VA awards $117K for multiplex vaginal panel kits, citing sole-source procurement

Contract Overview

Contract Amount: $117,480 ($117.5K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-07

End Date: 2025-06-06

Contract Duration: 364 days

Daily Burn Rate: $323/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MULTIPLEX VAGINAL PANEL KITS (MVP)

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $117,479.88 to CEPHEID for work described as: MULTIPLEX VAGINAL PANEL KITS (MVP) Key points: 1. Contract awarded to Cepheid for essential diagnostic kits. 2. Sole-source award indicates limited market alternatives or specific contractor capability. 3. Delivery order structure suggests ongoing need for these supplies. 4. Fixed-price contract type aims to control costs for the duration. 5. The contract duration is one year, aligning with typical supply needs. 6. Focus on In-Vitro Diagnostic Substance Manufacturing highlights a specialized sector.

Value Assessment

Rating: fair

The contract value of $117,479.88 for a one-year supply of multiplex vaginal panel kits appears reasonable for specialized medical diagnostics. Without specific per-unit cost data or benchmarks for similar panel kits, a precise value-for-money assessment is challenging. However, the sole-source nature of the award means direct price comparison with competing products is not feasible, potentially limiting opportunities for cost savings through competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Cepheid, was solicited. This approach is typically used when a product is unique, highly specialized, or when there's a compelling reason to use a specific contractor. The lack of competition means that the VA did not benefit from a bidding process that could have potentially driven down prices or offered alternative solutions.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices for taxpayers compared to competitively bid contracts, as the government lacks the leverage of multiple offers to negotiate the best possible price.

Public Impact

Beneficiaries include patients requiring diagnostic testing at VA facilities. Services delivered are critical in-vitro diagnostic testing for women's health. Geographic impact is primarily within California, where the VA facility is located. Workforce implications include support for laboratory technicians and healthcare providers utilizing the kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of transparency in the justification for sole-source procurement.
Dependence on a single supplier could pose supply chain risks.

Positive Signals

Contract addresses a specific and critical healthcare need for diagnostic testing.
Fixed-price contract provides cost certainty for the awarded amount.
Award to an established vendor (Cepheid) may indicate reliability in product quality.

Sector Analysis

The contract falls within the Healthcare sector, specifically focusing on In-Vitro Diagnostic (IVD) substances. The market for IVD kits is substantial and driven by advancements in medical technology and the increasing demand for accurate and rapid diagnostic testing. This contract represents a small portion of the overall federal spending on medical supplies and diagnostics, which often involves complex supply chains and specialized manufacturers like Cepheid.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to Cepheid, a known entity in the diagnostics field, there are no immediate subcontracting implications for small businesses directly tied to this specific award. The focus is on fulfilling a specialized need rather than broad market penetration or small business development.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the fixed-price delivery order structure, requiring the contractor to deliver specified goods. Transparency is limited due to the sole-source nature, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Department of Veterans Affairs Medical Supplies
In-Vitro Diagnostic Devices
Women's Health Services Contracts

Risk Flags

Sole-source award may indicate limited competition.
Potential for higher costs without competitive bidding.
Supply chain risk due to single-source dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $117,479.88 to CEPHEID. MULTIPLEX VAGINAL PANEL KITS (MVP)

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $117,479.88.

What is the period of performance?

Start: 2024-06-07. End: 2025-06-06.

What is Cepheid's track record with the Department of Veterans Affairs for similar diagnostic products?

Cepheid has a history of supplying diagnostic solutions to various government agencies, including the VA. Their products are known for molecular diagnostics. While this specific contract is a sole-source award for multiplex vaginal panel kits, the VA likely has prior experience with Cepheid for other diagnostic reagents or instruments. Analyzing past performance data, including delivery timeliness, product quality, and any reported issues, would provide a clearer picture of their reliability in fulfilling VA requirements. Without access to detailed historical contract performance reviews, it's difficult to definitively assess their track record beyond their general market presence.

How does the pricing of these multiplex vaginal panel kits compare to market rates for similar products, considering the sole-source nature?

Benchmarking the pricing of these multiplex vaginal panel kits is challenging due to the sole-source award. Typically, competitive bidding allows for price discovery and negotiation against multiple offers. In a sole-source scenario, the government relies on the contractor's proposed pricing, which may or may not reflect the lowest achievable market rate. To assess value, one would ideally compare the per-unit cost against similar diagnostic panels from other manufacturers, factoring in differences in technology, sensitivity, specificity, and throughput. However, without direct competitive data for this specific product, the assessment remains qualitative, focusing on whether the price appears reasonable for a specialized diagnostic tool.

What are the primary risks associated with this sole-source contract for the VA?

The primary risks associated with this sole-source contract include potential overpayment due to the lack of competitive pricing, limited negotiation leverage, and supply chain vulnerability. If Cepheid experiences production issues or decides to increase prices significantly, the VA has fewer alternatives and may be forced to accept higher costs or face a disruption in critical diagnostic supplies. Furthermore, sole-source awards can sometimes indicate a lack of market competition or potential barriers to entry for other suppliers, which could be a broader concern for the healthcare sector's resilience and innovation.

How effective are multiplex vaginal panel kits in improving diagnostic outcomes compared to traditional methods?

Multiplex vaginal panel kits are designed to simultaneously detect multiple pathogens or biomarkers from a single sample, offering significant advantages over traditional, single-analyte testing methods. They can lead to faster diagnosis, more accurate identification of co-infections, and potentially reduce the need for repeat testing, thereby improving patient care and reducing healthcare costs. For conditions like sexually transmitted infections or vaginal infections, multiplex panels can provide a comprehensive picture more efficiently. The effectiveness is measured by factors such as diagnostic sensitivity, specificity, turnaround time, and impact on clinical decision-making and patient management.

What is the historical spending pattern of the VA on multiplex vaginal panel kits or similar diagnostic substances?

Analyzing the VA's historical spending on multiplex vaginal panel kits requires access to detailed procurement data over several fiscal years. This specific contract is for approximately $117K over one year. Without broader historical data, it's difficult to establish a trend. However, the VA's overall spending on medical supplies and diagnostics is substantial, reflecting its commitment to providing comprehensive healthcare to veterans. Trends in this area are often influenced by evolving medical guidelines, technological advancements in diagnostics, and public health priorities. A deeper dive into past VA contracts for IVD substances would reveal patterns of demand and supplier relationships.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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

Financial Breakdown

Contract Ceiling: $117,480

Exercised Options: $117,480

Current Obligation: $117,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25523D0029

IDV Type: IDC

Timeline