VA awards $473,887 contract for diagnostic testing reagents, with a focus on California

Contract Overview

Contract Amount: $473,887 ($473.9K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CEPHEID MOLECULAR DIAGNOSTIC TESTING SYSTEM REAGENTS AND ASSAYS - VISN 6 IDIQ

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $473,887.42 to CEPHEID for work described as: CEPHEID MOLECULAR DIAGNOSTIC TESTING SYSTEM REAGENTS AND ASSAYS - VISN 6 IDIQ Key points: 1. The contract value appears moderate for a multi-year IDIQ, suggesting potential for significant future task orders. 2. Competition dynamics are favorable, with a full and open approach indicating broad market access. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is scheduled over a relatively short period, implying a need for timely delivery and execution. 5. The focus on diagnostic reagents positions this contract within a critical healthcare supply chain segment.

Value Assessment

Rating: good

The contract value of $473,887 over its period of performance is modest. Benchmarking against similar IDIQ contracts for diagnostic reagents is difficult without more specific task order data. However, the firm-fixed-price nature of the award suggests that pricing was determined upfront and is intended to be stable. The value appears reasonable for a supply contract of this nature, assuming the quantity and type of reagents align with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the broad competition suggests the government sought the best value from a wide range of potential suppliers.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by leveraging market forces.

Public Impact

Veterans receiving care within VISN 6 will benefit from the availability of necessary diagnostic testing reagents. The contract ensures the supply of molecular diagnostic testing system reagents and assays, crucial for accurate medical diagnoses. The primary geographic impact is within VISN 6, which serves a significant veteran population. The contract supports the healthcare workforce by providing essential tools for laboratory technicians and medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specific reagents could lead to supply chain vulnerabilities if not managed proactively.
Reliance on a single manufacturer (Cepheid) for specific assays might pose a risk if alternative suppliers are not readily available for future needs.
The short performance period for the base IDIQ could necessitate rapid re-competition or extensions, introducing administrative burden.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract supports a critical healthcare function for veterans, aligning with the VA's mission.

Sector Analysis

The market for in-vitro diagnostic (IVD) substances and manufacturing is a significant segment of the broader healthcare industry. This contract falls under the manufacturing of diagnostic substances, specifically for molecular diagnostic testing systems. The market is characterized by innovation, regulatory oversight (FDA), and a mix of large established players and specialized manufacturers. Spending in this area is driven by the increasing demand for accurate and rapid disease detection and monitoring.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, Cepheid, is a large business, and any subcontracting opportunities would be at their discretion, though large contractors often engage small businesses to meet broader subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Supplies Contracts
In-Vitro Diagnostic Substance Manufacturing Contracts
Molecular Diagnostic Testing System Contracts
Federal Healthcare Supply Chain Management

Risk Flags

Potential supply chain vulnerability for specialized reagents.
Dependence on a single manufacturer's technology.
Short performance period may require rapid follow-on actions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $473,887.42 to CEPHEID. CEPHEID MOLECULAR DIAGNOSTIC TESTING SYSTEM REAGENTS AND ASSAYS - VISN 6 IDIQ

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $473,887.42.

What is the period of performance?

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

What is the historical spending pattern for Cepheid with the Department of Veterans Affairs?

Analyzing historical spending patterns for Cepheid with the Department of Veterans Affairs (VA) requires accessing detailed procurement data over multiple fiscal years. While this specific award is for $473,887, understanding Cepheid's broader engagement with the VA would involve looking at all contracts awarded to them, including IDIQs, delivery orders, and other contract types. Factors to consider include the total value of contracts awarded, the types of goods or services provided, the agencies or VISNs within the VA that utilized their products, and the duration of these contracts. A trend analysis could reveal if Cepheid is a consistent or growing supplier for the VA, and whether spending has increased or decreased over time. This context is crucial for assessing the significance of the current award and forecasting future potential.

How does the per-unit cost of these reagents compare to market rates for similar diagnostic testing systems?

Determining the precise per-unit cost comparison for these reagents is challenging without specific unit pricing details within the contract award data. The provided information outlines a total contract value and period, but not the quantity of reagents or their individual prices. To perform a robust comparison, one would need access to the specific line-item pricing or task order details. Benchmarking would involve identifying comparable molecular diagnostic reagents from other manufacturers or suppliers serving federal agencies or the commercial market. Factors such as assay complexity, sensitivity, specificity, and the volume of purchase significantly influence per-unit costs. A preliminary assessment suggests the contract value is moderate, implying that unit costs, when factored across potential task orders, are likely competitive, especially given the full and open competition.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided award abstract. However, for a contract involving the supply of diagnostic reagents, typical KPIs would likely include on-time delivery rates, order fulfillment accuracy, product quality (meeting specifications), and potentially response times for urgent needs. Performance monitoring would be the responsibility of the VA's contracting officer's representative (COR) or designated personnel. They would track deliveries against the schedule, verify the quality of received goods, and ensure compliance with contract terms. The firm-fixed-price nature of the contract incentivizes the contractor to meet these performance expectations to receive payment.

What is the potential impact of this contract on the availability of specific diagnostic tests for veterans?

This contract directly impacts the availability of specific diagnostic tests for veterans by ensuring a reliable supply of the necessary reagents and assays for Cepheid's molecular diagnostic systems. These systems are used for detecting and diagnosing a range of infectious diseases and other conditions. By securing these supplies through a competitively awarded contract, the VA aims to prevent shortages and maintain the continuity of diagnostic services within VISN 6. The availability of these reagents is critical for timely and accurate patient diagnoses, enabling appropriate treatment and management of veteran health conditions, thereby supporting the overall mission of providing quality healthcare.

Are there any known risks associated with Cepheid's molecular diagnostic technology or its supply chain?

Cepheid is a well-established company in the molecular diagnostics field, known for its GeneXpert systems. Risks associated with their technology and supply chain are generally considered manageable but not non-existent. Potential risks could include reliance on specific raw materials for reagent manufacturing, which could be subject to global supply chain disruptions. Technological obsolescence is a factor in the rapidly evolving diagnostics market, though Cepheid continually updates its platforms. Regulatory changes or recalls related to diagnostic tests could also pose risks. However, the VA's procurement process, including full and open competition, aims to mitigate risks by selecting capable contractors and ensuring competitive pricing. The firm-fixed-price contract also shifts some risk to the contractor regarding delivery and cost.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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

Financial Breakdown

Contract Ceiling: $473,887

Exercised Options: $473,887

Current Obligation: $473,887

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24626D0001

IDV Type: IDC

Timeline