VA awards $39.3M option year for analytical instruments to Roche Diagnostics, extending contract through May 2027

Contract Overview

Contract Amount: $39,340 ($39.3K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $108/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXERCISE OPTION YEAR FOUR

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39,340 to ROCHE DIAGNOSTICS CORPORATION for work described as: EXERCISE OPTION YEAR FOUR Key points: 1. Contract value of $39.3M for one year indicates significant demand for analytical instruments. 2. Roche Diagnostics, a major player, likely faces limited direct competition for specialized instruments. 3. Potential risk lies in vendor lock-in and the need for ongoing competitive re-evaluation. 4. The IT sector, specifically analytical instrument manufacturing, is crucial for healthcare operations.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar analytical instrument contracts is needed to fully assess value, but the scale suggests a competitive negotiation occurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Competed under SAP (Simplified Acquisition Procedures) suggests a limited competition approach, likely due to specialized nature or existing BPA. This method can be efficient but may limit price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized efficiently through a fixed-price contract, but the limited competition aspect warrants scrutiny to ensure optimal pricing.

Public Impact

Ensures continued access to critical analytical laboratory instruments for VA healthcare facilities. Supports diagnostic capabilities essential for patient care and treatment decisions. Maintains operational continuity for laboratory services within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices.
Potential for vendor lock-in with specialized equipment.
Reliance on a single vendor for critical instruments.

Positive Signals

Contract exercised as an option, indicating satisfaction with previous performance.
Firm fixed price provides budget predictability.
Supports essential healthcare services for veterans.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, a critical component of healthcare technology. Spending in this area is driven by the need for accurate diagnostics and research capabilities.

Small Business Impact

The data indicates this contract was awarded to Roche Diagnostics Corporation, a large business. There is no explicit indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting or future procurements.

Oversight & Accountability

The contract was competed under SAP and exercised as an option, suggesting prior oversight. Continued monitoring of performance and pricing is essential for accountability.

Related Government Programs

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

Risk Flags

Limited competition
Potential vendor lock-in
Reliance on a single supplier
Need for ongoing price benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39,340 to ROCHE DIAGNOSTICS CORPORATION. EXERCISE OPTION YEAR FOUR

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 $39,340.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the historical pricing trend for this contract and how does it compare to market benchmarks?

Analyzing historical pricing data is crucial to determine if the $39.3M award represents a fair market value. Benchmarking against similar contracts for analytical instruments from other agencies or private sector entities would reveal potential cost savings or overspending. Without this comparative analysis, assessing the true value for taxpayers is difficult.

What are the specific risks associated with relying on Roche Diagnostics for these analytical instruments over the long term?

Long-term reliance on a single vendor like Roche Diagnostics carries risks of vendor lock-in, where switching costs become prohibitively high. This can stifle innovation and reduce negotiating leverage. Furthermore, dependence on one supplier for critical instruments could create vulnerabilities in the supply chain or lead to price increases if competition is not actively sought.

How effectively does this contract support the VA's overall mission of providing healthcare to veterans?

This contract directly supports the VA's mission by ensuring access to essential analytical laboratory instruments, which are fundamental for accurate diagnostics and effective patient treatment. Continued availability of these instruments facilitates timely medical care, contributing to better health outcomes for veterans and maintaining the operational capacity of VA healthcare facilities.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $39,340

Exercised Options: $39,340

Current Obligation: $39,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25922A0017

IDV Type: BPA

Timeline