VA Awards $497K for Optune Device to Novocure Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $49,749 ($49.7K)

Contractor: Novocure Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-07-09

Contract Duration: 91 days

Daily Burn Rate: $547/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA CLINICIAN PRESCRIBED 3-MONTH CONTINUED USE OF OPTUNE DEVICE PLUS TRANSDUCERS FOR VETERAN PATIENT IAW 38 USC 8123.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40206

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,748.73 to NOVOCURE INC for work described as: VA CLINICIAN PRESCRIBED 3-MONTH CONTINUED USE OF OPTUNE DEVICE PLUS TRANSDUCERS FOR VETERAN PATIENT IAW 38 USC 8123. Key points: 1. The Department of Veterans Affairs (VA) awarded a $497,487.73 contract to Novocure Inc. for Optune devices and transducers. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The device is prescribed for continued use by a veteran patient, indicating a specific medical need. 4. The contract duration is 91 days, from April 9, 2026, to July 9, 2026. 5. The spending falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector.

Value Assessment

Rating: good

The contract price of $497,487.73 for a 91-day supply of Optune devices and transducers appears reasonable given the specialized nature of the medical equipment. Benchmarking against similar advanced medical device contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method suggests the VA sought the best value and pricing available in the market.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the procurement of necessary medical equipment.

Public Impact

Ensures a veteran patient receives continued access to a prescribed medical device for their treatment. The competitive award process suggests efforts to obtain fair market value for the specialized equipment. Supports the healthcare technology sector, specifically in the manufacturing of electromedical apparatus. The contract duration is relatively short, indicating a specific, time-bound need for the device.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in subsequent contract periods.
Dependence on a single manufacturer for a critical medical device.

Positive Signals

Awarded via full and open competition.
Supports a specific patient's ongoing medical treatment.
Clear contract duration and delivery dates.

Sector Analysis

The procurement falls under the Electromedical and Electrotherapeutic Apparatus Manufacturing sector. Spending in this sector often involves high-value, specialized equipment with significant research and development costs, influencing pricing.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, which has established oversight mechanisms for its procurements. The use of full and open competition suggests adherence to standard procurement regulations.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for sole-source reliance in future procurements if competition diminishes.
High cost of specialized medical equipment.
Limited contract duration may require frequent re-procurement.
Dependence on specific patient need and device efficacy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,748.73 to NOVOCURE INC. VA CLINICIAN PRESCRIBED 3-MONTH CONTINUED USE OF OPTUNE DEVICE PLUS TRANSDUCERS FOR VETERAN PATIENT IAW 38 USC 8123.

Who is the contractor on this award?

The obligated recipient is NOVOCURE 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 $49,748.73.

What is the period of performance?

Start: 2026-04-09. End: 2026-07-09.

What is the specific medical condition the Optune device is treating, and what is the expected long-term benefit for the veteran patient?

The Optune device is typically used for treating glioblastoma, a type of brain tumor. It utilizes Tumor Treating Fields (TTFields) therapy. The long-term benefit for the veteran patient would depend on their specific diagnosis, prognosis, and response to the therapy, aiming to slow tumor growth or recurrence and potentially improve quality of life.

Are there any alternative devices or therapies that were considered during the full and open competition, and how did the Optune device compare in terms of efficacy and cost-effectiveness?

During a full and open competition, the VA would solicit proposals from various vendors. While the data doesn't detail the alternatives considered, it's implied that the Optune device was selected based on its ability to meet the specific clinical requirements and offer competitive value compared to other available electromedical apparatus for similar therapeutic purposes.

What is the VA's strategy for ensuring the continued availability and affordability of such specialized medical devices for veterans beyond this contract period?

The VA's strategy likely involves ongoing market research, periodic re-competition of contracts, and potentially exploring group purchasing organizations or strategic partnerships. For specialized devices like Optune, they may also engage with manufacturers to negotiate long-term agreements or volume discounts to ensure sustained access and manage costs for the veteran population.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

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: 195 COMMERCE WAY, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $49,749

Exercised Options: $49,749

Current Obligation: $49,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79723D0016

IDV Type: FSS

Timeline