VA Spends $32.5M on Laboratory Red Cell Reagents via Full and Open Competition

Contract Overview

Contract Amount: $32,474 ($32.5K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $30/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LABORATORY RED CELL REAGENTS

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32,473.98 to WERFEN USA LLC for work described as: LABORATORY RED CELL REAGENTS Key points: 1. The Department of Veterans Affairs (VA) awarded a $32.5 million contract for laboratory red cell reagents. 2. The contract was awarded to WERFEN USA LLC under a full and open competition. 3. This procurement falls within the In-Vitro Diagnostic Substance Manufacturing sector. 4. The contract duration is 1095 days, ending September 30, 2025.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar reagent contracts would provide further insight into value, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is the most effective method for price discovery and ensuring fair market value. This approach allows multiple qualified vendors to bid, driving down costs and promoting innovation.

Taxpayer Impact: The competitive nature of this award is likely to result in optimal pricing for taxpayers, ensuring funds are used efficiently for essential medical supplies.

Public Impact

Ensures availability of critical diagnostic reagents for veteran healthcare. Supports the VA's mission to provide comprehensive medical services. The procurement process promotes fair market competition among suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract type
Clear contract duration and end date

Sector Analysis

This contract for laboratory red cell reagents falls under the broader healthcare and medical supplies sector. Spending in this area is crucial for diagnostic capabilities within healthcare systems, and benchmarks vary widely based on specific reagent types and volumes.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight procedures should ensure compliance with contract terms and delivery schedules.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for supply chain disruptions
Lack of specific reagent details for granular cost analysis
Need for ongoing performance monitoring to ensure quality and timeliness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,473.98 to WERFEN USA LLC. LABORATORY RED CELL REAGENTS

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

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 $32,473.98.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is the specific type and volume of red cell reagents being procured, and how does this impact the overall cost-effectiveness?

The provided data identifies the general category as 'LABORATORY RED CELL REAGENTS' but lacks specifics on the exact types and quantities. Understanding these details is crucial for a precise cost-effectiveness assessment. Different reagents have vastly different price points and clinical utility, making a detailed breakdown essential for evaluating if the $32.5 million expenditure represents a good value for the specific diagnostic needs of the VA.

Are there any potential supply chain risks associated with relying on a single awardee, even with full and open competition?

While the initial award was competitive, potential supply chain risks can still exist. These might include sole-source manufacturing of critical components by WERFEN USA LLC's suppliers, geopolitical instability affecting raw material sourcing, or unforeseen production disruptions. The VA should have contingency plans in place, such as maintaining safety stock or identifying alternative suppliers for critical reagents.

How effectively will these reagents contribute to the diagnostic accuracy and timeliness of care for veterans?

The effectiveness hinges on the quality and reliability of the reagents provided by WERFEN USA LLC. Assuming the reagents meet stringent quality standards and are delivered on schedule, they will be crucial for accurate and timely diagnoses, enabling appropriate treatment for veterans. Performance metrics within the contract should track delivery timeliness and reagent quality to ensure optimal clinical impact.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance 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

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,685

Exercised Options: $32,474

Current Obligation: $32,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D70110

IDV Type: FSS

Timeline