VA awards $2.47M for chemistry analyzers, with 6776 units, to Abbott Laboratories Inc

Contract Overview

Contract Amount: $2,466,350 ($2.5M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CHEMISTRY ANALYZERS.

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to ABBOTT LABORATORIES INC. for work described as: CHEMISTRY ANALYZERS. Key points: 1. The contract value of $2.47 million for 6776 units suggests a per-unit cost that warrants benchmarking against similar procurements. 2. Abbott Laboratories Inc. is a significant player in the analytical laboratory instrument manufacturing sector, indicating established market presence. 3. The contract's duration of 364 days is standard for this type of equipment procurement. 4. The 'FULL AND OPEN COMPETITION' indicates a potentially competitive bidding process, which can lead to better pricing. 5. The absence of small business set-aside flags suggests that large businesses were the primary focus or participants. 6. The contract is for analytical laboratory instruments, crucial for diagnostic and research functions within the VA.

Value Assessment

Rating: good

The contract value of $2.47 million for 6776 chemistry analyzers appears reasonable given the nature of specialized medical equipment. Benchmarking against similar VA or other federal agency procurements for analytical laboratory instruments would provide a more definitive assessment of value. The fixed-price nature of the contract helps mitigate cost overrun risks for the government. Without specific per-unit pricing details or comparisons to market rates for comparable instruments, a precise value-for-money judgment is challenging, but the overall award size is not immediately indicative of overspending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit bids. This typically involves a robust solicitation process designed to encourage a wide range of participants. The number of bidders is not specified, but a full and open competition generally implies multiple interested parties, which can foster price discovery and lead to more competitive offers. The VA's approach here aims to leverage the market to secure the best possible terms for these essential laboratory instruments.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and potentially innovative solutions, thereby maximizing the value of federal dollars spent on critical medical equipment.

Public Impact

Veterans will benefit from improved diagnostic capabilities and timely medical results due to the acquisition of new chemistry analyzers. The contract delivers essential analytical laboratory instruments, supporting the VA's mission to provide healthcare services. The geographic impact is primarily within Illinois, where the contract is being managed or the equipment will be deployed. The acquisition supports the healthcare workforce by providing them with modern tools for laboratory analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Abbott's instruments require proprietary consumables or maintenance.
Dependence on a single manufacturer for critical laboratory equipment could pose supply chain risks.
Ensuring long-term compatibility and integration with existing VA laboratory systems.

Positive Signals

Abbott Laboratories is a reputable manufacturer with a strong track record in medical diagnostics.
The 'FULL AND OPEN COMPETITION' suggests a deliberate effort to obtain competitive pricing.
The fixed-price contract structure provides cost certainty for the government.

Sector Analysis

The procurement falls within the Analytical Laboratory Instrument Manufacturing sector, a specialized segment of the broader healthcare technology market. This sector is characterized by high research and development costs, stringent regulatory requirements (e.g., FDA approval), and a need for precision and reliability. The market size for such instruments is substantial, driven by healthcare demand globally. This contract represents a specific instance of federal spending within this niche, supporting the VA's operational needs for diagnostic testing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was likely dominated by larger, established manufacturers in the analytical laboratory instrument space. While there are no explicit subcontracting requirements mentioned, the absence of a small business set-aside means that opportunities for small business participation may be limited unless they are part of a larger prime contractor's supply chain. The VA's approach here prioritizes obtaining the specified equipment, with the primary competition likely occurring among larger entities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Medical Equipment Procurement
Laboratory Services
Diagnostic Testing Equipment
Veterans Health Administration Contracts

Risk Flags

Potential for supply chain disruption
Risk of technological obsolescence
Integration challenges with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to ABBOTT LABORATORIES INC.. CHEMISTRY ANALYZERS.

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES 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 $2.5 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the historical spending pattern of the Department of Veterans Affairs on chemistry analyzers?

