VA awards $5.1M for Lenalidomide to Exelan Pharmaceuticals, ensuring drug supply for multiple healthcare centers

Contract Overview

Contract Amount: $5,146,882 ($5.1M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-15

End Date: 2027-01-14

Contract Duration: 364 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LENALIDOMIDE FOR THE SALISBURY VAMC, CHARLOTTE HCC, AND KERNERSVILLE HCC.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.1 million to EXELAN PHARMACEUTICALS INC for work described as: LENALIDOMIDE FOR THE SALISBURY VAMC, CHARLOTTE HCC, AND KERNERSVILLE HCC. Key points: 1. The award focuses on a critical pharmaceutical, Lenalidomide, vital for patient treatment. 2. Exelan Pharmaceuticals Inc. is the sole awardee, indicating a specific supplier relationship. 3. The contract duration is one year, with potential for renewal, suggesting ongoing need. 4. The spending is categorized under Pharmaceutical Preparation Manufacturing. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $5.1M for a one-year supply of Lenalidomide appears reasonable given the specialized nature of pharmaceuticals. Benchmarking against similar sole-source or limited-competition contracts for high-demand drugs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although the award is to Exelan Pharmaceuticals Inc., the contract was awarded under full and open competition. This suggests that multiple vendors were considered, and Exelan offered the best value. The price discovery mechanism relied on competitive bidding.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure necessary medications at a fair price, ensuring efficient use of public funds for healthcare.

Public Impact

Ensures continued access to Lenalidomide for veterans at Salisbury VAMC, Charlotte HCC, and Kernersville HCC. Supports the VA's mission to provide comprehensive healthcare services to its beneficiaries. The award contributes to the pharmaceutical supply chain, ensuring availability of essential medicines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Reliance on a single supplier for a critical medication.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract provides cost predictability.
Ensures supply continuity for essential medication.

Sector Analysis

The pharmaceutical sector is characterized by high R&D costs, stringent regulations, and significant market competition. Government contracts for pharmaceuticals are crucial for ensuring access to essential medicines for public health programs and specific populations like veterans.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. 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 regulations and contract management practices would apply to ensure performance and accountability.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for price escalation in future renewals.
Dependence on a single supplier.
Need for ongoing quality assurance monitoring.
Limited transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.1 million to EXELAN PHARMACEUTICALS INC. LENALIDOMIDE FOR THE SALISBURY VAMC, CHARLOTTE HCC, AND KERNERSVILLE HCC.

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS 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 $5.1 million.

What is the period of performance?

Start: 2026-01-15. End: 2027-01-14.

What is the historical pricing trend for Lenalidomide from Exelan Pharmaceuticals Inc. under previous contracts?

Analyzing historical pricing data from previous contracts with Exelan Pharmaceuticals Inc. for Lenalidomide is crucial for assessing value. Significant price increases or decreases over time could indicate changes in market dynamics, manufacturing costs, or negotiation leverage. Understanding this trend helps determine if the current $5.1M award represents a fair market price or if there's potential for cost savings in future procurements.

What are the specific risks associated with relying on Exelan Pharmaceuticals Inc. as the sole awardee for Lenalidomide?

The primary risk is supply chain disruption if Exelan Pharmaceuticals Inc. faces production issues, quality control problems, or financial instability. This could lead to shortages of a critical medication for veterans. Additionally, a sole awardee may have less incentive to offer competitive pricing in future contract renewals, potentially leading to higher costs for the VA.

How effectively does this contract ensure the consistent availability and quality of Lenalidomide for the specified VA facilities?

The contract's effectiveness in ensuring availability and quality hinges on Exelan Pharmaceuticals Inc.'s performance and the VA's oversight. The one-year duration with a firm fixed price suggests a commitment to a defined supply. However, ongoing monitoring of delivery schedules, adherence to quality standards, and prompt resolution of any issues are critical to guarantee consistent access to this vital medication for veterans.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

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

Financial Breakdown

Contract Ceiling: $5,146,882

Exercised Options: $5,146,882

Current Obligation: $5,146,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline