VA awards $33.1M contract for TYVASO 80 MCG, a pharmaceutical preparation, with a 7-day delivery window

Contract Overview

Contract Amount: $33,158 ($33.2K)

Contractor: United Therapeutics Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-04-10

Contract Duration: 7 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TYVASO 80 MCG

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38134

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33,158.1 to UNITED THERAPEUTICS CORP for work described as: TYVASO 80 MCG Key points: 1. The contract value of $33.1 million for a 7-day delivery period suggests a high per-unit cost or a critical, time-sensitive need. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could lead to favorable pricing. 3. The short duration of the delivery order (7 days) may introduce logistical risks and limit the scope for extensive performance evaluation. 4. The contract is for a specific pharmaceutical product, TYVASO 80 MCG, positioning it within the specialized healthcare and pharmaceutical manufacturing sector. 5. The award to UNITED THERAPEUTICS CORP, a known entity in this space, provides some assurance of contractor capability, but requires benchmarking against other suppliers. 6. The fixed price contract type aims to control costs, but the rapid delivery requirement could necessitate premium pricing.

Value Assessment

Rating: fair

The contract value of $33.1 million for a 7-day delivery of TYVASO 80 MCG appears high, especially considering the short performance period. Without more context on the quantity of TYVASO 80 MCG being procured, it is difficult to benchmark the per-unit cost effectively. However, the urgency implied by the delivery window might justify a premium. Further analysis would require comparing this award to similar rapid procurements of this specific drug or comparable high-value pharmaceuticals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally preferred for ensuring fair pricing and access to the widest range of qualified suppliers. The number of bidders and the specific terms of the competition would provide further insight into the level of price discovery achieved.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically drives down prices and encourages innovation, leading to better value for public funds.

Public Impact

Veterans receiving care through the Department of Veterans Affairs are the primary beneficiaries of this pharmaceutical supply. The contract ensures the availability of TYVASO 80 MCG, a critical medication, for patient treatment. The geographic impact is primarily within the United States, serving VA facilities. The contract supports the pharmaceutical manufacturing sector and potentially the logistics and distribution workforce involved in delivering the medication.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short delivery window (7 days) may indicate potential supply chain vulnerabilities or an emergency procurement, requiring close monitoring.
High contract value for a short duration could signal an inflated price if not adequately benchmarked against market rates for similar urgent pharmaceutical needs.
Reliance on a single product (TYVASO 80 MCG) might pose risks if alternative treatments are needed or if there are supply disruptions for this specific drug.

Positive Signals

Awarded under full and open competition, suggesting a robust process that likely included multiple qualified bidders.
The contractor, UNITED THERAPEUTICS CORP, is likely experienced in pharmaceutical manufacturing, providing a degree of confidence in their ability to deliver.
Firm fixed price contract type offers cost certainty for the government, mitigating risks of cost overruns.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing sub-sector of the broader Healthcare industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and significant market competition among established pharmaceutical companies. The market size for specialized pharmaceuticals like TYVASO can be substantial, driven by patient needs and healthcare provider adoption. Comparable spending benchmarks would involve analyzing other government contracts for similar high-value, time-sensitive pharmaceutical procurements.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a large-value pharmaceutical procurement, it is likely that the primary awardee is a large corporation. There is no information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless UNITED THERAPEUTICS CORP engages small businesses for specialized support services related to distribution or logistics.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of the specified product within the agreed timeframe. Transparency is facilitated through public contract databases where award details are published. The Inspector General's office within the VA may conduct audits or investigations if any irregularities or concerns arise regarding the procurement process or contract performance.

Related Government Programs

Pharmaceuticals and Medical Supplies
Medical Research and Development
Veterans Health Administration Services
Emergency Pharmaceutical Procurement

Risk Flags

High contract value for short duration
Potential for inflated pricing due to urgency
Limited performance period for evaluation
Dependence on a single pharmaceutical product

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33,158.1 to UNITED THERAPEUTICS CORP. TYVASO 80 MCG

Who is the contractor on this award?

