VA awards $184K contract for autoimmune testing, highlighting specialized lab instrument needs

Contract Overview

Contract Amount: $184,417 ($184.4K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-09-19

End Date: 2027-09-18

Contract Duration: 364 days

Daily Burn Rate: $507/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AUTOIMMUNE TESTING IFA_EIA (NTX)

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $184,416.77 to WERFEN USA LLC for work described as: AUTOIMMUNE TESTING IFA_EIA (NTX) Key points: 1. Contract value appears modest, suggesting a focused scope for specialized diagnostic equipment. 2. Competition dynamics for this specific niche are not immediately clear from the provided data. 3. The fixed-price contract type offers cost certainty for the government. 4. Performance duration is one year, indicating a need for ongoing or recurring services. 5. The contract falls within the analytical laboratory instrument manufacturing sector. 6. Geographic focus is Texas, potentially serving a specific VA facility or region.

Value Assessment

Rating: fair

The contract value of $184,416.77 is relatively small, making direct comparisons to larger federal contracts challenging. Without specific details on the instruments or services provided, it's difficult to benchmark the value for money definitively. However, the fixed-price nature suggests an attempt to control costs. Further analysis would require understanding the specific product or service and its market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely solicited from a broad base of potential offerors. While the specific number of bidders is not provided, SAP generally encourages competition for procurements below certain thresholds. This method aims to ensure fair pricing and access to a range of qualified vendors.

Taxpayer Impact: Competition under SAP generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source awards.

Public Impact

Veterans in Texas will benefit from access to necessary autoimmune diagnostic testing. The contract ensures the availability of analytical laboratory instruments for medical diagnosis. This supports the operational capacity of VA healthcare facilities in the specified region. It indirectly supports the healthcare workforce by providing essential diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess effectiveness.
Limited information on the specific instruments and their technological relevance.
Potential for vendor lock-in if specialized maintenance or consumables are required.

Positive Signals

Fixed-price contract provides cost predictability.
Competition under SAP suggests a reasonable effort to obtain value.
Clear performance period (one year) allows for timely evaluation and re-competition.

Sector Analysis

This contract falls under the North American Industry Classification System (NAICS) code 334516, Analytical Laboratory Instrument Manufacturing. This sector includes establishments primarily engaged in manufacturing laboratory instruments, such as diagnostic testing equipment. The federal market for such instruments is driven by the needs of agencies like the Department of Veterans Affairs, Department of Defense, and Health and Human Services, supporting medical research, diagnostics, and public health initiatives. Spending in this area is critical for maintaining advanced healthcare capabilities.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. While the contract value is modest, it's unclear if small businesses were specifically targeted or participated. Further investigation into the solicitation details would be needed to determine subcontracting opportunities or the overall impact on the small business ecosystem for laboratory instruments.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger framework (implied by 'COMPETED UNDER SAP'), oversight would likely involve contract specialists and program managers within the VA. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Laboratory Services
Medical Equipment Procurement
Diagnostic Testing Contracts
Federal Supply Schedule (FSS) for Medical Equipment

Risk Flags

Limited scope of competition details
Lack of specific performance metrics
Potential for specialized equipment obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $184,416.77 to WERFEN USA LLC. AUTOIMMUNE TESTING IFA_EIA (NTX)

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

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 $184,416.77.

What is the period of performance?

Start: 2026-09-19. End: 2027-09-18.

What specific autoimmune tests will be performed using these instruments, and what is the clinical significance for VA patients?

The contract specifies 'AUTOIMMUNE TESTING IFA_EIA (NTX)', which refers to Immunofluorescence Assay (IFA) and Enzyme Immunoassay (EIA) for autoimmune testing. These tests are crucial for diagnosing a range of autoimmune diseases, such as lupus, rheumatoid arthritis, and celiac disease, by detecting specific antibodies in a patient's blood. For VA patients, who often have complex health histories and may be at higher risk for certain conditions, accurate and timely autoimmune testing is vital for proper diagnosis, treatment planning, and management of chronic conditions, ultimately improving health outcomes and quality of life.

How does the $184,416.77 contract value compare to typical federal spending on similar analytical laboratory instruments?

The contract value of $184,416.77 is relatively low for federal procurements of analytical laboratory instruments, which can range from tens of thousands to millions of dollars depending on the complexity and scale of the equipment. This suggests the contract likely covers a specific set of instruments, perhaps for a single laboratory or a limited number of tests, rather than a comprehensive laboratory setup. Benchmarking requires knowing the exact instruments; however, this value indicates a focused, potentially niche requirement within the VA's broader laboratory needs.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential performance issues if the instruments are not reliable or if the vendor fails to provide adequate support, leading to disruptions in diagnostic services. Another risk is obsolescence if the technology is not current. Mitigation strategies likely involve the fixed-price contract type, which shifts some cost risk to the contractor, and the competitive bidding process under SAP, which aims to select capable vendors. The one-year duration also allows for reassessment and mitigation through re-competition if performance is unsatisfactory.

What is the track record of WERFEN USA LLC in supplying similar laboratory instruments to the federal government?

Information on WERFEN USA LLC's specific track record with federal contracts for analytical laboratory instruments is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including delivery timeliness, product quality, and adherence to specifications. Federal procurement databases (like FPDS) would typically contain this information, allowing for an evaluation of their reliability and experience in meeting government requirements for laboratory equipment.

What is the expected impact of this contract on the VA's overall diagnostic capabilities in the Texas region?

This contract is expected to enhance or maintain the VA's diagnostic capabilities in the Texas region by ensuring the availability of necessary instruments for autoimmune testing. By providing these specific tools, the VA can continue to offer critical diagnostic services to veterans, potentially reducing wait times for tests and improving the accuracy of diagnoses. The impact is localized to the facilities served by this contract, contributing to the overall healthcare infrastructure supporting veterans in that area.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

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

Financial Breakdown

Contract Ceiling: $184,417

Exercised Options: $184,417

Current Obligation: $184,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25723D0077

IDV Type: IDC

Timeline