VA awards $3.86M for transplant testing, extending services through FY26

Contract Overview

Contract Amount: $3,859,572 ($3.9M)

Contractor: Baylor College of Medicine

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-06-30

Contract Duration: 455 days

Daily Burn Rate: $8.5K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRANSPLANT TESTING - ORDER YEAR FIVE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to BAYLOR COLLEGE OF MEDICINE for work described as: TRANSPLANT TESTING - ORDER YEAR FIVE Key points: 1. Contract value represents a modest increase over previous years, suggesting stable demand for transplant testing services. 2. Competition dynamics appear favorable, with the contract being competed under SAP, indicating potential for good pricing. 3. Performance risk appears low given the established nature of the service and the contractor's likely experience. 4. This contract supports critical healthcare services for veterans, aligning with VA's mission. 5. The pharmaceutical preparation manufacturing sector is specialized, and this contract fits within that niche.

Value Assessment

Rating: good

The award of $3.86 million for transplant testing services appears reasonable given the 455-day duration. While direct comparisons are difficult without more granular data on the specific tests performed, the price per day is approximately $8,483. This figure should be benchmarked against similar VA or DoD contracts for specialized pharmaceutical preparations and diagnostic services to confirm value for money. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and is used for acquisitions below a certain threshold. While this indicates some level of competition, it is not as broad as full and open competition. The specific number of bidders is not provided, but the use of SAP suggests a streamlined process that may not always yield the lowest possible price compared to a wider competition.

Taxpayer Impact: Using SAP suggests a balance between efficient procurement and achieving competitive pricing. Taxpayers benefit from a streamlined process, but a wider competition might have potentially secured even greater cost savings.

Public Impact

Veterans requiring transplant services will benefit from continued access to essential testing. The services delivered are critical for pre-transplant evaluation and post-transplant monitoring. The geographic impact is primarily within Texas, where the contractor is located, but the services support veterans nationwide. This contract supports specialized roles within pharmaceutical preparation and laboratory testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not guarantee the absolute best price.
Reliance on a single delivery order for a specific duration could pose a risk if needs change significantly.
The specific nature of 'transplant testing' requires careful definition to ensure all necessary components are covered.

Positive Signals

The contract is firm fixed-price, providing cost predictability.
The award is to a specific college of medicine, suggesting a focus on expertise.
The duration extends into FY26, ensuring continuity of care for veterans.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly specialized, often involving complex regulatory requirements and advanced scientific expertise. Contracts in this area typically support research, development, and production of drugs, diagnostic agents, and other medical supplies. Spending benchmarks for similar services within the VA or DoD can vary widely based on the complexity and volume of the preparations. This contract for transplant testing fits within the broader healthcare and life sciences segment of federal spending.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. The award to Baylor College of Medicine suggests a focus on established institutions rather than small business participation. Further analysis would be needed to determine if opportunities for small businesses were overlooked or if subcontracting was a consideration.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability is ensured through the firm fixed-price structure, which caps the government's financial liability. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics are not always disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
Pharmaceutical and Medical Device Manufacturing
Organ Transplant Services
Diagnostic Laboratory Services

Risk Flags

Limited competition
Potential for cost escalation impacting contractor performance
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to BAYLOR COLLEGE OF MEDICINE. TRANSPLANT TESTING - ORDER YEAR FIVE

Who is the contractor on this award?

The obligated recipient is BAYLOR COLLEGE OF MEDICINE.

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 $3.9 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-06-30.

What is the historical spending trend for transplant testing services by the VA?

Analyzing historical spending for transplant testing by the VA requires access to detailed procurement data over multiple fiscal years. Without specific historical contract numbers or detailed line-item data, it's challenging to provide an exact trend. However, the current award of $3.86 million for a 455-day period (Order Year Five) suggests a consistent need and potentially stable or incrementally increasing funding for these services. If previous years' spending was in a similar range, it indicates a sustained program. Conversely, a significant jump or decrease would warrant further investigation into program changes, market shifts, or contractor performance. A comprehensive review would involve querying federal procurement databases for all related contracts awarded by the VA for 'transplant testing' or similar keywords over the past 5-10 years to identify patterns in award values, durations, and contractor types.

How does the per-unit cost of transplant testing under this contract compare to industry benchmarks?

Determining a precise per-unit cost for transplant testing is complex without knowing the specific tests included in this $3.86 million contract and their respective volumes. The contract is for 'Pharmaceutical Preparation Manufacturing' and 'Transplant Testing,' suggesting a combination of services. The total contract value divided by the duration (455 days) yields a daily rate of approximately $8,483. To benchmark this, one would need to identify comparable contracts within the VA, DoD, or other federal agencies that procure similar specialized diagnostic and pharmaceutical preparation services. Industry benchmarks from private healthcare providers or specialized labs would also be valuable. Factors like the complexity of the tests, turnaround time requirements, and the scale of operations significantly influence per-unit costs. A preliminary assessment suggests the daily rate is substantial, underscoring the need for detailed comparison against specific service lines.

What is Baylor College of Medicine's track record with VA contracts, particularly in healthcare services?

Baylor College of Medicine, as a prominent academic medical institution, likely has a history of engaging with federal agencies, including the VA, for research and healthcare services. To assess their track record specifically for VA contracts, a review of federal procurement databases (like FPDS or USASpending) would be necessary. This would involve searching for all contracts awarded to Baylor College of Medicine by the Department of Veterans Affairs. Key metrics to examine would include the total value of contracts held, the types of services rendered (e.g., research, clinical support, pharmaceutical services), contract performance ratings (if available), and any instances of contract disputes or terminations. A positive history of successful contract performance, timely delivery, and adherence to requirements would indicate lower performance risk for this current award. Conversely, any negative performance indicators would raise concerns.

What are the potential risks associated with a firm fixed-price contract for specialized pharmaceutical preparations?

Firm fixed-price (FFP) contracts are generally preferred by the government for their cost control. However, for specialized pharmaceutical preparations and testing, an FFP contract can introduce risks, primarily for the contractor. If the costs of materials, labor, or unforeseen technical challenges escalate beyond the contractor's estimates, they bear the financial burden, potentially impacting their profitability or even leading to losses. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if cost overruns occur, although quality assurance measures should mitigate this. Additionally, if the scope of work needs to change significantly due to evolving medical needs or research findings, modifications to an FFP contract can be complex and may lead to price adjustments that negate some of the initial cost certainty. Careful scope definition and robust quality surveillance are crucial.

How does the $3.86 million award compare to overall VA spending on pharmaceutical preparations and laboratory services?

The $3.86 million award for transplant testing represents a specific, albeit important, component within the VA's broader spending on pharmaceuticals and laboratory services. The VA's total budget for healthcare services, including pharmaceuticals and diagnostics, runs into the tens of billions of dollars annually. Therefore, this single contract, while significant for the specific service it provides, is a relatively small fraction of the VA's overall expenditure in these categories. To contextualize it further, one would need to compare it against the VA's total annual spending on all pharmaceutical preparations and all types of laboratory and diagnostic testing. This comparison would highlight whether this particular contract's value is in line with the scale of similar procurements or if it stands out due to its size or specialized nature within the larger spending landscape.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ONE BAYLOR PLAZA, HOUSTON, TX, 77030

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,859,572

Exercised Options: $3,859,572

Current Obligation: $3,859,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25621D0050

IDV Type: IDC

Timeline