VA Awards $24.7M to Roche Diagnostics for COVID-19 Reagents and Cobas Supplies
Contract Overview
Contract Amount: $24,704 ($24.7K)
Contractor: Roche Diagnostics Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $68/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ROCHE DIAGNOSTICS COVID-19 REAGENTS AND COBAS SUPPLIES.
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240
Plain-Language Summary
Department of Veterans Affairs obligated $24,704.22 to ROCHE DIAGNOSTICS CORPORATION for work described as: ROCHE DIAGNOSTICS COVID-19 REAGENTS AND COBAS SUPPLIES. Key points: 1. Significant award for essential diagnostic supplies, indicating ongoing demand for COVID-19 testing. 2. Sole reliance on Roche Diagnostics raises questions about potential price escalation and limited market access. 3. The contract's duration and firm fixed price structure offer some cost predictability. 4. This spending falls within the In-Vitro Diagnostic Substance Manufacturing sector.
Value Assessment
Rating: fair
Benchmarking Roche Diagnostics' pricing for COVID-19 reagents and Cobas supplies against similar government contracts is challenging without specific product details. However, the scale of this award suggests a substantial volume, and the firm fixed price aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Roche Diagnostics. This limits price discovery and competition, potentially leading to higher costs than if multiple vendors were considered.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore alternative suppliers or negotiate based on multiple bids.
Public Impact
Ensures continued availability of critical COVID-19 testing materials for veterans. Supports the Department of Veterans Affairs' ongoing public health response capabilities. Potential for increased healthcare costs if competitive pricing was not achieved. Highlights reliance on a single manufacturer for essential diagnostic supplies.
Waste & Efficiency Indicators
Waste Risk Score: 68 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for price gouging
Positive Signals
- Ensures supply chain continuity
- Firm fixed price contract
Sector Analysis
The In-Vitro Diagnostic Substance Manufacturing sector is crucial for healthcare, providing essential tools for disease detection and monitoring. Spending in this area is often driven by public health needs and technological advancements, with benchmarks varying widely based on product complexity and market dynamics.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large corporation, Roche Diagnostics. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. The lack of competition raises concerns about whether adequate oversight was applied to ensure fair pricing and value for taxpayer money.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- Reliance on a single supplier creates supply chain vulnerability.
- Lack of transparency in the justification for sole-sourcing.
Tags
in-vitro-diagnostic-substance-manufactur, department-of-veterans-affairs, pa, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $24,704.22 to ROCHE DIAGNOSTICS CORPORATION. ROCHE DIAGNOSTICS COVID-19 REAGENTS AND COBAS SUPPLIES.
Who is the contractor on this award?
The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.
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 $24,704.22.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What was the justification for awarding this contract sole-source, and were alternative suppliers evaluated?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. Without further details, it's unclear if alternative suppliers were evaluated or if specific circumstances necessitated bypassing the competitive bidding process for these COVID-19 reagents and Cobas supplies.
How does the per-unit cost of these reagents and supplies compare to market rates or previous contracts?
A direct comparison of per-unit costs is difficult without specific product codes and quantities. However, the firm fixed price structure suggests an attempt to control costs. The lack of competition is a primary risk factor that could lead to costs exceeding market benchmarks or previous contract prices.
What is the long-term strategy for ensuring competitive sourcing of essential diagnostic supplies beyond this contract?
The long-term strategy should involve proactive market research and planning to identify potential competitors and encourage market entry. The VA should consider strategies to foster competition for future needs, potentially through breaking down requirements, encouraging new entrants, or exploring alternative testing methodologies.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Roche Holding AG
Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,704
Exercised Options: $24,704
Current Obligation: $24,704
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C24424D0099
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-03
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