VA awards $2.5M for Lenalidomide, a critical cancer drug, through full and open competition

Contract Overview

Contract Amount: $2,546,269 ($2.5M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2026-07-31

Contract Duration: 180 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LENALIDOMIDE

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to EXELAN PHARMACEUTICALS INC for work described as: LENALIDOMIDE Key points: 1. The contract ensures access to a vital medication for veterans, addressing a key healthcare need. 2. Full and open competition suggests a potentially competitive pricing environment for this pharmaceutical. 3. The fixed-price contract type provides cost certainty for the government over the performance period. 4. The relatively short duration of 180 days may indicate a need for frequent re-competition or fluctuating demand. 5. The award to Exelan Pharmaceuticals Inc. warrants a review of their past performance and market position. 6. Benchmarking the per-unit cost against similar pharmaceutical procurements is crucial for value assessment.

Value Assessment

Rating: good

The award of $2,546,268.75 for Lenalidomide appears reasonable given its critical nature as a cancer treatment. Without specific per-unit data or direct comparisons to identical contracts, a definitive value assessment is challenging. However, the use of full and open competition suggests that market forces were leveraged to achieve a competitive price. Further analysis would involve comparing the negotiated price against average wholesale prices or prices paid by other federal agencies for the same drug.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this pharmaceutical supply. This competitive environment is generally favorable for price discovery and potentially leads to better pricing outcomes for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that federal funds are used more efficiently for essential medications.

Public Impact

Veterans requiring Lenalidomide for cancer treatment will have continued access to this essential medication. The Department of Veterans Affairs (VA) will be able to fulfill its obligation to provide necessary pharmaceuticals. The contract supports the pharmaceutical manufacturing sector, specifically in the production of high-demand oncology drugs. The delivery order is set to be fulfilled in Florida, potentially impacting local distribution networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future contract renewals due to the short duration.
Reliance on a single awardee for a critical medication necessitates robust supply chain monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract provides cost certainty for the government.
The drug is essential for treating serious medical conditions, fulfilling a critical government need.

Sector Analysis

Lenalidomide is a high-value pharmaceutical used in the treatment of multiple myeloma and other cancers. The pharmaceutical preparation manufacturing sector is characterized by significant R&D investment, stringent regulatory oversight, and complex supply chains. Federal agencies, particularly the VA and DoD, are major purchasers of pharmaceuticals to serve the healthcare needs of service members and veterans. Spending in this category is substantial, driven by the demand for life-saving and life-extending medications.

Small Business Impact

This contract does not appear to have a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into the prime contractor's practices and any specific clauses within the contract. The primary focus of this award is on securing a critical pharmaceutical, and the direct impact on the small business ecosystem may be limited unless subcontracting plans are actively pursued.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. Accountability measures are embedded within the contract terms, including delivery schedules and quality standards. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this procurement.

Related Government Programs

Department of Veterans Affairs Pharmaceutical Contracts
Oncology Drug Procurement
Federal Supply Schedule (FSS) Pharmaceuticals
Delivery Orders under Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Short contract duration may lead to frequent re-competition and potential price volatility.
Reliance on a single awardee for a critical drug requires robust supply chain oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to EXELAN PHARMACEUTICALS INC. LENALIDOMIDE

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS 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 $2.5 million.

What is the period of performance?

Start: 2026-02-01. End: 2026-07-31.

What is the historical spending pattern for Lenalidomide by the Department of Veterans Affairs?

Analyzing historical spending for Lenalidomide by the VA is crucial for understanding long-term demand and budget allocation. While this specific award is for $2.55 million over approximately six months, prior contract awards for the same drug would reveal trends in volume, pricing, and the number of competing vendors. For instance, if the VA has consistently awarded similar contracts annually, it indicates a stable, ongoing need. Conversely, significant year-to-year variations might suggest shifts in treatment protocols, veteran population needs, or the availability of alternative therapies. Understanding this historical context allows for more accurate forecasting and budget planning, ensuring sustained access to critical medications while optimizing cost-effectiveness.

How does the per-unit cost of Lenalidomide in this contract compare to market rates or other federal agency purchases?

Benchmarking the per-unit cost of Lenalidomide is essential for assessing value for money. This contract's total value is $2,546,268.75 for a 180-day period, but the exact number of units is not specified. To perform a comparison, one would need to determine the average number of units procured or estimate a typical dosage. This estimated per-unit cost could then be compared against prices paid by other federal agencies (e.g., through the DoD's Tricare program or GSA schedules), or against average wholesale prices (AWP) reported by pharmaceutical data providers. Significant deviations from established benchmarks could indicate either an exceptionally good deal for the government or potential overpayment, warranting further investigation into the factors influencing the price, such as specific formulations, packaging, or negotiated discounts.

What is Exelan Pharmaceuticals Inc.'s track record with federal contracts, particularly for pharmaceuticals?

Exelan Pharmaceuticals Inc.'s track record with federal contracts, especially for pharmaceuticals, is a key indicator of reliability and performance. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the company's history of awards, contract values, agencies served, and performance ratings. Specifically, examining past contracts for Lenalidomide or similar high-value drugs would provide insight into their ability to meet delivery schedules, quality standards, and pricing commitments. Any history of contract terminations, disputes, or poor performance ratings would raise concerns about their capacity to fulfill this current award effectively. Conversely, a history of successful, on-time deliveries and positive performance feedback would bolster confidence in their capabilities.

What are the potential risks associated with a short-duration contract (180 days) for a critical medication?

A short contract duration of 180 days for a critical medication like Lenalidomide presents several potential risks. Firstly, it necessitates frequent re-competition, which consumes administrative resources and introduces uncertainty regarding future supply and pricing. Each re-competition cycle carries the risk of a different awardee, potentially disrupting the supply chain or leading to price increases if competition is less robust. Secondly, it may disincentivize the contractor from making long-term investments in optimizing production or inventory management specifically for this VA contract, as the future is less certain. Finally, it could lead to 'evergreen' contracts or sole-source situations if the re-competition process proves difficult or yields insufficient bids, potentially resulting in higher costs over time compared to a longer-term, stable agreement.

How does the VA ensure the quality and efficacy of pharmaceuticals procured through contracts like this one?

The VA employs multiple mechanisms to ensure the quality and efficacy of procured pharmaceuticals. All pharmaceutical products must meet stringent FDA approval standards before they can be considered for federal procurement. Contracts typically include detailed specifications regarding drug formulation, purity, potency, and packaging. Furthermore, the VA often relies on its own quality assurance programs, which may involve inspections of manufacturing facilities, testing of drug samples, and monitoring of adverse event reports. The contract itself will contain clauses requiring the contractor to adhere to Good Manufacturing Practices (GMP) and other relevant regulatory standards. Compliance is monitored throughout the contract period, and failure to meet quality requirements can result in penalties or contract termination.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C25026Q0139

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

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

Financial Breakdown

Contract Ceiling: $2,546,269

Exercised Options: $2,546,269

Current Obligation: $2,546,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline