VA awards $236K BPA for hematology testing, leveraging existing catalog for veteran care

Contract Overview

Contract Amount: $235,903 ($235.9K)

Contractor: Sysmex America, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $648/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BLANKET PURCHASE AGREEMENT TO PROVIDE HEMATOLOGY TESTING FOR VETERANS INTEGRATED SERVICE NETWORK 20

Place of Performance

Location: LINCOLNSHIRE, LAKE County, ILLINOIS, 60069

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $235,902.7 to SYSMEX AMERICA, INC for work described as: BLANKET PURCHASE AGREEMENT TO PROVIDE HEMATOLOGY TESTING FOR VETERANS INTEGRATED SERVICE NETWORK 20 Key points: 1. Contract leverages a Blanket Purchase Agreement (BPA) for efficient procurement of hematology testing services. 2. The award utilizes a firm-fixed-price structure, providing cost certainty for the Department of Veterans Affairs (VA). 3. Competition was full and open, suggesting a competitive bidding process for this requirement. 4. The contract duration is one year, aligning with the need for ongoing but potentially adaptable services. 5. The specific service category, analytical laboratory instrument manufacturing, indicates a focus on specialized medical equipment and related services. 6. The geographic scope appears to be Illinois, based on the state abbreviation provided.

Value Assessment

Rating: good

The awarded amount of $235,902.70 for a one-year hematology testing BPA appears reasonable given the specialized nature of laboratory services. Without specific per-test pricing or comparison to similar regional BPAs, a definitive value-for-money assessment is challenging. However, the use of a BPA often implies pre-negotiated favorable terms, suggesting potential cost efficiencies compared to ad-hoc procurements. The firm-fixed-price contract type further enhances predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the open competition suggests the VA sought the best possible pricing and technical solutions available in the market for hematology testing services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

Veterans in VISN 20 (likely encompassing a significant geographic area) will benefit from access to essential hematology testing services. The contract supports the delivery of critical diagnostic services, aiding in the diagnosis and management of various health conditions. The services are geographically focused within Illinois, impacting veterans and healthcare facilities in that region. This contract supports the healthcare workforce, including laboratory technicians and administrative staff involved in processing and analyzing tests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data makes it difficult to assess service quality.
The provided data does not detail the specific types of hematology tests covered, potentially leading to scope creep or unexpected costs if not clearly defined in the BPA's base document.
Reliance on a single BPA call without further competition for specific needs could limit future opportunities for other vendors or potentially higher quality/lower cost solutions.

Positive Signals

The use of a Blanket Purchase Agreement (BPA) indicates a pre-established framework for efficient procurement, likely saving administrative time and costs.
The firm-fixed-price contract type provides budget certainty for the VA, protecting against cost overruns for the defined scope of services.
Awarding to Sysmex America, Inc., a known entity in the hematology instrument market, suggests a potentially reliable provider with established expertise.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on laboratory services and diagnostic testing. The market for hematology testing involves manufacturers of analytical instruments and providers of testing services. Spending in this area is driven by the need for accurate and timely diagnostic information for patient care. Comparable spending benchmarks would typically involve analyzing per-test costs or contract values for similar laboratory services across different healthcare providers, including other federal agencies or large hospital systems.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides for this specific BPA call. This suggests that the primary contract vehicle or this particular call was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed here, but typically, larger contracts may include provisions for small business subcontracting, which would need to be reviewed in the full contract documentation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for VISN 20. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Services Contracts
Laboratory and Diagnostic Services
Veterans Health Administration Procurement
Medical Equipment and Supplies
Federal Supply Schedule (FSS) Contracts

Risk Flags

Potential for reduced competition over time if BPA is not actively managed.
Lack of detailed performance metrics in award data.
Geographic limitation to Illinois may not cover all VISN 20 needs if VISN 20 extends beyond Illinois.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $235,902.7 to SYSMEX AMERICA, INC. BLANKET PURCHASE AGREEMENT TO PROVIDE HEMATOLOGY TESTING FOR VETERANS INTEGRATED SERVICE NETWORK 20

Who is the contractor on this award?

