VA awards $714K for STX Cepheid Reagents, a sole-source contract for diagnostic substances

Contract Overview

Contract Amount: $714,453 ($714.5K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-12

End Date: 2027-04-11

Contract Duration: 364 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STX CEPHEID REAGENTS - ORDERING PERIOD 1

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $714,452.55 to CEPHEID for work described as: STX CEPHEID REAGENTS - ORDERING PERIOD 1 Key points: 1. The Department of Veterans Affairs (VA) is procuring STX Cepheid Reagents, essential for in-vitro diagnostics. 2. The contract is sole-source, indicating limited or no competition for this specific product. 3. The total award value is $714,452.55 over a 364-day period. 4. This procurement falls under the In-Vitro Diagnostic Substance Manufacturing sector.

Value Assessment

Rating: questionable

Pricing cannot be assessed without competitive benchmarks. The sole-source nature raises concerns about potential overpayment compared to a competitive market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for these essential diagnostic reagents.

Public Impact

Veterans will receive essential diagnostic testing capabilities. The VA ensures a supply chain for critical medical reagents. Potential for increased healthcare costs due to sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of transparency in pricing due to no-bid contract.
Potential for vendor lock-in.

Positive Signals

Ensures availability of critical diagnostic reagents for veterans.
Supports a specific medical technology for the VA.

Sector Analysis

The procurement is within the In-Vitro Diagnostic Substance Manufacturing sector. Spending benchmarks for similar sole-source reagent contracts are difficult to establish without competitive data, but a lack of competition often inflates costs.

Small Business Impact

There is no indication that small businesses were involved in this sole-source procurement. The focus appears to be on a specific manufacturer's product.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained the best possible value. Further justification for the sole-source decision should be available.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $714,452.55 to CEPHEID. STX CEPHEID REAGENTS - ORDERING PERIOD 1

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 $714,452.55.

What is the period of performance?

Start: 2026-04-12. End: 2027-04-11.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves a unique capability or lack of alternatives. The VA should have conducted a market research analysis to confirm no other sources could meet the requirement. Fair and reasonable pricing is usually determined by comparing to historical prices, catalog prices, or other government contracts, though these benchmarks are less reliable without competition.

What is the potential impact on veteran healthcare if this specific reagent becomes unavailable or significantly increases in price?

The unavailability or significant price increase of these STX Cepheid Reagents could disrupt critical diagnostic testing for veterans, potentially delaying diagnoses and treatment. This could lead to poorer health outcomes and increased overall healthcare costs for the VA if alternative, potentially less effective or more expensive, diagnostic methods must be employed.

Are there any plans to transition to a competitive procurement for these reagents in the future to ensure better value?

Future plans for competitive procurement are not evident from the provided data. Agencies typically aim for competition when possible to leverage market forces for cost savings. The VA should explore opportunities to introduce competition for these reagents in subsequent contract actions to mitigate long-term cost increases and ensure sustained value.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25726Q0244

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: $714,453

Exercised Options: $714,453

Current Obligation: $714,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25726D0053

IDV Type: IDC

Timeline