VA awards $16.4M for Coagulation Supplies, highlighting a 182-day contract term

Contract Overview

Contract Amount: $16,400 ($16.4K)

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: $90/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COAGULATION SUPPLIES / CPRR

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,400 to WERFEN USA LLC for work described as: COAGULATION SUPPLIES / CPRR Key points: 1. The contract value of $16.4 million for coagulation supplies appears to be a significant investment in laboratory diagnostics. 2. WERFEN USA LLC secured this award, indicating a competitive landscape for essential medical equipment. 3. The firm fixed-price contract type suggests predictable costs for the Department of Veterans Affairs. 4. A short 182-day duration may point to immediate needs or a bridge to a larger procurement. 5. The absence of small business set-aside suggests the primary focus was on best value from established providers. 6. This procurement falls under analytical laboratory instrument manufacturing, a critical support sector for healthcare.

Value Assessment

Rating: good

Benchmarking the value of $16.4 million for coagulation supplies requires specific market data for comparable instruments and consumables. However, the firm fixed-price structure suggests the VA has negotiated a defined cost. Without detailed cost breakdowns or comparisons to similar recent awards, a precise value-for-money assessment is challenging. The 182-day duration implies a focused need, potentially for a specific project or to bridge a gap, which can influence per-unit costs.

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 had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures that the government is not overpaying for necessary supplies.

Public Impact

Veterans will benefit from access to accurate and timely diagnostic testing through the provision of these coagulation supplies. The Department of Veterans Affairs will enhance its laboratory capabilities, supporting clinical decision-making. The contract supports the healthcare infrastructure within the VA system, ensuring essential medical services are maintained. This award contributes to the supply chain for critical medical diagnostics, impacting patient care pathways.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a need for rapid deployment or a temporary solution, potentially leading to higher per-unit costs if not managed carefully.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance or potential risks.
The absence of small business participation could limit opportunities for smaller, specialized firms in this procurement.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should yield favorable pricing.
Firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The procurement of essential coagulation supplies directly supports critical healthcare services for veterans.

Sector Analysis

The procurement of coagulation supplies falls within the broader healthcare and medical equipment sector. This sector is characterized by continuous innovation, stringent regulatory requirements, and a mix of large established players and specialized smaller firms. The market for diagnostic instruments and consumables is substantial, driven by the increasing demand for accurate disease detection and monitoring. This contract represents a specific need within the VA's extensive healthcare network, contributing to their overall spending on medical supplies and equipment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely focused on obtaining the best overall value from a wide range of potential offerors, including large corporations. While this may not directly benefit small businesses through set-asides, it does not preclude them from subcontracting opportunities if they possess specialized capabilities or products that WERFEN USA LLC may require.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a federal agency, the VA is subject to various oversight mechanisms, including internal audits, program reviews, and potential Inspector General investigations. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. The firm fixed-price nature of the contract simplifies some aspects of financial oversight by establishing a clear ceiling for costs.

Related Government Programs

Medical Supplies
Laboratory Equipment
Diagnostic Instruments
Veterans Health Administration
Clinical Laboratory Services

Risk Flags

Short contract duration
Lack of detailed performance metrics
Potential for supply chain vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,400 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 $16,400.

What is the period of performance?

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

What is the historical spending pattern for coagulation supplies by the Department of Veterans Affairs?

Analyzing historical spending patterns for coagulation supplies by the Department of Veterans Affairs (VA) is crucial for understanding trends, identifying potential cost savings, and assessing the consistency of procurement strategies. While specific historical data for this exact contract line item (334516 - Analytical Laboratory Instrument Manufacturing) is not provided, a review of past VA procurements for similar categories like 'Coagulation Analyzers,' 'Reagents,' or 'Hematology Supplies' would reveal spending volumes over the last 5-10 fiscal years. This analysis would likely show fluctuations based on evolving medical needs, technological advancements in diagnostic equipment, and changes in healthcare utilization. It would also highlight which contractors have been historically successful in winning these awards and whether the VA has predominantly used full and open competition or other methods like sole-source or limited competition. Understanding these patterns helps in evaluating whether the current $16.4 million award is an outlier, a continuation of a trend, or a strategic shift in the VA's approach to acquiring these essential laboratory consumables and instruments.

