VA awards $2.27M contract for Histology CPT to Roche Diagnostics, impacting diagnostic substance manufacturing

Contract Overview

Contract Amount: $2,270,766 ($2.3M)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2025-09-30

Contract Duration: 730 days

Daily Burn Rate: $3.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HISTOLOGY CPT

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to ROCHE DIAGNOSTICS CORPORATION for work described as: HISTOLOGY CPT Key points: 1. The contract is for In-Vitro Diagnostic Substance Manufacturing, a critical area for healthcare. 2. Roche Diagnostics Corporation is a major player in the diagnostics market. 3. The contract duration is 730 days, indicating a medium-term need. 4. The award was made under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of $2.27M over two years appears reasonable for specialized diagnostic substances. Benchmarking against similar contracts for in-vitro diagnostics would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves limited competition. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayers benefit from efficient procurement processes under SAP, but the potential for higher prices due to limited competition should be monitored.

Public Impact

Ensures continued access to essential histology diagnostic substances for VA healthcare facilities. Supports the operational needs of the Department of Veterans Affairs in medical testing. Impacts the supply chain for diagnostic reagents and related materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price not being fully optimized

Positive Signals

Award to established supplier
Supports critical VA healthcare function

Sector Analysis

The healthcare sector, particularly diagnostics, relies on specialized substances for accurate patient testing. Spending in this area is driven by the need for reliable and advanced medical equipment and consumables.

Small Business Impact

This contract does not appear to have specific provisions or set-asides for small businesses, as it was awarded to a large corporation under SAP.

Oversight & Accountability

The award was made via a Purchase Order under SAP, which generally has streamlined oversight. Further review of the specific terms and conditions of the PO would be needed for a comprehensive oversight assessment.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for price not being fully optimized
Reliance on a single supplier for specific substances

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to ROCHE DIAGNOSTICS CORPORATION. HISTOLOGY CPT

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 $2.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2025-09-30.

What is the specific type of Histology CPT being procured and its criticality to VA patient care?

Histology CPT likely refers to specific reagents or kits used in the preparation and staining of tissue samples for microscopic examination. These are critical for accurate diagnosis of diseases, including cancer, and guide treatment decisions for VA patients. The exact criticality depends on the specific tests performed within VA facilities.

Are there any identified risks associated with Roche Diagnostics Corporation's ability to fulfill this contract?

Roche Diagnostics Corporation is a well-established global leader in in-vitro diagnostics, suggesting a low risk of performance failure. Potential risks could include supply chain disruptions affecting the specific substances, or unforeseen quality control issues, though these are generally mitigated by the company's scale and established processes.

How does the pricing compare to market benchmarks for similar diagnostic substances?

Without specific product details, a direct price comparison is difficult. However, given the limited competition under SAP, the price may be higher than if procured through a broader competitive process. A detailed analysis of unit pricing against industry averages for comparable diagnostic reagents would be necessary for a definitive assessment.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24824Q0004

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: $4,039,255

Exercised Options: $2,270,766

Current Obligation: $2,270,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline