VA awards $497K for analytical lab instruments, with QIAGEN, LLC as the sole provider

Contract Overview

Contract Amount: $497,875 ($497.9K)

Contractor: Qiagen, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-06

End Date: 2023-08-05

Contract Duration: 425 days

Daily Burn Rate: $1.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REAGENTS

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $497,875.4 to QIAGEN, LLC for work described as: REAGENTS Key points: 1. The contract value of approximately $498K appears to be within a reasonable range for specialized laboratory equipment, though specific benchmarking is needed. 2. Competition dynamics are limited, as this was competed under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 3. Risk indicators are moderate, given the single awardee and the potential for limited market exploration under simplified procedures. 4. Performance context is tied to the delivery of analytical laboratory instruments, crucial for diagnostic and research functions within the VA. 5. Sector positioning places this within the broader healthcare and scientific equipment market, serving federal health agencies.

Value Assessment

Rating: fair

The award of $497,875.4 for analytical laboratory instruments to QIAGEN, LLC warrants further scrutiny. Without direct comparable contract data for identical instruments, it's challenging to definitively benchmark the value. However, the nature of specialized laboratory equipment often involves significant upfront costs. The use of Simplified Acquisition Procedures (SAP) suggests this procurement was below certain dollar thresholds, which can sometimes lead to less aggressive pricing compared to full and open competition. A detailed review of the specific instruments and their market prices would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), indicating that the procurement likely involved a limited number of bidders, possibly through GSA Advantage! or other pre-negotiated contract vehicles. While SAP aims for efficiency in smaller procurements, it does not guarantee the same level of robust competition as full and open solicitations. The specific number of bidders is not provided, but the 'competed under SAP' designation suggests a less extensive outreach than a large-scale competitive bid.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than could be achieved through a broader bidding process. However, the efficiency gains of SAP might offset some administrative costs. The key is ensuring that even within SAP, fair market prices are obtained.

Public Impact

Veterans receiving healthcare services benefit from the availability of accurate diagnostic and analytical tools. The contract supports the VA's operational capacity in its laboratories, enabling critical testing and research. Geographic impact is primarily within the facilities served by the Department of Veterans Affairs, likely across California given the 'SN' field. Workforce implications include ensuring laboratory technicians and researchers have access to necessary equipment to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not yield the best possible pricing for taxpayers.
Lack of detailed specifications on the instruments makes it difficult to assess if the most cost-effective solution was procured.
The duration of the contract (425 days) is relatively short for capital equipment, raising questions about long-term support and upgrade paths.

Positive Signals

The award supports the critical function of analytical laboratories within the VA healthcare system.
QIAGEN, LLC is a known entity in the life sciences sector, suggesting a degree of reliability.
The contract was competed, indicating an effort to solicit offers, even if under simplified procedures.

Sector Analysis

This contract falls within the broader scientific and medical equipment sector, a significant market driven by healthcare needs and research advancements. The federal government is a major purchaser of such goods, with agencies like the VA requiring sophisticated analytical instruments for diagnostics and research. Spending benchmarks for analytical laboratory instruments can vary widely based on instrument complexity, but contracts in the hundreds of thousands of dollars are common for specialized equipment. This award represents a small fraction of overall federal spending in this category.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses ('sb': false). As it was competed under SAP, it's possible small businesses could have participated if they offered the required goods. However, without specific subcontracting plans detailed, the direct impact on the small business ecosystem is unclear. Larger procurements often have explicit subcontracting goals, but this may not apply here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Transparency is facilitated by public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Accountability measures are tied to the delivery of the specified instruments and adherence to the contract terms.

Related Government Programs

VA Medical Equipment Procurement
Federal Laboratory Supplies
Diagnostic Instrument Contracts
Life Sciences Research Funding

Risk Flags

Limited Competition
Potential for Price Overruns
Reliance on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $497,875.4 to QIAGEN, LLC. REAGENTS

Who is the contractor on this award?

