VA awards $3.7M for Lenalidomide, ensuring pharmaceutical supply through 2027

Contract Overview

Contract Amount: $3,690,219 ($3.7M)

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: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA LONG BEACH 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 $3.7 million to EXELAN PHARMACEUTICALS INC for work described as: VA LONG BEACH LENALIDOMIDE DO Key points: 1. The contract value of $3.7M is moderate for pharmaceutical preparations. 2. Exelan Pharmaceuticals Inc. is the sole awardee, raising questions about competition. 3. The fixed-price contract mitigates cost overrun risks. 4. This spending falls within the Pharmaceutical Preparation Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $3.7M for Lenalidomide appears reasonable given the drug's cost and the contract duration. Benchmarking against similar pharmaceutical contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as full and open, the award went to a single vendor, Exelan Pharmaceuticals Inc. This suggests potential limitations in the bidding process or a specific market dynamic that favored this vendor.

Taxpayer Impact: Taxpayer funds are being used to secure a critical medication, with the price set via a firm fixed-price agreement, which limits potential overspending.

Public Impact

Ensures continued access to Lenalidomide for veterans. Supports the pharmaceutical supply chain for essential medications. Potential for price fluctuations if competition was indeed limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation.
Single awardee may not reflect best market price.
Dependence on one supplier for a critical drug.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long-term contract ensures supply continuity.
Awarded by the VA, serving veteran healthcare needs.

Sector Analysis

This contract falls under Pharmaceutical Preparation Manufacturing, a sector critical for healthcare. Spending benchmarks for similar drugs and contract types would be useful for a comprehensive assessment.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would involve monitoring delivery, quality, and adherence to contract terms to ensure accountability.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential lack of true competition.
Single source dependency.
Limited transparency on pricing benchmarks.
Need for verification of 'full and open' process effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to EXELAN PHARMACEUTICALS INC. VA LONG BEACH 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 $3.7 million.

What is the period of performance?

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

Was the 'full and open competition' designation accurate, or were there factors that limited actual market participation?

The award to a single vendor, Exelan Pharmaceuticals Inc., despite the 'full and open competition' designation, warrants further investigation. It's possible that only one vendor met the stringent requirements, or that the solicitation process inadvertently limited broader participation. Understanding the specific evaluation criteria and market landscape is crucial to assess if the government truly received the best possible offer.

What is the risk associated with relying on a single supplier for Lenalidomide, especially given the 'full and open' competition label?

Relying on a single supplier, even after a competitive process, introduces supply chain risk. If Exelan Pharmaceuticals Inc. faces production issues, quality control problems, or decides to exit the market, the VA could face shortages of Lenalidomide. This risk is amplified if the 'full and open' designation did not result in robust, multi-vendor engagement, suggesting a potentially narrow market.

How does the $3.7M contract value compare to market benchmarks for Lenalidomide, and does it represent good value for taxpayers?

Without specific per-unit cost data or direct comparisons to other government or commercial contracts for Lenalidomide, it's difficult to definitively assess value. The $3.7M over approximately one year suggests a significant expenditure. A thorough analysis would involve comparing the awarded price per unit against GSA schedules, other agency contracts, and potentially manufacturer list prices, adjusted for volume and contract terms.

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: $3,690,219

Exercised Options: $3,690,219

Current Obligation: $3,690,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26226A0006

IDV Type: BPA

Timeline