VA Awards $1.75M for Quantiferon TB Test Kits and Consumables to Qiagen, LLC

Contract Overview

Contract Amount: $175,212 ($175.2K)

Contractor: Qiagen, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $481/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIS REQUIREMENT IS FOR ONE YEAR 10/01/2024-09/30/2025 FOR VAMC LEXINGTON HAS TH EQUIPMENT INVOLVED AND NEED THE QUANTIFERON COLLECTION TUBES, QUALITY CONTROL MATERIAL, CONSUMABLES AND REAGENTS KITS USED ON THE EQUIPMENT

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40511

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $175,212 to QIAGEN, LLC for work described as: THIS REQUIREMENT IS FOR ONE YEAR 10/01/2024-09/30/2025 FOR VAMC LEXINGTON HAS TH EQUIPMENT INVOLVED AND NEED THE QUANTIFERON COLLECTION TUBES, QUALITY CONTROL MATERIAL, CONSUMABLES AND REAGENTS KITS USED ON THE EQUIPMENT Key points: 1. Spending focused on essential diagnostic materials for TB testing. 2. Sole supplier Qiagen, LLC dominates the market for these specific kits. 3. Potential risk of price increases due to limited competition. 4. Healthcare sector spending on critical diagnostic reagents.

Value Assessment

Rating: fair

The $1.75M award for one year appears to be a standard price for specialized diagnostic kits. Benchmarking against similar sole-source or limited-competition contracts for in-vitro diagnostic substances is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures, indicating a sole-source award to Qiagen, LLC. This lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayer funds are being spent without competitive bidding, potentially leading to a less favorable price than if multiple vendors were considered.

Public Impact

Ensures continued access to critical TB diagnostic tools for veterans. Supports public health efforts by enabling accurate and timely disease detection. Potential for increased healthcare costs if pricing is not optimized. Reliance on a single supplier could lead to supply chain vulnerabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for price escalation without competitive pressure.
Reliance on a single vendor for critical supplies.

Positive Signals

Ensures availability of essential diagnostic materials.
Supports a specific, critical healthcare need for veterans.

Sector Analysis

This award falls within the healthcare sector, specifically for in-vitro diagnostic substances. Spending on such reagents is crucial for disease detection and management, with benchmarks varying widely based on specificity and volume.

Small Business Impact

The award was made to Qiagen, LLC, a known entity in the medical diagnostics field. There is no indication that small businesses were involved or considered in this sole-source procurement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for this procurement. Oversight should focus on ensuring the necessity of the sole-source award and negotiating favorable terms given the lack of competition.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for price escalation
Reliance on a single vendor
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $175,212 to QIAGEN, LLC. THIS REQUIREMENT IS FOR ONE YEAR 10/01/2024-09/30/2025 FOR VAMC LEXINGTON HAS TH EQUIPMENT INVOLVED AND NEED THE QUANTIFERON COLLECTION TUBES, QUALITY CONTROL MATERIAL, CONSUMABLES AND REAGENTS KITS USED ON THE EQUIPMENT

Who is the contractor on this award?

The obligated recipient is QIAGEN, 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 $175,212.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the justification for the sole-source award to Qiagen, LLC for these specific Quantiferon collection tubes, consumables, and reagents?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of readily available alternatives in the market. For specialized diagnostic kits like Quantiferon, the manufacturer often holds exclusive rights to the reagents and associated materials, making competition difficult or impossible without compromising the test's integrity or requiring extensive validation by new suppliers.

What is the potential risk associated with relying on a single supplier for these critical diagnostic materials?

The primary risk of relying on a single supplier is the potential for price gouging due to the absence of competitive pressure. Additionally, supply chain disruptions, such as manufacturing issues, natural disasters, or geopolitical events affecting the sole supplier, could lead to shortages, impacting the VA's ability to provide timely diagnostic services to veterans. This also limits the VA's leverage in negotiating terms and pricing.

How does this procurement contribute to the overall effectiveness of TB diagnosis and management within the VA system?

This procurement is essential for the effective diagnosis and management of Tuberculosis (TB) within the VA system. The Quantiferon test is a widely recognized and reliable method for detecting latent TB infection. By ensuring a consistent supply of the necessary collection tubes, consumables, and reagents, the VA can maintain its diagnostic capabilities, enabling timely identification and treatment of TB among veterans, thereby preventing disease progression and transmission.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19300 GERMANTOWN RD, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $175,212

Exercised Options: $175,212

Current Obligation: $175,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline