VA awards $3.89M IDIQ for clinical lab coagulation instruments to Werfen USA LLC

Contract Overview

Contract Amount: $3,885 ($3.9K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $11/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN IDIQ FOR CPRR CLINICAL LABORATORY COAGULATION INSTRUMENTATION

Place of Performance

Location: FORT MEADE, MEADE County, SOUTH DAKOTA, 57741

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3,885.16 to WERFEN USA LLC for work described as: VISN IDIQ FOR CPRR CLINICAL LABORATORY COAGULATION INSTRUMENTATION Key points: 1. Contract aims to procure essential laboratory equipment for clinical diagnostics. 2. Focus on coagulation instrumentation suggests a specialized need within VA healthcare. 3. The contract's duration of one year indicates a short-term need or a bridge to a larger procurement. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. The award was made under Simplified Acquisition Procedures, suggesting a focus on smaller value procurements. 6. This award is a delivery order against an existing IDIQ, indicating a pre-competed framework.

Value Assessment

Rating: good

The contract value of $3.89 million for a one-year period for clinical laboratory coagulation instrumentation appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for advanced diagnostic equipment would provide a more precise value assessment. The firm fixed-price structure helps manage cost risks for the Department of Veterans Affairs. Without specific details on the instruments or quantities, a direct per-unit cost comparison is challenging, but the overall award size is within expected ranges for such specialized medical devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements under the federal micro-purchase threshold and simplified acquisition threshold. While the specific competition details (number of offers received) are not provided, SAP is designed to encourage competition among a wide array of vendors. This approach generally leads to better price discovery and value for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Competition under SAP generally ensures that taxpayers receive competitive pricing for goods and services, as multiple vendors are encouraged to bid. This process helps to drive down costs and ensure that the government is not overpaying for necessary equipment.

Public Impact

Veterans will benefit from improved accuracy and efficiency in clinical laboratory testing, particularly for coagulation-related diagnostics. The contract ensures the availability of critical medical equipment for diagnostic purposes within VA facilities. The geographic impact is likely concentrated within VA healthcare systems that utilize these specific coagulation instruments, potentially across South Dakota and other regions served by the VISN. This procurement supports the healthcare workforce by providing them with modern and reliable diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the IDIQ is heavily utilized for follow-on procurements without re-competition.
Dependence on a single vendor for specialized instrumentation could lead to supply chain risks.
Ensuring adequate training and support for VA staff on new instrumentation is crucial for effective utilization.

Positive Signals

The award to Werfen USA LLC, a known provider in the field, suggests a focus on established and reliable technology.
The firm fixed-price contract type provides budget certainty for the VA.
Competition under SAP indicates an effort to secure fair market value.

Sector Analysis

The market for analytical laboratory instruments is a significant segment within the broader healthcare technology sector. This contract falls under the manufacturing of analytical laboratory instruments, specifically focusing on coagulation diagnostics. The global market for in-vitro diagnostics (IVD), which includes coagulation testing, is substantial and growing, driven by increasing demand for accurate disease diagnosis and monitoring. The Department of Veterans Affairs is a major purchaser of medical equipment, and contracts like this are crucial for maintaining the operational capabilities of its healthcare facilities.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this particular award may not directly involve small business set-asides, the prime contractor, Werfen USA LLC, may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem. Without this information, it's difficult to assess the direct benefit to small businesses from this specific contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

VISN IDIQ for Clinical Laboratory Reagents
VA Laboratory Equipment Procurement
Clinical Diagnostics Instrumentation Contracts
Department of Veterans Affairs Medical Supplies

Risk Flags

Potential for vendor lock-in
Supply chain dependency
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3,885.16 to WERFEN USA LLC. VISN IDIQ FOR CPRR CLINICAL LABORATORY COAGULATION INSTRUMENTATION

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

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 $3,885.16.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Werfen USA LLC in providing similar coagulation instrumentation to federal agencies?

Werfen USA LLC is a recognized global leader in the field of in-vitro diagnostics, with a strong focus on hemostasis and coagulation testing. While specific details on their federal contract history are not provided in this data snippet, their established presence in the medical device market suggests a significant track record. Federal procurement databases would likely show past awards to Werfen for similar equipment and services to various agencies, including potentially the Department of Defense and other healthcare providers. A deeper dive into these databases would reveal the volume, value, and performance history of their prior federal contracts, offering insights into their reliability and experience in meeting government requirements.

How does the $3.89 million award compare to typical spending on coagulation instrumentation by the VA or other federal healthcare providers?

The $3.89 million award for a one-year IDIQ for coagulation instrumentation is a moderate-sized contract within the federal healthcare procurement landscape. The Department of Veterans Affairs operates a vast network of healthcare facilities, and spending on laboratory equipment can vary significantly based on the size and needs of individual VISNs or facilities. Compared to large-scale, multi-year procurements for comprehensive laboratory systems, this award appears to be for a specific category of instruments. However, without detailed market research or comparative data on similar IDIQ awards for coagulation analyzers across federal agencies, it is challenging to definitively benchmark this specific value. Factors such as the number of instruments, specific models, and included services (maintenance, training) would influence the overall cost.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this contract include potential supply chain disruptions for specialized components, the risk of technological obsolescence if the instruments are not state-of-the-art, and the possibility of inadequate user training leading to suboptimal performance. Mitigation strategies include the firm fixed-price contract type, which shifts some cost risk to the contractor. The IDIQ structure itself, if well-managed, allows for flexibility in ordering, but reliance on a single vendor could pose a risk. The VA's oversight and quality assurance processes are critical for ensuring the instruments meet specifications and that adequate support and training are provided. Furthermore, the one-year duration limits the exposure to long-term technological obsolescence.

How effective is the Simplified Acquisition Procedures (SAP) competition in ensuring value for taxpayers in this context?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below the simplified acquisition threshold, encouraging competition among a broader range of vendors, including small businesses. For a contract of this value ($3.89 million), SAP aims to achieve fair and reasonable pricing through competition. The effectiveness in ensuring value for taxpayers depends on the number of offers received and the responsiveness of the market. If multiple qualified vendors submitted bids, SAP likely facilitated competitive pricing. However, SAP may not always yield the same level of aggressive pricing as full and open competition for larger, more complex procurements. The VA's diligence in evaluating offers and negotiating terms under SAP is crucial for maximizing taxpayer value.

What is the historical spending pattern for coagulation instrumentation within the VA, and how does this award fit into that pattern?

Historical spending patterns for coagulation instrumentation within the VA would typically involve a mix of direct purchases, IDIQs, and potentially lease agreements. The VA's decentralized structure means that spending can occur at the VISN or individual facility level. This $3.89 million IDIQ award suggests a consolidated approach to procuring these specific instruments for a particular VISN (VISN ID 334516). It likely represents a portion of the VA's overall annual expenditure on laboratory diagnostics. Without access to historical VA spending data specifically for coagulation analyzers, it's difficult to place this award precisely within a trend. However, such IDIQs are common mechanisms for managing recurring needs for specialized equipment and consumables.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,885

Exercised Options: $3,885

Current Obligation: $3,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26321D0049

IDV Type: IDC

Timeline