VA awards $16.6M for Coagulation Supplies and CPRR, with a 91% small business subcontracting goal

Contract Overview

Contract Amount: $16,619 ($16.6K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $91/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COAGULATION SUPPLIES AND CPRR

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57105

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,619.16 to WERFEN USA LLC for work described as: COAGULATION SUPPLIES AND CPRR Key points: 1. The contract value of $16.6 million appears reasonable for specialized laboratory equipment and supplies. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. A high small business subcontracting goal indicates potential opportunities for smaller firms. 4. The contract duration of 182 days is relatively short, suggesting a focused need. 5. The product service code (PSC) is not specified, limiting detailed sector analysis. 6. The award was made to WERFEN USA LLC, a known entity in the medical device sector.

Value Assessment

Rating: good

The contract value of $16.6 million for coagulation supplies and CPRR is within a typical range for such specialized medical equipment and associated consumables. Benchmarking against similar contracts for analytical laboratory instruments suggests this award is competitive. The firm-fixed-price structure helps control costs for the government, and the relatively short duration implies a specific, defined need rather than a long-term sustainment effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of full and open competition generally fosters a robust price discovery process. This approach allows the government to solicit proposals from a wide range of qualified vendors, potentially leading to more competitive pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to increased vendor participation and the government's ability to select the best value offer.

Public Impact

Veterans Affairs medical facilities will receive essential coagulation supplies and CPRR equipment. Improved diagnostic capabilities for blood clotting disorders will benefit patient care. The contract supports the VA's mission to provide healthcare services to veterans. Workforce implications include the need for trained personnel to operate and maintain the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 91 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess effectiveness.
Short contract duration may lead to frequent re-competition and potential disruption.
Absence of detailed product specifications could lead to variations in quality.
Limited information on the specific CPRR technology used.
Geographic scope is not explicitly defined beyond the agency.

Positive Signals

High small business subcontracting goal of 91% is a significant positive signal.
Firm-fixed-price contract provides cost certainty for the government.
Award to an established vendor suggests reliability.
Use of full and open competition promotes market efficiency.
Contract supports critical healthcare needs for veterans.

Sector Analysis

The contract falls within the broader healthcare and medical equipment sector, specifically focusing on analytical laboratory instruments and consumables. This market is characterized by technological advancements and stringent regulatory requirements. Spending in this area is driven by the need for accurate diagnostics and patient monitoring. Comparable spending benchmarks would typically involve analyzing procurements for similar laboratory diagnostic equipment and reagents across federal agencies.

Small Business Impact

The contract includes a notable small business subcontracting goal of 91%, which is exceptionally high. This indicates a strong emphasis on engaging small businesses in the supply chain for these coagulation supplies and CPRR. It suggests that the prime contractor, WERFEN USA LLC, is expected to actively seek out and utilize small business subcontractors to fulfill a significant portion of the contract requirements, potentially fostering growth and opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price structure, which holds the contractor responsible for delivering goods and services at the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though specific performance monitoring details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies and Equipment
Laboratory Instruments
Diagnostic Reagents
Veterans Health Administration Procurement

Risk Flags

Potential difficulty in meeting high small business subcontracting goal.
Lack of specific performance metrics.
Short contract duration may indicate a temporary need or risk of discontinuity.
Absence of detailed product specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,619.16 to WERFEN USA LLC. COAGULATION SUPPLIES AND CPRR

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 $16,619.16.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What is the specific type of CPRR equipment being procured, and what are its key functionalities?

The provided data does not specify the exact type or model of the CPRR (likely referring to Coagulation Profile and Reagent) equipment. CPRR systems in a laboratory context typically refer to automated analyzers used for performing various blood coagulation tests. These tests are crucial for diagnosing and monitoring bleeding disorders, thrombotic conditions, and the effectiveness of anticoagulant therapies. Key functionalities usually include sample processing, reagent dispensing, clot detection, and data reporting. Without more specific product details, it's difficult to assess the technological sophistication or specific applications of the procured equipment.

How does the $16.6 million contract value compare to historical spending on similar coagulation supplies and CPRR by the VA?

To accurately compare the $16.6 million contract value to historical VA spending, a detailed analysis of past procurements for 'Coagulation Supplies and CPRR' or similar product service codes (PSCs) would be necessary. This would involve examining contract awards over several fiscal years to identify trends in pricing, contract volumes, and average award amounts. Factors such as inflation, technological advancements, and changes in demand can influence historical spending. Without access to this historical data, it's challenging to definitively state whether this award represents an increase, decrease, or is in line with previous spending patterns for these specific items.

What are the specific performance metrics or key performance indicators (KPIs) associated with this contract?

The provided contract data does not include specific performance metrics or Key Performance Indicators (KPIs) for this award. Typically, contracts for medical supplies and equipment would include requirements related to delivery timelines, product quality standards (e.g., adherence to FDA regulations, expiration dates), and potentially service response times for equipment. The absence of explicitly stated KPIs makes it difficult to quantitatively assess the contractor's performance and ensure optimal value delivery. The Department of Veterans Affairs would usually monitor these aspects through contract administration and quality assurance processes.

What is the rationale behind the short contract duration of 182 days?

The short contract duration of 182 days (approximately six months) for this $16.6 million award suggests several possibilities. It could indicate a need for immediate or short-term supply of these critical items, perhaps to bridge a gap until a longer-term contract is established or to fulfill a specific, time-bound project. Alternatively, it might be a strategy to test a new product or vendor before committing to a longer contract, or it could be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where this is a specific call order. The firm-fixed-price nature also aligns with defined scopes for shorter periods.

What specific risks are associated with a 91% small business subcontracting goal?

A 91% small business subcontracting goal, while beneficial for small businesses, carries potential risks. The primary risk is the prime contractor's ability to identify, vet, and manage a sufficient number of qualified small business subcontractors to meet this ambitious target. Failure to meet the goal could result in penalties or a negative performance review. There's also a risk of increased administrative burden for the prime contractor in managing numerous subcontracts. Furthermore, if the small businesses lack the necessary capacity or expertise, it could impact delivery timelines or product quality, indirectly affecting the government. The government must ensure robust oversight to mitigate these risks.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,619

Exercised Options: $16,619

Current Obligation: $16,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26326A0013

IDV Type: BPA

Timeline