VA awards $138K for Pomalyst, a cancer drug, to Bristol-Myers Squibb through BPA Call

Contract Overview

Contract Amount: $138,694 ($138.7K)

Contractor: Bristol-Myers Squibb Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-04-30

Contract Duration: 23 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: POMALYST 2 MG, 4 MG

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38141

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $138,693.69 to BRISTOL-MYERS SQUIBB COMPANY for work described as: POMALYST 2 MG, 4 MG Key points: 1. The contract is for Pomalyst, a significant pharmaceutical product. 2. Bristol-Myers Squibb is the sole manufacturer, potentially limiting competition. 3. The award is a BPA Call, indicating a pre-negotiated agreement. 4. The sector is Pharmaceutical Preparation Manufacturing, a high-value industry.

Value Assessment

Rating: good

The contract value of $138,693.69 appears reasonable for specialized pharmaceuticals. Benchmarking against similar drug procurements would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract is listed as full and open competition, the specific nature of pharmaceutical manufacturing often leads to limited actual bidders. The BPA Call mechanism suggests pricing was established previously.

Taxpayer Impact: Taxpayer funds are used for essential medications, ensuring veteran access to critical treatments.

Public Impact

Ensures access to a vital cancer treatment for veterans. Supports the pharmaceutical supply chain for critical medications. Potential for price fluctuations if competition truly expands in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole manufacturer reliance
Potential for price increases on future calls

Positive Signals

Ensures access to critical medication
Established procurement vehicle (BPA Call)

Sector Analysis

The pharmaceutical sector is characterized by high R&D costs and patent protection, often leading to single-source or limited competition for specific drugs. Spending benchmarks vary widely based on drug type and volume.

Small Business Impact

This contract does not appear to directly involve small businesses, as the award is to a large pharmaceutical manufacturer. Further analysis would be needed to determine if any subcontracting opportunities exist.

Oversight & Accountability

The Department of Veterans Affairs manages this contract, utilizing a Blanket Purchase Agreement Call. Oversight would focus on ensuring adherence to the BPA terms and fair pricing.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole source potential
Price volatility risk
Limited competition impact
Dependence on specific manufacturer

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $138,693.69 to BRISTOL-MYERS SQUIBB COMPANY. POMALYST 2 MG, 4 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 $138,693.69.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-30.

What is the historical pricing trend for Pomalyst under similar BPA calls?

Analyzing historical pricing data for Pomalyst under similar BPA calls is crucial. It would reveal if the current award reflects competitive pricing or potential escalation. Understanding past price variations can inform future negotiation strategies and identify potential cost-saving opportunities for the VA.

What are the specific criteria that define 'full and open competition' for this pharmaceutical product?

For a pharmaceutical product like Pomalyst, 'full and open competition' likely means that all responsible sources were permitted to submit offers. However, given the nature of drug manufacturing and patents, the number of actual bidders might be limited. The VA's justification for this classification would detail the market research conducted.

How does the VA ensure the effectiveness and quality of Pomalyst procured through this BPA Call?

The VA ensures the effectiveness and quality of Pomalyst through stringent procurement regulations and quality assurance protocols. This includes verifying manufacturer compliance with FDA standards, requiring product testing, and potentially conducting site visits. The contract terms themselves would specify quality requirements and remedies for non-compliance.

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: $138,694

Exercised Options: $138,694

Current Obligation: $138,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36E79726A0010

IDV Type: BPA

Timeline