VA awards $36.5M for genomic sequencing services to Personalis, Inc

Contract Overview

Contract Amount: $36,498,966 ($36.5M)

Contractor: Personalis, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-28

End Date: 2019-09-27

Contract Duration: 364 days

Daily Burn Rate: $100.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENOMIC SEQUENCING

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15212

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.5 million to PERSONALIS, INC. for work described as: GENOMIC SEQUENCING Key points: 1. Contract value represents a significant investment in advanced diagnostic capabilities for veterans. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 3. The contract's fixed-price nature aims to control costs and provide predictable spending. 4. Performance period of one year indicates a need for timely service delivery. 5. The award falls within the 'Testing Laboratories and Services' NAICS code, a specialized sector. 6. Geographic focus on Pennsylvania for service delivery.

Value Assessment

Rating: good

The contract value of $36.5 million for a one-year genomic sequencing service appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale genomic sequencing contracts is challenging due to proprietary data and varying service scopes. However, the fixed-price structure suggests an effort to ensure value for money by setting clear cost expectations upfront. The Department of Veterans Affairs' investment indicates a commitment to leveraging advanced technologies for veteran healthcare.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be open, there was a prior exclusion of certain sources, possibly due to specific technical requirements or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a truly unrestricted full and open competition, which could impact price discovery.

Taxpayer Impact: While the competition was not fully unrestricted, the 'full and open' aspect suggests an attempt to solicit offers from qualified vendors. Taxpayers benefit from the potential for competitive pricing within the qualified pool, though the exclusion of sources warrants scrutiny to ensure maximum value was achieved.

Public Impact

Veterans will benefit from advanced genomic sequencing services, potentially leading to improved diagnostics and personalized treatment plans. The services delivered are critical for understanding genetic predispositions to diseases and tailoring medical interventions. Service delivery is geographically focused within Pennsylvania. The contract supports specialized roles within the healthcare and biotechnology sectors, potentially impacting a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure no qualified vendors were unfairly excluded.
The one-year duration may limit long-term strategic planning for genomic sequencing capabilities.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.

Positive Signals

The use of a fixed-price contract provides cost certainty for the government.
The award to Personalis, Inc. leverages a specialized provider in the genomic sequencing field.
The Department of Veterans Affairs is investing in cutting-edge healthcare technology for its beneficiaries.

Sector Analysis

Genomic sequencing is a rapidly advancing field within the biotechnology and healthcare sectors, crucial for personalized medicine and disease research. The market is characterized by high technological barriers to entry and significant R&D investment. This contract fits within the broader trend of government investment in advanced health diagnostics and research, aiming to improve patient outcomes. Comparable spending benchmarks are difficult to establish due to the highly specialized and often customized nature of genomic services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus is on a specialized service likely requiring advanced capabilities, which may limit direct opportunities for small businesses unless they are part of a larger subcontracting effort by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Healthcare Services
Biotechnology Research and Development
Medical Testing Laboratories
Genomic Medicine Initiatives

Risk Flags

Competition Method Justification
Data Security and Privacy Protocols
Performance Monitoring and Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.5 million to PERSONALIS, INC.. GENOMIC SEQUENCING

Who is the contractor on this award?

The obligated recipient is PERSONALIS, 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 $36.5 million.

What is the period of performance?

Start: 2018-09-28. End: 2019-09-27.

What specific genomic sequencing services are being provided under this contract?

The contract specifies 'GENOMIC SEQUENCING' as the service. While the exact scope is not detailed in the provided data, this typically involves analyzing an individual's DNA to identify genetic variations. For the VA, this could range from whole-genome sequencing to targeted sequencing panels for specific conditions, such as cancer, cardiovascular diseases, or pharmacogenomics to predict drug responses. The services are crucial for advancing personalized medicine and improving diagnostic accuracy for veterans.

How does the $36.5 million award compare to historical VA spending on genomic sequencing?

Without historical spending data specifically for genomic sequencing by the VA, a direct comparison is not possible. However, the $36.5 million award for a single year suggests a significant and potentially growing investment in this area. The VA's increasing focus on advanced diagnostics and personalized medicine indicates that spending in this category is likely to be substantial and may represent an increase over previous years, reflecting technological advancements and a commitment to veteran health.

What are the key performance indicators (KPIs) for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for genomic sequencing services, KPIs might include turnaround time for results, accuracy rates of sequencing and analysis, data quality, and adherence to privacy and security protocols (e.g., HIPAA). The Department of Veterans Affairs would establish these metrics to ensure the quality and timeliness of the services provided by Personalis, Inc.

What is the track record of Personalis, Inc. with government contracts, particularly with the VA?

Personalis, Inc. is a commercial entity specializing in genomic solutions. While the provided data indicates this specific award from the VA, a comprehensive analysis of their track record with government contracts would require access to broader federal procurement databases. Information on past performance, contract history, and any past performance issues or awards with the VA or other federal agencies would be necessary for a full assessment.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include data security and privacy breaches given the sensitive nature of genomic data, potential delays in service delivery impacting veteran care, and the possibility of inaccurate sequencing or analysis. Mitigation strategies would involve robust cybersecurity measures, clear contractual requirements for timely delivery, stringent quality control processes for sequencing and bioinformatics, and performance monitoring by the VA. The fixed-price nature also mitigates cost overrun risks for the government.

How does the 'full and open competition after exclusion of sources' procurement method impact value for taxpayers?

This procurement method, while aiming for openness, introduces a layer of complexity. 'Exclusion of sources' implies that certain potential bidders were not considered, possibly due to specific technical qualifications or prior relationships. While this can ensure highly specialized vendors are considered, it may limit the breadth of competition compared to a truly unrestricted 'full and open' process. For taxpayers, this means the potential for optimal price discovery might be constrained, necessitating careful justification for the source exclusion to ensure fair value was obtained.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 OBRIEN DR, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,498,966

Exercised Options: $36,498,966

Current Obligation: $36,498,966

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA24017D0103

IDV Type: IDC

Timeline