Analyzing the VA's historical spending on chemistry analyzers requires a deep dive into federal procurement databases over several fiscal years. Typically, agencies like the VA procure such equipment through various contract vehicles, including indefinite-delivery/indefinite-quantity (IDIQ) contracts, blanket purchase agreements (BPAs), and direct solicitations. Spending can fluctuate based on equipment refresh cycles, technological advancements, and specific healthcare needs at different VA facilities. A review of past awards would reveal trends in contract types, awarded vendors, average contract values, and the volume of units purchased. For instance, if the VA has recently awarded multiple large contracts for similar analyzers, it might indicate a system-wide upgrade initiative. Conversely, sporadic or smaller awards could suggest localized needs or reliance on existing, older equipment. Understanding these patterns helps contextualize the current $2.47 million award and assess if it aligns with historical investment levels or represents a significant shift.

How does the per-unit cost of these chemistry analyzers compare to market rates or similar federal contracts?

The provided data indicates a contract award of $2,466,350.44 for 6776 units, resulting in an approximate per-unit cost of $364. This figure needs careful comparison. 'Chemistry analyzers' is a broad term; costs can vary dramatically based on the complexity, capabilities (e.g., throughput, specific tests performed), and brand of the instrument. A basic point-of-care analyzer might cost a few hundred dollars, while a high-throughput, automated laboratory system can cost tens or hundreds of thousands of dollars. Without knowing the specific model and its capabilities, a direct comparison is difficult. However, if these are sophisticated laboratory analyzers, a per-unit cost in the hundreds of dollars might be exceptionally low, potentially indicating a favorable bulk purchase or a simpler model. Conversely, if they are basic units, this cost might be high. Benchmarking against other federal contracts for similar equipment, or against commercial price lists from reputable vendors, is crucial for a definitive assessment of value for money.

What is Abbott Laboratories Inc.'s track record with the Department of Veterans Affairs and other federal agencies for similar equipment?

Abbott Laboratories Inc. is a major player in the medical device and diagnostics industry, and it is highly probable they have a substantial track record with the Department of Veterans Affairs (VA) and other federal agencies, including the Department of Defense and HHS. Their history likely includes numerous contracts for various diagnostic instruments, reagents, and related services. To assess their track record specifically for chemistry analyzers, one would examine past awards to Abbott by the VA. Key factors to consider include on-time delivery performance, product quality, responsiveness to issues, and adherence to contract terms. A review of past performance evaluations (if publicly available) or contract dispute history would provide further insight. A strong, consistent performance history with the government, particularly for similar product lines, generally indicates reliability and reduces perceived risk for future procurements. Conversely, a history of performance issues could raise concerns about Abbott's suitability for this current award.

What are the potential risks associated with this contract, and how are they being mitigated?

Several potential risks exist for this contract. Firstly, there's the risk of supply chain disruption, especially if Abbott Laboratories faces manufacturing or logistical challenges. Mitigation involves the government potentially diversifying suppliers for future needs or ensuring robust delivery schedules. Secondly, technological obsolescence is a risk; chemistry analyzers can become outdated. Mitigation here involves ensuring the procured models have a reasonable lifespan and considering service/upgrade options. Thirdly, performance risk exists – the equipment might not function as expected. This is mitigated by the firm-fixed-price contract, which holds Abbott accountable for delivering functional equipment, and by the VA's quality assurance processes during acceptance testing. Finally, integration risk with existing VA laboratory information systems (LIS) is possible. Mitigation would involve pre-award technical assessments and clear specifications regarding interoperability requirements.

How does the competition level (full and open) typically influence the pricing and quality of analytical laboratory instruments?

A 'full and open competition' generally fosters a more competitive environment, which tends to drive down prices and encourage higher quality offerings. When multiple qualified vendors are allowed to bid, they are incentivized to offer their best pricing and most compelling product features to win the contract. This increased competition can lead to significant cost savings for the government compared to sole-source or limited-competition awards. Furthermore, a wider pool of bidders may introduce innovative solutions or technologies that might not have been considered otherwise. For analytical laboratory instruments, where precision and reliability are paramount, a competitive process can push manufacturers to demonstrate superior performance metrics and robust quality control measures to differentiate their products. The VA's choice of full and open competition suggests a strategic effort to leverage market forces to secure optimal value.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 ABBOTT PARK RD DEPT 943 BLDG AP6C-3, NORTH CHICAGO, IL, 60064

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: $2,466,350

Exercised Options: $2,466,350

Current Obligation: $2,466,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26021A0056

IDV Type: BPA

Timeline