VA Awards $40.8M Influenza/COVID Testing Contract to Roche Diagnostics

Contract Overview

Contract Amount: $40,800 ($40.8K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-19

End Date: 2026-01-18

Contract Duration: 364 days

Daily Burn Rate: $112/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXERCISE OY4 BASE PLUS OPTIONS - ROCHE DIAGNOSTICS - INFLUENZA A/B COVID TESTING

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40,800 to ROCHE DIAGNOSTICS CORPORATION for work described as: EXERCISE OY4 BASE PLUS OPTIONS - ROCHE DIAGNOSTICS - INFLUENZA A/B COVID TESTING Key points: 1. Contract awarded to a single, established vendor, Roche Diagnostics. 2. Focus on Influenza A/B and COVID testing, critical for public health. 3. Potential for higher costs due to lack of competition. 4. The contract falls under Analytical Laboratory Instrument Manufacturing.

Value Assessment

Rating: fair

Pricing is based on a firm fixed price for a delivery order. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar testing contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to less favorable terms for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially diverting funds from other essential services.

Public Impact

Ensures continued access to critical diagnostic testing for influenza and COVID-19. Supports the Department of Veterans Affairs' healthcare mission. Reliability of testing supplies is maintained through a known vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Ensures continuity of critical testing
Utilizes established vendor

Sector Analysis

This contract is within the Analytical Laboratory Instrument Manufacturing sector. Spending in this sector is crucial for healthcare infrastructure, but competitive procurement is key to cost efficiency.

Small Business Impact

The data indicates no specific provisions or set-asides for small businesses in this sole-source award. This limits opportunities for small businesses in the analytical laboratory instrument market.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the pricing remains reasonable and that future procurements explore competitive options.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of small business participation.
Dependence on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40,800 to ROCHE DIAGNOSTICS CORPORATION. EXERCISE OY4 BASE PLUS OPTIONS - ROCHE DIAGNOSTICS - INFLUENZA A/B COVID TESTING

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $40,800.

What is the period of performance?

Start: 2025-01-19. End: 2026-01-18.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or a lack of viable alternatives. The VA should have documentation supporting this decision. To ensure fair pricing, they may rely on historical pricing data, independent government cost estimates, or price analysis techniques, though competition is the most effective method for price discovery.

What are the risks associated with relying on a single vendor for critical diagnostic testing, especially during potential public health crises?

Relying on a single vendor poses risks such as supply chain disruptions, price gouging, and lack of innovation. If the vendor faces production issues or decides to discontinue the product, the VA could face significant challenges in securing necessary testing supplies, potentially impacting patient care and public health response.

How does this contract's pricing compare to similar contracts awarded competitively for comparable diagnostic testing services?

Without access to competitive benchmarks, a direct comparison is difficult. However, sole-source contracts are generally expected to be less cost-effective than competitively awarded ones. Further analysis would require examining the unit costs and overall value against contracts for similar influenza and COVID-19 testing solutions procured through competitive means.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

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: $40,800

Exercised Options: $40,800

Current Obligation: $40,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24921D0022

IDV Type: IDC

Timeline