VA awards $47.7K for Legionella water analysis, highlighting need for specialized testing services

Contract Overview

Contract Amount: $47,693 ($47.7K)

Contractor: Hyperion Biotechnology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-15

End Date: 2025-10-14

Contract Duration: 364 days

Daily Burn Rate: $131/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LEGIONELLA WATER ANALYSIS - FORT HARRISON AND MILES CITY

Place of Performance

Location: FORT HARRISON, LEWIS AND CLARK County, MONTANA, 59636

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47,692.8 to HYPERION BIOTECHNOLOGY, INC. for work described as: LEGIONELLA WATER ANALYSIS - FORT HARRISON AND MILES CITY Key points: 1. Contract awarded for essential Legionella water analysis, crucial for public health and facility safety. 2. The award value is modest, suggesting a focused scope of work or a specific facility need. 3. Competition dynamics for this type of specialized testing service warrant further examination. 4. Performance context is limited, but the service is critical for compliance and risk mitigation. 5. Sector positioning is within professional, scientific, and technical services, specifically testing laboratories. 6. The fixed-price contract type aims to control costs for the specified testing services.

Value Assessment

Rating: good

The contract value of $47,692.80 for a one-year period appears reasonable for specialized Legionella water analysis services. Benchmarking against similar contracts for environmental testing would provide a more precise value-for-money assessment. However, given the critical nature of Legionella testing for public health and facility safety, the price is likely competitive for the expertise required. The firm fixed-price structure suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below the simplified acquisition threshold. With 6 bidders participating, there was a healthy level of competition for this requirement. This suggests that the market for Legionella water analysis services is accessible and that multiple qualified vendors were able to bid, likely leading to a fair market price.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as multiple vendors vied for the contract, driving down costs and ensuring quality.

Public Impact

Beneficiaries include patients, staff, and visitors at Fort Harrison and Miles City VA facilities by ensuring safe water systems. Services delivered include specialized laboratory testing to detect and quantify Legionella bacteria. Geographic impact is focused on Montana, specifically the VA facilities at Fort Harrison and Miles City. Workforce implications are minimal, primarily involving specialized laboratory technicians and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased testing frequency or scope if initial results indicate issues.
Reliance on a single vendor for critical water safety testing could pose a risk if performance falters.

Positive Signals

Awarded to a single vendor, ensuring continuity of service for the duration of the contract.
Firm fixed-price contract provides cost predictability.
Competition under SAP suggests a well-defined and accessible market for these services.

Sector Analysis

The market for environmental testing services, including water quality analysis, is a significant segment within the broader professional, scientific, and technical services sector. This contract falls under the 'Testing Laboratories and Services' industry code (NAICS 541380). The demand for Legionella testing is driven by public health regulations and facility management best practices, particularly in healthcare settings. Spending in this area is consistent across federal agencies managing facilities.

Small Business Impact

The contract was competed under Simplified Acquisition Procedures, and there is no specific indication of a small business set-aside. However, the presence of 6 bidders suggests that small businesses may have participated in the competition. Further analysis would be needed to determine the extent of small business involvement or subcontracting opportunities.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Transparency is maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Environmental Health and Safety Services
Public Health Laboratory Services
Water Quality Monitoring Contracts

Risk Flags

Potential for increased scope if initial testing reveals contamination.
Reliance on contractor performance for critical health and safety monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47,692.8 to HYPERION BIOTECHNOLOGY, INC.. LEGIONELLA WATER ANALYSIS - FORT HARRISON AND MILES CITY

Who is the contractor on this award?

The obligated recipient is HYPERION BIOTECHNOLOGY, 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 $47,692.8.

What is the period of performance?

Start: 2024-10-15. End: 2025-10-14.

What is the typical cost range for Legionella water analysis services for a facility of this size?

The cost for Legionella water analysis can vary significantly based on the number of samples, testing methodology (e.g., culture vs. PCR), turnaround time, and geographic location. For a single facility or a limited number of sites, annual contracts can range from a few thousand dollars for basic testing to tens of thousands for comprehensive monitoring programs. The $47,692.80 award for one year for two locations suggests a moderate scope, potentially covering routine monitoring and specific testing protocols. Without knowing the exact number of sample points and testing frequency, a precise benchmark is difficult, but it appears to be within a reasonable range for specialized environmental testing services.

What is Hyperion Biotechnology, Inc.'s track record with federal contracts, particularly with the VA?

Hyperion Biotechnology, Inc. has a history of receiving federal contracts. A review of federal procurement data indicates they have been awarded contracts across various agencies, including the Department of Defense and the Department of Veterans Affairs. Their contract history often includes services related to laboratory testing, medical supplies, and research support. Specific performance details and past performance ratings for this vendor would be available through internal government performance assessment systems, but their presence in the federal contracting space suggests they are an established provider.

How does the firm fixed-price contract type mitigate risks for the VA in this scenario?

A firm fixed-price (FFP) contract is advantageous for the VA in this Legionella water analysis contract because it establishes a ceiling price that cannot be increased, except in rare circumstances like significant scope changes. This contract type shifts the risk of cost overruns to the contractor, Hyperion Biotechnology, Inc. For the VA, it provides budget certainty and predictability, as the total cost of the services is known upfront. This is particularly beneficial for services with relatively well-defined scopes, such as routine water testing, where the contractor can accurately estimate their labor, materials, and overhead costs.

What are the potential implications of Legionella contamination in VA facilities?

Legionella bacteria can cause Legionnaires' disease, a severe form of pneumonia, and Pontiac fever, a milder flu-like illness. In VA facilities, which often house vulnerable populations such as elderly veterans and individuals with compromised immune systems, the risk of severe illness and outbreaks is significantly higher. Contamination typically occurs through water systems, such as cooling towers, showers, and faucets. Effective Legionella water management programs, including regular testing and remediation, are critical to prevent outbreaks, protect patient and staff health, and avoid costly litigation and reputational damage.

How does the NAICS code 541380 (Testing Laboratories and Services) reflect the scope of this contract?

The North American Industry Classification System (NAICS) code 541380, 'Testing Laboratories and Services,' accurately categorizes the work performed under this contract. This code encompasses establishments primarily engaged in providing testing services on a contract basis. This includes a wide range of testing, such as chemical, biological, and environmental testing. Legionella water analysis is a specific type of biological and environmental testing that falls squarely within the scope of this NAICS code, indicating that the contractor, Hyperion Biotechnology, Inc., is operating within its designated industry expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25924Q0723

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12002 WARFIELD ST STE 101, SAN ANTONIO, TX, 78216

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $138,749

Exercised Options: $47,693

Current Obligation: $47,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline