VA awards $22.8M for GALAFOLD 123 MG, a significant investment in pharmaceutical preparation manufacturing

Contract Overview

Contract Amount: $22,840 ($22.8K)

Contractor: Amicus Therapeutics US, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-04-10

Contract Duration: 3 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GALAFOLD 123 MG

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,839.61 to AMICUS THERAPEUTICS US, LLC for work described as: GALAFOLD 123 MG Key points: 1. The contract value of $22.8 million represents a substantial commitment to acquiring specialized pharmaceuticals. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and market responsiveness. 3. Risk indicators are monitored to ensure timely delivery and quality of pharmaceutical products. 4. Performance context is crucial for evaluating the effectiveness of this acquisition within the VA's healthcare mission. 5. The pharmaceutical preparation manufacturing sector is characterized by high R&D costs and stringent regulatory oversight.

Value Assessment

Rating: good

The contract value of $22.8 million for GALAFOLD 123 MG appears reasonable given the specialized nature of pharmaceutical preparation manufacturing. Benchmarking against similar contracts for high-value, niche pharmaceuticals would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific per-unit cost data or comparison to market rates for this particular drug, a definitive assessment of pricing efficiency is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of full and open competition generally fosters a more competitive environment, potentially leading to better pricing and terms for the government. The number of bidders and the specific evaluation criteria would further illuminate the intensity of the competition. A robust competitive process is a positive signal for price discovery and efficient resource allocation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and value for the GALAFOLD 123 MG. This process helps prevent inflated costs that might arise from less competitive or sole-source procurements.

Public Impact

Veterans will benefit from access to necessary pharmaceutical treatments facilitated by this contract. The contract ensures the supply of GALAFOLD 123 MG, a critical medication for specific health conditions. The geographic impact is primarily within the United States, supporting the VA's national healthcare delivery system. Workforce implications include potential demand for specialized roles in pharmaceutical logistics and administration within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the pharmaceutical market impacting long-term value.
Ensuring consistent supply chain integrity for critical medications.
Monitoring contractor performance to guarantee adherence to quality standards.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract structure shifts cost risk to the contractor.
Clear delivery order mechanism for efficient acquisition.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a highly specialized and regulated industry, characterized by significant research and development investments, complex manufacturing processes, and rigorous quality control standards. The market size is substantial, driven by global healthcare needs. This contract fits within the broader category of healthcare procurement, specifically focusing on the acquisition of finished pharmaceutical products. Comparable spending benchmarks would involve analyzing other large-value pharmaceutical contracts awarded by government agencies or large healthcare systems for similar therapeutic classes.

Small Business Impact

There is no indication that this contract included a small business set-aside. The nature of pharmaceutical manufacturing often involves large-scale operations and specialized facilities that may be more conducive to larger prime contractors. However, opportunities for small businesses may exist further down the supply chain as subcontractors, particularly in areas like logistics, distribution, or specialized testing services, depending on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected in the procurement or execution of this contract.

Related Government Programs

Department of Veterans Affairs Medical Care Programs
Pharmaceuticals and Medical Supplies Procurement
Federal Supply Schedule (FSS) Contracts
Department of Defense Pharmaceutical Contracts

Risk Flags

Potential for supply chain disruption
Quality control of pharmaceutical products
Market price volatility for specialized drugs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,839.61 to AMICUS THERAPEUTICS US, LLC. GALAFOLD 123 MG

Who is the contractor on this award?

The obligated recipient is AMICUS THERAPEUTICS US, 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 $22,839.61.

What is the period of performance?

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

What is the historical spending pattern for GALAFOLD 123 MG by the Department of Veterans Affairs?

Historical spending data for GALAFOLD 123 MG by the Department of Veterans Affairs (VA) is not directly available in the provided data snippet. This award represents a specific delivery order valued at $22.8 million with an anticipated completion date in April 2026. To understand historical spending patterns, one would need to access comprehensive VA procurement databases and search for previous contracts or delivery orders specifically for 'GALAFOLD 123 MG' or its associated National Drug Code (NDC) '325412'. Analyzing past awards would reveal the frequency of procurement, average contract values, and the duration of previous supply agreements, providing context for the current award's significance and potential trends in VA's utilization of this pharmaceutical.

How does the per-unit cost of GALAFOLD 123 MG compare to market rates or similar pharmaceuticals?

The provided data does not include specific per-unit cost information for GALAFOLD 123 MG, nor does it offer direct comparisons to market rates or similar pharmaceuticals. The total award amount of $22.8 million is for a duration of three years (implied by the delivery order dates and duration field), but the quantity of units is not specified. To perform a per-unit cost comparison, the total award value would need to be divided by the total number of units to be procured. Subsequently, this calculated per-unit cost would need to be benchmarked against publicly available pricing data from pharmaceutical distributors, other government agencies, or industry reports for GALAFOLD 123 MG and comparable drugs treating similar conditions. Without this granular data, assessing the value for money on a per-unit basis remains challenging.

What is the track record of AMICUS THERAPEUTICS US, LLC as a federal contractor, particularly with the VA?

The provided data indicates that AMICUS THERAPEUTICS US, LLC is the contractor for this $22.8 million award. To assess their track record, a review of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify all contracts awarded to this entity. Specifically, examining their past performance with the Department of Veterans Affairs (VA) would be crucial. This would involve looking at the number of previous contracts, their values, the types of goods or services provided, and any performance ratings or past performance reviews. A strong history of successful contract completion, timely delivery, and adherence to quality standards with the VA would indicate a reliable contractor. Conversely, any history of contract disputes, performance issues, or terminations would raise concerns.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this pharmaceutical contract include potential supply chain disruptions, quality control issues with the medication, and price volatility in the pharmaceutical market. Mitigation strategies are likely embedded within the contract terms and VA's oversight processes. The firm fixed-price structure shifts some financial risk to the contractor. The VA's quality assurance procedures and potential for inspections during manufacturing or delivery help mitigate quality risks. Furthermore, the full and open competition process aims to secure competitive pricing initially. Ongoing monitoring of the contractor's performance and adherence to delivery schedules are standard mitigation practices to ensure timely availability of the medication for veterans.

What is the strategic importance of GALAFOLD 123 MG within the VA's formulary or treatment protocols?

The strategic importance of GALAFOLD 123 MG within the VA's formulary or treatment protocols is directly linked to its therapeutic application and the patient population it serves. As a pharmaceutical preparation, it is likely prescribed for specific medical conditions affecting veterans. The significant award value of $22.8 million suggests that this medication is either used by a substantial number of veterans, is a high-cost drug, or both. Understanding its role requires knowledge of the specific disease or condition it treats and its efficacy compared to alternative treatments. Its inclusion in the VA's procurement strategy indicates it is considered a necessary component of veteran healthcare, supporting treatment plans and potentially improving health outcomes for a defined patient group.

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: 3675 MARKET ST FL 14, PHILADELPHIA, PA, 19104

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

Financial Breakdown

Contract Ceiling: $22,840

Exercised Options: $22,840

Current Obligation: $22,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79724D0185

IDV Type: FSS

Timeline