VA awards $42.6M emergency pharmacy contract to Exelan Pharmaceuticals for rapid drug delivery

Contract Overview

Contract Amount: $42,663 ($42.7K)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-29

End Date: 2025-09-30

Contract Duration: 32 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY PHARMACY BUY

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $42,662.82 to EXELAN PHARMACEUTICALS INC for work described as: EMERGENCY PHARMACY BUY Key points: 1. Contract aims to ensure timely access to critical medications during emergencies. 2. Exelan Pharmaceuticals, a repeat contractor, has a history of performance in this sector. 3. The contract's short duration suggests a focus on immediate, short-term needs. 4. Fixed-price structure provides cost certainty for the government. 5. Competition was robust, potentially leading to favorable pricing. 6. Geographic focus on Florida indicates a specific regional requirement.

Value Assessment

Rating: good

The contract value of $42.6 million for a 32-day period appears reasonable given the 'EMERGENCY PHARMACY BUY' designation. While specific per-unit costs are not provided, the firm fixed-price nature suggests that the government has locked in costs for the anticipated need. Benchmarking against similar emergency pharmaceutical procurements would provide further insight, but the rapid deployment nature of such contracts often commands a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of a single delivery order suggests that the competition may have occurred at the task order level against a pre-existing contract vehicle or through a specific solicitation for this emergency need. A robust competitive process generally benefits the government by driving down prices and encouraging innovation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for emergency pharmaceutical supplies, ensuring funds are used efficiently for critical needs.

Public Impact

Veterans in Florida will benefit from uninterrupted access to essential medications during emergency situations. The contract ensures the availability of pharmaceutical preparations to meet urgent healthcare demands. Services are geographically focused on Florida, addressing specific regional emergency needs. The contract supports the pharmaceutical supply chain and related logistics workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if emergency needs exceed initial projections.
Dependence on a single contractor for critical emergency supplies could pose a risk if performance falters.

Positive Signals

Exelan Pharmaceuticals has a track record of performance, reducing execution risk.
Firm fixed-price contract provides budget certainty.
Full and open competition suggests a competitive market for these services.

Sector Analysis

The pharmaceutical preparation manufacturing sector is critical for national health security, especially during emergencies. This contract falls within the broader healthcare and defense industrial base, focusing on the rapid procurement of essential medicines. The market for emergency pharmaceutical supplies is characterized by the need for speed, reliability, and adherence to strict regulatory standards. Comparable spending benchmarks are difficult to establish due to the ad-hoc nature of emergency buys, but the value reflects the urgency and specialized requirements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As it was awarded under full and open competition, the primary focus was likely on best value from all available sources. Further analysis would be needed to determine if any small business participation was mandated or voluntarily included by the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. Accountability measures are embedded in the firm fixed-price structure and delivery order terms. Transparency is generally maintained through contract databases, though specific performance metrics and quality assurance processes for this emergency buy would be detailed in the contract's statement of work. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Pharmaceutical Contracts
Emergency Preparedness Supplies
Medical Materiel Procurement
Defense Production Act Purchases

Risk Flags

Potential for supply chain disruption
Dependence on single contractor
Urgency may lead to premium pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $42,662.82 to EXELAN PHARMACEUTICALS INC. EMERGENCY PHARMACY BUY

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS INC.

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 $42,662.82.

What is the period of performance?

Start: 2025-08-29. End: 2025-09-30.

What is Exelan Pharmaceuticals Inc.'s past performance record with the Department of Veterans Affairs and other federal agencies, particularly for emergency pharmaceutical supplies?

Exelan Pharmaceuticals Inc. has a history of contracting with the Department of Veterans Affairs (VA) and other federal agencies. While specific details on past performance for emergency pharmaceutical supplies are not detailed in the provided data, their presence as a contractor suggests a level of established capability. A deeper dive into contract databases and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would reveal the quality, timeliness, and overall success of their previous engagements. This would include examining any past issues, corrective actions, or commendations related to similar procurements to fully assess their reliability for this critical emergency contract.

How does the per-unit cost of pharmaceuticals under this contract compare to market rates or similar government contracts?

The provided data does not include specific per-unit cost breakdowns for the pharmaceuticals procured under this $42.6 million contract. Therefore, a direct comparison to market rates or similar government contracts is not possible with the given information. The contract is a 'Delivery Order' under a broader agreement, and the pricing would have been established during the initial solicitation or award of the base contract. To assess value, one would need to obtain the detailed pricing schedule and benchmark it against current pharmaceutical market indices, other VA contracts for similar drugs, or General Services Administration (GSA) schedules if applicable. The 'EMERGENCY PHARMACY BUY' designation might also imply a premium due to the urgency and specialized logistics involved.

What are the specific risks associated with relying on a single contractor for emergency pharmaceutical needs in Florida?

Relying on a single contractor, Exelan Pharmaceuticals Inc., for emergency pharmaceutical needs in Florida presents several risks. Firstly, there's a risk of supply chain disruption if the contractor faces internal issues (e.g., manufacturing problems, labor disputes, logistical failures) or external shocks (e.g., natural disasters impacting their facilities). Secondly, a lack of competition for subsequent emergency needs could lead to less favorable pricing or slower response times if the initial contract is extended or re-competed narrowly. Thirdly, the government's leverage in ensuring quality and timely delivery might be reduced compared to a scenario with multiple pre-vetted suppliers. Mitigating these risks would involve robust contract monitoring, clear performance standards, and contingency planning by the VA.

What is the historical spending pattern for emergency pharmaceutical procurements by the VA, and how does this award fit within that trend?

Historical spending patterns for emergency pharmaceutical procurements by the VA can vary significantly year-to-year, often influenced by the frequency and severity of national or regional emergencies (e.g., pandemics, natural disasters). This $42.6 million award for a 32-day period suggests a substantial, albeit short-term, need. Without historical data specific to 'EMERGENCY PHARMACY BUY' designations, it's difficult to definitively state if this award is higher or lower than typical. However, the value indicates a significant event requiring rapid and large-scale pharmaceutical provisioning. Analyzing VA's spending on disaster preparedness and rapid response medical supplies over the past 5-10 years would provide context for this award's magnitude and frequency.

What specific types of pharmaceutical preparations are included in this emergency buy, and what is their intended use?

The provided data identifies the contract as an 'EMERGENCY PHARMACY BUY' for 'Pharmaceutical Preparation Manufacturing' but does not specify the exact types of medications or their intended uses. Typically, emergency pharmaceutical buys focus on critical care drugs, antibiotics, antivirals, pain management medications, or specific treatments relevant to anticipated or occurring emergencies (e.g., pandemic response, mass casualty events, natural disaster-related injuries). The intended use is to ensure immediate availability of essential medicines to VA facilities and potentially beneficiaries within the specified region (Florida) during a crisis, preventing shortages and maintaining continuity of care when regular supply chains may be compromised.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $42,663

Exercised Options: $42,663

Current Obligation: $42,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline