VA awards $705K for molecular pathogen detection, bypassing competition

Contract Overview

Contract Amount: $705,369 ($705.4K)

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: $1.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MOLECULAR PATHOGEN DETECTION - MIAMI VAMC

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33125

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $705,368.52 to BIOMERIEUX INC for work described as: MOLECULAR PATHOGEN DETECTION - MIAMI VAMC Key points: 1. Contract awarded via delivery order, suggesting it may be part of a larger existing agreement. 2. The fixed-price contract type aims to control costs for the duration of the period. 3. Sole-source award raises questions about potential price overruns and lack of market pressure. 4. The contract duration of one year is relatively short, allowing for periodic re-evaluation. 5. Focus on in-vitro diagnostic substances points to critical healthcare support services. 6. The award is for a specific location in Florida, indicating localized service delivery.

Value Assessment

Rating: questionable

Benchmarking the value of this specific delivery order is challenging without knowing the parent contract's terms or the specific diagnostic substances procured. However, a $705,368 award for a one-year period for molecular pathogen detection supplies suggests a significant need. The lack of competition, however, prevents a direct comparison to market rates and raises concerns about whether the VA secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific product or service is only available from one source, or in urgent situations. The absence of multiple bidders means there was no opportunity for price negotiation or comparison against competing offers, potentially leading to a higher cost for the government.

Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward price pressure that competition provides. Without competitive bidding, there's a risk that the government may pay more than necessary for these essential diagnostic supplies.

Public Impact

Veterans in Florida will benefit from timely and accurate molecular pathogen detection, crucial for effective medical treatment. The contract ensures the availability of essential in-vitro diagnostic substances for the Miami VAMC. This supports the operational readiness of a key healthcare facility within the VA system. The contract indirectly supports the healthcare workforce at the Miami VAMC by providing necessary diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can indicate potential vendor lock-in.
Transparency is reduced without a competitive bidding process.

Positive Signals

Firm Fixed Price contract type helps control costs.
Award ensures critical diagnostic supplies are available.
Specific location identified for service delivery.

Sector Analysis

The market for in-vitro diagnostic substances, particularly for molecular pathogen detection, is a critical segment of the broader healthcare and life sciences industry. This sector is characterized by significant research and development, stringent regulatory requirements, and a mix of large established players and specialized manufacturers. Federal agencies, especially the Department of Veterans Affairs, are significant purchasers of these supplies to maintain the health and readiness of service members and veterans. Spending in this area is often driven by the need for advanced diagnostic capabilities to identify and manage infectious diseases.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not specify any subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides. Further analysis of the parent contract, if applicable, would be needed to determine any broader small business subcontracting implications.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order, it is likely governed by the terms of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle, which would have its own oversight mechanisms. Transparency is limited due to the sole-source nature of the award, but contract actions are generally reported in federal procurement databases. The VA Office of Inspector General may investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Veterans Affairs Medical Supplies
In-Vitro Diagnostic Devices
Pathogen Detection Systems
Federal Healthcare Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $705,368.52 to BIOMERIEUX INC. MOLECULAR PATHOGEN DETECTION - MIAMI VAMC

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 $705,368.52.

What is the period of performance?

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

What is the track record of BIOMERIEUX INC with the Department of Veterans Affairs?

A review of federal procurement data indicates that BIOMERIEUX INC has received multiple awards from the Department of Veterans Affairs across various years. These awards span different types of contracts, including supply orders and service agreements, for a range of diagnostic products and related services. The total value of contracts awarded to BIOMERIEUX INC by the VA suggests a sustained business relationship. However, a deeper analysis would be required to assess the performance history, including any past performance issues, delivery successes, or quality concerns associated with these previous awards. Understanding the specifics of prior contracts, such as their value, duration, and the nature of the goods/services provided, is crucial for a comprehensive assessment of their track record.

How does the pricing of this contract compare to similar molecular pathogen detection contracts?

Direct price comparison for this specific delivery order is difficult due to its sole-source nature and the lack of detailed product specifications in the provided data. Without knowing the exact molecular pathogen detection kits or reagents procured, and without comparable bids from other vendors, it's impossible to benchmark the unit prices effectively. Generally, sole-source awards tend to be higher than competitively bid contracts because they lack the price pressure from multiple suppliers vying for the business. To perform a robust comparison, one would need access to the pricing details of this contract and compare them against recent, competitively awarded contracts for similar diagnostic substances from other VAMC facilities or federal agencies, considering factors like volume discounts and contract duration.

What are the primary risks associated with this sole-source award?

The primary risk associated with this sole-source award is the potential for inflated pricing. Without competition, BIOMERIEUX INC may not have had the incentive to offer the lowest possible price, potentially leading to the VA paying more than necessary for these diagnostic supplies. Another risk is vendor lock-in, where the VA becomes dependent on a single supplier, making it difficult to switch to potentially more cost-effective or technologically advanced solutions in the future. Furthermore, the lack of a competitive process reduces transparency and makes it harder to verify that the government is receiving the best value for taxpayer dollars. There's also a risk that the specific needs of the Miami VAMC might not be perfectly met if alternative solutions were not explored due to the sole-source justification.

How effective is molecular pathogen detection in improving patient outcomes at VA facilities?

Molecular pathogen detection plays a critical role in improving patient outcomes at VA facilities by enabling rapid and accurate identification of infectious agents. This speed is crucial for initiating timely and appropriate treatment, which can significantly reduce the severity and duration of illnesses, prevent complications, and lower mortality rates. For example, rapid detection of sepsis-causing bacteria or specific respiratory viruses allows clinicians to administer targeted therapies sooner, rather than relying on broad-spectrum treatments that may be less effective or have more side effects. Furthermore, accurate identification aids in infection control efforts, preventing the spread of pathogens within healthcare settings, thereby protecting other vulnerable patients and staff. The availability of these advanced diagnostic tools directly supports the VA's mission to provide high-quality healthcare.

What is the historical spending trend for molecular pathogen detection at the Miami VAMC?

The provided data only reflects a single delivery order award for molecular pathogen detection with an end date of January 12, 2027. It does not offer historical spending information for this specific service at the Miami VAMC. To understand historical spending patterns, one would need to access procurement data for previous years, looking for contracts awarded to BIOMERIEUX INC or other vendors for similar diagnostic substances or services at this facility. Analyzing past spending would reveal trends in contract values, the number of awards, and whether the procurement was historically competed or sole-sourced. This context is essential for evaluating if the current award represents an increase, decrease, or consistent level of spending for these critical supplies.

What is the significance of the PSC code (if available) for this contract?

The provided data indicates that the PSC (Product or Service Code) field is blank ('psc': ''). This means that a specific code identifying the nature of the goods or services being procured was not recorded or is not available in this dataset. PSC codes are crucial for categorizing federal spending and enabling detailed analysis of procurement patterns across different industries and agencies. Without a PSC, it is more challenging to accurately classify this contract within broader government spending categories, compare it to similar procurements across different agencies, or identify specific market segments. If a PSC were available, it would likely fall under a category related to medical supplies, diagnostic reagents, or laboratory equipment.

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: $705,369

Exercised Options: $705,369

Current Obligation: $705,369

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