VA awards $296K for coagulation testing, extending services for another year

Contract Overview

Contract Amount: $296,600 ($296.6K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $815/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEMATOLOGY COAGULATION TESTING CPRR - OPTION YEAR 2 DELIVERY ORDER

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $296,599.63 to WERFEN USA LLC for work described as: HEMATOLOGY COAGULATION TESTING CPRR - OPTION YEAR 2 DELIVERY ORDER Key points: 1. The contract represents a modest investment in essential laboratory services. 2. Competition dynamics for this specific delivery order are not fully detailed but were competed under SAP. 3. Risk indicators appear low given the nature of the service and established contractor. 4. Performance context is tied to the continuation of existing hematology coagulation testing. 5. This contract fits within the broader healthcare sector, specifically laboratory diagnostics.

Value Assessment

Rating: good

The award of $296,599.63 for Option Year 2 appears reasonable for specialized coagulation testing services. Benchmarking against similar contracts for laboratory instruments and reagents is challenging without more specific service details. However, the firm-fixed-price structure suggests predictable costs. The value is likely good if it ensures continuity of critical diagnostic capabilities for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This delivery order was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for acquisitions below certain thresholds. While the specific number of bidders is not provided, competition under SAP generally aims to solicit multiple offers to ensure fair pricing. The use of SAP suggests that the agency sought competitive quotes, which should contribute to price discovery.

Taxpayer Impact: Competing under SAP helps ensure that taxpayer dollars are used efficiently by obtaining competitive pricing for these essential laboratory services.

Public Impact

Veterans receiving care from the Department of Veterans Affairs will benefit from continued access to accurate hematology coagulation testing. Essential diagnostic services for blood clotting disorders will be maintained. The primary geographic impact is within Florida, where the services are delivered. The contract supports the operational needs of VA medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics (number of bidders) limits full assessment of price discovery.
Potential for price creep in future option years if competition is not robustly managed.

Positive Signals

Contract competed under SAP, suggesting an effort to obtain competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Option year structure allows for continued service delivery with established vendor.

Sector Analysis

The contract falls within the healthcare sector, specifically the sub-sector of medical diagnostics and laboratory equipment. The market for hematology and coagulation testing is characterized by specialized manufacturers and suppliers. Spending in this area is driven by the need for accurate and timely patient diagnosis. Comparable spending benchmarks would involve analyzing other VA or federal contracts for similar laboratory instruments and associated consumables.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The primary contractor, WERFEN USA LLC, is likely a large business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as potential subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a delivery order under a larger contract vehicle, oversight would likely involve contract specialists and program managers within the VA. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Laboratory Services Contracts
Medical Diagnostic Equipment Procurement
Hematology and Coagulation Analyzers

Risk Flags

Potential for vendor lock-in if technology is proprietary.
Dependence on a single vendor for critical diagnostic equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $296,599.63 to WERFEN USA LLC. HEMATOLOGY COAGULATION TESTING CPRR - OPTION YEAR 2 DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

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 $296,599.63.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of WERFEN USA LLC with the Department of Veterans Affairs?

WERFEN USA LLC has a history of receiving contracts from the Department of Veterans Affairs, primarily for laboratory equipment and related services. Analyzing past performance data, such as contract awards, delivery orders, and any reported issues or commendations, would provide a clearer picture of their reliability and performance. This specific contract is an option year, suggesting a continuation of a previously established relationship. A review of their past performance ratings and any modifications or disputes on prior VA contracts would be beneficial for a comprehensive assessment.

How does the pricing of this contract compare to similar contracts for coagulation testing equipment and services?

Benchmarking the pricing of this $296,599.63 delivery order requires access to comparable contract data for similar hematology coagulation testing solutions. Factors such as the specific equipment model, included reagents, maintenance services, and contract duration significantly influence pricing. Without detailed specifications of the services provided and market rates for comparable systems, a precise comparison is difficult. However, the firm-fixed-price nature suggests that the VA has negotiated a set cost for the period, which aids in budget predictability. Further analysis would involve identifying contracts with similar scope and volume from other federal agencies or large healthcare systems.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if the contractor fails to deliver, obsolescence of the technology over time, and the possibility of the VA not achieving optimal value for money. Mitigation strategies include the VA's oversight of contract performance, the firm-fixed-price structure which incentivizes the contractor to meet terms, and the option year structure which allows for re-evaluation. The competition under SAP also serves as a risk mitigation tool by encouraging competitive pricing. However, the long-term risk of technology becoming outdated is inherent in equipment-based contracts and would need to be managed through future procurement strategies.

How effective is the Department of Veterans Affairs in procuring laboratory equipment and services through delivery orders?

The effectiveness of the VA in procuring laboratory equipment and services via delivery orders can be assessed by examining factors such as cost savings achieved through competition, timeliness of service delivery, and the quality of equipment and services provided. Delivery orders, especially when competed under SAP, are intended to streamline the procurement process for specific needs. Success hinges on robust market research, clear statement of work, and diligent oversight. Analyzing contract performance metrics, user feedback from VA medical facilities, and comparing costs against market benchmarks would provide insights into the VA's effectiveness in this area.

What are the historical spending patterns for hematology coagulation testing at the Department of Veterans Affairs?

Historical spending patterns for hematology coagulation testing at the VA would reveal the total investment in this category over time, the number of contracts awarded, and the primary contractors utilized. Analyzing spending data from previous fiscal years would indicate whether this $296,599.63 award represents a consistent level of investment, an increase, or a decrease. It would also highlight trends in contract types (e.g., sole-source vs. competed) and identify any significant shifts in procurement strategies or vendor relationships within this specific service area.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $296,600

Exercised Options: $296,600

Current Obligation: $296,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24824D0068

IDV Type: IDC

Timeline