VA awards $19.5M for automated blood culture testing, a sole-source contract for vital diagnostics

Contract Overview

Contract Amount: $19,539 ($19.5K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-03

End Date: 2025-06-03

Contract Duration: 182 days

Daily Burn Rate: $107/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AUTOMATED BLOOD CULTURE TESTING

Place of Performance

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

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19,539.25 to BIOMERIEUX INC for work described as: AUTOMATED BLOOD CULTURE TESTING Key points: 1. This contract supports critical laboratory operations for the Department of Veterans Affairs. 2. The sole-source nature of this award warrants scrutiny regarding potential price efficiencies. 3. Performance is tied to a fixed delivery period, indicating a defined operational need. 4. The specific product code is not detailed, limiting direct comparison to similar diagnostic supplies. 5. This award falls within the broader category of in-vitro diagnostic substance manufacturing.

Value Assessment

Rating: fair

Without a competitive bidding process, it is difficult to definitively assess value for money. The contract amount of $19.5 million for an 182-day period suggests a significant per-diem cost for automated blood culture testing services or supplies. Benchmarking against similar sole-source contracts for diagnostic equipment or reagents would be necessary to determine if the pricing is reasonable. The lack of competition raises concerns about whether the VA is obtaining the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the VA did not solicit bids from multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology or unique capabilities. The absence of competition means there was no direct price discovery through market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without competition, there is less incentive for the contractor to offer the lowest possible price, and the government has limited leverage to negotiate.

Public Impact

Veterans will benefit from timely and accurate blood culture testing, crucial for diagnosing and treating infections. The services delivered are essential for clinical decision-making in VA healthcare facilities. The geographic impact is primarily within VA facilities in Utah, where the contract is managed. This contract supports specialized roles within the VA's laboratory and medical support workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Lack of detailed product information hinders comprehensive value assessment.
Short contract duration may indicate a stop-gap measure or specific project need.

Positive Signals

Supports critical diagnostic testing for veteran healthcare.
Fixed price contract provides cost certainty for the specified period.
Awarded to a known entity in the diagnostics field.

Sector Analysis

The market for in-vitro diagnostic substances is a significant segment of the healthcare industry, driven by the need for accurate and rapid disease detection. Automated blood culture systems represent a key area within this market, offering efficiency and improved diagnostic capabilities over manual methods. This contract fits within the broader landscape of medical equipment and reagent procurement by federal healthcare providers, such as the VA, which consistently invest in advanced diagnostic technologies to serve the veteran population.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of automated blood culture testing and the sole-source award to BIOMERIEUX INC, it is unlikely that small businesses would be directly involved as prime contractors. Subcontracting opportunities for small businesses are not specified and would depend on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and program management offices. Accountability is established through the terms and conditions of the firm-fixed-price delivery order, requiring the contractor to meet specified delivery dates and product standards. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases.

Related Government Programs

Medical Equipment Procurement
Diagnostic Testing Services
In-Vitro Diagnostics
Laboratory Supplies

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific product details.
High cost per day for diagnostic supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19,539.25 to BIOMERIEUX INC. AUTOMATED BLOOD CULTURE TESTING

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 $19,539.25.

What is the period of performance?

Start: 2024-12-03. End: 2025-06-03.

What is the historical spending pattern for automated blood culture testing by the Department of Veterans Affairs?

Analyzing historical spending for automated blood culture testing by the VA is crucial for understanding trends and identifying potential cost efficiencies or escalations. Without specific historical data for this exact contract line item, a broader look at VA's spending on laboratory diagnostics and related supplies would be informative. Typically, federal agencies like the VA aim to consolidate contracts and leverage purchasing power to secure better pricing over time. However, sole-source awards can disrupt this, potentially leading to price increases if not carefully managed. A review of past contracts for similar diagnostic equipment or reagents, especially those awarded competitively, would provide a benchmark against which the current $19.5 million award for an 182-day period could be assessed for value.

What specific automated blood culture testing system or reagents does this contract cover?

The provided data does not specify the exact automated blood culture testing system or reagents covered by this contract. The National Stock Number (NSN) 325413 typically refers to 'Culture Media, Prepared,' which suggests the contract is for the consumable reagents used in blood culture testing rather than the automated instrumentation itself. BIOMERIEUX INC is a known manufacturer of both automated blood culture instruments (like the BacT/ALERT® system) and the associated culture media. Understanding whether this award is for the media alone, or if it includes maintenance or service for associated instrumentation, is critical for a complete value assessment. The lack of specificity necessitates further inquiry to determine the full scope of goods and services being procured.

What is the typical duration and value of similar sole-source contracts for blood culture testing supplies?

Determining the typical duration and value of similar sole-source contracts for blood culture testing supplies is challenging without access to a comprehensive database of sole-source awards specifically for this category. However, contracts for laboratory consumables like culture media are often awarded for periods ranging from one to five years, with values varying significantly based on the volume of testing required by the procuring agency. A $19.5 million award for a 182-day period (approximately six months) suggests a very high volume of testing or a particularly high unit cost for the media. If this is a recurring need, the annual cost could approach $40 million, which would be substantial. Benchmarking against competitively awarded contracts for similar media, or against sole-source awards to other large diagnostic companies, would be necessary to assess if this pricing is within a reasonable range.

What are the performance metrics and quality standards associated with this contract?

The provided data indicates a 'FIRM FIXED PRICE' contract type and a delivery end date of '2025-06-03', suggesting that the primary performance metric is timely delivery of the specified automated blood culture testing supplies (likely reagents, given NSN 325413). Quality standards would typically be defined by reference to manufacturer specifications, industry standards (e.g., CLIA regulations for laboratory testing), and potentially specific VA requirements outlined in the contract's statement of work. While the data doesn't detail these specific metrics, the VA would expect the supplied media to be effective, reliable, and meet all necessary regulatory and clinical performance benchmarks for accurate blood culture results. Failure to meet these standards could result in contract remedies, though the specifics would be in the full contract document.

Does the Department of Veterans Affairs have alternative suppliers for automated blood culture testing media?

The fact that this contract was awarded on a sole-source basis to BIOMERIEUX INC implies that, for the specific needs of the VA at the time of award, they identified BIOMERIEUX as the only viable supplier. This could be due to proprietary technology, unique product formulations, existing integration with VA laboratory systems, or specific contractual relationships. However, it is standard practice for federal agencies to periodically review the market to ensure that sole-source justifications remain valid. The VA may have other suppliers for general laboratory media, but for the specific type of automated blood culture media compatible with certain systems, BIOMERIEUX might hold a dominant or exclusive position. A deeper dive into the justification for the sole-source award would clarify the VA's assessment of alternative suppliers.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $37,855

Exercised Options: $19,539

Current Obligation: $19,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24625D0019

IDV Type: IDC

Timeline