VA Awards $201K for Lab Supplies to Cepheid, Lacking Competition

Contract Overview

Contract Amount: $201,413 ($201.4K)

Contractor: Cepheid

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $553/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LAB SUPPLIES

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $201,413.1 to CEPHEID for work described as: LAB SUPPLIES Key points: 1. Spending focuses on analytical laboratory instruments. 2. Sole supplier identified as Cepheid. 3. Contract duration is one year. 4. No small business participation noted.

Value Assessment

Rating: fair

Pricing for this delivery order is not benchmarked against similar contracts due to the lack of competitive bidding. Without comparison, it's difficult to assess if the $201,413.10 represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these lab supplies, impacting taxpayer value.

Public Impact

Veterans may experience delays in laboratory testing if essential supplies are not procured at the best possible price. The VA's reliance on a single supplier for critical lab equipment could pose a supply chain risk. Transparency in government procurement is reduced when contracts are not openly competed.

Waste & Efficiency Indicators

Waste Risk Score: 55 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source reliance

Positive Signals

Specific need for analytical instruments
Defined contract period

Sector Analysis

Spending in the analytical laboratory instrument manufacturing sector is crucial for healthcare and research. Benchmarks for similar sole-source contracts are difficult to establish, but competitive procurements typically yield better value.

Small Business Impact

There is no indication of small business participation in this contract. Efforts should be made to ensure small businesses have opportunities to compete for relevant government contracts.

Oversight & Accountability

The VA's procurement process for this contract warrants review to ensure justification for the sole-source award and to explore future competitive opportunities.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of price competition
No small business participation
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $201,413.1 to CEPHEID. LAB SUPPLIES

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $201,413.1.

What is the period of performance?

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

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves a determination that only one responsible source is capable of providing the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent and compelling needs where competition is not feasible. Further documentation would be required to validate this specific instance.

What is the risk associated with relying on a single supplier for lab instruments?

Relying on a single supplier for critical lab instruments poses significant risks, including potential supply chain disruptions if the supplier faces production issues or goes out of business. It also removes competitive pressure, potentially leading to higher prices and reduced innovation over time. This can impact the agency's ability to maintain consistent operations and access the best available technology.

How can the VA ensure better value in future procurements of lab supplies?

To ensure better value, the VA should actively seek opportunities for competitive bidding whenever possible. This includes market research to identify multiple potential suppliers and breaking down large requirements into smaller, more accessible contracts for small businesses. Establishing clear performance metrics and regularly reviewing pricing against market benchmarks can also drive better value.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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

Financial Breakdown

Contract Ceiling: $201,413

Exercised Options: $201,413

Current Obligation: $201,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26325D0005

IDV Type: IDC

Timeline