VA awards $3.4M contract for analytical laboratory instruments, with delivery orders extending to late 2026

Contract Overview

Contract Amount: $3,412,414 ($3.4M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ABBOTT ARCHITECT CPRR

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to ABBOTT LABORATORIES INC. for work described as: ABBOTT ARCHITECT CPRR Key points: 1. The contract value appears reasonable given the duration and the nature of specialized laboratory equipment. 2. Full and open competition was utilized, suggesting a healthy market for these instruments. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports the Department of Veterans Affairs' diagnostic capabilities. 5. The contract is for analytical laboratory instruments, a critical component of healthcare services.

Value Assessment

Rating: good

The contract value of $3.4 million over approximately five years for analytical laboratory instruments seems within a reasonable range for specialized medical equipment. Benchmarking against similar contracts for laboratory instruments requires access to detailed specifications and market pricing data, which is not fully available here. However, the firm fixed-price nature of the award provides cost certainty for the VA, suggesting a degree of value for money by locking in prices.

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 invited to bid. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The VA's decision to use full and open competition suggests confidence in the availability of multiple qualified sources for these analytical laboratory instruments.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of suppliers to offer their best terms, ultimately leading to more efficient use of public funds.

Public Impact

Veterans will benefit from improved diagnostic capabilities through access to advanced analytical laboratory instruments. The contract supports the delivery of essential healthcare services within the Department of Veterans Affairs. The primary geographic impact is within the VA healthcare system, likely serving facilities where these instruments are deployed. The contract may indirectly support jobs in the medical device manufacturing and servicing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the instruments beyond their basic function.
The provided data does not detail the specific types or capabilities of the analytical laboratory instruments, limiting a deeper technical assessment.
Information on maintenance and support services included in the contract is not detailed, which could impact long-term operational costs.

Positive Signals

The use of a firm fixed-price contract provides cost predictability and reduces the risk of budget overruns for the VA.
Awarding under full and open competition suggests a robust market and potential for competitive pricing.
The contract duration of five years allows for stable provision of necessary equipment to support VA healthcare operations.

Sector Analysis

The market for analytical laboratory instruments is a significant segment within the broader healthcare and life sciences industry. This sector is characterized by technological innovation, stringent regulatory requirements, and a need for high precision and reliability. Companies in this space often specialize in specific types of instruments, such as those for chemical analysis, biological sample testing, or diagnostic imaging. Spending in this area by government agencies like the VA is crucial for maintaining up-to-date medical facilities and research capabilities. Comparable spending benchmarks would typically involve analyzing the average cost of similar instrument procurements by other federal agencies or large healthcare networks.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) mentioned for this contract. This suggests that the procurement was not specifically targeted towards small businesses. Consequently, the direct impact on the small business ecosystem may be limited unless the prime contractor engages in significant subcontracting with small businesses, which is not detailed in the available information. Further analysis would be needed to determine if subcontracting opportunities exist or have been utilized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for general review. Specific Inspector General (IG) jurisdiction would depend on whether the VA's Office of Inspector General identifies any potential fraud, waste, or abuse related to this award or its execution.

Related Government Programs

VA Medical Equipment Procurement
Federal Laboratory Instrument Contracts
Department of Veterans Affairs Healthcare Services
Analytical Instrument Manufacturing Contracts

Risk Flags

Potential for vendor lock-in if future procurements are not managed competitively.
Dependence on a single manufacturer's supply chain for critical equipment.
Lack of detailed performance metrics in summary data requires further review of full contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to ABBOTT LABORATORIES INC.. ABBOTT ARCHITECT CPRR

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 $3.4 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the specific model or type of analytical laboratory instrument being procured under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 334516, which corresponds to 'Analytical Laboratory Instrument Manufacturing.' However, the specific model, make, or detailed technical specifications of the analytical laboratory instruments are not included in the abbreviated data. To understand the precise nature of the equipment, one would need to review the full contract details, including any attached statements of work or product descriptions. This information is crucial for assessing the suitability of the instruments for the VA's intended use and for comparing their capabilities against market alternatives.

How does the total contract value of $3.4 million compare to typical spending on similar laboratory instruments by the VA or other federal agencies?

Without specific details on the instruments' capabilities, quantity, and intended use, a direct comparison of the $3.4 million total contract value is challenging. However, for specialized analytical laboratory instruments, this value spread over approximately five years (November 2021 to October 2026) suggests an average annual expenditure of around $680,000. This figure could represent a single high-value system with extensive support, or multiple units deployed across various VA facilities. Benchmarking would require identifying contracts for comparable instruments (e.g., mass spectrometers, advanced cell analyzers, high-throughput sequencers) awarded to other federal agencies or large healthcare providers, considering factors like volume, features, and service agreements to determine if this represents a competitive price point.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure the instruments are functioning optimally?

The provided data does not explicitly list Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such details would be found within the contract's statement of work or performance work statement. For analytical laboratory instruments, relevant KPIs might include uptime guarantees, response times for technical support, calibration frequency and accuracy, and turnaround times for diagnostic results if the instruments are directly involved in patient testing. The absence of this information in the summary data means that the specific mechanisms for ensuring optimal performance and contractor accountability are not detailed here. A review of the full contract documentation would be necessary to ascertain these performance expectations.

What is the track record of Abbott Laboratories Inc. (ABBOTT ARCHITECT CPRR) in fulfilling similar federal contracts for laboratory instruments?

Abbott Laboratories Inc. is a well-established company in the diagnostics and medical device industry. While the specific contract identifier 'ABBOTT ARCHITECT CPRR' is provided, its track record with federal contracts for laboratory instruments would need to be assessed through a broader search of federal procurement databases. Generally, large medical equipment manufacturers have experience fulfilling government contracts. Key aspects to evaluate would include their past performance ratings on similar awards, any history of contract disputes or terminations, and their ability to meet delivery schedules and technical specifications. Without access to a detailed contract history for Abbott in this specific domain, it's presumed they possess the capacity given their market position, but specific performance data would be required for a definitive assessment.

Are there any potential risks associated with relying on Abbott Laboratories Inc. for these critical laboratory instruments, such as single-source dependency or supply chain vulnerabilities?

The primary risk indicator here is the potential for vendor lock-in or supply chain vulnerabilities, although the contract was awarded under full and open competition. While Abbott Laboratories Inc. is a major manufacturer, relying on a single vendor for critical laboratory instruments can pose risks. These include potential price increases in future procurements if competition diminishes, difficulties in integrating equipment from different manufacturers, and dependence on Abbott's specific supply chain for parts and service. Supply chain disruptions, whether due to geopolitical events, natural disasters, or manufacturing issues, could impact the availability of instruments, reagents, or maintenance. The VA's strategy to mitigate this might involve ensuring robust service agreements and potentially diversifying suppliers in future contract cycles if feasible.

How does the $3.4 million spending on analytical laboratory instruments fit into the VA's overall budget for medical equipment and healthcare services?

The $3.4 million allocated for these analytical laboratory instruments represents a specific investment within the broader Department of Veterans Affairs (VA) healthcare budget. The VA's total budget encompasses a vast array of services, including personnel, pharmaceuticals, facility maintenance, and a wide range of medical equipment. To contextualize this spending, it would be necessary to compare it against the VA's annual appropriations for medical equipment procurement, which can run into billions of dollars. This particular contract addresses a specialized need within diagnostic services. Understanding its proportion relative to the overall medical equipment budget would indicate whether it represents a significant or routine investment for the agency's laboratory infrastructure.

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: $3,669,374

Exercised Options: $3,412,415

Current Obligation: $3,412,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0024

IDV Type: FSS

Timeline