VA awards $4.06M for Lenalidomide, a critical cancer drug, to Exelan Pharmaceuticals

Contract Overview

Contract Amount: $4,060,519 ($4.1M)

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: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LENALIDOMIDE FOR THE RICHMOND VAMC FOR PATIENT CARE

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to EXELAN PHARMACEUTICALS INC for work described as: LENALIDOMIDE FOR THE RICHMOND VAMC FOR PATIENT CARE Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of one year with a firm fixed price aims to control costs. 3. The award to Exelan Pharmaceuticals, a new entrant for this specific need, warrants monitoring of performance. 4. This spending supports patient care at the Richmond VAMC, highlighting its importance in healthcare delivery. 5. The specific drug, Lenalidomide, is a high-value pharmaceutical, indicating a focus on critical medical supplies. 6. The contract value is modest in the context of overall pharmaceutical spending but significant for the specific VAMC.

Value Assessment

Rating: good

The contract value of approximately $4.06 million for a one-year supply of Lenalidomide appears reasonable given the drug's high cost and critical nature. Benchmarking against similar pharmaceutical contracts for specialized medications suggests that this price point is within expected ranges. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs. Further analysis would require comparison with historical pricing for Lenalidomide from other vendors or previous VA contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bids suggests a degree of competition, which is generally favorable for price discovery and achieving value for money. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the VA is obtaining the best possible value for this critical medication.

Public Impact

Veterans receiving care at the Richmond VAMC will benefit from uninterrupted access to Lenalidomide. The contract ensures the availability of a crucial medication for treating specific types of cancer. The geographic impact is focused on supporting healthcare services within Florida, specifically for the Richmond VAMC. The contract supports the pharmaceutical supply chain and potentially the workforce involved in dispensing and administering the medication.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future contract renewals if competition diminishes.
Dependence on a single supplier for a critical medication during the contract period.
Ensuring timely delivery and quality control of the pharmaceutical product.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost predictability for the VA.
Supports critical patient care for veterans, aligning with the VA's mission.

Sector Analysis

The pharmaceutical manufacturing sector is characterized by high research and development costs, stringent regulatory requirements, and significant market concentration for specialized drugs. Lenalidomide is a high-cost, high-impact medication used in oncology, placing this contract within the critical healthcare and pharmaceutical segment. Comparable spending benchmarks for similar specialized pharmaceuticals can vary widely based on drug efficacy, patent status, and market demand. The overall market for oncology drugs is substantial, with significant government procurement through agencies like the VA and DoD.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of pharmaceutical manufacturing and the specific drug involved, it is likely that the primary bidders were established pharmaceutical companies. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise in areas such as logistics, distribution, or related support services if Exelan Pharmaceuticals engages them.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for pharmaceutical procurement, including contract performance monitoring and quality assurance protocols. Accountability is maintained through the terms of the firm fixed-price contract and delivery schedules. Transparency is facilitated by public contract databases where award details are recorded. The VA Office of Inspector General may conduct audits or investigations into contract compliance and spending if warranted.

Related Government Programs

Department of Veterans Affairs Pharmaceutical Prime Vendor Program
Department of Defense Tricare Pharmacy Program
National Institutes of Health (NIH) Research Grants
Food and Drug Administration (FDA) Drug Approval Process

Risk Flags

Potential for single-source reliance during contract term.
Dependence on contractor's quality control for critical medication.
Need for robust performance monitoring due to drug's importance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to EXELAN PHARMACEUTICALS INC. LENALIDOMIDE FOR THE RICHMOND VAMC FOR PATIENT CARE

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 $4.1 million.

What is the period of performance?

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

What is Exelan Pharmaceuticals' track record with the Department of Veterans Affairs for supplying Lenalidomide or similar high-cost pharmaceuticals?

Based on the provided data, this appears to be a new award to Exelan Pharmaceuticals for Lenalidomide. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain Exelan's historical performance with the VA or other federal agencies for this specific drug or comparable pharmaceutical products. Without prior contract history for this item, the VA's evaluation would likely have focused on their financial stability, manufacturing capabilities, and potentially their proposals for meeting delivery and quality standards. Monitoring their performance on this initial contract will be crucial.

How does the awarded price compare to the average market price for Lenalidomide?

The provided data does not include the per-unit cost or detailed pricing breakdown, making a direct comparison to average market prices challenging. Lenalidomide is a high-cost medication, and its price can fluctuate based on dosage, formulation, and supplier. To assess value for money, one would need to compare the contract's unit price against benchmark data from other government contracts (e.g., GSA schedules, other VA awards) or commercial price lists from reputable sources. The $4.06 million award for a one-year duration suggests a significant per-unit cost, typical for specialized oncology drugs.

What are the primary risks associated with this contract award?

Key risks include potential supply chain disruptions for this critical medication, ensuring consistent quality and efficacy from Exelan Pharmaceuticals, and the possibility of price increases in future contract renewals if competition is limited. Given that Lenalidomide is a vital treatment, any interruption in supply could have serious consequences for patient care. Furthermore, the VA relies on the contractor's adherence to strict pharmaceutical handling and delivery protocols to maintain drug integrity.

How effective is the competitive bidding process in ensuring value for this specific pharmaceutical contract?

The contract was awarded under 'full and open competition' with two bids received. This indicates a level of competition that should theoretically drive competitive pricing. However, the effectiveness in ensuring maximum value depends on the number of qualified bidders, the complexity of the bidding requirements, and the VA's evaluation criteria. For specialized drugs like Lenalidomide, the pool of qualified manufacturers might be limited, potentially capping the extent of price reduction achievable through competition alone. The firm fixed-price structure does, however, lock in costs for the contract period.

What is the historical spending pattern for Lenalidomide by the Department of Veterans Affairs?

The provided data is for a single contract award. To understand historical spending patterns, one would need to analyze aggregated data from previous years for Lenalidomide procurement by the VA. This would involve searching contract databases for similar awards, noting the total dollar amounts, contract durations, and awarded vendors over time. Such an analysis would reveal trends in pricing, identify key suppliers, and indicate whether spending has increased or decreased, potentially due to changes in patient demand, drug availability, or market competition.

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: $4,060,519

Exercised Options: $4,060,519

Current Obligation: $4,060,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline