VA Awards $1.05M for Contrast Injectors to Bayer Healthcare, Sole Source

Contract Overview

Contract Amount: $105,243 ($105.2K)

Contractor: Bayer Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-12

End Date: 2026-02-11

Contract Duration: 364 days

Daily Burn Rate: $289/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRAST INJECTORS

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $105,242.58 to BAYER HEALTHCARE LLC for work described as: CONTRAST INJECTORS Key points: 1. High value contract for essential medical equipment. 2. Sole source award limits competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. Focus on healthcare sector, specifically surgical instruments.

Value Assessment

Rating: questionable

Pricing is difficult to assess without competitive benchmarks. The sole-source nature suggests potential for higher costs than if multiple vendors were considered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning only one vendor was considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition in this sole-source award.

Public Impact

Ensures availability of critical medical devices for veterans. Potential for increased healthcare costs if pricing is not optimized. Highlights reliance on specific manufacturers for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation

Positive Signals

Ensures supply of critical medical equipment
Supports veteran healthcare services

Sector Analysis

This contract falls within the healthcare sector, specifically the manufacturing of surgical and medical instruments. Spending benchmarks for contrast injectors can vary widely based on technology and volume, but sole-source awards often deviate from optimal pricing.

Small Business Impact

No indication of small business participation in this sole-source award. The focus is on a large, established healthcare provider.

Oversight & Accountability

The sole-source justification needs thorough review to ensure it was appropriate and that the price negotiated is fair and reasonable given the lack of competition.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in price negotiation.
Reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $105,242.58 to BAYER HEALTHCARE LLC. CONTRAST INJECTORS

Who is the contractor on this award?

The obligated recipient is BAYER HEALTHCARE 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 $105,242.58.

What is the period of performance?

Start: 2025-02-12. End: 2026-02-11.

What is the justification for the sole-source award, and was a market research conducted to confirm no other viable sources exist?

The justification for a sole-source award typically involves specific circumstances, such as unique capabilities, urgent needs, or the unavailability of alternatives. A thorough market research report should have been conducted to validate that no other responsible sources could meet the government's requirements. Without this documentation, the sole-source determination is questionable.

How was the price determined to be fair and reasonable without competitive bids?

Determining price reasonableness for a sole-source contract often relies on historical pricing data, commercial price lists, or cost analysis techniques. The agency should have performed a detailed price analysis, potentially comparing the proposed price to similar items purchased previously or to prices charged to other customers. The absence of competition makes this analysis critical.

What is the long-term strategy for acquiring contrast injectors to ensure competitive pricing in the future?

The long-term strategy should involve exploring options to foster competition, such as breaking down the requirement into smaller lots, encouraging new market entrants, or re-evaluating the necessity of sole-source procurement for future needs. Proactive market research and engagement with potential vendors can help mitigate future sole-source awards.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 BAYER BLVD, WHIPPANY, NJ, 07981

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

Financial Breakdown

Contract Ceiling: $150,375

Exercised Options: $105,243

Current Obligation: $105,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline