VA awards $7.8M therapeutic apheresis contract to American National Red Cross, a sole-source delivery order

Contract Overview

Contract Amount: $7,848 ($7.8K)

Contractor: American National RED Cross, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2026-01-31

Contract Duration: 364 days

Daily Burn Rate: $22/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THERAPEUTIC APHERESIS

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97201

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7,847.7 to AMERICAN NATIONAL RED CROSS, THE for work described as: THERAPEUTIC APHERESIS Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of 364 days suggests a need for ongoing, critical services. 3. Awarded to a single, established provider, raising questions about market alternatives and innovation. 4. The fixed-price contract type provides cost certainty for the government but may limit flexibility. 5. No small business set-aside was utilized, indicating potential missed opportunities for smaller entities. 6. The service falls under the 'Blood and Organ Banks' NAICS code, a specialized healthcare sector.

Value Assessment

Rating: fair

Benchmarking the value of this therapeutic apheresis contract is challenging without comparable sole-source awards or detailed service breakdowns. The $7.8 million award for a one-year period suggests a significant operational cost. Given the sole-source nature, it's difficult to assess if this represents a competitive price or if alternative providers could offer similar services at a lower cost. Further analysis would require understanding the specific services rendered and the market rates for such specialized medical procedures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not conduct a competitive bidding process. This typically occurs when a specific contractor is deemed uniquely qualified or when only one source is available. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government is securing the best possible price for these essential therapeutic apheresis services.

Public Impact

Veterans requiring therapeutic apheresis treatments will benefit from continuous access to these critical medical services. The contract ensures the provision of specialized blood and organ banking services. Services are likely delivered within the Oregon region, based on the state code 'OR'. The contract supports specialized healthcare professionals and infrastructure associated with apheresis procedures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may stifle innovation and prevent the adoption of more efficient service delivery models.
Absence of small business participation could mean missed opportunities to support smaller, specialized healthcare providers.

Positive Signals

Award ensures continuity of critical medical services for veterans.
Contract is with a well-established organization (American National Red Cross) likely possessing significant expertise.
Fixed-price contract provides budget certainty for the VA.

Sector Analysis

The healthcare sector, particularly specialized services like therapeutic apheresis, is characterized by high technical requirements and regulatory oversight. The market for blood and organ banking services is often concentrated due to the need for specialized facilities, trained personnel, and stringent quality control. This contract fits within the broader category of medical services procurement, where sole-source awards can sometimes be justified by unique capabilities or existing infrastructure, though they warrant careful scrutiny for value.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them. The sole-source nature of the award further limits opportunities for small businesses to participate. This could represent a missed opportunity to foster competition and support smaller entities within the specialized field of therapeutic apheresis.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, scrutiny may focus on the justification for non-competition and the ongoing performance monitoring to ensure the American National Red Cross meets all contractual obligations. Transparency regarding the specific services and pricing would be key to effective oversight.

Related Government Programs

Medical Services Contracts
Blood and Organ Banking Services
Department of Veterans Affairs Healthcare Procurement

Risk Flags

Sole-source award raises concerns about potential lack of competition and cost efficiency.
Lack of small business participation may limit market diversity and opportunities.
Need for detailed justification for sole-source award to ensure necessity and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7,847.7 to AMERICAN NATIONAL RED CROSS, THE. THERAPEUTIC APHERESIS

Who is the contractor on this award?

The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.

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 $7,847.7.

What is the period of performance?

Start: 2025-02-01. End: 2026-01-31.

What specific therapeutic apheresis procedures are covered under this contract, and what is the expected volume?

The provided data does not specify the exact therapeutic apheresis procedures covered or the expected volume. Therapeutic apheresis is a broad term encompassing various extracorporeal therapies that selectively remove harmful components from the blood or plasma. Examples include plasmapheresis, cytapheresis, and LDL apheresis. The $7.8 million award for a 364-day period suggests a significant and ongoing need for these services, likely involving multiple procedures and a substantial patient population within the VA's Oregon service area. A detailed statement of work (SOW) would be necessary to ascertain the precise services and volumes.

How does the $7.8 million award compare to historical spending for similar therapeutic apheresis services by the VA?

Without access to historical spending data for comparable therapeutic apheresis services specifically within the VA, a direct comparison is not possible. However, the $7.8 million figure for a one-year contract indicates a substantial investment in this specialized medical service. Given that this is a sole-source award to the American National Red Cross, historical data from competitive procurements for similar services, if available, would be crucial for benchmarking. Analyzing trends in apheresis utilization and costs across the healthcare sector could also provide context, but direct VA historical spending is the most relevant benchmark.

What is the justification for awarding this contract on a sole-source basis to the American National Red Cross?

The justification for a sole-source award typically rests on unique capabilities, specialized expertise, or the unavailability of other sources. For the American National Red Cross, this could stem from their established infrastructure, extensive experience in blood collection and processing, existing relationships with the VA, or specific certifications and accreditations required for therapeutic apheresis. The Department of Veterans Affairs would have a formal justification document outlining why competition was not feasible or advantageous in this specific instance. This justification is critical for ensuring the award is appropriate and serves the government's best interests.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in this contract to ensure quality of care?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for therapeutic apheresis services, typical KPIs would likely include patient safety metrics (e.g., adverse event rates), treatment efficacy (e.g., achievement of therapeutic goals), timeliness of service delivery (e.g., appointment availability, turnaround times for procedures), and patient satisfaction. SLAs would define acceptable performance thresholds for these metrics, with potential remedies or penalties for non-compliance. The VA's contracting officers are responsible for establishing and monitoring these to ensure the quality and effectiveness of the services provided.

What is the American National Red Cross's track record in providing therapeutic apheresis services to government entities?

The American National Red Cross has a long-standing and extensive track record in blood collection, processing, and transfusion services, which are closely related to therapeutic apheresis. While specific contracts for therapeutic apheresis might vary, their core operations involve managing complex biological materials, adhering to stringent regulatory standards (like FDA regulations), and serving large populations. Their role as a major blood supplier suggests a robust operational capacity and established quality management systems. Their experience with government contracts, particularly with agencies like the VA or military health systems, would likely be extensive, though the specifics of therapeutic apheresis provision would need further verification.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 431 18TH ST NW, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Tax Exempt, Domestic Shelter, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,848

Exercised Options: $7,848

Current Obligation: $7,848

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26024D0019

IDV Type: IDC

Timeline