VA awards $2.98M for BIOFIRE TORCH SYSTEM and reagents, a sole-source contract for analytical instruments

Contract Overview

Contract Amount: $2,980,790 ($3.0M)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BIOFIRE TORCH SYSTEM AND REAGENTS FOR VISN 15 - OPTION ONE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to BIOMERIEUX INC for work described as: BIOFIRE TORCH SYSTEM AND REAGENTS FOR VISN 15 - OPTION ONE Key points: 1. Contract awarded to BIOMERIEUX INC for essential laboratory diagnostic equipment and supplies. 2. The contract is a sole-source award, indicating limited competition for this specific system. 3. Performance period spans one year, from October 2024 to September 2025. 4. The contract type is Firm Fixed Price, providing cost certainty for the VA. 5. The North American Industry Classification System (NAICS) code is 334516, related to analytical laboratory instrument manufacturing. 6. This award represents a specific procurement within the broader healthcare and medical equipment sector for the VA.

Value Assessment

Rating: fair

The contract value of $2.98 million for a one-year period for the BIOFIRE TORCH SYSTEM and reagents appears to be within a reasonable range for specialized medical diagnostic equipment. Benchmarking against similar sole-source contracts for advanced laboratory systems is challenging due to the proprietary nature of such technology. However, the absence of competition inherently limits the ability to assess optimal value for money. Further analysis would require understanding the specific capabilities and market alternatives, if any, for this diagnostic platform.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, BIOMERIEUX INC, was solicited. This typically occurs when a product or service is unique, proprietary, or when there are compelling reasons for using 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. The justification for a sole-source award would need to be robust to ensure fair pricing and necessity.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing competitive bidding, which is a primary mechanism for ensuring the government receives the best possible prices. Without competition, there is less pressure on the contractor to offer cost savings.

Public Impact

Veterans receiving care within VISN 15 will benefit from timely and accurate diagnostic testing facilitated by the BIOFIRE TORCH SYSTEM. The contract ensures the availability of critical reagents and systems for analytical laboratories within the VA's network. This procurement supports the operational capacity of VA healthcare facilities to perform essential diagnostic procedures. The contract directly impacts laboratory technicians and medical professionals who rely on this equipment for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Lack of open competition raises questions about whether alternative, potentially more cost-effective, solutions were considered.
Dependence on a single supplier for critical diagnostic systems can create long-term supply chain risks.

Positive Signals

Ensures access to a specific, potentially advanced, diagnostic technology for VA healthcare.
Firm Fixed Price contract provides budget certainty for the awarded period.
Contract supports critical healthcare functions for veterans within VISN 15.

Sector Analysis

The healthcare sector, particularly the segment focused on medical devices and diagnostic equipment, is characterized by high innovation and significant R&D investment. Companies like BIOMERIEUX INC specialize in developing and manufacturing sophisticated analytical instruments and associated consumables. Federal agencies, especially the Department of Veterans Affairs, are major purchasers of such equipment to support their extensive healthcare networks. Spending in this area is driven by the need for accurate, rapid diagnostics to improve patient outcomes and manage public health. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of diagnostic platforms, but overall federal spending on medical equipment and supplies is substantial.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the procurement was not specifically targeted towards small businesses, nor is there an explicit indication of a small business prime contractor. Subcontracting opportunities for small businesses are not detailed in the provided data but would typically be a consideration in larger sole-source awards if mandated by the agency.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification and necessity for this procurement would be subject to internal VA review and potentially oversight from bodies like the Government Accountability Office (GAO) if protests arise. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Laboratory Services
Medical Diagnostic Equipment Procurement
Clinical Laboratory Improvement Amendments (CLIA) related spending
Department of Veterans Affairs VISN Contracts

Risk Flags

Sole-source award
Potential for limited competition driving higher costs
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to BIOMERIEUX INC. BIOFIRE TORCH SYSTEM AND REAGENTS FOR VISN 15 - OPTION ONE

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX 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 $3.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of BIOMERIEUX INC with the Department of Veterans Affairs?

BIOMERIEUX INC has a history of receiving contracts from the Department of Veterans Affairs, though the extent and nature of these prior awards require detailed examination of federal procurement databases. Analyzing past performance, including contract values, types, and any reported issues or successes, is crucial for assessing their reliability and suitability for this current sole-source award. Without specific historical data points readily available in this summary, a deeper dive into FPDS or other government contract repositories would be necessary to fully understand their track record with the VA. This would involve looking at contract completion rates, any disputes or terminations, and overall satisfaction levels from previous VA engagements.

How does the pricing of the BIOFIRE TORCH SYSTEM and reagents compare to market rates for similar diagnostic platforms?

Determining the precise market rate comparison for the BIOFIRE TORCH SYSTEM and its reagents is challenging without access to detailed pricing structures and competitive bids from other manufacturers. As this is a sole-source award, direct price benchmarking against competing systems is not feasible through the bidding process itself. However, an independent market analysis could be conducted by the VA or a third party to compare the system's capabilities, throughput, and cost-per-test against other available technologies. Factors such as proprietary technology, unique features, and the specific needs of VISN 15 would influence the acceptable price range. The absence of competition inherently limits the ability to ascertain if the price represents the best value achievable in a competitive market.

What are the primary risks associated with a sole-source award for critical diagnostic equipment?

The primary risks associated with a sole-source award for critical diagnostic equipment like the BIOFIRE TORCH SYSTEM include potential overpricing due to the lack of competitive pressure, limited innovation adoption if the sole provider does not keep pace with market advancements, and increased supply chain vulnerability. Taxpayers may not receive the best possible value for their money. Furthermore, the VA becomes heavily reliant on a single vendor, which can create challenges if that vendor experiences financial difficulties, changes its product strategy, or faces regulatory issues. Ensuring robust contract terms and continuous performance monitoring becomes even more critical in sole-source situations to mitigate these inherent risks.

What is the expected program effectiveness and impact on veteran healthcare within VISN 15?

The expected program effectiveness hinges on the BIOFIRE TORCH SYSTEM's ability to deliver accurate, rapid, and reliable diagnostic results for a range of infectious diseases or other conditions relevant to veteran healthcare within VISN 15. If the system performs as intended, it should lead to quicker diagnoses, more appropriate treatment decisions, reduced patient length of stay, and improved overall patient outcomes. The impact on veteran healthcare would be positive, ensuring that medical professionals have access to essential diagnostic tools. The effectiveness is also tied to the consistent availability of reagents and proper system maintenance, which this contract aims to secure.

How has federal spending on analytical laboratory instruments evolved over the past five years?

Federal spending on analytical laboratory instruments has generally seen a steady increase over the past five years, driven by advancements in technology, increased demand for sophisticated testing in healthcare and research, and national priorities in areas like public health and defense. Agencies such as the Department of Health and Human Services (including NIH and CDC), the Department of Defense, and the Department of Veterans Affairs are significant contributors to this spending. Procurement trends often reflect a move towards more automated, high-throughput, and sensitive analytical systems. While specific figures fluctuate annually based on agency budgets and emerging needs, the overall trajectory indicates sustained investment in this critical scientific infrastructure.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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

Financial Breakdown

Contract Ceiling: $2,980,790

Exercised Options: $2,980,790

Current Obligation: $2,980,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25524D0003

IDV Type: IDC

Timeline