VA awards $437K BPA Call for coagulation testing supplies to Werfen USA LLC

Contract Overview

Contract Amount: $437,354 ($437.4K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-15

End Date: 2024-11-14

Contract Duration: 365 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN-WIDE COAGULATION CPRR

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $437,354.45 to WERFEN USA LLC for work described as: VISN-WIDE COAGULATION CPRR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a BPA Call, indicating it's a task order under a larger Blanket Purchase Agreement. 3. The fixed-price contract type helps manage cost certainty for the government. 4. The duration of one year with no options suggests a short-term need for these supplies. 5. The specific product service code (PSC) is not provided, limiting detailed analysis of the goods procured. 6. The awardee, Werfen USA LLC, is likely a specialized supplier in the medical diagnostics field.

Value Assessment

Rating: good

The contract value of $437,354.45 for a one-year period appears reasonable for specialized laboratory instrumentation and supplies. Benchmarking against similar contracts for coagulation testing equipment and reagents would provide a more precise value assessment. Given the nature of the product, the fixed-price contract type is appropriate for controlling costs. The absence of options suggests a need for re-evaluation or potential re-competition in the near future.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not detailed, but this method generally fosters price discovery and encourages competitive pricing. The use of a BPA Call suggests that the underlying BPA may have been competed previously, and this call is a specific order against that agreement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially leading to lower prices and higher quality goods or services.

Public Impact

Veterans receiving care within the VISN-WIDE network will benefit from accurate and timely coagulation testing. Essential diagnostic services for patient care are ensured through the provision of coagulation testing supplies. The geographic impact is nationwide, covering all facilities under the specified Veterans Integrated Service Network (VISN). This contract supports the healthcare workforce by providing necessary tools for laboratory technicians and medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details limits understanding of the exact nature of the supplies procured.
The one-year duration without options may necessitate a rapid re-procurement process, potentially leading to short-term disruptions if not managed proactively.
No small business subcontracting plan is indicated, which could be a missed opportunity for small business engagement.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government.
The awardee is likely a specialized provider, suggesting access to quality and potentially advanced coagulation testing solutions.

Sector Analysis

The healthcare sector, particularly the segment focused on medical diagnostics and laboratory equipment, is characterized by specialized suppliers and evolving technology. Contracts for such items are crucial for maintaining the operational capacity of healthcare providers. The Department of Veterans Affairs, as a major healthcare system, represents a significant market for these types of goods. Benchmarking spending in this area often involves comparing contract values for similar diagnostic instruments and consumables across different healthcare systems.

Small Business Impact

This contract does not appear to have a small business set-aside. The absence of specific subcontracting information also means it's unclear if small businesses will be involved in fulfilling this order. For future procurements of this nature, exploring set-aside opportunities or requiring subcontracting plans could enhance small business participation within the VA's supply chain.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its contracting processes. This BPA Call, as a task order under a larger BPA, would fall under the general oversight of the VA's contracting officers and program managers. Transparency is facilitated through contract databases like FPDS. Accountability is maintained through contract performance monitoring and the fixed-price nature of the award, which sets clear financial expectations.

Related Government Programs

Department of Veterans Affairs Medical Supplies Contracts
VISN-Wide Service Contracts
Analytical Laboratory Instrument Manufacturing Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for supply chain disruption if awardee faces issues.
Risk of price escalation due to lack of ongoing competition.
Limited visibility into specific product details and quantities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $437,354.45 to WERFEN USA LLC. VISN-WIDE COAGULATION CPRR

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 $437,354.45.

What is the period of performance?

Start: 2023-11-15. End: 2024-11-14.

What is the historical spending by the Department of Veterans Affairs on coagulation testing supplies and related equipment?

