VA Awards $42M IDIQ for Cepheid Equipment and Services to Cepheid, Lacking Competition
Contract Overview
Contract Amount: $42,000 ($42.0K)
Contractor: Cepheid
Awarding Agency: Department of Veterans Affairs
Start Date: 2026-04-10
End Date: 2027-01-31
Contract Duration: 296 days
Daily Burn Rate: $142/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: LEXINGTON VAMC TO AGAINST THE VISN 9 CEPHEID EQUIPMENT, CONSUMABLES, AND SERVICES IDIQ
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40502
State: Kentucky Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $42,000 to CEPHEID for work described as: LEXINGTON VAMC TO AGAINST THE VISN 9 CEPHEID EQUIPMENT, CONSUMABLES, AND SERVICES IDIQ Key points: 1. The contract is a sole-source award to Cepheid for essential laboratory equipment and consumables. 2. The lack of competition raises concerns about potential overpricing and limited innovation. 3. The primary risk is the absence of market pressure to ensure the best value for taxpayers. 4. The sector is Analytical Laboratory Instrument Manufacturing, a specialized field.
Value Assessment
Rating: questionable
Without competitive bidding, it's difficult to assess if the $42 million price is optimal. Benchmarking against similar sole-source contracts or publicly available pricing for Cepheid products is necessary to determine fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Cepheid. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayer funds may be used less efficiently due to the lack of competition, potentially resulting in higher overall spending for necessary medical equipment and services.
Public Impact
Veterans may face delays or reduced access to diagnostic testing if the sole-source provider faces supply chain issues. The VA's reliance on a single vendor for critical equipment could hinder the adoption of newer, potentially more cost-effective technologies. This award highlights a potential vulnerability in the VA's procurement strategy for specialized medical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures access to specific, potentially critical technology
Sector Analysis
The Analytical Laboratory Instrument Manufacturing sector is characterized by specialized technology and often high research and development costs. Benchmarks for sole-source contracts in this area are difficult to establish without specific product comparisons.
Small Business Impact
This contract does not appear to include provisions for small business participation, which is a missed opportunity to support small businesses in the analytical laboratory instrument manufacturing sector.
Oversight & Accountability
The lack of competition warrants scrutiny from oversight bodies to ensure the VA is obtaining fair and reasonable prices. Transparency in the justification for the sole-source award is crucial.
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 due to lack of market pressure.
- Risk of vendor lock-in and limited technological advancement.
- No apparent small business participation.
Tags
analytical-laboratory-instrument-manufac, department-of-veterans-affairs, ky, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $42,000 to CEPHEID. LEXINGTON VAMC TO AGAINST THE VISN 9 CEPHEID EQUIPMENT, CONSUMABLES, AND SERVICES IDIQ
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 $42,000.
What is the period of performance?
Start: 2026-04-10. End: 2027-01-31.
What is the justification for awarding this contract sole-source to Cepheid, and has the VA explored all avenues for competition?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The VA should provide detailed documentation demonstrating why no other vendor could meet the requirement and that market research was thoroughly conducted to ensure no viable competitive alternatives existed. This is crucial for accountability.
How does the pricing of this sole-source contract compare to market rates for similar equipment and services, and what measures are in place to ensure fair pricing?
Without competitive bids, assessing fair pricing is challenging. The VA should conduct independent price analyses, compare against commercial sales data if available, and potentially negotiate volume discounts. Regular reviews of pricing throughout the contract's duration are essential to mitigate risks of overpayment.
What are the potential long-term implications of relying on a single vendor for critical diagnostic equipment for veterans' healthcare?
Long-term sole-source reliance can lead to vendor lock-in, stifle innovation, and increase vulnerability to supply chain disruptions or price hikes. It limits the VA's flexibility to adopt new technologies and potentially reduces overall cost-effectiveness over time, impacting the quality and efficiency of veteran care.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $42,000
Exercised Options: $42,000
Current Obligation: $42,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C24926D0021
IDV Type: IDC
Timeline
Start Date: 2026-04-10
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-04-09
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