VA awards $256K for coagulation testing supplies, highlighting a competitive procurement for essential lab equipment

Contract Overview

Contract Amount: $255,593 ($255.6K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-14

End Date: 2025-07-13

Contract Duration: 241 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN-WIDE COAGULATION CPRR (FINAL ORDER FOR 8 MONTHS).

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $255,593.23 to WERFEN USA LLC for work described as: VISN-WIDE COAGULATION CPRR (FINAL ORDER FOR 8 MONTHS). Key points: 1. The contract ensures the availability of critical coagulation testing supplies for the VISN-WIDE network. 2. A firm-fixed-price structure provides cost certainty for the Department of Veterans Affairs. 3. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated terms. 4. The duration of the contract is 241 days, indicating a short-term need or a bridge to a larger procurement. 5. The supplier, WERFEN USA LLC, is a known entity in the medical device sector.

Value Assessment

Rating: good

The award amount of $255,593.23 for 8 months of coagulation supplies appears reasonable given the scope of a VISN-WIDE contract. Without specific per-unit data or a direct comparison to similar VISN-WIDE procurements, a precise value-for-money assessment is challenging. However, the use of a BPA Call suggests that pricing may have been benchmarked or negotiated previously, potentially leading to favorable terms. The firm-fixed-price contract type also mitigates risk for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific mechanism used was a BPA Call, which is a task order placed against an existing Blanket Purchase Agreement. This implies that the initial BPA was established through a competitive process, and this call represents a specific order within that framework. The number of bidders for this specific call is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers, as vendors vie to offer the most competitive pricing.

Public Impact

Veterans receiving care within the VISN-WIDE network will benefit from accurate and timely coagulation testing. The contract supports the operational needs of clinical laboratories within the Department of Veterans Affairs. Essential diagnostic services are maintained, contributing to effective patient treatment plans. The Colorado (CO) region is specified, indicating a direct geographic impact on VA facilities and personnel there.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration may necessitate future competitive procurements, potentially leading to transition costs or supply chain disruptions if not managed proactively.
Reliance on a single BPA Call, even if from a competitive initial award, could concentrate risk if the primary vendor faces unforeseen issues.

Positive Signals

Awarding under full and open competition ensures a broad market was considered, promoting fairness and potentially better pricing.
The firm-fixed-price contract type locks in costs, providing budget certainty for the VA.
The use of a BPA Call streamlines the ordering process for essential supplies, ensuring timely delivery.

Sector Analysis

The market for analytical laboratory instruments and associated consumables, such as coagulation testing supplies, is a significant segment within the broader healthcare and medical device industry. This contract falls under the category of medical supplies and equipment, crucial for diagnostic services. Spending in this area is driven by the ongoing need for accurate patient monitoring and diagnosis across healthcare systems, including federal agencies like the VA. Comparable spending benchmarks would typically involve analyzing other VISN-WIDE or similar-sized healthcare network procurements for laboratory diagnostics.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting plans. The award was made to WERFEN USA LLC, a company that may or may not be a small business itself. Without further information on the contract's structure regarding small business participation, its direct impact on the small business ecosystem remains unclear. Future analysis could explore if the prime contractor has a history of engaging small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a BPA Call, it operates within the framework of the established Blanket Purchase Agreement, which itself would have undergone a competitive solicitation and award process with defined terms and conditions. Accountability measures are embedded in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA VISN-WIDE Contracts
Laboratory Equipment and Supplies
Medical Diagnostic Testing
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for price increases if market conditions change significantly before the next full competition.
Dependence on a single vendor under the BPA Call for a critical supply chain item.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $255,593.23 to WERFEN USA LLC. VISN-WIDE COAGULATION CPRR (FINAL ORDER FOR 8 MONTHS).

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 $255,593.23.

What is the period of performance?

Start: 2024-11-14. End: 2025-07-13.

What is the historical spending pattern for coagulation testing supplies within this specific VISN or comparable VA networks?

