VA awards $6.1M for CAMZYOS 5 MG, a pharmaceutical preparation, to Bristol-Myers Squibb

Contract Overview

Contract Amount: $6,164 ($6.2K)

Contractor: Bristol-Myers Squibb Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-04-10

Contract Duration: 3 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CAMZYOS 5 MG

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38141

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6,163.72 to BRISTOL-MYERS SQUIBB COMPANY for work described as: CAMZYOS 5 MG Key points: 1. The contract value of $6.1 million for a 3-year duration suggests a moderate annual spend for this pharmaceutical. 2. As a sole-source award, the VA may not have achieved the most competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This award falls within the pharmaceutical preparation manufacturing sector, a critical area for healthcare delivery. 5. The contract's short duration (3 years) allows for periodic re-evaluation of market needs and pricing.

Value Assessment

Rating: fair

Benchmarking the value of this specific pharmaceutical contract is challenging without more detailed market data on CAMZYOS 5 MG. However, the $6.1 million total award over three years indicates an average annual expenditure of approximately $2 million. This figure needs to be compared against the drug's therapeutic value, patient population served, and alternative treatments to assess true value for money. The fixed-price nature of the contract provides cost certainty but may not reflect the lowest possible price if competition was limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method. This means that only one contractor, Bristol-Myers Squibb Company, was solicited and awarded the contract. Sole-source awards are typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. Without a competitive bidding process, it is difficult to ascertain if the VA secured the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition limits price negotiation and discovery.

Public Impact

Veterans will benefit from access to CAMZYOS 5 MG, a medication likely prescribed for specific cardiovascular conditions. The contract ensures the supply of a critical pharmaceutical preparation for the Department of Veterans Affairs. The geographic impact is national, as the VA serves veterans across the United States. This contract supports the pharmaceutical manufacturing sector and its associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities for taxpayers.
Lack of competition may result in higher per-unit costs compared to a fully competed contract.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Ensures supply of a specific, potentially critical, pharmaceutical for veterans.
Fixed-price contract provides cost certainty for the VA.
Contract duration allows for a defined period of supply.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a vital component of the healthcare industry, characterized by high research and development costs, stringent regulatory requirements, and significant market concentration among a few large companies. Spending in this sector often involves patented drugs or specialized formulations. Benchmarking this $6.1 million award requires comparison to the typical contract values for similar high-value pharmaceuticals within the VA or other federal health agencies, considering factors like drug efficacy, patient volume, and therapeutic class.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of pharmaceutical manufacturing and the likely specialization required for CAMZYOS 5 MG, it is probable that large, established pharmaceutical companies are the primary suppliers. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified goods at the agreed-upon price. Transparency regarding the sole-source justification and contract performance would typically be available through federal procurement databases, though detailed operational oversight specifics are not provided.

Related Government Programs

Pharmaceuticals
Medical Supplies
Veterans Health Administration Contracts
Drug Manufacturing

Risk Flags

Sole-source award may limit price competition.
Lack of transparency regarding specific justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6,163.72 to BRISTOL-MYERS SQUIBB COMPANY. CAMZYOS 5 MG

Who is the contractor on this award?

The obligated recipient is BRISTOL-MYERS SQUIBB COMPANY.

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 $6,163.72.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-10.

What is the specific medical condition CAMZYOS 5 MG is intended to treat, and what is its therapeutic significance?

CAMZYOS (mavacamten) is a first-in-class cardiac myosin inhibitor indicated for the treatment of symptomatic obstructive hypertrophic cardiomyopathy (HCM) in adults. HCM is a chronic heart muscle disease that can lead to heart failure and sudden cardiac death. Mavacamten works by reducing the excessive contractility of the heart muscle, thereby improving symptoms like shortness of breath and fatigue, and potentially reducing the risk of adverse cardiovascular events. Its therapeutic significance lies in being a novel targeted therapy for a condition with limited treatment options, offering a new approach to managing HCM.

What is the justification for awarding this contract on a sole-source basis to Bristol-Myers Squibb Company?

The justification for a sole-source award typically stems from situations where only one responsible source is capable of providing the required product or service. For pharmaceuticals like CAMZYOS 5 MG, this often occurs when the drug is patented and the manufacturer holds exclusive rights to produce and distribute it. Other reasons could include unique manufacturing capabilities, proprietary technology, or urgent needs where only one vendor can meet the timeline. Without the specific justification document, it's presumed that Bristol-Myers Squibb is the sole entity legally permitted or technically capable of supplying this specific medication to the VA at this time.

How does the firm fixed-price contract type impact the risk and cost for the VA and the contractor?

A firm fixed-price (FFP) contract is a type of contract where the price is set and not subject to adjustment regardless of the contractor's cost experience. For the VA, this means cost certainty; they know the total amount they will pay for the goods, assuming the contractor fulfills the contract terms. This shifts the primary performance risk to the contractor, Bristol-Myers Squibb. If their costs to produce and deliver CAMZYOS 5 MG exceed the fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. This contract type is generally preferred when the scope of work is well-defined and risks are manageable.

What is the historical spending pattern for CAMZYOS 5 MG or similar cardiovascular drugs by the Department of Veterans Affairs?

Historical spending data for CAMZYOS 5 MG specifically by the VA would be limited, as it is a relatively new drug. Mavacamten received FDA approval in March 2022. Therefore, prior VA spending would likely be negligible or non-existent. For similar high-value cardiovascular drugs treating conditions like HCM, the VA's spending can vary significantly based on the prevalence of the condition among veterans, the availability of alternative treatments, and formulary decisions. Analyzing past expenditures on other advanced cardiovascular medications can provide a broader context for the potential scale of investment in novel therapies.

What are the potential implications of this contract for the availability and cost of CAMZYOS 5 MG in the broader market?

This VA contract represents a significant procurement of CAMZYOS 5 MG, potentially influencing its overall market availability and pricing dynamics. As a sole-source award, the VA is likely paying a price negotiated directly with Bristol-Myers Squibb. While this ensures supply for veterans, it doesn't necessarily reflect the lowest possible market price achievable through competition. The VA's purchasing power could influence future pricing negotiations with other healthcare providers or payers. However, the limited competition aspect means the broader market may not immediately benefit from price reductions that could arise from a more competitive procurement process.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3401 PRINCETON PIKE, LAWRENCEVILLE, NJ, 08648

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

Financial Breakdown

Contract Ceiling: $6,164

Exercised Options: $6,164

Current Obligation: $6,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36E79726A0010

IDV Type: BPA

Timeline