VA awards $221.9M contract to Waters Technologies for analytical instruments, impacting lab operations

Contract Overview

Contract Amount: $221,884 ($221.9K)

Contractor: Waters Technologies Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-01

End Date: 2026-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $203/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WATERS TECHNOLOGIES FLEXCHOICE SERVICE AGREEMENT - BASE W/4 OPTION YEARS.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $221,883.56 to WATERS TECHNOLOGIES CORPORATION for work described as: WATERS TECHNOLOGIES FLEXCHOICE SERVICE AGREEMENT - BASE W/4 OPTION YEARS. Key points: 1. Contract provides essential analytical laboratory instruments, crucial for diagnostic and research functions within the VA. 2. The award to Waters Technologies, a known entity in this market, suggests a focus on established capabilities. 3. The duration of the base period plus option years indicates a long-term need for these instruments. 4. The firm-fixed-price structure aims to control costs, but requires careful monitoring of performance. 5. The contract's geographic scope is centered in Ohio, suggesting a regional focus for instrument deployment or support. 6. Analysis of unit costs and comparison to similar VA procurements will be key to assessing value for money.

Value Assessment

Rating: good

The contract value of $221.9 million over approximately three years appears to be within a reasonable range for specialized analytical laboratory instruments. Benchmarking against similar procurements for high-complexity laboratory equipment is necessary for a definitive value assessment. The firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous if the contractor can deliver efficiently. However, the specific capabilities and market position of Waters Technologies will influence whether this price represents excellent value or is merely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the VA sought the best value from the market. Full and open competition generally leads to more favorable pricing and a wider selection of qualified vendors, promoting innovation and efficiency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of innovative solutions. This process ensures that the government is not locked into a single provider, fostering a more dynamic and cost-effective marketplace for essential goods and services.

Public Impact

Veterans and VA healthcare providers benefit from access to advanced analytical laboratory instruments, supporting accurate diagnoses and effective treatment. The contract ensures the availability of critical equipment for laboratory testing and research within VA facilities. The primary geographic impact is within Ohio, where the instruments will be deployed or serviced. The contract supports the VA's mission to provide comprehensive healthcare services to its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if maintenance or support costs are not clearly defined within the firm-fixed-price structure.
Dependence on a single manufacturer for specialized equipment could lead to vendor lock-in if not managed proactively.
Ensuring timely delivery and installation of complex instruments is critical to avoid disrupting essential laboratory services.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Waters Technologies is an established provider in the analytical instrument market, implying a level of reliability and expertise.

Sector Analysis

The market for analytical laboratory instruments is a specialized segment within the broader scientific and medical equipment industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and a need for continuous technological advancement. Companies like Waters Technologies compete based on instrument performance, accuracy, reliability, and the breadth of their product offerings. Federal agencies, particularly in healthcare and research, are significant buyers of these instruments due to their critical role in diagnostics, drug discovery, and environmental testing. Spending in this sector is often driven by the need to maintain state-of-the-art capabilities and comply with evolving scientific standards.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Waters Technologies Corporation, may engage small businesses as subcontractors for support services, maintenance, or the supply of ancillary components, depending on their subcontracting plans and the nature of the work. The absence of a small business set-aside means that larger, established firms were likely the primary focus of this procurement.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The VA's Office of Inspector General (OIG) may also conduct audits or investigations into the contract's execution, particularly concerning financial accountability and program effectiveness. Transparency is facilitated through contract award databases, but detailed performance metrics and spending breakdowns may not be publicly available.

Related Government Programs

VA Laboratory Services
Medical Equipment Procurement
Analytical Instrument Acquisition
Diagnostic Testing Services

Risk Flags

Potential for vendor lock-in
Long-term maintenance and support costs
Impact of technological obsolescence
Dependence on specific supplier capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $221,883.56 to WATERS TECHNOLOGIES CORPORATION. WATERS TECHNOLOGIES FLEXCHOICE SERVICE AGREEMENT - BASE W/4 OPTION YEARS.

Who is the contractor on this award?

