VA awards $10.1M contract for chemical analyzers, with delivery orders extending through 2026

Contract Overview

Contract Amount: $10,109,581 ($10.1M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-02-11

End Date: 2026-02-10

Contract Duration: 1,460 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CHEMICAL ANALYZER

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.1 million to ABBOTT LABORATORIES INC. for work described as: CHEMICAL ANALYZER Key points: 1. The contract value appears reasonable given the duration and the nature of analytical laboratory instruments. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract is a delivery order, indicating flexibility in procurement but requiring careful monitoring of individual task orders. 4. The primary contractor, Abbott Laboratories Inc., is a significant player in the medical device industry. 5. The contract falls under the Analytical Laboratory Instrument Manufacturing NAICS code, a specialized sector. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of approximately $10.1 million over four years for chemical analyzers seems within a reasonable range for specialized laboratory equipment. Benchmarking against similar contracts for advanced analytical instruments would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government has secured a defined cost for the services and equipment, which is a positive indicator.

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 a single delivery order suggests that the initial competition may have been for a broader requirement, with this order representing a specific need. The level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple suppliers vie for the contract, potentially driving down prices and improving the quality of goods or services offered.

Public Impact

Veterans Affairs medical facilities will benefit from the availability of advanced chemical analyzers. These analyzers are crucial for diagnostic testing and patient care within the VA healthcare system. The services delivered will support laboratory operations, enabling timely and accurate medical results. The primary impact is on the healthcare services provided to veterans across the nation, particularly those utilizing VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support or consumables are not competitively procured.
Reliance on a single contractor for critical laboratory equipment could pose a risk if the contractor faces supply chain disruptions or financial instability.

Positive Signals

The use of full and open competition suggests a robust procurement process that should yield competitive pricing.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration allows for sustained availability of essential equipment for the VA.

Sector Analysis

The procurement of chemical analyzers falls within the Analytical Laboratory Instrument Manufacturing sector, a specialized segment of the broader healthcare and scientific equipment market. This sector is characterized by high research and development costs, stringent quality control, and a need for advanced technological capabilities. The market size for such instruments is substantial, driven by the global demand for accurate diagnostics and research. This contract represents a specific instance of federal spending within this critical industry, supporting the VA's operational needs.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The primary contractor, Abbott Laboratories Inc., is a large corporation. Further analysis would be needed to determine if any subcontracting plans exist that would involve small businesses in the provision of goods or services related to these chemical analyzers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract, oversight would involve monitoring the performance of Abbott Laboratories Inc. against the terms and conditions of the specific order, ensuring timely delivery, and verifying that the equipment meets specifications. Transparency is generally maintained through contract databases, and any significant issues could be subject to Inspector General review if they indicate fraud, waste, or abuse.

Related Government Programs

Medical Equipment Procurement
Laboratory Services
Veterans Health Administration
Diagnostic Instruments

Risk Flags

Potential for obsolescence of technology over the contract period.
Dependence on a single supplier for critical equipment maintenance and consumables.
Ensuring consistent calibration and quality control across multiple VA facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.1 million to ABBOTT LABORATORIES INC.. CHEMICAL ANALYZER

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES 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 $10.1 million.

What is the period of performance?

Start: 2022-02-11. End: 2026-02-10.

What is Abbott Laboratories Inc.'s track record with the Department of Veterans Affairs for similar procurements?

Abbott Laboratories Inc. has a history of contracts with the Department of Veterans Affairs, including those for medical equipment and supplies. While specific details on past chemical analyzer procurements would require deeper data mining, their presence as a major medical technology provider suggests a significant existing relationship. Analyzing past performance metrics, delivery timeliness, and any reported issues on previous VA contracts would provide a clearer picture of their reliability and suitability for this current award. A review of their contract history would also reveal the volume and value of previous awards, offering context to the current $10.1 million contract.

How does the $10.1 million contract value compare to market rates for similar chemical analyzers?

The $10.1 million contract value for chemical analyzers, awarded over a period likely encompassing multiple units and potentially associated services or maintenance, needs to be benchmarked against prevailing market rates. Factors such as the specific model of analyzer, its capabilities (e.g., throughput, tests performed), warranty, and any included training or support services significantly influence pricing. Without detailed specifications of the procured analyzers, a precise comparison is difficult. However, given that this was awarded under full and open competition, it suggests that the price achieved is likely competitive within the market for comparable high-complexity laboratory instrumentation. Further analysis would involve obtaining quotes for similar systems from various manufacturers.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential delays in delivery, equipment malfunction, or the need for specialized maintenance and consumables. Since this is a firm fixed-price contract, the financial risk of cost overruns is largely borne by the contractor, Abbott Laboratories Inc. Mitigation strategies likely include clear performance standards in the contract, defined delivery schedules, and warranty provisions. The VA's oversight mechanisms, including acceptance testing and monitoring of contractor performance, are crucial for mitigating operational risks. Furthermore, the use of full and open competition helps ensure that the chosen contractor has the capability and resources to meet the contract requirements, reducing the risk of contractor default.

How effective are chemical analyzers in improving diagnostic accuracy and patient outcomes within the VA system?

Chemical analyzers are fundamental tools in modern healthcare, playing a critical role in diagnostic accuracy and, consequently, patient outcomes. They enable the rapid and precise measurement of various chemical substances in biological samples (e.g., blood, urine), providing essential data for diagnosing diseases, monitoring treatment efficacy, and managing patient health. For the VA system, which serves a large and often complex patient population, these instruments are vital for timely and reliable laboratory results. Improved diagnostic accuracy leads to more appropriate treatment plans, reduced medical errors, and better overall patient care. The effectiveness is directly tied to the quality and reliability of the analyzers procured under this contract.

What are the historical spending patterns for chemical analyzers by the Department of Veterans Affairs?

Historical spending patterns for chemical analyzers by the Department of Veterans Affairs would reveal the VA's consistent need for such equipment and the typical scale of their procurements. Analyzing past contract awards for similar instruments, including the number of contracts, their values, and the duration over several fiscal years, can indicate trends in demand and budget allocation. This $10.1 million contract should be viewed in the context of this historical spending. If past spending has been consistently high, it suggests a stable, ongoing requirement. Conversely, significant fluctuations might indicate changes in VA's laboratory infrastructure strategy or technological adoption rates. Understanding these patterns helps in forecasting future needs and assessing the current award's significance.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 ABBOTT PARK RD DEPT 943 BLDG AP6C-3, NORTH CHICAGO, IL, 60064

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: $10,251,507

Exercised Options: $10,175,241

Current Obligation: $10,109,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0024

IDV Type: FSS

Timeline