VA's $36.6M genomic sequencing contract awarded to Personalis, Inc. for testing services

Contract Overview

Contract Amount: $36,616,650 ($36.6M)

Contractor: Personalis, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-28

End Date: 2018-09-27

Contract Duration: 364 days

Daily Burn Rate: $100.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENOMIC SEQUENCING IGF::OT::IGF

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.6 million to PERSONALIS, INC. for work described as: GENOMIC SEQUENCING IGF::OT::IGF Key points: 1. Contract value represents a significant investment in advanced diagnostic capabilities. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. The fixed-price contract structure aims to control costs and provide budget certainty. 4. Performance period of one year indicates a focused scope for the services rendered. 5. This contract aligns with the VA's broader efforts to modernize healthcare and improve veteran outcomes. 6. The use of a delivery order under a larger contract structure implies flexibility in service acquisition.

Value Assessment

Rating: good

The total award of $36.6 million for genomic sequencing services appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale genomic sequencing contracts is challenging due to the proprietary nature of specific assays and the varying scope of services. However, the fixed-price contract type suggests that the VA aimed to secure services at a predetermined cost, which is a positive indicator for value for money. The contract was awarded to Personalis, Inc., a company with expertise in this field, suggesting a potentially good fit for the required services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the initial intent was open competition, specific circumstances led to the exclusion of certain sources. This suggests a limited competition scenario. The number of bidders is not explicitly stated in the provided data, but the 'limited' designation implies fewer than a fully open process. This could potentially impact price discovery, as a smaller pool of bidders might lead to less aggressive pricing compared to a truly open competition.

Taxpayer Impact: For taxpayers, a limited competition may mean that the government did not secure the absolute lowest price achievable through maximum market participation. However, if the exclusion of sources was justified by specific technical requirements or unique capabilities, the price might still represent good value for the specialized services obtained.

Public Impact

Veterans will benefit from advanced genomic sequencing, potentially leading to more personalized and effective treatment plans. The services delivered will include sophisticated laboratory testing and analysis of genetic material. The geographic impact is likely nationwide, serving veterans across various VA facilities. This contract supports a highly specialized segment of the healthcare workforce, including scientists and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure fair market access and optimal pricing.
Limited competition can sometimes lead to higher costs for taxpayers if not managed carefully.
The one-year duration might limit long-term strategic planning for genomic sequencing capabilities within the VA.

Positive Signals

Award to a specialized firm like Personalis, Inc. suggests access to cutting-edge technology and expertise.
The fixed-price contract provides cost certainty for the VA and taxpayers.
The contract falls under the Department of Veterans Affairs, indicating a focus on serving a specific and important population.

Sector Analysis

Genomic sequencing is a rapidly evolving field within the biotechnology and healthcare sectors, characterized by significant R&D investment and increasing clinical applications. The market size for genomic testing services is substantial and growing, driven by advancements in technology and a greater understanding of genetic predispositions to diseases. This contract fits within the broader healthcare services sector, specifically focusing on diagnostic testing. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of genomic assays and the varying scales of projects, but large government contracts in this area often run into tens of millions of dollars.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. The award to Personalis, Inc., a single entity, does not inherently suggest a focus on small business participation. Further review of the contract's subcontracting clauses would be necessary to determine the impact on the small business ecosystem. Without explicit set-asides, the primary beneficiaries are likely larger, specialized firms capable of meeting the stringent requirements of genomic sequencing.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are typically embedded within the contract's performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

VA Electronic Health Record Modernization
National Institutes of Health (NIH) Genomic Research
Department of Defense (DoD) Genomics Programs
Centers for Disease Control and Prevention (CDC) Public Health Genomics

Risk Flags

Limited Competition
Potential for Higher Costs due to Reduced Bidders
Data Security and Privacy Risks
Technological Obsolescence Risk
Integration Challenges with Existing Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.6 million to PERSONALIS, INC.. GENOMIC SEQUENCING IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PERSONALIS, INC..

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 $36.6 million.

What is the period of performance?

Start: 2017-09-28. End: 2018-09-27.

What is the track record of Personalis, Inc. in fulfilling government contracts, particularly within the VA?

Personalis, Inc. has a history of providing genomic sequencing and related services. While specific details on their track record with the VA are not fully elaborated in the provided data, their selection for this significant contract suggests they met the VA's requirements and possess relevant expertise. A deeper dive into their past performance on similar government contracts, including any past performance evaluations or awards/debarments, would provide a more comprehensive understanding of their reliability and capability in serving federal agencies. Examining their financial stability and capacity to handle large-scale projects is also crucial for assessing their track record.

How does the $36.6 million contract value compare to similar genomic sequencing contracts awarded by other federal agencies?

Comparing the $36.6 million contract value requires careful consideration of the scope, duration, and specific services included. Genomic sequencing contracts can vary widely. For instance, large-scale research initiatives by agencies like the National Institutes of Health (NIH) might involve multi-year, multi-hundred-million-dollar awards for broad genomic studies. Conversely, contracts for specific diagnostic assays or targeted sequencing for a defined patient population, like this VA contract, might be in the tens of millions. Without detailed scope-of-work comparisons, it's difficult to definitively benchmark. However, $36.6 million for a one-year delivery order suggests a substantial, high-throughput operation, likely competitive within its specific niche of diagnostic genomic services for a federal healthcare provider.

What are the primary risks associated with this genomic sequencing contract for the VA?

Key risks include potential technological obsolescence, as genomic sequencing technology evolves rapidly. There's also a risk of data integrity and security breaches, given the sensitive nature of genetic information. Performance risk, where Personalis, Inc. might not meet the required quality or turnaround times for sequencing, is another concern. Furthermore, the 'limited' competition aspect carries a risk of suboptimal pricing if market forces were not fully leveraged. Finally, integration challenges with existing VA healthcare IT systems could impede the effective use of the genomic data generated by this contract.

How effective is this contract likely to be in improving healthcare outcomes for veterans?

The effectiveness hinges on several factors. If the genomic sequencing provides actionable insights that lead to more precise diagnoses, personalized treatment plans (e.g., pharmacogenomics), or identification of disease predispositions, it can significantly improve veteran healthcare outcomes. The VA's ability to integrate this data into patient records and clinical decision-making processes is critical. Success also depends on the quality and interpretability of the sequencing data provided by Personalis, Inc. and the subsequent clinical follow-up. If leveraged effectively, this contract has the potential to advance precision medicine within the VA system.

What are the historical spending patterns for genomic sequencing services within the VA?

Historical spending data for genomic sequencing within the VA would reveal trends in investment in this area. Prior to this $36.6 million award, spending might have been lower or focused on different aspects of genetic analysis, perhaps through smaller contracts or research grants. An analysis of past VA contracts related to genomics would indicate whether this award represents a significant increase in investment, a shift towards more comprehensive sequencing services, or a continuation of established spending levels. Understanding these patterns helps contextualize the current contract's scale and strategic importance.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for price discovery and value for money?

This contract type implies that while the solicitation was initially intended for full and open competition, certain sources were excluded before the final award. This exclusion limits the number of potential bidders, which can reduce competitive pressure. Reduced competition may lead to less aggressive pricing than if all qualified sources had participated. Consequently, the government might not achieve the lowest possible price. The justification for excluding sources is critical; if based on unique capabilities or specialized requirements, the price might still represent good value. However, if exclusions were arbitrary, it could negatively impact value for money for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 OBRIEN DR, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,616,650

Exercised Options: $36,616,650

Current Obligation: $36,616,650

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA24017D0103

IDV Type: IDC

Timeline