Historical spending data for coagulation testing supplies and equipment by the Department of Veterans Affairs (VA) is substantial, reflecting the critical role of these diagnostics in patient care. While specific figures for 'coagulation testing supplies' alone can be difficult to isolate without detailed product service codes (PSCs) and contract descriptions, the VA consistently awards numerous contracts for laboratory equipment, reagents, and consumables. For instance, in recent fiscal years, the VA has awarded hundreds of millions of dollars across various categories related to laboratory services and medical equipment. Analyzing trends requires looking at broader categories such as 'Analytical Laboratory Instrument Manufacturing' (NAICS 334516), 'Surgical Appliances and Supplies' (NAICS 339113), and 'Medical and Surgical Equipment' (PSCs like 6515, 6510). The $437,354.45 awarded in this specific BPA Call represents a small fraction of the VA's overall investment in diagnostic capabilities, which is essential for managing conditions like bleeding disorders and monitoring anticoagulant therapies across its nationwide network of facilities.

How does the pricing of this contract compare to similar coagulation testing supply contracts awarded by other federal agencies?

Directly comparing the pricing of this $437,354.45 BPA Call to similar contracts across other federal agencies is challenging without specific details on the exact products, quantities, and service levels included. However, the fact that this contract was awarded under 'Full and Open Competition' suggests that the VA sought competitive bids to achieve favorable pricing. Generally, federal agencies leverage various contract vehicles, including BPAs and GSA Schedules, to procure medical supplies. Pricing can vary significantly based on volume discounts, contract duration, and the specific manufacturer. To conduct a robust comparison, one would need to identify contracts with identical or highly similar PSCs and product descriptions awarded around the same timeframe by agencies like the Department of Defense or HHS. Benchmarking would involve analyzing the per-unit cost or total value relative to the scope of work. The fixed-price nature of this award provides a degree of cost certainty, but its true value-for-money can only be assessed against comparable market data.

What are the potential risks associated with relying on a single awardee for these critical laboratory supplies?

While this specific contract is a BPA Call under a potentially larger, competed BPA, relying on a single awardee for critical laboratory supplies like those for coagulation testing presents several potential risks. Firstly, there's a risk of supply chain disruption; if the sole awardee experiences manufacturing issues, logistical problems, or financial instability, the VA facilities could face shortages, impacting patient care. Secondly, a lack of ongoing competition for subsequent orders or renewals could lead to price escalation over time, as the incentive to offer the most competitive pricing diminishes. Thirdly, it might limit the VA's access to newer technologies or alternative products if the incumbent supplier does not offer them. To mitigate these risks, the VA should actively monitor the supplier's performance, maintain open communication, and potentially explore diversifying its supplier base in future procurements or by establishing multiple BPAs for similar needs.

What is the track record of Werfen USA LLC in fulfilling federal contracts, particularly with the Department of Veterans Affairs?

Werfen USA LLC has a history of receiving federal contracts, including those with the Department of Veterans Affairs. Publicly available contract data indicates that Werfen has been awarded multiple contracts over the years for various laboratory diagnostic products and services. Analyzing their performance typically involves reviewing contract completion records, any reported disputes or terminations, and past performance evaluations, if accessible. For this specific BPA Call, the award itself suggests a positive past performance or a strong competitive offering. However, a comprehensive assessment of their track record would require a deeper dive into specific contract histories, including the value and duration of previous awards, the types of products supplied, and any documented performance metrics or feedback from federal agencies. This information helps gauge their reliability and capability in meeting government requirements.

How does this contract align with the VA's broader strategy for laboratory services and diagnostic testing across its network?

This contract for coagulation testing supplies aligns with the VA's broader strategy to provide comprehensive and high-quality laboratory services to veterans nationwide. The VA aims to ensure that all its facilities have access to essential diagnostic tools, enabling timely and accurate patient care. By awarding this BPA Call, the VA is ensuring the availability of critical reagents and potentially instruments necessary for monitoring blood clotting and related conditions, which are vital for managing a wide range of medical treatments, including surgery and anticoagulation therapy. The 'VISN-WIDE' designation suggests a coordinated approach to procurement and service delivery across a specific Veterans Integrated Service Network, promoting standardization and potentially economies of scale. This procurement supports the VA's commitment to leveraging technology and efficient supply chain management to meet the healthcare needs of the veteran population.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $437,354

Exercised Options: $437,354

Current Obligation: $437,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25920A0007

IDV Type: BPA

Timeline