The obligated recipient is QIAGEN, LLC.

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 $497,875.4.

What is the period of performance?

Start: 2022-06-06. End: 2023-08-05.

What is the specific type and model of analytical laboratory instruments procured, and what are their key functionalities?

The provided data does not specify the exact type or model of analytical laboratory instruments. The North American Industry Classification System (NAICS) code '334516 - Analytical Laboratory Instrument Manufacturing' indicates the general category. These instruments could range from mass spectrometers and chromatographs to DNA sequencers or immunoassay analyzers, each serving distinct diagnostic or research purposes within the VA's healthcare system. Understanding the specific instruments is crucial for assessing their necessity, technological relevance, and potential for price variation based on features and capabilities.

How does the awarded price of approximately $498K compare to market rates for similar analytical laboratory instruments?

Benchmarking the $497,875.4 award against market rates requires detailed knowledge of the specific instruments procured. QIAGEN, LLC offers a range of laboratory equipment, some of which can be quite costly. Without knowing the exact product(s), a direct comparison is difficult. However, federal procurement data often shows significant price variations. If these instruments are standard, high-volume items, the price might be competitive. If they are highly specialized or custom-configured, the price could be justified. A review of commercial price lists or quotes from other vendors for comparable equipment would be necessary for a thorough value-for-money assessment.

What was the rationale for using Simplified Acquisition Procedures (SAP) for this procurement, and what was the competitive landscape?

Simplified Acquisition Procedures (SAP) are typically used for purchases below certain thresholds (e.g., $250,000, though this can be higher for certain categories or agencies). The rationale for using SAP is usually to streamline the acquisition process, reduce administrative burden, and achieve faster delivery of goods or services. For this contract, valued at approximately $498K, it's possible it fell within an elevated SAP threshold or was broken down into smaller procurements. The 'competed under SAP' designation implies that offers were solicited, but likely not through a full and open competitive process. The exact number of bidders is not specified, but SAP generally involves fewer bidders than large-scale solicitations, potentially limiting price discovery.

What is QIAGEN, LLC's track record with the Department of Veterans Affairs and other federal agencies for similar procurements?

QIAGEN, LLC is a recognized provider of life science instrumentation and consumables. Their track record with the Department of Veterans Affairs (VA) and other federal agencies would need to be examined through federal procurement databases. A review would likely reveal past awards for reagents, instruments, or services. Assessing their performance history, including on-time delivery, product quality, and responsiveness to previous contracts, is essential for understanding the reliability of this award. Consistent positive performance with federal entities would be a strong indicator of capability.

Are there any performance risks associated with this contract, such as delivery delays, technical issues, or contractor non-performance?

Performance risks are inherent in any contract. For analytical laboratory instruments, potential risks include delays in manufacturing or delivery, technical malfunctions upon installation, or inadequate training and support. Given that this is a single award to QIAGEN, LLC, the VA is reliant on their ability to meet the contract's specifications. The relatively short contract duration (425 days) might also imply a focus on immediate needs rather than long-term integration or support, potentially creating future risks if not managed proactively. Monitoring delivery schedules, conducting thorough inspections, and ensuring robust warranty and service agreements are key mitigation strategies.

How does this spending align with historical federal spending patterns for analytical laboratory instruments within the VA or similar agencies?

Analyzing this $497K award in the context of historical spending requires access to longitudinal data on VA or Department of Defense (DoD) laboratory equipment procurement. Federal agencies often have recurring needs for such instruments due to equipment lifecycle, technological advancements, and expanding healthcare services. If the VA has consistently procured similar instruments from various vendors over the years, this award might represent routine replacement or upgrade spending. Conversely, a significant deviation in spending levels or a shift towards a single vendor could indicate changes in procurement strategy or market dynamics. Understanding these patterns helps assess if the current spending is anomalous or part of a predictable cycle.

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

Address: 19300 GERMANTOWN RD, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $497,875

Exercised Options: $497,875

Current Obligation: $497,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline