VA awards $2.7M for MRSA Reagents to Cepheid, impacting In-Vitro Diagnostic Substance Manufacturing
Contract Overview
Contract Amount: $2,720,456 ($2.7M)
Contractor: Cepheid
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-03-11
End Date: 2025-09-10
Contract Duration: 183 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MRSA REAGENTS
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Veterans Affairs obligated $2.7 million to CEPHEID for work described as: MRSA REAGENTS Key points: 1. The Department of Veterans Affairs (VA) is the primary agency involved. 2. The contract is for MRSA Reagents, a critical component in diagnostics. 3. The award is a Purchase Order with a Firm Fixed Price. 4. The contract duration is 183 days. 5. The award value is $2,720,455.51.
Value Assessment
Rating: fair
The award value of $2.7M for MRSA reagents over 183 days appears to be within a reasonable range for specialized diagnostic supplies. However, without specific per-unit cost data or a direct comparison to similar recent VA contracts for the same reagents, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This could be due to specific vendor capabilities or existing relationships. The lack of full competition may limit price discovery and potentially lead to higher costs than a fully competitive process.
Taxpayer Impact: The limited competition may result in taxpayers paying a premium for these essential reagents, as competitive pressures to lower prices are absent.
Public Impact
Ensures availability of critical MRSA diagnostic reagents for VA healthcare facilities. Supports the ongoing fight against Methicillin-resistant Staphylococcus aureus infections within the veteran population. Impacts the supply chain for in-vitro diagnostic substances, potentially affecting other healthcare providers if supply is constrained. The short contract duration suggests a need for immediate supply or a bridge to a future, potentially larger, contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpayment.
- Short contract duration may indicate an urgent need or a temporary solution.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Ensures critical medical supplies are available to veterans.
- Supports a specific and important healthcare need (MRSA detection).
Sector Analysis
The In-Vitro Diagnostic Substance Manufacturing sector is vital for healthcare, providing essential tools for disease detection and monitoring. Spending in this sector can fluctuate based on public health needs and technological advancements. This award represents a specific, short-term procurement within this critical area.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. The use of a Purchase Order suggests a streamlined process, but it is crucial to ensure proper justification for limited competition and adherence to procurement regulations to maintain accountability.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Lack of price benchmark data
- Short contract duration
- No indication of small business participation
Tags
in-vitro-diagnostic-substance-manufactur, department-of-veterans-affairs, ca, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.7 million to CEPHEID. MRSA REAGENTS
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 $2.7 million.
What is the period of performance?
Start: 2025-03-11. End: 2025-09-10.
What is the justification for not competing this contract, and how does it ensure the best value for the VA?
The justification for not competing this contract is not provided in the data. Typically, limited competition is used when only one source can provide the required goods or services, or in urgent situations. Without this justification, it's difficult to assess if the VA received the best value, as competitive bidding often drives down prices and increases innovation.
What are the potential risks associated with a sole-source or limited-source award for MRSA reagents?
The primary risk is paying a higher price than would be achieved through full and open competition. There's also a risk of vendor lock-in, reduced innovation, and potential supply chain vulnerabilities if the sole provider faces issues. Ensuring fair pricing and performance monitoring becomes even more critical in such scenarios.
How does this procurement contribute to the VA's overall strategy for combating MRSA infections?
This procurement directly supports the VA's strategy by ensuring the availability of necessary diagnostic tools to identify MRSA infections promptly. Early and accurate detection is crucial for effective treatment, infection control, and preventing the spread of antibiotic-resistant bacteria within VA facilities, thereby protecting patient health.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Danaher Corporation
Address: 904, EAST CARIBBEAN DRIVE, 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: $2,720,456
Exercised Options: $2,720,456
Current Obligation: $2,720,456
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-03-11
Current End Date: 2025-09-10
Potential End Date: 2025-09-10 00:00:00
Last Modified: 2026-03-23
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