VA awards $2.6M for laboratory instruments, with a focus on Illinois facilities

Contract Overview

Contract Amount: $2,604,615 ($2.6M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CHEMISTRY AUTOMATION

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to ABBOTT LABORATORIES INC. for work described as: CHEMISTRY AUTOMATION Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating pre-negotiated terms. 2. The contract is for analytical laboratory instruments, a critical component of healthcare diagnostics. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The duration of 364 days aligns with typical annual operational needs. 5. The awardee, Abbott Laboratories Inc., is a significant player in the healthcare technology sector. 6. Geographic focus on Illinois (IL) suggests specific facility needs.

Value Assessment

Rating: good

The contract value of $2.6 million for analytical laboratory instruments appears reasonable given the nature of the equipment and the duration. Benchmarking against similar contracts for laboratory instruments from major manufacturers like Abbott Laboratories Inc. would provide a more precise value-for-money assessment. However, the use of a BPA Call suggests that pricing may have been previously vetted, potentially leading to competitive rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

Veterans in Illinois will benefit from improved diagnostic capabilities through advanced laboratory instruments. The contract supports the delivery of essential healthcare services within the Department of Veterans Affairs (VA) network. The primary geographic impact is within Illinois, serving VA facilities in that state. The contract supports the operational needs of laboratory technicians and medical professionals within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific competition details (number of bidders) limits a full assessment of price discovery.
The contract is a BPA Call, which, while efficient, may not always reflect the most aggressive pricing compared to a standalone competitive bid.
No information on small business subcontracting is provided, which could be a missed opportunity for smaller firms.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Abbott Laboratories Inc. is a reputable provider of laboratory instruments, suggesting a focus on quality and reliability.
The contract supports critical healthcare functions for veterans.

Sector Analysis

The market for analytical laboratory instruments is a significant segment within the broader healthcare technology and life sciences industry. This contract falls under the 'Analytical Laboratory Instrument Manufacturing' sector (NAICS 334516). Spending in this area is driven by the need for accurate diagnostics, research, and quality control across various healthcare settings, including government facilities. Comparable spending benchmarks would involve analyzing other large federal contracts for similar instrumentation, which often run into millions of dollars annually.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the contract was competed full and open, there is no explicit information regarding subcontracting opportunities for small businesses. This means that while Abbott Laboratories Inc. could potentially engage small businesses for support services or components, it is not a mandated requirement of this specific award.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a Blanket Purchase Agreement (BPA) Call, it likely operates under the terms and conditions established in the parent BPA, which would have its own oversight mechanisms. Transparency is generally maintained through contract databases, and the VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending.

Related Government Programs

VA Medical Equipment Procurement
Laboratory Services Contracts
Healthcare Technology Spending
Federal Supply Schedule (FSS) for Medical Equipment

Risk Flags

Potential for price creep if BPA terms are not actively managed.
Risk of vendor lock-in for critical laboratory functions.
Dependence on specific technology that may become obsolete.
Limited visibility into small business subcontracting utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to ABBOTT LABORATORIES INC.. CHEMISTRY AUTOMATION

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 $2.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Abbott Laboratories Inc. with the Department of Veterans Affairs?

Abbott Laboratories Inc. has a history of contracting with the Department of Veterans Affairs (VA) for various medical products and services, including laboratory equipment and diagnostics. Analyzing past VA contract awards to Abbott can reveal patterns in pricing, performance, and the types of goods and services they provide. A review of historical data would indicate the extent of their engagement and whether they have consistently met VA requirements. While this specific contract is a BPA Call, Abbott's broader relationship with the VA, including any previous competitive bids or sole-source awards, would offer context on their established presence and capabilities within the agency.

How does the $2.6 million value compare to similar VA contracts for analytical laboratory instruments?

The $2.6 million award for analytical laboratory instruments over a 364-day period represents a significant investment in diagnostic capabilities. To benchmark this value, one would compare it against other VA contracts for similar instrumentation from different manufacturers or against previous awards to Abbott Laboratories Inc. for comparable equipment. Factors such as the specific type and sophistication of the instruments, the quantity ordered, and the included services (e.g., maintenance, training) heavily influence cost. Without detailed specifications of the instruments procured under this BPA Call, a precise comparison is challenging. However, the value is consistent with the procurement of high-end laboratory equipment for a large healthcare system.

What are the primary risks associated with this contract?

Key risks for this contract include potential overpricing if the BPA Call terms were not aggressively negotiated, or if competition was less robust than indicated by the 'full and open' designation. There's also a risk of performance issues if the instruments are not adequately maintained or if they experience frequent downtime, impacting patient care. Furthermore, reliance on a single vendor for critical equipment, even under a competitive award, can create dependencies. The lack of explicit small business subcontracting goals might represent a missed opportunity for economic inclusion. Finally, technological obsolescence is an inherent risk with any equipment purchase, though the 364-day duration mitigates this somewhat.

How effective is the VA in procuring laboratory instruments through BPA Calls?

The VA's use of Blanket Purchase Agreements (BPAs) and subsequent BPA Calls is a common strategy to streamline procurement for recurring needs, such as laboratory instruments. This method can be effective by leveraging pre-negotiated pricing and terms, reducing administrative burden and lead times. However, the effectiveness hinges on the quality of the initial BPA competition and the ongoing management of the calls. If the parent BPA was awarded competitively and offers good value, then BPA Calls can be highly effective. Conversely, if the initial BPA lacked robust competition or favorable terms, subsequent calls might not yield the best possible value for taxpayers. The VA's overall effectiveness in this area depends on diligent contract management and periodic re-competition of the underlying BPAs.

What are the historical spending patterns for analytical laboratory instruments by the VA?

Historical spending patterns for analytical laboratory instruments by the VA typically show consistent investment in diagnostic and testing equipment to support its vast network of medical facilities. The VA frequently procures a range of instruments, from basic analyzers to complex imaging and genetic sequencing equipment. Spending often occurs through various mechanisms, including Federal Supply Schedule (FSS) contracts, GSA Advantage!, and direct competitive solicitations, as well as BPA calls like this one. Annual spending can fluctuate based on equipment replacement cycles, technological advancements, and specific program needs. Analyzing past VA budgets and contract awards for this category would reveal trends in volume, types of instruments purchased, and key vendors.

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

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: $2,604,615

Exercised Options: $2,604,615

Current Obligation: $2,604,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24820A0040

IDV Type: BPA

Timeline