VA awards $1.1M for specialized stains, highlighting a sole-source procurement for analytical instruments

Contract Overview

Contract Amount: $110,635 ($110.6K)

Contractor: Agilent Technologies Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-12-01

End Date: 2025-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $61/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DELIVERY OF SPECIALS STAINS

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19808

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $110,635.03 to AGILENT TECHNOLOGIES INC for work described as: DELIVERY OF SPECIALS STAINS Key points: 1. Procurement was sole-source, limiting competitive pricing benefits. 2. Contract duration of five years suggests a long-term need for these specialized stains. 3. The award falls within the analytical laboratory instrument manufacturing sector. 4. No small business set-aside was utilized for this purchase. 5. The contract type is firm fixed price, providing cost certainty. 6. Delivery of specialized stains is critical for laboratory operations.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to the sole-source nature and the specialized nature of the product. Without competitive bids, it's difficult to definitively assess if the price of $1.1M over five years represents optimal value for money. However, the firm fixed price structure offers predictability in spending. Further analysis would require comparing unit costs to similar specialized stains if available on the open market or through other government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Agilent Technologies Inc., was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and increases vendor options. The lack of competition means the government did not explore potential savings or alternative solutions that might have been offered by other qualified suppliers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through a competitive bidding process.

Public Impact

Veterans Affairs medical facilities benefit from the availability of essential diagnostic materials. Specialized stains are crucial for accurate laboratory testing and patient diagnosis. The contract supports the operational continuity of analytical laboratories within the VA. Workforce in VA laboratories relies on these supplies for daily functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in due to specialized product requirements.

Positive Signals

Firm fixed price contract provides budget certainty for the VA.
Long-term contract (5 years) ensures a stable supply chain for critical materials.
Awardee is an established manufacturer in the analytical instrument sector.

Sector Analysis

The contract falls under the North American Industry Classification System (NAICS) code 334516, 'Analytical Laboratory Instrument Manufacturing.' This sector encompasses companies that produce laboratory instruments, including those that utilize specialized reagents like stains. Spending in this sector is driven by the need for advanced diagnostic and research tools across government agencies, particularly in healthcare and scientific research. Benchmarking this specific award against broader industry spending is difficult without more granular data on stain procurement, but it represents a necessary component of laboratory infrastructure.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large corporation, it does not directly contribute to the small business ecosystem or provide opportunities for small business subcontractors in this instance. The focus was on securing a specific product from a known supplier.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for laboratory supplies. The firm fixed price nature of the award simplifies financial oversight by providing a set cost. Transparency regarding the justification for the sole-source award is crucial for accountability. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse, which are not indicated in the provided data.

Related Government Programs

Department of Veterans Affairs Medical Supplies
Laboratory Equipment and Reagents
Analytical Instruments
Specialized Diagnostic Materials

Risk Flags

Sole-source justification requires scrutiny.
Potential for price increases over contract duration.
Lack of competitive benchmarking limits value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $110,635.03 to AGILENT TECHNOLOGIES INC. DELIVERY OF SPECIALS STAINS

Who is the contractor on this award?

The obligated recipient is AGILENT TECHNOLOGIES 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 $110,635.03.

What is the period of performance?

Start: 2020-12-01. End: 2025-11-30.

What is the specific justification for awarding this contract on a sole-source basis to Agilent Technologies Inc.?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. A formal justification for sole-source procurement is typically required by federal acquisition regulations. Common reasons include that only one responsible source is available or capable of providing the required product or service, or that there is an urgent need that cannot be met by competitive means. For specialized stains, this could be due to unique proprietary formulations, specific compatibility requirements with existing VA laboratory instrumentation, or a lack of other qualified manufacturers capable of meeting the technical specifications. Without the official Justification for Other Than Full and Open Competition (JOFOC), the precise reason remains speculative but would likely center on technical necessity or market limitations.

How does the annual cost of this contract compare to similar specialized stain procurements by other federal agencies?

Direct comparison of the annual cost ($1.1M / 5 years = ~$221,270 per year) to similar specialized stain procurements is difficult without access to a broader dataset of federal contracts for these specific items. Specialized stains can vary significantly in price based on their type, application, and manufacturer. Given this was a sole-source award, the price may not be representative of a competitive market. To perform a robust comparison, one would need to identify contracts for comparable stains (e.g., for histology, microbiology, or specific diagnostic assays) awarded competitively by agencies like the Department of Defense or HHS, and analyze their unit pricing and total award values relative to quantity and duration.

What are the potential risks associated with relying on a single supplier for critical laboratory stains over a five-year period?

The primary risk of a sole-source, five-year contract is vendor dependency and potential price escalation. If Agilent Technologies Inc. experiences production issues, supply chain disruptions, or decides to significantly increase prices in future years (within contract terms), the VA has limited recourse. There's also a risk that technological advancements or new, more cost-effective stains emerge from competitors during the contract period, but the VA would be locked into the current supplier. Furthermore, the lack of ongoing competition means less incentive for the supplier to innovate or offer superior service levels beyond contractual minimums. This dependency necessitates close monitoring of the supplier's performance and market conditions.

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

The provided data only details this single contract award of $1.1M from December 1, 2020, to November 30, 2025. To understand historical spending patterns, one would need to analyze VA's procurement data for similar products (identified by PSC codes or keywords like 'stains', 'reagents', 'laboratory consumables') over several preceding fiscal years. This would involve querying databases like FPDS or SAM.gov for past awards, noting the quantities, prices, and types of stains purchased. Analyzing this trend would reveal whether spending has been consistent, increasing, or decreasing, and whether previous procurements were also sole-source or competed.

How does the firm fixed price (FFP) contract type impact the VA's ability to manage costs for these specialized stains?

A Firm Fixed Price (FFP) contract type is generally advantageous for the buyer (the VA) when the scope of work and requirements are well-defined, as they are for the delivery of specific stains. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the VA with cost certainty and predictability, making budgeting easier. The risk of cost overruns is borne entirely by the contractor (Agilent Technologies Inc.). This structure incentivizes the contractor to manage its own costs efficiently to maximize profit. For specialized stains, where the product is standardized, FFP is a suitable choice for controlling expenditures.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24721Q0121

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Agilent Technologies, Inc.

Address: 2850 CENTERVILLE RD, WILMINGTON, DE, 19808

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: $330,862

Exercised Options: $111,683

Current Obligation: $110,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline