VA awards $134,375 contract for diagnostic testing supplies to Roche Diagnostics, a sole-source purchase order

Contract Overview

Contract Amount: $134,375 ($134.4K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $369/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ROCHE BENCHMARK SPECIAL STAIN DIAGNOSTIC TESTING COST PER

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $134,375 to ROCHE DIAGNOSTICS CORPORATION for work described as: ROCHE BENCHMARK SPECIAL STAIN DIAGNOSTIC TESTING COST PER Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns. 2. Limited competition may hinder optimal value for taxpayer dollars. 3. The contract duration of one year with a firm fixed price suggests predictable costs. 4. Awarded as a purchase order, indicating a need for immediate or specific supplies. 5. The specific nature of diagnostic testing supplies suggests a specialized market. 6. No indication of small business participation or set-asides.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar diagnostic testing supplies. The price of $134,375 for a one-year supply appears to be a specific procurement need rather than a large-scale investment. However, the lack of competition prevents a thorough assessment of whether this price represents fair market value or if a more competitive process could have yielded savings for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Roche Diagnostics Corporation, was solicited. This approach is typically used when a unique product or service is required, or in cases of urgent need. The absence of multiple bidders means there was no opportunity for price negotiation or comparison against competing offers, potentially leading to a higher cost than if the contract had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices, potentially resulting in less efficient use of taxpayer funds.

Public Impact

Veterans will benefit from access to necessary diagnostic testing supplies. Ensures the continuity of in-vitro diagnostic substance manufacturing and related testing services. The geographic impact is localized to the Indiana facility where the supplies are likely utilized. Supports the healthcare workforce within the Department of Veterans Affairs by providing essential materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of competition raises concerns about long-term value for money.
No transparency on the justification for sole-source procurement.

Positive Signals

Contract ensures availability of critical diagnostic supplies for veterans.
Firm fixed price provides cost certainty for the duration of the contract.
Awarded to a known entity, Roche Diagnostics, potentially indicating established supply chain reliability.

Sector Analysis

The market for in-vitro diagnostic substances is a specialized segment within the broader healthcare and medical supplies industry. This contract falls under the manufacturing and distribution of diagnostic testing materials, which are critical for patient care and disease management. The value of this specific award is relatively small compared to the overall market size for diagnostic equipment and consumables, but it represents a necessary component of healthcare delivery.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a sole-source award to a large corporation, it is unlikely that small businesses will be involved as prime contractors. Subcontracting opportunities for small businesses are not specified in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' procurement and financial management systems. As a purchase order, it is subject to standard administrative review and auditing processes. Transparency regarding the justification for the sole-source award and the specific use of funds would be key areas for oversight.

Related Government Programs

Medical Supplies and Equipment
Diagnostic Testing Services
In-Vitro Diagnostic Substances
Healthcare Services for Veterans

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $134,375 to ROCHE DIAGNOSTICS CORPORATION. ROCHE BENCHMARK SPECIAL STAIN DIAGNOSTIC TESTING COST PER

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 $134,375.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the specific justification for awarding this contract on a sole-source basis to Roche Diagnostics Corporation?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. However, the specific justification for this sole-source determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent and compelling circumstances. Without further documentation from the Department of Veterans Affairs, the precise reason for bypassing a competitive bidding process remains unclear. This lack of transparency can be a point of concern for ensuring fair and efficient use of government funds.

How does the cost per unit or overall contract value compare to similar diagnostic testing supply contracts awarded competitively by the VA or other federal agencies?

Direct comparison of this $134,375 sole-source contract to competitively awarded contracts for similar diagnostic testing supplies is difficult without more specific product details and market data. Sole-source awards inherently lack the price discovery mechanism of competition, often leading to higher prices. To benchmark effectively, one would need to identify comparable contracts for the same or similar diagnostic substances, analyze their pricing structures (e.g., per-unit costs, volume discounts), and consider the contract duration and scope. The absence of such comparative data for this specific award makes it challenging to definitively assess its value for money.

What are the potential risks associated with awarding a contract for essential diagnostic supplies on a sole-source basis?

The primary risk associated with a sole-source award for essential diagnostic supplies is the potential for inflated pricing due to the lack of competitive pressure. This can lead to a suboptimal use of taxpayer funds. Another risk is vendor lock-in, where the agency becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Furthermore, without competition, there's a reduced incentive for the sole-source provider to innovate or offer cost-saving improvements. Ensuring the necessity and justification for the sole-source award is critical to mitigate these risks.

What is the track record of Roche Diagnostics Corporation in supplying the federal government, particularly the Department of Veterans Affairs?

Roche Diagnostics Corporation is a significant player in the diagnostics market. While specific details of their past performance with the VA are not provided in this data snippet, their presence suggests they are an established supplier. Federal procurement databases would contain records of previous contracts awarded to Roche Diagnostics by various agencies, including the VA. Analyzing these historical awards, including their value, duration, and any performance reviews or disputes, would provide a clearer picture of their track record and reliability as a government contractor.

What is the expected impact of this contract on the availability and quality of diagnostic testing for veterans?

This contract is intended to ensure the continued availability of necessary diagnostic testing supplies for veterans served by the Department of Veterans Affairs. By securing a supply of in-vitro diagnostic substances, the contract supports the VA's ability to perform essential tests, which are crucial for accurate diagnosis, treatment monitoring, and overall patient care. Assuming Roche Diagnostics fulfills the contract terms, the quality of the supplies should meet established standards. The sole-source nature, however, means the VA is reliant on this specific vendor for these supplies during the contract period.

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

Solicitation ID: 36C25626Q0389

Offers Received: 1

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $713,415

Exercised Options: $134,375

Current Obligation: $134,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline