VA awards $34,874 contract for FABHALTA 200 MG to Novartis Pharmaceuticals Corporation

Contract Overview

Contract Amount: $34,874 ($34.9K)

Contractor: Novartis Pharmaceuticals Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-04-15

Contract Duration: 8 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FABHALTA 200 MG

Place of Performance

Location: CARY, WAKE County, NORTH CAROLINA, 27513

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34,873.77 to NOVARTIS PHARMACEUTICALS CORPORATION for work described as: FABHALTA 200 MG Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is short (8 days), indicating a specific, immediate need. 3. The award amount is relatively small, suggesting a limited scope of service or product. 4. The contract is for pharmaceutical preparation manufacturing, a critical healthcare sector. 5. The fixed-price contract type aims to control costs for the government. 6. The contract was awarded to a single vendor, Novartis Pharmaceuticals Corporation.

Value Assessment

Rating: fair

The contract value of $34,873.77 for 8 days of service appears reasonable for a specialized pharmaceutical product. Without specific details on the quantity of FABHALTA 200 MG or comparable market prices for this exact formulation and dosage, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty. The benchmark of $4,359 suggests this is a significant portion of the total potential value if this were a larger, recurring contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally fosters price discovery and encourages multiple vendors to offer competitive pricing. The use of this procurement method suggests the VA sought the best possible value through a broad solicitation.

Taxpayer Impact: A full and open competition process is generally favorable to taxpayers as it is designed to yield the lowest possible price through market forces and vendor rivalry.

Public Impact

Patients requiring FABHALTA 200 MG will benefit from the availability of this medication. The Department of Veterans Affairs (VA) will receive the specified pharmaceutical preparation. The contract supports the healthcare services provided by the VA to its beneficiaries. The contract has implications for the pharmaceutical supply chain and distribution networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited contract duration may indicate a one-time need, making long-term impact assessment difficult.
Lack of detail on quantity and specific use case prevents a full understanding of the value proposition.
Reliance on a single awardee, even from open competition, warrants monitoring for future needs.

Positive Signals

Awarded through full and open competition, indicating a robust procurement process.
Fixed-price contract type provides cost predictability.
Short duration suggests a focused, potentially urgent requirement being met efficiently.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a critical component of the healthcare industry, characterized by high research and development costs, stringent regulatory requirements, and significant market competition. Contracts like this, for specific drug formulations such as FABHALTA 200 MG, are common within federal healthcare procurement. The market size for pharmaceuticals is vast, with government agencies being major purchasers. This contract fits within the broader category of medical supplies and pharmaceuticals procured by the VA to serve its veteran population.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted, though they would have been eligible to bid. There is no information on subcontracting plans related to small businesses. The impact on the small business ecosystem is likely minimal given the specialized nature of the product and the single award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a firm-fixed-price contract, the primary oversight will focus on ensuring delivery of the correct pharmaceutical product (FABHALTA 200 MG) within the specified timeframe and to the required specifications. Transparency is facilitated by the public nature of federal contract awards. While no specific Inspector General jurisdiction is mentioned, the VA Office of Inspector General would typically have oversight over VA contracts to prevent fraud, waste, and abuse.

Related Government Programs

Pharmaceuticals and Medical Supplies
Department of Veterans Affairs Healthcare Services
Drug Manufacturing Contracts
Federal Supply Schedule (if applicable)

Risk Flags

Potential for supply chain disruption
Ensuring product quality and efficacy
Vendor cost management impacting future availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34,873.77 to NOVARTIS PHARMACEUTICALS CORPORATION. FABHALTA 200 MG

Who is the contractor on this award?

The obligated recipient is NOVARTIS PHARMACEUTICALS 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 $34,873.77.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-15.

What is the specific quantity of FABHALTA 200 MG being procured under this contract?

The provided data does not specify the exact quantity of FABHALTA 200 MG being procured. The contract is for a pharmaceutical preparation, and the award amount of $34,873.77 covers the delivery order. Without the quantity, it is difficult to perform a precise unit cost analysis or benchmark against other similar procurements. The short duration (8 days) might suggest a limited quantity, but this is not explicitly stated. Further details would be needed from the contract award documentation to ascertain the precise quantity.

How does the benchmark cost of $4,359 relate to this contract's value?

The benchmark cost of $4,359 appears to be a reference point, possibly related to a previous contract, a different item, or a component of the overall contract value. It is not immediately clear how this specific figure relates to the $34,873.77 award for FABHALTA 200 MG. It could represent an average cost per day, a cost for a subset of the order, or a comparison point from a different contract vehicle. Without additional context or clarification from the data source, its direct relationship to this specific award remains ambiguous. It might be an internal benchmark used by the VA for comparison.

What is the track record of Novartis Pharmaceuticals Corporation with the Department of Veterans Affairs?

Novartis Pharmaceuticals Corporation is a major pharmaceutical company that likely has a history of contracts with various federal agencies, including the Department of Veterans Affairs. While this specific data point does not detail their entire track record, large pharmaceutical manufacturers frequently engage with the VA to supply medications. A comprehensive review would involve examining past awards, performance evaluations, and any reported issues. Given their size and industry, it is probable they have a substantial history of supplying the VA, potentially across multiple drug classes and contract types.

What are the potential risks associated with this contract award?

Potential risks include supply chain disruptions affecting the delivery of FABHALTA 200 MG, although the short duration might mitigate this. Another risk could be if the fixed price does not adequately cover unforeseen manufacturing or logistical costs for the vendor, potentially impacting future availability or willingness to bid. Given the specialized nature of pharmaceuticals, ensuring the product meets all quality and efficacy standards is paramount. Finally, if this is a critical medication for a specific patient population within the VA, any delay or quality issue could have significant health implications for beneficiaries.

How does this contract compare to other pharmaceutical procurements by the VA?

This contract, valued at approximately $34,874 for an 8-day period, appears to be a relatively small, specific procurement within the VA's overall pharmaceutical spending. The VA procures billions of dollars worth of pharmaceuticals annually, often through large, multi-year contracts, including those awarded via the Federal Supply Schedule (FSS). This particular award suggests a targeted need for a specific drug, possibly for a limited number of patients or a short-term requirement. Its value is significantly lower than major drug contracts, indicating a niche application or a single delivery order rather than a broad supply agreement.

What is the significance of the contract type being 'FIRM FIXED PRICE'?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it establishes a ceiling price that the government will not exceed, regardless of the contractor's actual costs. This shifts the risk of cost overruns from the government to the contractor, Novartis Pharmaceuticals Corporation. For the VA, this provides budget certainty and predictability. It incentivizes the contractor to manage its costs efficiently to maximize profit. This type of contract is generally preferred when the scope of work is well-defined and the risks are manageable, as is often the case with the supply of specific manufactured goods like pharmaceuticals.

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

Parent Company: Advanced Accelerator Applications USA Inc

Address: 59 ROUTE 10, EAST HANOVER, NJ, 07936

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: $34,874

Exercised Options: $34,874

Current Obligation: $34,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0180

IDV Type: FSS

Timeline