VA Awards $2.4M for MRSA PCR Testing, Primarily for California Facilities

Contract Overview

Contract Amount: $2,437,820 ($2.4M)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-08

End Date: 2025-03-27

Contract Duration: 566 days

Daily Burn Rate: $4.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REAL TIME PCR MOLECULAR MICROBIOLOGY - MRSA COST-PER-TEST BPA

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to CEPHEID for work described as: REAL TIME PCR MOLECULAR MICROBIOLOGY - MRSA COST-PER-TEST BPA Key points: 1. Contract awarded to Cepheid for Real-Time PCR Molecular Microbiology. 2. Focus on MRSA testing, a critical area for healthcare. 3. Spending concentrated in California, indicating regional needs. 4. Firm Fixed Price contract provides cost certainty.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar PCR testing contracts would provide further insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Awarded under SAP (Simplified Acquisition Procedures) and identified as a BPA Call, suggesting a streamlined process. The limited competition may impact price discovery, but SAP is intended for smaller procurements.

Taxpayer Impact: Taxpayer funds are being used for essential diagnostic testing, contributing to public health outcomes.

Public Impact

Ensures availability of MRSA testing for veterans, improving diagnostic capabilities. Supports public health by enabling rapid identification of a common hospital-acquired infection. Potential for broader application of this technology within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices.
Geographic concentration may not reflect broader VA needs.

Positive Signals

Addresses a critical healthcare need (MRSA detection).
Firm Fixed Price contract offers budget predictability.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically for diagnostic testing. Spending benchmarks for similar molecular diagnostic equipment and services would be relevant.

Small Business Impact

The data does not indicate any specific set-aside for small businesses, suggesting this contract was not awarded under such provisions.

Oversight & Accountability

The award is a BPA Call, which implies it's part of a larger Basic Purchasing Agreement. Oversight would likely be managed by the VA contracting office responsible for the BPA.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in
Limited competition impact on price
Geographic concentration of services
Dependence on specific technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to CEPHEID. REAL TIME PCR MOLECULAR MICROBIOLOGY - MRSA COST-PER-TEST BPA

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $2.4 million.

What is the period of performance?

Start: 2023-09-08. End: 2025-03-27.

What is the cost-effectiveness of this MRSA PCR testing compared to alternative methods?

The firm fixed price suggests a negotiated cost, but its effectiveness relative to alternative MRSA detection methods (e.g., culture-based tests) requires further analysis. Factors like turnaround time, accuracy, and reagent costs for each method would be crucial for a comprehensive cost-effectiveness evaluation.

What are the risks associated with relying on a single vendor (Cepheid) for this critical testing?

Reliance on a single vendor, even within a BPA call, carries risks of supply chain disruptions, potential price increases over time, and limited leverage for future negotiations. The VA should monitor vendor performance and explore alternative sourcing options to mitigate these risks.

How effectively does this contract support the VA's overall mission in combating antimicrobial resistance?

By providing rapid MRSA detection, this contract directly supports the VA's mission to combat antimicrobial resistance by enabling timely and appropriate patient treatment and infection control measures. This contributes to better patient outcomes and reduced healthcare-associated infections.

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

Parent Company: Danaher Corporation

Address: 904 CARIBBEAN DR, SUNNYVALE, CA, 94089

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: $2,437,820

Exercised Options: $2,437,820

Current Obligation: $2,437,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26218A0032

IDV Type: BPA

Timeline