The obligated recipient is UNITED THERAPEUTICS CORP.

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 $33,158.1.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-10.

What is the specific quantity of TYVASO 80 MCG being procured under this contract, and how does this inform the per-unit cost?

The provided data does not specify the exact quantity of TYVASO 80 MCG being procured. The contract value is $33,158.10, and the duration is 7 days. To determine the per-unit cost, the total quantity would need to be divided into the contract value. Without the quantity, a precise per-unit cost benchmark cannot be established. However, given the high contract value for a short delivery window, it is plausible that either a significant quantity is required, or the per-unit price is substantial, potentially reflecting specialized manufacturing or urgent delivery costs. Further inquiry with the agency would be needed to ascertain the quantity.

How does the $33.1 million contract value for a 7-day delivery compare to historical spending on TYVASO 80 MCG by the VA or other federal agencies?

Historical spending data for TYVASO 80 MCG by the VA or other federal agencies is not provided in the initial data. To conduct a meaningful comparison, one would need to access historical contract databases (e.g., FPDS, SAM.gov) to identify previous awards for this specific drug. Key metrics for comparison would include the quantity procured, the price per unit, the delivery timeframe, and the contracting agency. A high value for a short duration could indicate an emergency procurement or a significant increase in demand. Without this historical context, assessing whether $33.1 million for 7 days represents value for money is challenging. It is crucial to determine if this is a recurring need or a one-time urgent requirement.

What are the specific performance standards and quality control measures for TYVASO 80 MCG delivery within the 7-day window?

The contract specifies a firm fixed price and a 7-day delivery window for TYVASO 80 MCG. While the data does not detail specific performance standards, government contracts for pharmaceuticals typically include stringent quality control measures. These would likely encompass adherence to Good Manufacturing Practices (GMP), proper storage and handling conditions during transit, and verification of product integrity upon delivery. The contract would also stipulate requirements for packaging, labeling, and documentation. Failure to meet these standards could result in contract non-compliance, penalties, or termination. The VA would have quality assurance personnel to monitor compliance with these standards.

What is UNITED THERAPEUTICS CORP's track record with the VA and other federal agencies for similar pharmaceutical procurements?

UNITED THERAPEUTICS CORP is the manufacturer of TYVASO. Their track record with the VA and other federal agencies for similar pharmaceutical procurements would need to be assessed through contract databases. This would involve reviewing past awards, performance evaluations (if available), and any history of contract disputes or issues. As a known entity in the pharmaceutical space, it is probable they have existing relationships and a history of fulfilling government contracts. However, a thorough review of their past performance, particularly concerning timely delivery and product quality for critical medications, is essential to gauge their reliability for this specific award.

Given the full and open competition, how many bids were received, and what was the range of pricing offered by competing vendors?

The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION,' but it does not specify the number of bids received or the pricing range offered by competing vendors. To assess the effectiveness of the competition and the value for money, this information is critical. A high number of bids typically suggests robust competition, which can lead to more favorable pricing for the government. Conversely, a low number of bids might indicate limited market availability or barriers to entry. Obtaining the bid count and pricing details would allow for a more thorough analysis of price discovery and potential savings.

What is the strategic importance of TYVASO 80 MCG within the VA's formulary or treatment protocols, and does this justify the contract's terms?

The strategic importance of TYVASO 80 MCG within the VA's formulary and treatment protocols is not detailed in the provided data. TYVASO is a medication used to treat pulmonary arterial hypertension (PAH). Its inclusion in the VA's formulary suggests it is a necessary treatment for veterans suffering from this condition. The contract's terms, particularly the $33.1 million value for a 7-day delivery, would be justified if TYVASO is a first-line or critical treatment for a significant number of veterans, and if the 7-day window represents an essential supply chain requirement to avoid patient harm or treatment interruption. Understanding the prevalence of PAH within the veteran population and the drug's role in treatment would provide context for the contract's value and urgency.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: 1040 SPRING ST, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $33,158

Exercised Options: $33,158

Current Obligation: $33,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0104

IDV Type: FSS

Timeline