VA awards $2.07M for Lenalidomide, a critical cancer drug, to Exelan Pharmaceuticals

Contract Overview

Contract Amount: $2,071,263 ($2.1M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-15

End Date: 2027-01-14

Contract Duration: 364 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA ALBUQUERQUE LENALIDOMIDE DO

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to EXELAN PHARMACEUTICALS INC for work described as: VA ALBUQUERQUE LENALIDOMIDE DO Key points: 1. The contract value of $2.07 million for a 364-day period suggests a focused procurement for a specific pharmaceutical. 2. Competition dynamics for specialized pharmaceuticals can be limited, potentially impacting price discovery. 3. The fixed-price contract type aims to control costs for the government. 4. Performance will be monitored over the contract duration to ensure timely delivery of essential medication. 5. This contract falls within the pharmaceutical manufacturing sector, crucial for healthcare services. 6. The award to Exelan Pharmaceuticals Inc. indicates a specific market player meeting VA's needs.

Value Assessment

Rating: good

The contract value of $2.07 million for a one-year duration appears reasonable for a specialized pharmaceutical like Lenalidomide, which is often high-cost. Benchmarking against similar sole-source or limited-competition contracts for this drug would provide a clearer picture of value for money. However, without direct comparable contracts for this specific quantity and duration, a precise value assessment is challenging. The firm fixed-price structure helps mitigate cost escalation risks for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters competitive pricing. The VA's decision to use full and open competition suggests confidence in the market's ability to supply this pharmaceutical under fair terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple suppliers to offer their best prices, potentially leading to cost savings for the government and ensuring a robust supply chain.

Public Impact

Veterans requiring Lenalidomide for cancer treatment will benefit from a reliable supply of this essential medication. The contract ensures the availability of a critical pharmaceutical, supporting the VA's healthcare mission. The geographic impact is national, as VA facilities across the country can procure the drug. The contract supports the pharmaceutical manufacturing workforce involved in producing Lenalidomide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly during the contract period.
Reliance on a single awardee for a critical drug could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration of one year allows for regular performance review and potential re-competition.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly regulated and characterized by significant research and development costs, patent protections, and complex supply chains. Lenalidomide is a high-value therapeutic agent used in treating certain cancers, such as multiple myeloma and myelodysplastic syndromes. The market for such specialized drugs is often concentrated among a few manufacturers. This contract represents a specific procurement within the broader healthcare and pharmaceutical industry, where government agencies are significant purchasers.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a specialized pharmaceutical, it is likely that the primary awardee is a large manufacturer with the capacity and regulatory approval to produce Lenalidomide. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the supply chain.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Performance will be monitored to ensure compliance with delivery schedules and quality standards. The firm fixed-price nature of the contract provides a degree of cost oversight. Transparency is maintained through contract databases, and any significant issues would likely be subject to review by the VA's Office of Inspector General.

Related Government Programs

VA Pharmaceutical Contracts
Lenalidomide Procurement
Cancer Treatment Medications
Federal Drug Supply Chain

Risk Flags

Potential supply chain disruption risk
Reliance on single awardee for critical drug

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to EXELAN PHARMACEUTICALS INC. VA ALBUQUERQUE LENALIDOMIDE DO

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS 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 $2.1 million.

What is the period of performance?

Start: 2026-01-15. End: 2027-01-14.

What is the historical spending by the VA on Lenalidomide?

Historical spending data for Lenalidomide by the Department of Veterans Affairs (VA) is crucial for understanding procurement trends and identifying potential cost savings. While this specific contract is valued at $2.07 million for a one-year period, a review of past VA contracts for the same drug would reveal if this award represents an increase or decrease in spending. Analyzing historical data can highlight fluctuations in demand, changes in pricing due to market competition or patent expirations, and the VA's reliance on specific manufacturers over time. Without access to a comprehensive historical database of VA pharmaceutical procurements, it is difficult to provide exact figures. However, such an analysis would typically involve querying federal procurement databases for all contracts related to 'Lenalidomide' awarded by the VA over the last 5-10 years, noting contract values, awardees, and contract types to establish a baseline and identify any significant deviations.

How does the price per unit for this Lenalidomide contract compare to market rates or other federal agencies?

Determining the price per unit for this Lenalidomide contract requires knowing the quantity of medication being procured. The total contract value is $2.07 million for a 364-day period. Lenalidomide is a high-cost drug, and its price can vary significantly based on dosage, formulation (e.g., capsules), and quantity. To benchmark the price per unit, one would need to obtain the specific number of units (e.g., pills) or dosage amounts covered by the $2.07 million. Once the quantity is known, this unit price can be compared to prices paid by other federal agencies (e.g., through the Federal Supply Schedule) or to publicly available commercial pricing. Given that this contract was awarded under full and open competition, the price is expected to be competitive. However, without the quantity information, a precise per-unit cost comparison is not feasible.

What is Exelan Pharmaceuticals Inc.'s track record with the VA and other federal agencies?

Exelan Pharmaceuticals Inc.'s track record with the Department of Veterans Affairs (VA) and other federal agencies is a key indicator of their reliability and performance. A review of federal procurement databases would reveal the extent of their contract history, including the types of pharmaceuticals supplied, contract values, and performance ratings, if available. Understanding their past performance, particularly in delivering critical medications like Lenalidomide, can help assess the risk associated with this award. A history of successful contract fulfillment, timely deliveries, and adherence to quality standards would be positive indicators. Conversely, any past performance issues, such as delivery delays or quality control problems, would raise concerns. This specific award suggests the VA has confidence in Exelan's ability to meet its requirements, but a deeper dive into their broader federal contracting history would provide a more comprehensive assessment.

What are the potential risks associated with relying on a single awardee for this critical medication?

Relying on a single awardee, even one selected through full and open competition, for a critical medication like Lenalidomide presents several potential risks. Firstly, there is a supply chain risk: if the sole awardee experiences production issues, raw material shortages, or distribution disruptions, the VA could face shortages, impacting patient care. Secondly, there's a potential for reduced price negotiation leverage in future procurements if the market becomes less competitive. Thirdly, if the awardee's performance falters (e.g., quality issues, delivery delays), the VA would face challenges in quickly finding and onboarding an alternative supplier, especially for a highly regulated pharmaceutical. Mitigating these risks often involves close monitoring of the contractor's performance, maintaining open communication, and potentially exploring options for dual-sourcing or maintaining strategic stockpiles for critical drugs.

How does the contract type (Firm Fixed Price) influence cost control and risk for the VA?

The Firm Fixed Price (FFP) contract type is generally favored by government agencies for its cost control and risk mitigation benefits. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means Exelan Pharmaceuticals Inc. assumes the risk of cost overruns. For the VA, this provides budget certainty, as the total cost of the procurement is known upfront. It incentivizes the contractor to manage its costs efficiently to maintain profitability. While FFP is beneficial for cost certainty, it can sometimes lead to higher initial prices compared to cost-reimbursement contracts, as the contractor may build in a contingency for potential risks. However, for a well-defined product like a specific pharmaceutical, FFP is typically an appropriate choice.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

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

Financial Breakdown

Contract Ceiling: $2,071,263

Exercised Options: $2,071,263

Current Obligation: $2,071,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26226A0006

IDV Type: BPA

Timeline