VA awards $2.47M for Molecular Pathogen Detection, a sole-source delivery order

Contract Overview

Contract Amount: $2,471,720 ($2.5M)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-13

End Date: 2027-01-12

Contract Duration: 364 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MOLECULAR PATHOGEN DETECTION

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to BIOMERIEUX INC for work described as: MOLECULAR PATHOGEN DETECTION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Delivery order structure suggests a need for ongoing services or supplies. 3. The contract duration of 364 days is standard for this type of award. 4. The primary contractor, BIOMERIEUX INC, is a significant player in the diagnostics market. 5. The specific product classification (325413) relates to In-Vitro Diagnostic Substance Manufacturing. 6. Awarded by the Department of Veterans Affairs, indicating a focus on healthcare services for veterans.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of molecular pathogen detection. Without competitive bids, it's difficult to ascertain if the $2.47 million represents optimal value for money. However, the fixed-price contract type offers some cost certainty. The award is for a single delivery order, suggesting a specific need rather than a broad, long-term commitment that might allow for more aggressive price negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This can result in a less efficient allocation of federal funds.

Public Impact

Veterans will benefit from advanced molecular pathogen detection capabilities, potentially leading to faster and more accurate diagnoses. The services delivered will support the Department of Veterans Affairs' diagnostic laboratories. The geographic impact is primarily within Utah, where the delivery order is being fulfilled. This contract supports the specialized manufacturing sector for in-vitro diagnostic substances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for vendor lock-in if this is a recurring need without re-competition.

Positive Signals

Ensures access to specialized molecular pathogen detection technology for veterans' healthcare.
Contract is firm fixed-price, providing cost predictability for the awarded amount.
Specific product classification indicates a focus on critical diagnostic substances.

Sector Analysis

The molecular diagnostics market is a rapidly growing segment within the broader healthcare and life sciences industry. This contract falls under the In-Vitro Diagnostic Substance Manufacturing sector, which is crucial for disease detection and monitoring. Spending in this area is driven by advancements in technology, increasing prevalence of infectious diseases, and the need for personalized medicine. Comparable spending benchmarks are difficult to establish without more specific details on the exact diagnostic tests and reagents procured, but federal agencies consistently invest in advanced diagnostic capabilities.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a sole-source award to a specific manufacturer, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the procurement strategy. This contract does not appear to directly impact the small business ecosystem in a significant way, as it is focused on specialized manufacturing.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Services
In-Vitro Diagnostic Substance Manufacturing
Molecular Diagnostics
Pathogen Detection Systems

Risk Flags

Sole-source award may limit price competition.
Lack of detailed scope may obscure true value for money.
Dependence on a single supplier for critical diagnostic materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to BIOMERIEUX INC. MOLECULAR PATHOGEN DETECTION

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX 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 $2.5 million.

What is the period of performance?

Start: 2026-01-13. End: 2027-01-12.

What is the specific type of molecular pathogen detection technology or substance being procured under this contract?

The provided data indicates the contract is for 'MOLECULAR PATHOGEN DETECTION' and falls under the North American Industry Classification System (NAICS) code 325413, which is 'In-Vitro Diagnostic Substance Manufacturing'. While the specific tests or reagents are not detailed, this classification suggests the procurement relates to the manufacturing or supply of substances used in laboratory tests to detect pathogens (like bacteria, viruses, or fungi) in biological samples. This could include reagents, kits, or components essential for molecular diagnostic assays such as PCR (Polymerase Chain Reaction) or other nucleic acid amplification techniques.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For specialized medical equipment or substances like those used in molecular pathogen detection, this could be due to proprietary technology, unique manufacturing capabilities, or existing integration with current VA systems that would make switching vendors prohibitively complex or costly. The Department of Veterans Affairs would have had to document the justification for this sole-source determination, often citing factors like urgency, lack of alternatives, or specific technical requirements that only one vendor could fulfill. Without access to the agency's justification documentation, the precise reason remains unconfirmed.

How does the $2.47 million contract value compare to similar procurements for molecular pathogen detection systems?

Directly comparing the $2.47 million value is difficult without knowing the exact scope, quantity, and specific technologies involved. Molecular pathogen detection can range from individual reagent kits to complex laboratory systems. As this is a sole-source delivery order with a 364-day duration, it likely represents a specific supply need rather than a full system acquisition. Benchmarking would require identifying contracts with similar product classifications (325413), similar agencies (e.g., other health-focused federal agencies), and similar contract types. However, given the specialized nature and the sole-source award, it's plausible that competitive bids could have yielded different pricing structures.

What are the potential risks associated with a sole-source award for critical diagnostic substances?

The primary risk of a sole-source award is the lack of price competition, which can lead to higher costs for the government compared to a fully competed procurement. This can result in a less efficient use of taxpayer funds. Additionally, sole-source awards can create vendor dependency, making it harder for the agency to switch to potentially better or more cost-effective solutions in the future. There's also a reduced incentive for the sole-source provider to innovate or offer significant discounts, as they face no direct market pressure from competitors. Ensuring the contractor's performance and quality remains paramount, as there are fewer market-based checks.

What is the track record of BIOMERIEUX INC with the Department of Veterans Affairs or other federal agencies?

BIOMERIEUX INC is a known entity in the diagnostics field. While specific details of their past performance with the VA are not provided in this data snippet, companies of this nature often hold numerous contracts across federal health agencies, including the Department of Defense and HHS. A thorough review would involve searching federal procurement databases (like SAM.gov or FPDS) for historical awards to BIOMERIEUX INC, examining contract performance evaluations (e.g., CPARS), and assessing any past issues or successes. Their presence as a contractor suggests they have met the necessary requirements to do business with the government previously.

What is the expected impact of this contract on the VA's ability to detect and manage infectious diseases?

This contract is expected to enhance the VA's capabilities in molecular pathogen detection, which is crucial for the rapid and accurate identification of infectious agents. Such capabilities are vital for timely diagnosis, effective treatment, and controlling outbreaks within healthcare settings. By ensuring a supply of necessary diagnostic substances, the VA can maintain or improve the performance of its laboratories, leading to better patient outcomes for veterans. The specific impact depends on the exact pathogens targeted and the volume of testing supported by these substances.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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: $2,471,720

Exercised Options: $2,471,720

Current Obligation: $2,471,720

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24825D0014

IDV Type: IDC

Timeline