VA awards $21.5M contract modification to Foundation Medicine for FMI POC and reporting

Contract Overview

Contract Amount: $21,581,260 ($21.6M)

Contractor: Foundation Medicine, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-13

End Date: 2026-09-12

Contract Duration: 364 days

Daily Burn Rate: $59.3K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODIFICATION P1 TO ADD AN ADDITIONAL POC FOR FMI AND ADDITIONAL REPORT

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.6 million to FOUNDATION MEDICINE, INC. for work described as: MODIFICATION P1 TO ADD AN ADDITIONAL POC FOR FMI AND ADDITIONAL REPORT Key points: 1. Contract modification adds reporting and POC capabilities. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but competitive process. 3. Risk appears low due to a modification of an existing contract. 4. Sector is Medical Laboratories, a critical area for healthcare services.

Value Assessment

Rating: good

The modification value of $21.5M is a significant increase, but the pricing is assessed against the original contract's value and terms. Further analysis would require the original contract details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a process designed for smaller dollar values. This method can impact price discovery compared to full and open competition.

Taxpayer Impact: The taxpayer impact is the additional $21.5M for enhanced reporting and POC capabilities, which is expected to improve service delivery for veterans.

Public Impact

Enhances support for FMI services, potentially improving diagnostic capabilities for veterans. Additional reporting features could lead to better data analysis and patient outcomes. Ensures continuity of essential medical laboratory services through contract modification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not carefully managed.
Reliance on a single vendor for critical lab services.

Positive Signals

Addresses identified needs for improved reporting and POC.
Leverages existing vendor relationship for efficiency.

Sector Analysis

The Medical Laboratories sector (NAICS 621511) is crucial for healthcare delivery, with significant government spending. Benchmarks vary widely based on service scope and technology.

Small Business Impact

The contract was awarded to Foundation Medicine, Inc., a large business. There is no indication of small business participation in this modification.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs. The modification's focus on reporting suggests an effort to enhance accountability and performance monitoring.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns if scope is not tightly controlled.
Vendor lock-in for critical laboratory services.
Limited transparency due to SAP procurement method.
Dependence on a single provider for specific diagnostic capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.6 million to FOUNDATION MEDICINE, INC.. MODIFICATION P1 TO ADD AN ADDITIONAL POC FOR FMI AND ADDITIONAL REPORT

Who is the contractor on this award?

The obligated recipient is FOUNDATION MEDICINE, 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 $21.6 million.

What is the period of performance?

Start: 2025-09-13. End: 2026-09-12.

What is the original contract value and scope to properly assess the impact of this modification?

The provided data only details the modification amount ($21.5M) and its purpose. Without the original contract's baseline value, scope, and pricing structure, a comprehensive assessment of the modification's value proposition is challenging. Understanding the original terms is crucial for determining if the increased cost aligns with the added capabilities and market rates.

How does the pricing of this modification compare to similar services procured through full and open competition?

The contract was competed under SAP, which typically involves less rigorous price competition than full and open solicitations. A direct comparison to services procured via full and open competition is difficult without detailed pricing data for this modification and benchmark data for comparable services. The 'COMPETED UNDER SAP' designation suggests potential price advantages due to streamlined processes, but also a risk of not achieving the lowest possible price.

What are the specific performance metrics tied to the additional reporting and POC requirements?

The data indicates the modification is for 'ADDITIONAL POC FOR FMI AND ADDITIONAL REPORT'. However, it does not specify the performance metrics or Key Performance Indicators (KPIs) associated with these new requirements. Clear, measurable metrics are essential for the VA to effectively monitor performance, ensure value for money, and hold Foundation Medicine accountable for the successful implementation of these enhancements.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 150, SECOND STREET, CAMBRIDGE, MA, 02141

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $130,736,492

Exercised Options: $40,968,190

Current Obligation: $21,581,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G24D0059

IDV Type: IDC

Timeline