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

A comprehensive comparison of the unit cost for these coagulation supplies against market rates and similar federal contracts is essential for determining value for money. Without the specific itemized costs or quantities within the $16.4 million BPA Call award, a direct unit cost benchmark is not feasible from the provided data. However, the VA typically leverages its purchasing power through large-scale contracts and potentially national-level agreements to secure competitive pricing. If this BPA Call is a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, its pricing would be governed by the ceiling prices established in that parent contract. Comparing these prices to GSA schedules, other agency contracts for similar items, or even commercial price lists for equivalent products would be the next step. Factors such as volume discounts, delivery terms, and specific product configurations can significantly influence unit costs, making direct comparisons challenging but necessary for a thorough value assessment.

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

The primary risks associated with this $16.4 million contract for coagulation supplies include potential supply chain disruptions, obsolescence of technology, and performance issues from the contractor, WERFEN USA LLC. Given the short 182-day duration, a significant risk is the potential for price increases if this is a temporary measure leading to a subsequent, potentially higher-cost, long-term contract. Mitigation strategies typically involve robust contract management by the VA, including clear performance standards, regular communication with the contractor, and contingency planning for alternative suppliers. The firm fixed-price nature mitigates financial risk for the VA by capping costs. However, the lack of detailed performance metrics in the summary data makes it difficult to assess specific mitigation efforts for quality or delivery risks. Ensuring the chosen supplies are compatible with existing VA laboratory infrastructure is also a key consideration to avoid integration risks.

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

WERFEN USA LLC's track record in fulfilling federal contracts, especially with the Department of Veterans Affairs (VA), is a critical factor in assessing the reliability and potential success of this $16.4 million award. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the company's history of awards, contract types, performance ratings (if available), and any past performance issues or disputes. Companies like Werfen, often involved in specialized medical diagnostics, typically have established relationships with healthcare providers. Examining their history with the VA specifically would indicate their familiarity with VA procurement processes, reporting requirements, and quality standards. Positive past performance, particularly on similar contracts for laboratory instruments or supplies, would suggest a lower risk profile for this current award. Conversely, any history of contract terminations, significant delays, or quality control issues would warrant closer scrutiny and potentially more stringent oversight by the VA.

How does the competition level (full and open) impact the overall value and efficiency of this procurement?

The 'full and open competition' designation for this $16.4 million contract is a significant indicator of its potential value and efficiency. This procurement method mandates that all responsible sources are permitted to submit a bid, fostering a competitive environment. Such competition typically drives down prices as vendors vie to offer the most attractive terms and pricing to win the contract. It also encourages innovation and efficiency, as companies strive to differentiate themselves through product quality, service, and cost-effectiveness. For taxpayers, this means a higher likelihood that the government is obtaining goods and services at a fair market price, maximizing the return on investment. The efficiency is enhanced because the government is not limited by pre-existing relationships or restricted solicitations, allowing access to the broadest possible range of solutions and suppliers, thereby increasing the probability of selecting the best fit for the VA's specific needs.

What are the implications of the 'Analytical Laboratory Instrument Manufacturing' Product Service Code (PSC) for this contract?

The Product Service Code (PSC) '334516 - Analytical Laboratory Instrument Manufacturing' indicates that this contract is primarily for the manufacturing or supply of instruments used for laboratory analysis. This suggests that the $16.4 million award to WERFEN USA LLC likely encompasses not just consumables (like reagents or test kits) but also the sophisticated machinery required for coagulation testing. This has several implications: 1) Higher potential value per item compared to simple consumables. 2) A need for robust technical specifications and quality control to ensure instrument accuracy and reliability, which are critical for medical diagnostics. 3) Potential for longer-term support, maintenance, and calibration contracts, even though this specific award is short-term. 4) The contractor must possess advanced manufacturing capabilities and adhere to relevant industry standards (e.g., FDA regulations if applicable). This PSC places the contract within a specialized segment of the healthcare manufacturing industry.

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: $16,400

Exercised Options: $16,400

Current Obligation: $16,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26326A0013

IDV Type: BPA

Timeline