VA awards $2.5M contract for Lenalidomide to Exelan Pharmaceuticals, highlighting pharmaceutical preparation manufacturing

Contract Overview

Contract Amount: $2,520,000 ($2.5M)

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: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VA PHOENIX 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 $2.5 million to EXELAN PHARMACEUTICALS INC for work described as: VA PHOENIX LENALIDOMIDE DO Key points: 1. Contract value appears reasonable given the product type and duration. 2. Full and open competition suggests a healthy market for this pharmaceutical. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of one year with potential for renewal offers flexibility. 5. Geographic focus on Florida may indicate regional demand or distribution strategy. 6. The award to a single contractor under a BPA call warrants scrutiny for potential future competition.

Value Assessment

Rating: good

The contract value of $2.52 million for a one-year duration for Lenalidomide appears to be within a reasonable range for pharmaceutical preparations. Benchmarking against similar contracts for this specific drug would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract is a positive indicator for cost control. Without specific per-unit data or comparison to market prices for Lenalidomide, a definitive value assessment is challenging, but the overall award size seems proportionate to the service duration.

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 were likely aware of and had the opportunity to bid on this requirement. The specific number of bidders is not provided, but the competition type suggests a market where several qualified pharmaceutical manufacturers could supply the requested product. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

Veterans receiving care through the VA healthcare system will benefit from access to Lenalidomide. The contract ensures the supply of a critical pharmaceutical for patient treatment. The primary geographic impact is within Florida, where the contract is managed and potentially distributed. The contract supports the pharmaceutical manufacturing sector and its associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor performance beyond delivery.
Limited insight into the number of bidders restricts a full understanding of competitive intensity.
The award is a BPA Call, which may indicate a pre-existing relationship or framework that could limit future competition if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type minimizes the risk of cost increases for the government.
The contract duration is clearly defined, providing a predictable supply chain.
The contractor is supplying a critical medication, addressing a key healthcare need.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a vital part of the healthcare industry, characterized by high regulatory standards and significant research and development investment. This contract falls within the broader healthcare and pharmaceutical supply chain, ensuring the availability of specific medications. Comparable spending benchmarks would typically involve analyzing the average price and volume of Lenalidomide procured by government agencies or large healthcare providers over similar contract periods.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to Exelan Pharmaceuticals Inc. does not provide details on their size status or any specific provisions for small business participation. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of the specified goods. Transparency is facilitated through contract award databases, though detailed performance reporting may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Pharmaceutical Contracts
Lenalidomide Procurement
Federal Drug Supply Chain
Healthcare Services Contracts

Risk Flags

Potential for limited future competition due to BPA call structure.
Lack of detailed performance metrics in summary data.
Dependence on a single supplier for a critical medication.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to EXELAN PHARMACEUTICALS INC. VA PHOENIX 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 $2.5 million.

What is the period of performance?

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

What is the historical spending pattern for Lenalidomide by the Department of Veterans Affairs?

Analyzing historical spending for Lenalidomide by the VA is crucial for understanding long-term demand, price trends, and contractor performance. Without access to specific historical data for this contract or similar procurements, it's difficult to provide precise figures. However, federal agencies like the VA typically maintain records of past awards, which would reveal the total amount spent on Lenalidomide over previous fiscal years, the number of contracts awarded, and the primary awardees. This historical context allows for a more robust assessment of the current $2.52 million award, helping to identify if the price is consistent with past expenditures, if spending has increased or decreased, and whether the VA has relied on a consistent set of suppliers or diversified its procurement base. Understanding these patterns can also highlight potential opportunities for cost savings through strategic sourcing or negotiation.

How does the awarded price compare to market rates for Lenalidomide?

Comparing the awarded price to market rates for Lenalidomide is essential for evaluating value for money. Lenalidomide is a prescription medication, and its price can vary significantly based on factors such as dosage, quantity, manufacturer, and whether it is a brand-name or generic version. To perform this comparison, one would typically consult sources like the Centers for Medicare & Medicaid Services (CMS) drug pricing data, commercial pharmaceutical databases, or publicly available pricing information from manufacturers and distributors. Without specific details on the quantity and dosage covered by the $2.52 million contract, a precise per-unit comparison is challenging. However, if market data indicates significantly lower prices for comparable quantities or if other federal agencies have secured better rates, it could suggest that this award may not represent the best possible value. Conversely, if the price aligns with or is favorable compared to market benchmarks, it supports the assessment of good value.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract, nor the methods for their measurement. Typically, for pharmaceutical supply contracts, KPIs would focus on aspects such as on-time delivery rates, product quality (e.g., adherence to specifications, absence of defects), order fulfillment accuracy, and potentially responsiveness to urgent requests. The Department of Veterans Affairs would establish these metrics in the contract's Performance Work Statement (PWS). Compliance with these KPIs would be monitored by the Contracting Officer's Representative (COR). Failure to meet established KPIs could result in contractual remedies, such as price adjustments, contract termination, or the contractor being ineligible for future awards. The absence of specified KPIs in the summary data limits the ability to fully assess performance management and accountability.

What is Exelan Pharmaceuticals Inc.'s track record with federal contracts, particularly with the VA?

Exelan Pharmaceuticals Inc.'s track record with federal contracts, especially with the Department of Veterans Affairs, is a critical factor in assessing risk and reliability. A review of federal procurement databases (such as FPDS or SAM.gov) would reveal the company's history of awards, including contract values, agencies served, and performance history. Information on past performance evaluations, any contract disputes, terminations, or awards for excellence would provide further insight. A history of successful, on-time deliveries and adherence to contract terms with the VA would indicate a lower risk profile for this current award. Conversely, a history of performance issues or significant disputes might raise concerns about the contractor's ability to meet the requirements of this new $2.52 million contract. Without this specific historical data, the assessment of the contractor's reliability remains incomplete.

Are there any known risks associated with the supply chain or manufacturing of Lenalidomide that could impact this contract?

Lenalidomide, like many pharmaceuticals, can be subject to supply chain risks. These can include raw material shortages, manufacturing disruptions (due to quality control issues, facility problems, or regulatory actions), and logistical challenges in distribution. Furthermore, Lenalidomide is a high-cost drug with specific handling requirements and potential for counterfeiting, which adds layers of risk. Regulatory changes or recalls by the manufacturer or regulatory bodies (like the FDA) could also impact availability and compliance. The VA would likely have assessed these risks during the procurement process and may have included clauses in the contract to mitigate them, such as requiring contingency plans from the supplier or specifying quality assurance protocols. However, the provided data does not detail these specific risks or mitigation strategies, making a comprehensive risk assessment difficult.

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: $2,520,000

Exercised Options: $2,520,000

Current Obligation: $2,520,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26226A0006

IDV Type: BPA

Timeline