The obligated recipient is SYSMEX AMERICA, 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 $235,902.7.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending pattern for hematology testing services by the Department of Veterans Affairs, particularly within VISN 20?

Analyzing historical spending for hematology testing by the VA, especially within VISN 20, would provide crucial context for the current $235,902.70 award. Without access to specific historical data for this BPA or similar contracts, it's difficult to establish a trend. However, federal agencies often utilize BPAs to streamline recurring needs. If this BPA is a renewal or expansion of previous agreements, examining past expenditures would reveal if spending has increased, decreased, or remained stable. This analysis would also highlight any significant shifts in the types of services procured or the contractors utilized. Understanding historical spending helps in assessing whether the current award represents a fair market price and if the VA is achieving economies of scale or facing inflationary pressures in its laboratory service procurements.

How does the per-unit cost of hematology tests under this BPA compare to industry benchmarks or other federal contracts?

A key aspect of assessing value for money is comparing the per-unit cost of hematology tests procured under this BPA to established benchmarks. The provided data does not include specific per-unit pricing, making a direct comparison impossible. However, the contracting agency (VA) likely has internal benchmarks or access to market research data for laboratory services. If this BPA was established using a Federal Supply Schedule (FSS) or other pre-competed vehicles, the pricing would have already undergone some level of scrutiny. To perform a thorough comparison, one would need to identify the specific tests included in the BPA and their associated prices, then benchmark these against prices from other federal contracts for similar services, or against pricing from large commercial laboratory providers. A significant deviation from benchmarks could indicate either exceptional value or potential overpricing.

What is Sysmex America, Inc.'s track record with the Department of Veterans Affairs and other federal agencies for similar services?

Evaluating Sysmex America, Inc.'s track record is essential for understanding the reliability and performance associated with this contract. Sysmex America is a known manufacturer and provider of hematology instrumentation and related solutions. Information on their past performance with the VA and other federal agencies can often be found in contract databases, performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS), and through direct inquiries. A history of successful contract performance, timely delivery, and adherence to quality standards would be positive indicators. Conversely, any documented issues with past performance, such as missed deadlines, quality deficiencies, or disputes, would raise concerns about the potential risks associated with this current award. Understanding their experience specifically with VA healthcare systems would be particularly relevant.

What are the potential risks associated with relying on a Blanket Purchase Agreement (BPA) for critical hematology testing services?

While BPAs offer efficiency, they also present potential risks. One primary risk is the potential for complacency or reduced price competition over time if the BPA is not regularly reviewed or re-competed. If the initial competition was robust, but the subsequent calls against the BPA lack competitive pressure, costs could escalate. Another risk involves scope definition; if the specific tests and service levels are not meticulously detailed within the BPA document, there's a possibility of scope creep or misunderstandings leading to disputes or unexpected costs. Furthermore, over-reliance on a single BPA could limit the VA's ability to adopt newer technologies or access potentially more cost-effective solutions from vendors not holding the original BPA. Ensuring robust oversight and periodic reviews of the BPA's continued value is crucial to mitigate these risks.

How does the firm-fixed-price contract type impact the VA's ability to manage costs and ensure service quality for hematology testing?

The firm-fixed-price (FFP) contract type provides significant cost certainty for the Department of Veterans Affairs. Under an FFP agreement, the contractor, Sysmex America, Inc., assumes the primary risk for cost overruns. This means the VA knows the exact cost of the services covered by the BPA call, simplifying budget management and protecting against unexpected price increases. This structure incentivizes the contractor to manage its own costs efficiently. However, the FFP structure can sometimes limit flexibility if the scope of work needs to change significantly, potentially requiring contract modifications. Regarding service quality, while the price is fixed, the contract should still contain clear performance standards and quality requirements. The VA retains the right to oversee and ensure these standards are met, and failure to do so could lead to contract remedies, regardless of the fixed price.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sysmex Corporation

Address: 577 APTAKISIC RD, LINCOLNSHIRE, IL, 60069

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

Financial Breakdown

Contract Ceiling: $235,903

Exercised Options: $235,903

Current Obligation: $235,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26023A0009

IDV Type: BPA

Timeline