VA awards $275K for molecular diagnostic reagents to Cepheid, a single-source contract

Contract Overview

Contract Amount: $275,305 ($275.3K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2026-09-30

Contract Duration: 121 days

Daily Burn Rate: $2.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REAGENTS FOR MOLECULAR DIAGNOSTIC TESTING

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $275,304.98 to CEPHEID for work described as: REAGENTS FOR MOLECULAR DIAGNOSTIC TESTING Key points: 1. Spending is concentrated with a single vendor, raising potential competition concerns. 2. The contract value is relatively small, limiting immediate large-scale taxpayer impact. 3. The sector is critical for healthcare diagnostics, but specific product details are limited. 4. The award method suggests a need for justification of limited competition.

Value Assessment

Rating: questionable

The contract value of $275,304.98 is for a 121-day period. Without specific unit pricing or comparison data, it's difficult to assess value for money against similar diagnostic reagent contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was competed under SAP but awarded as a sole-source BPA call. This suggests that while initial market research may have occurred, the final award was to a single vendor, potentially limiting price discovery and competition.

Taxpayer Impact: The immediate taxpayer impact is limited due to the relatively small contract value. However, sustained sole-source awards could lead to higher long-term costs if not properly managed.

Public Impact

Ensures availability of critical diagnostic reagents for VA healthcare facilities. Supports the operational needs of analytical laboratories within the VA. Potential for increased costs if competitive alternatives are not explored in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited contract duration
Lack of detailed pricing data

Positive Signals

Supports critical healthcare function
Utilizes existing BPA mechanism

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically for reagents used in molecular diagnostics. Spending benchmarks in this area can vary widely based on technology and volume, but consistent sole-sourcing can inflate costs.

Small Business Impact

The data does not indicate any participation or benefit for small businesses in this sole-source award. Further analysis would be needed to determine if small businesses could have provided equivalent reagents.

Oversight & Accountability

The award was made under SAP, which has specific thresholds and procedures. Oversight should focus on the justification for the sole-source nature of the award and whether adequate market research was conducted to ensure fair and reasonable pricing.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source justification required
Potential for price escalation
Supply chain vulnerability
Limited market research evidence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $275,304.98 to CEPHEID. REAGENTS FOR MOLECULAR DIAGNOSTIC TESTING

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $275,304.98.

What is the period of performance?

Start: 2026-06-01. End: 2026-09-30.

What is the justification for awarding this contract as sole-source, given the potential for competition in the diagnostic reagent market?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. For diagnostic reagents, this could relate to specific assay compatibility with existing VA instrumentation or a critical, time-sensitive need for a particular type of test.

What is the potential risk associated with relying on a single vendor for these critical diagnostic reagents?

The primary risk is a lack of competitive pricing, potentially leading to higher costs for the VA over time. Additionally, supply chain disruptions or quality issues with the sole vendor could significantly impact the VA's ability to perform essential diagnostic testing, jeopardizing patient care.

How does this contract contribute to the overall effectiveness of the VA's molecular diagnostic capabilities?

This contract ensures the immediate availability of necessary reagents, directly supporting the operational effectiveness of the VA's molecular diagnostic laboratories. However, long-term effectiveness could be compromised if the sole-source arrangement stifles innovation or prevents the adoption of potentially more cost-effective or advanced reagent solutions.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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

Financial Breakdown

Contract Ceiling: $275,305

Exercised Options: $275,305

Current Obligation: $275,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25926A0002

IDV Type: BPA

Timeline