VA Awards $11.36M for Chemistry Automation, Highlighting Abbott Laboratories' Role

Contract Overview

Contract Amount: $11,358,292 ($11.4M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2025-09-30

Contract Duration: 547 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 9 CHEMISTRY AUTOMATION COST PER RESULTS REPORTABLE

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.4 million to ABBOTT LABORATORIES INC. for work described as: VISN 9 CHEMISTRY AUTOMATION COST PER RESULTS REPORTABLE Key points: 1. Contract value of $11.36 million for chemistry automation services. 2. Abbott Laboratories Inc. is the sole contractor. 3. Potential risk due to single-source award, impacting price discovery. 4. Spending falls within the Analytical Laboratory Instrument Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $11.36 million for a 547-day period appears reasonable given the specialized nature of laboratory automation. However, without specific per-unit cost data or benchmarks for similar automation systems across the VA or other federal agencies, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the data indicates only one award was made, suggesting that either only one vendor submitted a responsive bid or the subsequent award was to a single entity.

Taxpayer Impact: While competition was sought, the final award to a single entity may limit immediate taxpayer savings compared to a multi-bid scenario. Long-term value will depend on performance and potential future competition.

Public Impact

Ensures critical laboratory testing capabilities for veterans. Supports the Department of Veterans Affairs' healthcare mission. Potential for improved efficiency and accuracy in diagnostic services. Impacts veterans in Illinois and potentially other VISN 9 locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition on award
Lack of detailed cost breakdown
Potential for price creep over contract duration

Positive Signals

Awarded under full and open competition
Supports critical healthcare services
Firm fixed price contract limits cost overruns

Sector Analysis

This contract falls under the Analytical Laboratory Instrument Manufacturing sector, which is crucial for healthcare diagnostics. Spending benchmarks for similar large-scale laboratory automation contracts can vary significantly based on technology, scope, and duration.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award. Future opportunities may exist for small businesses in supporting roles or through subcontracting, but this award does not appear to prioritize small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The firm fixed price structure provides some accountability for cost. However, ongoing monitoring of performance and adherence to service level agreements will be critical.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in
Limited visibility into detailed cost breakdown
Reliance on a single supplier for critical equipment
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.4 million to ABBOTT LABORATORIES INC.. VISN 9 CHEMISTRY AUTOMATION COST PER RESULTS REPORTABLE

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 $11.4 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-09-30.

What is the specific impact of Abbott Laboratories' technology on laboratory turnaround times and diagnostic accuracy compared to previous systems or competitors?

The specific impact on turnaround times and diagnostic accuracy is not detailed in the provided data. Further analysis would require access to performance metrics and comparative studies. Understanding these improvements is key to assessing the true value beyond the contract cost. This information is crucial for determining if the investment translates into better patient care outcomes.

Given the full and open competition, why was only one award made, and what was the bidding landscape like?

The data states 'FULL AND OPEN COMPETITION' but only lists one award. This could imply that while the solicitation was open, only one vendor submitted a viable proposal, or that multiple proposals were received but only one met all requirements. Further investigation into the solicitation details and bid responses would clarify the competitive environment and the reasons for a single award.

How does the per-unit cost of results reportable for this contract compare to industry benchmarks or other VA facilities using similar automation?

The provided data does not include a 'cost per results reportable' metric, making direct comparison difficult. The contract value is a total obligation, not broken down by unit cost. To assess this, one would need to know the projected number of results reportable over the contract period and compare that to industry standards or internal VA benchmarks for similar automated systems.

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

Offers Received: 1

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: $11,460,769

Exercised Options: $11,358,488

Current Obligation: $11,358,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0024

IDV Type: FSS

Timeline