VA awards $523K for Micro-Molecular Reagents, Option Year 2, with no competition

Contract Overview

Contract Amount: $523,203 ($523.2K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MICRO-MOLECULAR REAGENTS CPT - 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 $523,203.21 to CEPHEID for work described as: MICRO-MOLECULAR REAGENTS CPT - OPTION YEAR 2 DELIVERY ORDER Key points: 1. Spending is concentrated within the VA for laboratory instruments. 2. The contract is a sole-source award, raising concerns about price. 3. No small business participation is noted. 4. The contract period is one year, with a fixed price.

Value Assessment

Rating: questionable

The contract is a sole-source award, making it difficult to assess pricing against market benchmarks. Without competition, there's a risk of overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these reagents.

Public Impact

Veterans may not receive the best value due to the absence of competitive bidding. The VA's reliance on a sole-source contract could indicate a lack of market research or strategic sourcing. Transparency in pricing is reduced, making it harder for the public to assess fairness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
Lack of transparency in pricing

Positive Signals

Fixed price contract
Clear delivery period

Sector Analysis

Spending in the Analytical Laboratory Instrument Manufacturing sector (NAICS 334516) is often characterized by specialized equipment and high R&D costs. Benchmarks vary widely based on technology and application.

Small Business Impact

There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses within the federal supply chain.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the VA obtained fair pricing and that competition was appropriately considered.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits price competition.
Potential for overpayment due to lack of competition.
No small business participation.
Limited transparency on pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $523,203.21 to CEPHEID. MICRO-MOLECULAR REAGENTS CPT - OPTION YEAR 2 DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $523,203.21.

What is the period of performance?

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

What is the justification for the sole-source award, and was a market survey conducted to explore competitive options?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically conduct market surveys to determine if other capable sources exist. Without this information, it's difficult to ascertain if the VA explored all avenues to secure the best value and pricing for these micro-molecular reagents.

How does the per-unit cost of these reagents compare to similar products available on the market or through other federal contracts?

Without competitive bidding, establishing a reliable per-unit cost benchmark is challenging. A thorough price analysis, comparing the awarded price to publicly available data or similar government contracts, is necessary to assess if the VA paid a fair and reasonable price. This is particularly important for sole-source awards.

What is the long-term strategy for procuring these reagents, and will future procurements be competed to ensure cost-effectiveness?

The long-term procurement strategy is vital for ensuring sustained value. If this sole-source award is a recurring need, the VA should outline plans for future competition to drive down costs and encourage innovation. Continuous sole-sourcing without justification raises concerns about efficiency and taxpayer burden.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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: $523,203

Exercised Options: $523,203

Current Obligation: $523,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24824D0059

IDV Type: IDC

Timeline