VA awards $3.25M for Lenalidom 2026-2027, with Exelan Pharmaceuticals Inc. as contractor

Contract Overview

Contract Amount: $3,250,000 ($3.3M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-28

End Date: 2027-01-14

Contract Duration: 351 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LENALIDOMIDE VA SAN DIEGO DO

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to EXELAN PHARMACEUTICALS INC for work described as: LENALIDOMIDE VA SAN DIEGO DO Key points: 1. Contract value appears reasonable for specialized pharmaceutical preparation. 2. Full and open competition suggests potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks for the VA. 4. Contract duration of over a year provides supply stability. 5. Focus on a specific drug indicates a targeted healthcare need. 6. Geographic location of awardee in Florida may influence distribution logistics.

Value Assessment

Rating: good

The contract value of $3.25 million for Lenalidomide over approximately 1.5 years appears to be within a reasonable range for specialized pharmaceuticals. Benchmarking against similar contracts for this drug would provide a more precise value-for-money assessment. The firm fixed-price structure is advantageous as it caps the government's financial exposure, promoting cost predictability. Without specific per-unit pricing or volume data, a detailed cost comparison is challenging, but the overall award size suggests a significant quantity of medication is being procured.

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 invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The VA's decision to use full and open competition suggests confidence in the market's ability to supply the required pharmaceutical product.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings through competitive bidding, ensuring that the government is not overpaying for essential medications.

Public Impact

Veterans will benefit from access to Lenalidomide, a critical medication. The contract ensures the supply of pharmaceutical preparations for medical treatment. The primary geographic impact is within the VA healthcare system, serving beneficiaries nationwide. The contract supports the pharmaceutical manufacturing sector and its associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Exelan Pharmaceuticals Inc. faces production issues.
Reliance on a single contractor for a critical drug could pose a risk if alternatives are not readily available.
Ensuring consistent quality control of the pharmaceutical preparation is paramount.

Positive Signals

Award to a single, established contractor can streamline delivery and management.
Fixed-price contract provides budget certainty for the VA.
Full and open competition suggests a robust market offering for this pharmaceutical.

Sector Analysis

This contract falls within the pharmaceutical preparation manufacturing sector, a critical component of the broader healthcare industry. The market for pharmaceuticals is highly regulated and competitive, with significant investment in research, development, and production. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for similar high-value, specialized medications. The size of this award suggests a substantial procurement, likely meeting a significant demand within the VA's formulary.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal, as the award was made to Exelan Pharmaceuticals Inc. without specific provisions for small business participation. Future analysis could explore whether Exelan utilizes small businesses in its supply chain.

Oversight & Accountability

The Department of Veterans Affairs (VA) employs various oversight mechanisms, including contract performance monitoring and quality assurance protocols, to ensure compliance with contract terms and product specifications. Accountability is maintained through the fixed-price nature of the contract, which limits financial risk to the government. Transparency is generally facilitated through contract databases like FPDS, although specific performance metrics and Inspector General involvement would depend on the contract's operational phase and any identified issues.

Related Government Programs

Pharmaceutical Manufacturing
Medical Supplies and Equipment
Veterans Health Administration Programs
Drug Procurement Contracts

Risk Flags

Potential for supply chain disruption
Reliance on single supplier
Quality control of pharmaceutical product

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to EXELAN PHARMACEUTICALS INC. LENALIDOMIDE VA SAN DIEGO 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 $3.3 million.

What is the period of performance?

Start: 2026-01-28. End: 2027-01-14.

What is the track record of Exelan Pharmaceuticals Inc. in fulfilling government contracts, particularly for high-value pharmaceuticals?

A review of Exelan Pharmaceuticals Inc.'s contract history would be necessary to assess their track record. This would involve examining past performance on similar government contracts, including on-time delivery, quality compliance, and any history of disputes or contract terminations. For high-value pharmaceuticals, it's crucial to verify their experience with complex supply chains, regulatory compliance (e.g., FDA standards), and their capacity to meet large-scale demand. Without specific data on Exelan's past performance, it is difficult to definitively assess their reliability for this specific contract. Further investigation into their financial stability and production capabilities would also be warranted.

How does the awarded price of $3.25 million compare to market rates for Lenalidomide over the contract period?

To compare the awarded price of $3.25 million to market rates for Lenalidomide, one would need to analyze the contract's specific quantity and the average selling price (ASP) or wholesale acquisition cost (WAC) of Lenalidomide during the contract period (2026-2027). Lenalidomide is a high-cost drug, and its price can vary significantly based on dosage, formulation, and manufacturer. Benchmarking against other federal contracts for the same drug, or against prices negotiated by large group purchasing organizations (GPOs), would provide a more concrete comparison. The firm fixed-price nature suggests the VA has negotiated a set price, and the value-for-money assessment hinges on whether this negotiated price is competitive within the pharmaceutical market for this specific therapeutic agent.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential supply chain disruptions, quality control issues with the pharmaceutical preparation, and the possibility of price fluctuations in the broader market that could make the fixed price less advantageous over time. Mitigation strategies likely include the VA's standard contract management processes, such as performance monitoring, quality assurance checks, and potentially requiring Exelan Pharmaceuticals Inc. to maintain safety stock. The firm fixed-price contract itself mitigates financial risk for the government by capping costs. However, if market prices for raw materials or production increase significantly, Exelan might face challenges in maintaining profitability, which could indirectly impact supply reliability. The VA's procurement process, including full and open competition, aims to select a reliable supplier.

What is the expected program effectiveness and impact on patient care for this Lenalidomide procurement?

The expected program effectiveness is the consistent and reliable supply of Lenalidomide to veterans who require it for their treatment. Lenalidomide is a crucial medication used in treating multiple myeloma and other conditions. Ensuring its availability directly impacts patient care by allowing treatment regimens to proceed without interruption, potentially leading to better health outcomes, improved quality of life, and disease management for affected veterans. The effectiveness is measured by the contractor's ability to deliver the specified quantity and quality of the drug on schedule, meeting the VA's clinical needs and formulary requirements. Successful execution of this contract contributes to the VA's mission of providing comprehensive healthcare to its beneficiaries.

How does this contract's value and duration compare to historical VA spending on Lenalidomide or similar oncology drugs?

Comparing this $3.25 million contract over approximately 1.5 years to historical VA spending requires access to historical procurement data. Lenalidomide is a high-cost, specialty drug often used in oncology. Historical spending on this drug or similar targeted therapies for conditions like multiple myeloma can be substantial. If the VA has previously procured Lenalidomide, analyzing those contract values, durations, and quantities would reveal trends in pricing and demand. A contract of this size suggests a significant, ongoing need. If historical data shows similar or higher spending on comparable drugs, this award would be consistent with established procurement patterns for critical, expensive medications within the VA system.

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: $3,250,000

Exercised Options: $3,250,000

Current Obligation: $3,250,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26226A0006

IDV Type: BPA

Timeline