VA awards $17.1M contract for analytical instruments, with Roche Diagnostics as the primary vendor

Contract Overview

Contract Amount: $13,524,174 ($13.5M)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2025-11-28

Contract Duration: 789 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COST PER TEST

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.5 million to ROCHE DIAGNOSTICS CORPORATION for work described as: COST PER TEST Key points: 1. The contract value of $17.1 million appears to be a significant investment in laboratory instrumentation. 2. Roche Diagnostics Corporation is a major player in the diagnostics market, suggesting a competitive landscape. 3. The contract duration of 789 days indicates a medium-term need for these analytical instruments. 4. The fixed-price contract type offers cost certainty for the government. 5. The award is for analytical laboratory instrument manufacturing, a critical component of healthcare services.

Value Assessment

Rating: good

The contract value of $17.1 million for analytical laboratory instruments needs further benchmarking against similar procurements for comparable equipment. Without specific details on the instruments and their capabilities, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides a degree of cost control. The award to Roche Diagnostics, a known entity in the field, suggests a potentially competitive bid process, but the actual pricing relative to market rates for similar instruments would require detailed analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred as it maximizes the potential for competitive pricing and innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of solutions.

Public Impact

Veterans will benefit from improved diagnostic capabilities through advanced analytical laboratory instruments. The contract supports the delivery of essential laboratory services within the Department of Veterans Affairs. The geographic impact is primarily within Indiana, where the instruments will likely be deployed or serviced. The contract supports the manufacturing sector for specialized laboratory equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized reagents or maintenance are required exclusively from Roche.
Dependence on a single primary vendor could limit future flexibility in technology adoption.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Fixed-price contract provides budget predictability.
Roche Diagnostics is a reputable manufacturer in the field.

Sector Analysis

The market for analytical laboratory instruments is a specialized segment within the broader healthcare and life sciences industry. This sector is characterized by significant R&D investment, stringent regulatory requirements, and a mix of large established players and niche innovators. Spending in this area is driven by the need for accurate diagnostics, drug discovery, and research. Comparable spending benchmarks would depend heavily on the specific type and volume of instruments procured.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not immediately apparent from this award alone. Further investigation into the prime contractor's subcontracting plans would be necessary to assess any potential opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated by the public nature of federal contract awards, though detailed operational performance data may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Clinical Laboratory Services Contracts
Analytical Instrument Manufacturing Contracts

Risk Flags

Potential for vendor lock-in
Technological obsolescence risk
Dependence on single supplier for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.5 million to ROCHE DIAGNOSTICS CORPORATION. COST PER TEST

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $13.5 million.

What is the period of performance?

Start: 2023-10-01. End: 2025-11-28.

What specific types of analytical laboratory instruments are being procured under this contract, and what are their intended applications within the VA?

The contract, valued at $17.1 million, is for analytical laboratory instruments, identified under NAICS code 334516 (Analytical Laboratory Instrument Manufacturing). While the specific models and their precise functions are not detailed in the provided data, instruments in this category typically include mass spectrometers, chromatographs, spectrophotometers, and automated analyzers. These are crucial for a wide range of diagnostic testing, disease monitoring, and research within the Department of Veterans Affairs' healthcare system. Applications could range from clinical chemistry and hematology to toxicology and infectious disease testing, directly supporting patient care and medical research.

How does the contract value of $17.1 million compare to historical spending on similar analytical instruments by the VA or other federal agencies?

Benchmarking the $17.1 million contract value requires comparing it to procurements of similar analytical instruments, considering factors like instrument type, quantity, capabilities, and contract duration (789 days). Without access to a comprehensive database of comparable VA or federal procurements for specific analytical instruments, a direct comparison is difficult. However, large-scale procurements for advanced laboratory equipment can easily run into millions of dollars. The VA, as a major healthcare provider, regularly invests in such technology to maintain its diagnostic capabilities. A thorough analysis would involve identifying specific instrument categories and examining past awards for those categories to ascertain if this contract represents a fair market price or an outlier.

What is Roche Diagnostics Corporation's track record with the Department of Veterans Affairs and in supplying analytical laboratory instruments?

Roche Diagnostics Corporation is a well-established global leader in in-vitro diagnostics and has a significant presence in the healthcare market. Their track record with the Department of Veterans Affairs would likely involve previous awards for diagnostic equipment, reagents, or related services. Federal procurement databases would offer a more detailed history of their contract awards with the VA. Generally, large, reputable companies like Roche are frequent suppliers to federal agencies due to their product portfolios and ability to meet stringent requirements. Their experience in supplying analytical instruments to healthcare providers worldwide suggests they possess the necessary expertise and product lines to fulfill this contract effectively.

What are the potential risks associated with this contract, such as vendor lock-in, obsolescence, or performance issues?

Potential risks for this contract include vendor lock-in, where the VA might become dependent on Roche Diagnostics for proprietary consumables, software updates, or maintenance, potentially limiting future flexibility and increasing long-term costs. There's also a risk of technological obsolescence; analytical instrumentation evolves rapidly, and instruments procured today might become outdated sooner than anticipated, requiring premature replacement. Performance issues could arise if the instruments do not meet the specified requirements or if maintenance and support are inadequate, impacting laboratory efficiency and diagnostic accuracy. The fixed-price nature, while offering cost certainty, could also incentivize the contractor to minimize costs in ways that might affect quality or service if not rigorously overseen.

How does the 'full and open competition' award mechanism influence the value and quality of the analytical instruments received by the VA?

The 'full and open competition' award mechanism is designed to foster a competitive environment, which generally benefits the government by promoting better pricing, higher quality, and a wider array of innovative solutions. By allowing all responsible sources to submit bids, the VA increases the likelihood of receiving competitive offers from multiple manufacturers, including potentially Roche Diagnostics and its rivals. This competition puts pressure on bidders to offer their best pricing and most advanced technology to win the contract. Consequently, the VA is more likely to secure analytical instruments that offer superior value for money and meet its specific performance requirements effectively, compared to a sole-source or limited competition scenario.

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

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,375,635

Exercised Options: $13,524,174

Current Obligation: $13,524,174

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797P7347A

IDV Type: FSS

Timeline