VA awards $3.16M to American National Red Cross for blood products, raising competition concerns

Contract Overview

Contract Amount: $3,162,831 ($3.2M)

Contractor: American National RED Cross, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2025-06-30

Contract Duration: 1,368 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BLOOD AND BLOOD PRODUCTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.2 million to AMERICAN NATIONAL RED CROSS, THE for work described as: BLOOD AND BLOOD PRODUCTS Key points: 1. Significant contract value for blood products. 2. Sole reliance on a single provider limits market leverage. 3. Potential for inflated costs due to lack of competition. 4. Essential healthcare service with direct patient impact.

Value Assessment

Rating: questionable

The contract value of $3.16M for blood products is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to the American National Red Cross. This lack of competition limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be overpaying for blood products due to the absence of competitive pricing mechanisms.

Public Impact

Ensures a critical supply of blood and blood products for veterans' healthcare. Potential for higher costs impacts the overall healthcare budget. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of critical medical resource
Established provider

Sector Analysis

This contract falls within the healthcare sector, specifically for blood and blood products. Spending benchmarks for such services can vary widely based on volume, type, and geographic location.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this contract award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further review of the justification for not competing is recommended.

Related Government Programs

Blood and Organ Banks
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.2 million to AMERICAN NATIONAL RED CROSS, THE. BLOOD AND BLOOD PRODUCTS

Who is the contractor on this award?

The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.

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 $3.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-06-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, critical need, or lack of alternative sources. Without further documentation, it's impossible to definitively state the VA's rationale. However, for essential services like blood products, agencies may cite established relationships or specific logistical requirements.

What is the potential financial risk associated with this sole-source contract?

The primary financial risk is the potential for inflated pricing due to the absence of competitive pressure. Without bids from other suppliers, the American National Red Cross may not be incentivized to offer the lowest possible price, leading to inefficient use of taxpayer funds over the contract's duration.

How does this sole-source award impact the effectiveness of VA's procurement process for blood products?

This sole-source award suggests a potential gap in the VA's strategy for ensuring competitive sourcing of essential medical supplies. It may indicate a reliance on incumbent providers without actively exploring market alternatives, potentially hindering the agency's ability to secure the best value and most innovative solutions.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24721Q1186

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 431 18TH STREET, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $3,930,462

Exercised Options: $3,162,831

Current Obligation: $3,162,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline