VA awards $365K for Roche Cobas 6800 testing service, highlighting a need for specialized diagnostic equipment maintenance

Contract Overview

Contract Amount: $365,148 ($365.1K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ROCHE COBAS 6800 TESTING SERVICE AND MAINTENANCE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $365,148.14 to ROCHE DIAGNOSTICS CORPORATION for work described as: ROCHE COBAS 6800 TESTING SERVICE AND MAINTENANCE Key points: 1. The contract focuses on essential maintenance for advanced diagnostic systems, crucial for timely and accurate patient testing. 2. Competition was robust, suggesting a healthy market for this specialized service. 3. The fixed-price nature of the contract provides cost certainty for the agency. 4. Performance is tied to a specific instrument model, indicating a need for manufacturer-level expertise. 5. This spending supports the VA's broader healthcare mission by ensuring operational readiness of critical medical equipment.

Value Assessment

Rating: good

The contract value of $365,148.14 for one year of service and maintenance for the Roche Cobas 6800 system appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for high-complexity diagnostic instrument maintenance suggests that pricing is within expected ranges. The firm-fixed-price structure helps manage costs and provides predictability for the Department of Veterans Affairs. The value proposition lies in ensuring the continuous operation of a critical diagnostic platform, which directly impacts patient care.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and had the opportunity to bid. The solicitation process likely involved a competitive bidding environment where price, technical capability, and service response times were evaluated. The presence of full and open competition generally leads to better price discovery and ensures that the government receives the most advantageous offer available in the marketplace for these specialized services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of service options, ensuring efficient use of public funds for essential healthcare support.

Public Impact

Veterans benefit directly through the reliable operation of diagnostic testing equipment, leading to faster and more accurate medical diagnoses. The services ensure the availability of critical laboratory testing capabilities within VA healthcare facilities. The geographic impact is focused on the specific VA facilities where the Roche Cobas 6800 systems are deployed. This contract supports specialized technical roles for individuals skilled in maintaining advanced medical diagnostic instrumentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance is highly proprietary to the instrument manufacturer.
Reliance on a single vendor for critical maintenance could lead to service disruptions if the vendor faces operational issues.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract duration allows for consistent service delivery over a defined period.

Sector Analysis

The market for diagnostic laboratory instrumentation and associated maintenance services is a significant segment within the broader healthcare technology sector. Companies like Roche Diagnostics are key players, offering advanced automated systems for clinical testing. Spending in this area is driven by the need for high-throughput, accurate diagnostic capabilities in hospitals and clinical laboratories. Comparable spending benchmarks would involve analyzing service contracts for similar high-complexity analyzers from other major manufacturers, considering factors like system volume and geographic coverage.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of maintaining advanced diagnostic equipment like the Roche Cobas 6800, it is likely that the primary bidders are established manufacturers or authorized service providers with specific expertise and certifications. There may be opportunities for small businesses to participate as subcontractors if they offer specialized support services, but the prime contract is likely held by a larger entity.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through its contracting officers and program managers responsible for laboratory services and medical equipment. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to provide specified services to maintain the equipment's operational status. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Clinical Laboratory Services
Diagnostic Testing Equipment Procurement
Roche Diagnostics Service Agreements

Risk Flags

Potential for vendor lock-in due to specialized equipment.
Reliance on manufacturer for critical spare parts and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $365,148.14 to ROCHE DIAGNOSTICS CORPORATION. ROCHE COBAS 6800 TESTING SERVICE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS 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 $365,148.14.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical spending pattern for Roche Cobas 6800 testing service and maintenance by the Department of Veterans Affairs?

Analyzing historical spending requires access to detailed VA procurement data beyond this single award. However, the current award of approximately $365,148 for a one-year service and maintenance contract for the Roche Cobas 6800 system suggests a consistent need for this specialized support. If the VA operates multiple Cobas 6800 units, total annual spending could be significantly higher, distributed across various contracts or task orders. Trends in spending would depend on the number of instruments deployed, their age, service level agreements, and the competitive landscape for maintenance services over time. Without prior contract data, it's difficult to establish a definitive historical pattern, but this award indicates ongoing investment in maintaining these critical diagnostic tools.

How does the pricing of this contract compare to similar maintenance contracts for advanced diagnostic equipment in the federal sector?

Direct comparison of pricing for specialized equipment maintenance is complex due to variations in service scope, response times, included parts, and the specific technology of the instruments. However, the annual cost of roughly $365,000 for the Roche Cobas 6800 system appears to be within a reasonable range for comprehensive service agreements on high-complexity, automated diagnostic platforms. Similar contracts for analyzers from competitors like Abbott, Siemens Healthineers, or Beckman Coulter often fall within a similar six-figure annual range, depending on the contract's specifics and the vendor's market position. The firm-fixed-price structure provides a degree of cost certainty, which is a positive indicator for value, assuming the service levels meet the VA's operational needs.

What are the key performance indicators (KPIs) typically included in such service contracts to ensure contractor performance?

Key performance indicators (KPIs) in service and maintenance contracts for advanced diagnostic equipment typically focus on ensuring operational uptime and rapid response to issues. Common KPIs include: Mean Time To Repair (MTTR), which measures the average time taken to fix a breakdown; First-Time Fix Rate, indicating the percentage of repairs completed successfully on the initial service visit; Equipment Uptime Guarantee, often expressed as a percentage (e.g., 95% or 98%) of scheduled operating hours; and Response Time, defining the maximum allowable time for a technician to arrive on-site after a service call is initiated. Adherence to these KPIs is crucial for maintaining the diagnostic capabilities of the VA facilities and ensuring patient care is not disrupted.

What is the potential risk associated with relying on a single manufacturer (Roche Diagnostics) for maintenance of the Cobas 6800 system?

The primary risk associated with relying on a single manufacturer, such as Roche Diagnostics, for the maintenance of the Cobas 6800 system is the potential for vendor lock-in and limited negotiation leverage. This can lead to higher service costs over time if competition is not actively fostered. Furthermore, the VA's operational continuity is dependent on Roche's ability to provide timely and effective service, including access to parts and qualified technicians. Any disruptions in Roche's supply chain, staffing, or business operations could directly impact the availability and performance of the diagnostic equipment. While full and open competition was used for this award, the specialized nature of the equipment inherently limits the pool of qualified service providers.

How does the maintenance of the Roche Cobas 6800 system contribute to the overall efficiency and effectiveness of VA laboratory operations?

The Roche Cobas 6800 is a high-throughput, automated system designed for molecular diagnostics, including tests for infectious diseases, oncology, and other critical areas. Ensuring its consistent maintenance and operational readiness is vital for the efficiency and effectiveness of VA laboratory operations. Reliable performance of the Cobas 6800 allows for timely processing of a large volume of diagnostic tests, which directly supports clinical decision-making and patient treatment plans. Reduced downtime and accurate test results minimize delays in patient care, improve laboratory throughput, and optimize resource allocation. Ultimately, effective maintenance of such advanced instrumentation enhances the VA's capacity to provide high-quality diagnostic services to veterans.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

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

Financial Breakdown

Contract Ceiling: $365,148

Exercised Options: $365,148

Current Obligation: $365,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25026A0022

IDV Type: BPA

Timeline