VA awards $23.9M for Coagulation Supplies, highlighting potential for analytical instrument manufacturing needs

Contract Overview

Contract Amount: $23,943 ($23.9K)

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: $132/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COAGULATION SUPPLIES / CPRR

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50310

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,942.8 to WERFEN USA LLC for work described as: COAGULATION SUPPLIES / CPRR Key points: 1. Contract value appears reasonable given the duration and scope, but requires benchmarking against similar analytical instrument procurements. 2. Full and open competition suggests a healthy market for these supplies, potentially leading to competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of 182 days is relatively short, indicating a potential need for follow-on contracts or a specific, limited requirement. 5. The contract falls under analytical laboratory instrument manufacturing, a specialized sector within healthcare. 6. No small business set-aside was utilized, suggesting the primary awardee may not be an SMB.

Value Assessment

Rating: good

The contract value of $23.9 million for a 182-day period for coagulation supplies and related analytical instruments seems substantial. Without specific per-unit cost data or direct comparisons to similar VA or DoD contracts for the same or equivalent analytical instruments, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty. Benchmarking against market rates for high-complexity laboratory equipment and consumables would be necessary for a definitive evaluation.

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 solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging vendors to offer their best pricing and terms. The specific number of bidders is not provided, but the method suggests a robust market response for these specialized supplies and instruments.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive rates for its procurements.

Public Impact

Veterans receiving diagnostic and treatment services through VA healthcare facilities will benefit from the availability of these essential coagulation supplies and analytical instruments. The contract supports the provision of critical laboratory testing services within the Department of Veterans Affairs. Geographic impact is likely nationwide, as VA facilities across the country rely on such supplies for patient care. The contract supports the analytical laboratory instrument manufacturing sector, potentially impacting jobs in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single supplier for critical, specialized equipment could pose supply chain risks.
Ensuring the long-term availability and maintenance of analytical instruments requires careful planning beyond this short-term contract.

Positive Signals

Award through full and open competition suggests a competitive market and potentially favorable pricing.
Fixed-price contract type offers cost predictability and mitigates risk of cost overruns.
The contract supports a critical healthcare function within the VA, ensuring patient care continuity.

Sector Analysis

This contract falls within the broader healthcare sector, specifically focusing on medical equipment and supplies, with a sub-focus on analytical laboratory instruments. The market for such specialized equipment is often characterized by a few key manufacturers and distributors. Spending benchmarks for laboratory instruments can vary widely based on complexity and features, but significant government procurements in this area are common to support healthcare services.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary awardee, WERFEN USA LLC, is likely a larger entity. The absence of explicit SMB provisions means that opportunities for small businesses to participate in this specific procurement may be limited, unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. Standard VA procurement regulations and contract management processes would apply. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would be applicable in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Medical Supplies
Laboratory Equipment
Diagnostic Instruments
Healthcare Services Contracts
Veterans Health Administration Procurement

Risk Flags

Potential for supply chain disruption if WERFEN USA LLC faces production or distribution issues.
Risk of obsolescence if analytical instruments procured are not the latest technology or lack upgrade paths.
Dependence on a single awardee for critical supplies could limit future negotiating leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,942.8 to WERFEN USA LLC. COAGULATION SUPPLIES / 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 $23,942.8.

What is the period of performance?

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

What is the historical spending pattern for coagulation supplies and related analytical instruments by the Department of Veterans Affairs?

Analyzing historical spending patterns for coagulation supplies and analytical instruments by the VA is crucial for understanding long-term needs and budget allocation. While this specific contract is for $23.9 million over approximately six months, prior VA spending data would reveal if this represents an increase, decrease, or consistent level of investment in this area. Examining trends over the past 3-5 fiscal years, including the number of contracts awarded, average contract values, and primary awardees, can highlight market stability or shifts. For instance, a consistent high volume of spending might indicate a stable demand, whereas fluctuating amounts could suggest changes in technology, patient volume, or procurement strategies. Understanding these patterns helps in forecasting future requirements and identifying potential cost-saving opportunities through strategic sourcing or consolidation.

How does the per-unit cost of these coagulation supplies compare to market rates or similar government contracts?

A detailed per-unit cost comparison is essential for assessing the value for money of this $23.9 million contract. Without access to the specific line-item pricing within the BPA call, direct benchmarking is difficult. However, analysis would involve comparing the unit prices of the specific coagulation reagents, controls, and any associated consumables against publicly available catalog prices from major medical supply distributors, as well as against prices paid by other federal agencies (e.g., DoD, HHS) for similar items. If the contract includes analytical instruments, their acquisition cost and associated maintenance fees would also need to be benchmarked. Significant deviations from market or peer government contract rates could indicate either exceptional value or potential overpayment, warranting further investigation into the contract's specifics, such as volume discounts, bundled services, or unique product specifications.

What is the track record of WERFEN USA LLC in fulfilling similar federal contracts, particularly for the VA?

Evaluating the track record of WERFEN USA LLC is vital for assessing the reliability and performance risk associated with this contract. A review of their past federal contract awards, focusing on those with the Department of Veterans Affairs and for similar product categories (coagulation supplies, laboratory instruments), would provide insight. Key performance indicators to examine include on-time delivery rates, contract modifications (and reasons for them), past performance evaluations (if publicly available), and any history of disputes or contract terminations. A history of successful, timely, and compliant contract performance suggests a lower risk for this current award. Conversely, a pattern of issues could signal potential challenges in meeting the VA's requirements for this $23.9 million BPA call.

What are the specific analytical instruments included in this contract, and what is their technological relevance?

The contract description mentions 'Analytical Laboratory Instrument Manufacturing,' implying that the procurement extends beyond simple consumables to include sophisticated analytical instruments. Identifying the specific models or types of instruments is crucial for understanding their technological relevance and the VA's investment. Are these state-of-the-art analyzers, or are they older models? Understanding the technology helps assess if the VA is acquiring cutting-edge capabilities to improve diagnostic accuracy and efficiency, or if the procurement aligns with existing infrastructure. Furthermore, the technological specifications can influence pricing, maintenance requirements, and the need for specialized training for VA staff, all of which are factors in the overall value and effectiveness of the contract.

What is the expected impact of this contract on the VA's overall laboratory testing capacity and efficiency?

This $23.9 million contract for coagulation supplies and analytical instruments is expected to directly impact the VA's laboratory testing capacity and efficiency. By ensuring a steady supply of necessary reagents and potentially upgrading or maintaining analytical instruments, the contract should support the timely and accurate processing of patient samples. This can lead to faster diagnoses, more effective treatment planning, and improved patient outcomes. The efficiency gains might stem from newer, faster instruments, or simply from the reliable availability of consumables preventing testing backlogs. Assessing the contract's success would involve monitoring laboratory turnaround times, error rates, and clinician satisfaction with diagnostic services provided.

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: $23,943

Exercised Options: $23,943

Current Obligation: $23,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26326A0013

IDV Type: BPA

Timeline