VA Awards $29.6M for Analytical Instruments to Abbott Laboratories, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $29,583 ($29.6K)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $81/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REVISE THE ORDERING PERIODS

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29,582.5 to ABBOTT LABORATORIES INC. for work described as: REVISE THE ORDERING PERIODS Key points: 1. Significant award for analytical laboratory instruments, indicating demand in the healthcare sector. 2. Abbott Laboratories is a major player, suggesting a competitive landscape for such equipment. 3. The firm fixed price contract type helps mitigate cost overrun risks. 4. The award falls under the 'Analytical Laboratory Instrument Manufacturing' NAICS code.

Value Assessment

Rating: good

The award amount of $29.6 million for a one-year period appears reasonable given the nature of analytical laboratory instruments. Benchmarking against similar large-scale instrument procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The BPA Call award mechanism suggests a pre-competed framework was leveraged.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer competitive prices, potentially leading to cost savings for the government.

Public Impact

Veterans will benefit from potentially improved diagnostic capabilities and healthcare services due to advanced analytical instruments. The award supports a major medical technology company, potentially impacting the broader healthcare supply chain. This spending contributes to the operational capacity of the Department of Veterans Affairs' medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 81 / 10

Warning Flags

Potential for vendor lock-in if instruments require proprietary consumables or maintenance.
Reliance on a single awardee for a critical function could pose supply chain risks.
Need to ensure ongoing maintenance and calibration support is adequate.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm fixed price contract type provides cost certainty.
Award to a well-established manufacturer suggests reliability and quality.

Sector Analysis

Spending in the analytical laboratory instrument sector supports healthcare and research. Benchmarks for similar procurements would indicate if this award is within the expected range for the scope and duration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to Abbott Laboratories, a large corporation, suggests that small businesses were likely not primary awardees for this specific contract, though they may be subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure compliance with terms and conditions, and performance delivery.

Related Government Programs

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

Risk Flags

Potential for high lifecycle costs (maintenance, consumables).
Risk of technological obsolescence impacting long-term utility.
Dependence on a single supplier for critical equipment.
Need for robust training and support infrastructure.
Ensuring interoperability with existing VA systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29,582.5 to ABBOTT LABORATORIES INC.. REVISE THE ORDERING PERIODS

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 $29,582.5.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the expected lifespan and technological obsolescence rate of these analytical instruments?

The expected lifespan and obsolescence rate are critical factors for assessing the long-term value of this procurement. Instruments with shorter lifespans or rapid technological advancements may require more frequent replacements, impacting future budgets. Understanding the vendor's roadmap for upgrades and support is essential for sustained operational effectiveness and avoiding premature obsolescence.

How does the cost of maintenance and consumables compare to the initial instrument purchase price over the contract period?

The total cost of ownership extends beyond the initial purchase price. Analyzing the projected costs for maintenance, calibration, and proprietary consumables is crucial for a comprehensive value assessment. If these ongoing costs are disproportionately high relative to the instrument's price, it could indicate a less favorable long-term investment for the VA.

What are the specific performance metrics and clinical utility improvements expected from these new instruments?

Defining and tracking specific performance metrics and expected clinical utility improvements is key to evaluating the effectiveness of this investment. Simply acquiring instruments is insufficient; the VA must demonstrate how these tools enhance diagnostic accuracy, reduce turnaround times, improve patient outcomes, or increase operational efficiency within its 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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 ABBOTT PARK RD, ABBOTT PARK, 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: $29,583

Exercised Options: $29,583

Current Obligation: $29,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26120A0006

IDV Type: BPA

Timeline