VA awards $3.58M for chemistry call orders, extending Roche Diagnostics' analytical instrument services through April 2026

Contract Overview

Contract Amount: $3,576,085 ($3.6M)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2026-04-30

Contract Duration: 364 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 19 CHEMISTRY CALL ORDER TO FUND OPTION 3

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to ROCHE DIAGNOSTICS CORPORATION for work described as: VISN 19 CHEMISTRY CALL ORDER TO FUND OPTION 3 Key points: 1. Contract value represents a modest increase for essential laboratory services. 2. Sole-source award to Roche Diagnostics suggests a lack of viable alternatives or established infrastructure. 3. Fixed-price contract structure provides cost certainty for the agency. 4. Performance period extends for one year, allowing for continued operational support. 5. The contract falls under the Analytical Laboratory Instrument Manufacturing category. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $3.58 million for a one-year period appears reasonable for specialized analytical laboratory instrument services. Benchmarking against similar contracts for chemistry call orders is difficult without more specific service details. However, given the sole-source nature, it's challenging to definitively assess if the pricing represents the best value. The firm fixed-price structure mitigates cost overrun risks for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating that only one vendor, Roche Diagnostics Corporation, was considered capable of fulfilling the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple bidders vying for the contract. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a bidding process. The VA relies on the contractor's proposed pricing without the benefit of market-driven negotiation.

Public Impact

Veterans receiving care through VISN 19 will benefit from continued access to essential laboratory testing services. The contract ensures the availability of analytical laboratory instruments and related services for diagnostic purposes. Services are geographically focused within the VISN 19 network, impacting healthcare delivery in that region. The contract supports the operational needs of clinical laboratories within the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of competition may obscure potential cost savings.
Dependence on a single vendor could create future supply chain risks.

Positive Signals

Ensures continuity of critical laboratory services for veterans.
Firm fixed-price contract provides budget predictability.
Established relationship with Roche Diagnostics may ensure efficient service delivery.

Sector Analysis

This contract falls within the broader healthcare sector, specifically focusing on medical equipment and services related to laboratory diagnostics. The market for analytical laboratory instruments is characterized by specialized manufacturers and service providers. Spending in this area is crucial for healthcare providers to perform accurate and timely diagnoses. Comparable spending benchmarks would typically involve analyzing contracts for similar laboratory equipment maintenance and supply agreements across federal agencies and large healthcare systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like Roche Diagnostics suggests that the scope of work or the specialized nature of the instruments may not lend itself to small business participation in this instance. This means that opportunities for small businesses to contribute to this specific contract are likely limited.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, adherence to contract terms, and financial accountability. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this contract.

Related Government Programs

VISN 19 Chemistry Call Orders
VA Laboratory Services Contracts
Analytical Laboratory Instrument Procurement
Roche Diagnostics Federal Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for vendor lock-in.
Limited transparency in pricing negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to ROCHE DIAGNOSTICS CORPORATION. VISN 19 CHEMISTRY CALL ORDER TO FUND OPTION 3

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $3.6 million.

What is the period of performance?

Start: 2025-05-01. End: 2026-04-30.

What is the historical spending trend for VISN 19 chemistry call orders with Roche Diagnostics?

Analyzing historical spending for VISN 19 chemistry call orders with Roche Diagnostics requires access to detailed contract data over multiple years. Without specific historical data, it's difficult to ascertain a trend. However, if this is an option year for an existing contract, it suggests a pattern of continued need and satisfaction with the services provided. A significant year-over-year increase or decrease could indicate changes in demand, pricing, or contract scope. Further investigation into prior contract awards and their values would be necessary to establish a definitive spending trend and assess if the current award aligns with past investment levels.

How does the per-unit cost of services under this contract compare to market rates for similar analytical laboratory instruments?

Determining the per-unit cost comparison is challenging without specific details on the services rendered and the instruments involved. The contract is a 'call order' under a broader agreement, meaning specific tasks and their associated costs are initiated as needed. Roche Diagnostics is a major supplier, and their pricing is generally competitive within the specialized market for high-end diagnostic equipment. However, the sole-source nature of this award means direct market benchmarking against multiple providers for identical services is not feasible. A thorough analysis would require comparing the specific service codes and quantities to publicly available pricing for comparable instruments and maintenance contracts from other leading manufacturers, adjusted for volume and service level agreements.

What are the key performance indicators (KPIs) used to evaluate Roche Diagnostics' performance under this contract?

Key Performance Indicators (KPIs) for this contract would likely focus on the reliability and uptime of the analytical instruments, the timeliness and accuracy of laboratory test results generated using these instruments, and the responsiveness of Roche Diagnostics' support and maintenance services. Specific metrics might include instrument Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), turnaround times for service calls, and adherence to quality control standards for laboratory operations. The VA's Quality Assurance Surveillance Plan (QASP) would typically outline these KPIs and the methods for monitoring and reporting on the contractor's performance throughout the contract period.

What is the potential impact of this contract on the broader market for analytical laboratory instruments within the VA?

This sole-source contract for VISN 19 chemistry call orders, while specific to one region and vendor, can have implications for the broader market. It reinforces Roche Diagnostics' position as a key supplier within the VA system, potentially influencing future procurement decisions for similar equipment and services. The lack of open competition for this specific requirement might discourage other vendors from investing in developing VA-specific solutions or competing for similar future contracts if they perceive established relationships as insurmountable barriers. However, it also signals a continued demand for advanced diagnostic capabilities, which could encourage innovation among other market players seeking to meet future VA needs through competitive means.

Are there any identified risks associated with the sole-source nature of this contract, and how are they being mitigated?

The primary risk associated with a sole-source contract is the potential for inflated pricing and reduced service quality due to the absence of competition. Taxpayers may not be receiving the best value for their money. Mitigation strategies employed by the VA could include rigorous negotiation of terms and pricing, establishing clear performance standards and penalties in the contract, and conducting thorough market research to ensure the sole-source justification is valid and that the pricing is fair and reasonable. Additionally, the VA might implement robust oversight mechanisms to monitor performance closely and ensure the contractor meets all contractual obligations effectively.

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

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

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

Financial Breakdown

Contract Ceiling: $3,576,085

Exercised Options: $3,576,085

Current Obligation: $3,576,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25922A0023

IDV Type: BPA

Timeline