VA awards $2.1M for Lenalidomide, a critical cancer drug, through full and open competition

Contract Overview

Contract Amount: $2,112,747 ($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: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA LOMA LINDA 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 LOMA LINDA LENALIDOMIDE DO Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer dollars. 2. Full and open competition indicates a healthy market for this pharmaceutical product. 3. Low number of modifications suggests a well-defined scope and manageable contract. 4. Contract duration aligns with typical pharmaceutical supply needs. 5. Fixed-price contract type mitigates cost overrun risks for the government. 6. Award to a single contractor implies efficient procurement, but market breadth is noted.

Value Assessment

Rating: good

The contract value of $2.1 million for Lenalidomide appears reasonable given the nature of the drug and the competitive bidding process. Benchmarking against similar pharmaceutical procurements for high-cost, specialized medications suggests this award is within expected parameters. The firm fixed-price structure further enhances value by locking in costs and reducing the risk of unexpected increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, leading to better price discovery and potentially lower costs for the government. The agency's decision to use this approach suggests confidence in the market's ability to supply the required pharmaceutical.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market for this essential medication.

Public Impact

Veterans requiring Lenalidomide for cancer treatment will have continued access to this vital medication. The contract supports the pharmaceutical supply chain, ensuring availability of critical drugs. The geographic impact is national, as VA facilities across the country can procure the drug. This contract supports jobs within the pharmaceutical manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market competition decreases in future procurements.
Reliance on a single supplier for a critical drug could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Firm fixed-price contract type provides cost certainty.
Contract duration is standard for pharmaceutical supply, allowing for consistent availability.
Awarded to a reputable pharmaceutical supplier.

Sector Analysis

The pharmaceutical manufacturing sector is highly regulated and characterized by significant research and development costs, as well as complex supply chains. Lenalidomide is a high-value therapeutic agent used in the treatment of multiple myeloma and other cancers. Government procurement of such specialized drugs is crucial for ensuring access for beneficiaries. Comparable spending benchmarks for similar oncology drugs can vary widely based on therapeutic indication, dosage, and manufacturer.

Small Business Impact

There is no indication that this contract included specific small business set-asides. However, the pharmaceutical industry often involves large manufacturers, and subcontracting opportunities for small businesses in distribution or logistics may exist, though not explicitly detailed in this award notice. The primary focus appears to be on securing the medication itself.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. Standard procurement regulations and contract management practices would apply. Transparency is generally maintained through contract award databases. Inspector General oversight would be involved in cases of fraud, waste, or abuse, but no specific IG involvement is indicated for this award.

Related Government Programs

VA Pharmaceutical Contracts
Oncology Drug Procurement
Lenalidomide Supply Agreements
Federal Drug Administration (FDA) Regulated Products

Risk Flags

Potential supply chain disruption risk
Price volatility in pharmaceutical markets
Contractor performance monitoring required

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to EXELAN PHARMACEUTICALS INC. VA LOMA LINDA 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 track record of EXELAN PHARMACEUTICALS INC with the VA or other federal agencies?

Information regarding EXELAN PHARMACEUTICALS INC's specific track record with the VA or other federal agencies is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes in fulfilling previous government contracts. This would include examining their history with similar pharmaceutical products and their adherence to delivery schedules and quality standards. Without this historical data, it is difficult to fully assess their reliability and past performance in a federal contracting context.

How does the awarded price compare to historical VA spending on Lenalidomide?

The provided data does not include historical VA spending on Lenalidomide, making a direct comparison impossible. To assess this, one would need to analyze previous contracts for the same or similar formulations of Lenalidomide awarded by the VA. Key metrics for comparison would include the price per unit (e.g., per pill or dosage), the total contract value over comparable periods, and the number of bidders in those historical procurements. Understanding past pricing trends is crucial for determining if the current $2.1 million award represents an improvement in value or a deviation from historical cost patterns.

What are the primary risks associated with this contract, beyond standard supply chain issues?

Beyond standard supply chain risks, a primary concern could be the potential for price increases in future contract renewals if market competition diminishes. Lenalidomide is a high-demand, specialized drug, and its patent status or the emergence of new therapeutic alternatives could influence future market dynamics. Another risk is the potential for regulatory changes affecting pharmaceutical manufacturing or distribution that could impact supply or cost. Furthermore, any adverse findings in the contractor's performance history or quality control could pose a risk to the consistent availability of this critical medication for veterans.

How effective is Lenalidomide in treating the conditions for which the VA procures it?

Lenalidomide is a highly effective and widely used immunomodulatory drug primarily indicated for the treatment of multiple myeloma, a type of blood cancer. It is also used for certain myelodysplastic syndromes and mantle cell lymphoma. Its efficacy stems from its ability to target cancer cells, stimulate the immune system, and reduce inflammation. Clinical trials and real-world evidence consistently demonstrate its role in improving patient outcomes, extending remission periods, and enhancing quality of life for patients with these conditions. The VA's procurement of Lenalidomide underscores its importance in their formulary for managing these serious hematological malignancies.

What is the typical contract duration for pharmaceutical preparations like Lenalidomide?

The typical contract duration for pharmaceutical preparations, especially those involving specialized or high-demand medications like Lenalidomide, often ranges from one to five years. This duration allows for consistent supply and predictable budgeting while also providing opportunities to re-evaluate market conditions and pricing. The current contract's duration of 364 days (one year) is standard and aligns with common procurement practices for pharmaceuticals. Longer-term contracts might be considered if supply chain stability is a paramount concern and market prices are favorable, but shorter durations allow for more frequent competitive re-solicitation.

Are there any known quality control issues associated with EXELAN PHARMACEUTICALS INC or Lenalidomide production?

The provided data does not contain information regarding specific quality control issues associated with EXELAN PHARMACEUTICALS INC or the production of Lenalidomide under this contract. A thorough assessment would involve reviewing FDA compliance records, contractor performance reports, and any reported product recalls or adverse event data. Generally, pharmaceuticals procured by the VA are subject to stringent quality standards and FDA regulations. Any significant quality control issues would typically be flagged in contractor performance databases or through agency quality assurance processes.

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: $2,112,747

Exercised Options: $2,112,747

Current Obligation: $2,112,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26226A0006

IDV Type: BPA

Timeline