VA Awards $9.4M for Lab Chemistry Services to Abbott Laboratories, Highlighting Full and Open Competition
Contract Overview
Contract Amount: $9,422,426 ($9.4M)
Contractor: Abbott Laboratories Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-06-01
End Date: 2027-05-31
Contract Duration: 1,094 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: LAB CHEMISTRY SERVICES
Place of Performance
Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $9.4 million to ABBOTT LABORATORIES INC. for work described as: LAB CHEMISTRY SERVICES Key points: 1. Contract Value: $9.4 million over 3 years. 2. Competition: Awarded under full and open competition. 3. Risk: Moderate risk due to long-term contract and specific vendor. 4. Sector: Healthcare and laboratory services.
Value Assessment
Rating: good
The contract value of $9.4 million for lab chemistry services appears reasonable given the 3-year duration and the nature of the services. Benchmarking against similar VA or other federal contracts for analytical laboratory instruments and services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the lab chemistry services provided.
Public Impact
Ensures continued access to essential laboratory testing for veterans. Supports the Department of Veterans Affairs' healthcare mission. Potential for improved patient outcomes through reliable diagnostic services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in potential
- Service disruption risk if vendor fails
- Inflationary cost increases over contract term
Positive Signals
- Ensures continuity of critical lab services
- Leverages competitive bidding for price efficiency
- Supports veteran healthcare needs
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on laboratory services and analytical instruments. Spending in this area is critical for diagnostics and patient care within federal health systems.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the scope of work was not conducive to small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure performance, quality, and adherence to contract terms.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor dependency
- Risk of service interruption
- Long-term commitment may limit future flexibility
- Need for clear performance metrics
Tags
analytical-laboratory-instrument-manufac, department-of-veterans-affairs, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $9.4 million to ABBOTT LABORATORIES INC.. LAB CHEMISTRY SERVICES
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 $9.4 million.
What is the period of performance?
Start: 2024-06-01. End: 2027-05-31.
What is the specific breakdown of services and equipment covered under this $9.4 million contract?
The contract is for 'LAB CHEMISTRY SERVICES' and the NAICS code 334516 suggests it relates to 'Analytical Laboratory Instrument Manufacturing'. A detailed breakdown would clarify if it includes instrument purchase, maintenance, reagents, or a combination, which is crucial for understanding the value proposition and potential for future needs.
How does the awarded price compare to the government estimate or benchmark pricing for similar lab chemistry services?
The provided data includes a 'br' (benchmark rate?) of 8613, but its context is unclear. Comparing the total contract value and potential per-unit costs to established federal supply schedules or historical data for similar services is essential to confirm if the $9.4 million represents a competitive and fair price.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness of these lab chemistry services?
Effective oversight requires clearly defined KPIs and SLAs. These should cover aspects like turnaround time for tests, accuracy rates, instrument uptime, and reporting timeliness. Without these, it's difficult to objectively measure the contractor's performance and the overall effectiveness of the service delivery.
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: $15,298,820
Exercised Options: $9,422,426
Current Obligation: $9,422,426
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36F79719D0024
IDV Type: FSS
Timeline
Start Date: 2024-06-01
Current End Date: 2027-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-03-30
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