type provides cost certainty for the government.
The awardee, Roche Diagnostics Corporation, is a reputable and established provider in the field.

Sector Analysis

The market for analytical laboratory instruments is a significant segment within the broader healthcare and medical device industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and the need for continuous technological advancement. Spending in this area by government agencies like the VA is crucial for maintaining advanced diagnostic capabilities. Comparable spending benchmarks would typically involve analyzing the average cost of similar instrument acquisitions or service contracts across federal healthcare providers.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. There is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, Roche Diagnostics Corporation, voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified goods or services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this contract.

Related Government Programs

VA Laboratory Services
Medical Equipment Procurement
Clinical Diagnostics
Analytical Instruments

Risk Flags

Single Awardee Despite Full and Open Competition
Potential for High Per-Unit Cost
Limited Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $900,000 to ROCHE DIAGNOSTICS CORPORATION. CPT CHEMISTRY/IMMUNOCHEMISTRY

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $900,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What specific analytical laboratory instruments are being procured under this contract?

The provided data indicates the contract is for 'CPT CHEMISTRY/IMMUNOCHEMISTRY' analytical laboratory instruments. This suggests the procurement is focused on equipment used for performing complex chemical and immunological tests on patient samples. These instruments are critical for diagnosing a wide range of conditions, monitoring treatment efficacy, and conducting research. The specific models or types of instruments are not detailed in the summary data, but they likely represent advanced systems capable of high-throughput testing and precise analysis within clinical laboratory settings.

How does the $900,000 award value compare to historical VA spending on similar instruments?

The $900,000 award for a 182-day period is a significant amount for a short duration. To provide a precise comparison, historical spending data for identical or highly similar analytical instruments by the VA would be needed. However, general VA spending on laboratory equipment and services is in the hundreds of millions annually. This specific contract's value, relative to its short term, suggests it might be for a high-end, specialized instrument, a suite of instruments, or potentially includes associated services like maintenance, calibration, and consumables. A deeper dive into the VA's procurement history for 'Analytical Laboratory Instrument Manufacturing' (NAICS 334516) would be necessary for a robust benchmark.

What are the potential risks associated with awarding this contract to a single vendor, even under full and open competition?

Even with full and open competition, awarding to a single vendor carries risks. Firstly, it may indicate a lack of robust competition, potentially leading to higher prices than if multiple vendors had bid competitively. Secondly, it creates vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or better alternatives emerge. Thirdly, reliance on a single supplier can increase supply chain vulnerability; any disruption affecting the sole awardee could directly impact the VA's ability to perform critical laboratory functions. Finally, it might suggest that the specific requirements were so niche or technically demanding that only one company could meet them, which could limit future innovation or broader market solutions.

What is the track record of Roche Diagnostics Corporation with the Department of Veterans Affairs?

Roche Diagnostics Corporation is a major global player in the diagnostics market, and it is highly probable they have a substantial track record with the Department of Veterans Affairs, given the VA's extensive healthcare operations. While the provided data doesn't detail past contracts, large healthcare providers like the VA typically engage with leading diagnostic companies for their instrument and reagent needs. A review of federal procurement databases (like FPDS or USASpending) would likely reveal numerous past awards to Roche Diagnostics for various laboratory equipment, testing kits, and related services, indicating a history of engagement and established business relationships.

How does the firm fixed-price (FFP) contract type mitigate risks for the VA in this scenario?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. In this case, the VA agrees to pay a set price for the analytical laboratory instruments and/or services, regardless of the contractor's actual costs. This provides budget certainty for the VA and incentivizes the contractor, Roche Diagnostics Corporation, to manage its costs efficiently to maximize profit. For the VA, the primary risk mitigation is financial predictability. However, FFP contracts can sometimes lead to higher initial prices to account for the contractor's risk, and they may offer less flexibility if the scope of work needs to change significantly during the contract period.

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: 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

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

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: $900,000

Exercised Options: $900,000

Current Obligation: $900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797P7347A

IDV Type: FSS

Timeline