The obligated recipient is WATERS TECHNOLOGIES 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 $221,883.56.

What is the period of performance?

Start: 2023-11-01. End: 2026-10-31.

What is the track record of Waters Technologies Corporation in fulfilling federal contracts, particularly with the Department of Veterans Affairs?

Waters Technologies Corporation has a history of engaging with federal agencies, including the Department of Veterans Affairs, for the provision of analytical instruments and related services. While specific details on past performance metrics for this particular contract vehicle are not immediately available, the company is a recognized leader in its field. Federal procurement data typically tracks on-time delivery, quality of goods/services, and overall customer satisfaction. A review of historical contract awards and performance evaluations, if publicly accessible through systems like SAM.gov or agency-specific portals, would provide a more granular understanding of their track record. Generally, companies that secure significant contracts like this one have demonstrated a capacity to meet federal requirements, though past performance can vary across different contracts and agencies.

How does the awarded price of $221.9 million compare to similar analytical instrument procurements by federal agencies?

Comparing the $221.9 million award to similar federal procurements requires identifying contracts for comparable analytical laboratory instruments, considering factors like instrument type, quantity, manufacturer, and contract duration. Without specific details on the exact instruments and quantities within this VA contract, a precise benchmark is challenging. However, large-scale procurements for advanced laboratory equipment can easily run into tens or hundreds of millions of dollars, especially when encompassing multiple years and comprehensive service agreements. Agencies like the National Institutes of Health (NIH), Department of Defense (DoD), and Department of Energy (DOE) also procure similar high-value instruments. A thorough comparison would involve analyzing the average cost per instrument, the total contract value relative to the scope of work, and the pricing structures (e.g., firm-fixed-price vs. cost-plus) of comparable awards over the past few fiscal years.

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

Key risks for this contract include potential over-reliance on a single vendor for critical equipment, leading to vendor lock-in and potentially higher long-term costs for maintenance and consumables. Another risk is the possibility of performance issues, such as delays in delivery, installation problems, or equipment malfunctions, which could disrupt essential VA laboratory services. Furthermore, the firm-fixed-price nature, while offering cost certainty, could incentivize the contractor to cut corners on quality or support if not adequately monitored. Mitigation strategies likely involve robust contract management by the VA, including clear performance standards, regular progress reviews, and potentially penalties for non-performance. The VA may also ensure competitive re-competition at the end of the contract term and maintain relationships with alternative vendors to avoid complete dependence.

What is the expected effectiveness of these analytical instruments in supporting the VA's healthcare mission?

The effectiveness of these analytical instruments is expected to be high, as they are crucial for a wide range of diagnostic and research functions within the VA healthcare system. Accurate and timely laboratory test results are fundamental to diagnosing diseases, monitoring patient health, guiding treatment decisions, and conducting medical research. By providing advanced analytical capabilities, Waters Technologies' instruments should enable VA clinicians and researchers to perform complex analyses with greater precision and efficiency. This directly supports the VA's mission to provide high-quality healthcare to veterans. The specific impact will depend on the types of instruments procured and how effectively they are integrated into existing laboratory workflows and clinical decision-making processes.

How does historical spending on analytical laboratory instruments by the VA compare to this recent award?

Analyzing historical spending on analytical laboratory instruments by the VA is essential for contextualizing the $221.9 million award. The VA, like other large healthcare providers, consistently invests in laboratory equipment to maintain its diagnostic and research capabilities. Historical data would reveal trends in spending, the types of instruments most frequently procured, and the primary vendors utilized. If this $221.9 million award represents a significant increase or decrease compared to previous annual or multi-year spending patterns, it could indicate a shift in VA priorities, technological upgrades, or changes in procurement strategies. A detailed analysis would require examining VA budget allocations and contract awards over several fiscal years to identify patterns and anomalies relative to this new contract.

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: 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: 34 MAPLE ST, MILFORD, MA, 01757

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

Financial Breakdown

Contract Ceiling: $388,910

Exercised Options: $221,884

Current Obligation: $221,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0559X

IDV Type: FSS

Timeline