VA awards $11.4M contract for germline PGx molecular testing to Baylor Miraca Genetics Laboratories

Contract Overview

Contract Amount: $11,387,675 ($11.4M)

Contractor: Baylor Miraca Genetics Laboratories LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GERMLINE PGX MOLECULAR TESTING - YEAR 2

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.4 million to BAYLOR MIRACA GENETICS LABORATORIES LLC for work described as: GERMLINE PGX MOLECULAR TESTING - YEAR 2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating potential for follow-on work. 3. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 4. The contract duration of one year suggests a need for ongoing, specific services. 5. The North American Industry Classification System (NAICS) code 621511 points to specialized medical laboratory services. 6. The award is made by the Department of Veterans Affairs, indicating a focus on veteran healthcare needs.

Value Assessment

Rating: good

The contract value of $11.4 million for one year of germline PGx molecular testing appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for advanced genetic testing services would provide a more precise value assessment. The firm-fixed-price contract type is generally favorable for the government when scope is well-defined, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The VA's approach suggests they sought the best value through a broad solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to yield more competitive pricing and potentially higher quality services by allowing a wider pool of qualified contractors to bid.

Public Impact

Veterans will benefit from access to advanced germline PGx molecular testing, aiding in personalized medicine and treatment decisions. The services delivered will support the VA's healthcare system in providing specialized diagnostic capabilities. The geographic impact is primarily within the service area of Baylor Miraca Genetics Laboratories, with potential reach to VA facilities nationwide. The contract supports specialized roles within the medical laboratory and genetics fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specialized laboratory resources.
Reliance on a single contractor for a critical diagnostic service.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract supports a critical area of medical diagnostics (pharmacogenomics).

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on advanced diagnostic services. The market for pharmacogenomic testing is growing rapidly as personalized medicine gains traction. The VA's spending in this area reflects a commitment to leveraging genetic information for improved patient outcomes. Comparable spending benchmarks would likely be found in contracts for other specialized molecular diagnostic services within large healthcare systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a specialized service, it is likely that larger, established laboratories with specific certifications and capabilities were best positioned to compete. There is no explicit information on subcontracting plans, but the nature of the service might involve specialized equipment or reagents from other suppliers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Services Contracts
Diagnostic Laboratory Services
Molecular Diagnostics
Pharmacogenomics Testing
Federal Healthcare Procurement

Risk Flags

Potential for service disruption if contractor fails to perform.
Dependence on specialized technology and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.4 million to BAYLOR MIRACA GENETICS LABORATORIES LLC. GERMLINE PGX MOLECULAR TESTING - YEAR 2

Who is the contractor on this award?

The obligated recipient is BAYLOR MIRACA GENETICS LABORATORIES 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 $11.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of Baylor Miraca Genetics Laboratories with the federal government, particularly the VA?

Information regarding Baylor Miraca Genetics Laboratories' specific track record with the federal government, and the VA in particular, is not detailed in the provided data. However, the award of this contract suggests they possess the necessary qualifications and experience to meet the VA's requirements for germline PGx molecular testing. Further research into federal procurement databases like SAM.gov or FPDS would be needed to ascertain the full extent of their past performance, including previous contract values, performance ratings, and any history of disputes or issues.

How does the awarded price compare to market rates for similar germline PGx molecular testing services?

The provided data does not include specific per-test pricing or detailed service components, making a direct comparison to market rates challenging. The total contract value of $11.4 million over one year for germline PGx molecular testing suggests a significant volume or complexity of services. To benchmark effectively, one would need to identify comparable contracts for similar testing panels and patient populations, considering factors like the specific genes analyzed, the type of technology used (e.g., sequencing, genotyping), and the turnaround time required. The firm-fixed-price nature of the contract implies that the VA has negotiated a price deemed acceptable for the defined scope.

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

Key risks for the VA in this contract include potential issues with service quality or turnaround times, dependence on a single contractor for a critical diagnostic service, and the possibility of unforeseen technological advancements rendering the current testing methods obsolete. While the firm-fixed-price contract mitigates cost overrun risks, performance failures by the contractor could disrupt patient care and treatment planning. Ensuring robust quality assurance measures and clear performance standards within the contract is crucial to managing these risks.

How effective is germline PGx molecular testing in improving patient outcomes within the VA system?

Germline PGx molecular testing is designed to predict an individual's response to certain medications based on their genetic makeup. Its effectiveness within the VA system hinges on the integration of test results into clinical decision-making processes. When used appropriately, PGx testing can help clinicians select the most effective drug and dosage, minimize adverse drug reactions, and improve treatment efficacy, particularly for conditions like mental health disorders, cardiovascular diseases, and pain management. The VA's investment in this service suggests a strategic effort to enhance personalized medicine and improve health outcomes for veterans.

What are the historical spending patterns for germline PGx molecular testing or similar services by the VA?

The provided data only pertains to a single contract award for germline PGx molecular testing. To understand historical spending patterns, one would need to analyze VA's procurement data over several fiscal years, looking for contracts categorized under medical laboratories, genetic testing, or pharmacogenomics. This analysis would reveal trends in spending, identify key contractors, and indicate whether this $11.4 million award represents an increase, decrease, or stable level of investment in such services compared to previous periods.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this contract?

The provided data does not specify the performance metrics or KPIs associated with this contract. However, for a contract of this nature, typical KPIs would likely include turnaround time for test results, accuracy rates, specimen rejection rates, and potentially patient or clinician satisfaction. The VA would monitor these metrics to ensure the contractor is meeting the required standards of quality and timeliness essential for effective patient care. The contract details would outline these specific requirements and any associated remedies for non-performance.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2450 HOLCOMBE BLVD STE 104, HOUSTON, TX, 77021

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,387,675

Exercised Options: $11,387,675

Current Obligation: $11,387,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X24D0027

IDV Type: IDC

Timeline