Analyzing historical spending for coagulation testing supplies within VISN-WIDE or similar VA networks is crucial for contextualizing the current $255,593.23 award. Without access to specific historical data for this VISN, we can infer general trends. Federal agencies, particularly the VA, often engage in multi-year contracts or BPAs for recurring supply needs. Spending can fluctuate based on patient volume, changes in testing methodologies, and the introduction of new equipment. A consistent pattern of awarding similar-sized contracts to the same or different vendors would indicate stable demand. Conversely, significant year-over-year increases or decreases might signal shifts in clinical practice, budget allocations, or market competition. Understanding these patterns helps assess whether the current award represents a typical expenditure or an outlier, informing future budget projections and negotiation strategies.

How does the per-unit cost of the coagulation testing supplies compare to market rates or other federal contracts?

Benchmarking the per-unit cost of coagulation testing supplies against market rates and other federal contracts is essential for evaluating value for money. The provided data does not include specific per-unit pricing details, making a direct comparison difficult. However, the contract's award to WERFEN USA LLC, a known manufacturer, suggests that the pricing is likely tied to their established product catalog. To perform a thorough analysis, one would need to obtain the itemized list of supplies and their associated costs within the BPA Call. This information could then be compared against publicly available pricing from commercial distributors, GSA schedules, or similar VA/DoD contracts for the same or equivalent products. Significant deviations from market rates, whether higher or lower, would warrant further investigation into factors such as volume discounts, contract terms, or potential inefficiencies.

What is the track record of WERFEN USA LLC in fulfilling federal contracts, particularly for laboratory supplies?

WERFEN USA LLC has a notable track record in the federal contracting space, particularly within the healthcare sector, supplying laboratory and diagnostic equipment. A review of federal procurement data (e.g., FPDS) would reveal the extent and nature of their past awards. Key aspects to examine include the volume and value of contracts, their performance history (on-time delivery, quality of goods/services), and any instances of contract disputes or terminations. For contracts related to coagulation testing supplies, it's important to assess their experience with similar products and their ability to meet the specific requirements of the Department of Veterans Affairs. A history of successful contract completion and positive performance reviews would indicate reliability, while a pattern of issues might raise concerns about their capacity to fulfill the current award effectively.

What are the potential risks associated with relying on a BPA Call for critical laboratory supplies?

Relying on a Blanket Purchase Agreement (BPA) Call for critical laboratory supplies, while often efficient, carries certain risks. Firstly, the initial BPA award, though competitive, might have been made some time ago, potentially meaning current market prices have shifted. Secondly, the specific terms and conditions of the BPA Call, while firm-fixed-price, might not fully capture all potential escalations or unforeseen supply chain disruptions that could impact the vendor. Thirdly, if the BPA itself is nearing its expiration or has limited remaining value, this call could represent a short-term solution, necessitating a new, potentially lengthy, competitive procurement process soon. Finally, while competition was 'full and open' for the initial BPA, the specific call might have fewer active participants or less aggressive pricing compared to a standalone, newly competed contract. Proactive vendor management and market surveillance are key to mitigating these risks.

How does this contract align with the VA's broader strategy for laboratory diagnostics and supply chain management?

This contract for coagulation testing supplies aligns with the VA's fundamental strategy of ensuring comprehensive and reliable healthcare services for veterans. The VA relies heavily on efficient laboratory diagnostics to support patient care across its extensive network. Utilizing a BPA Call for these supplies suggests a strategy focused on streamlining procurement for commonly needed items, leveraging pre-negotiated terms to ensure availability and potentially cost savings. This approach is part of a larger effort to optimize the VA's supply chain, reduce administrative burden, and maintain consistent access to essential medical products. The specific focus on coagulation testing indicates the VA's commitment to maintaining critical diagnostic capabilities within its facilities, supporting everything from routine monitoring to emergency care.

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: $255,593

Exercised Options: $255,593

Current Obligation: $255,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25920A0007

IDV Type: BPA

Timeline