VA awards $17.4M for TYVASO, a pharmaceutical preparation, under full and open competition

Contract Overview

Contract Amount: $17,352 ($17.4K)

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: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TYVASO 64 MCG

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38134

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,351.6 to UNITED THERAPEUTICS CORP for work described as: TYVASO 64 MCG Key points: 1. The contract for TYVASO, a specific pharmaceutical preparation, is valued at $17.4 million. 2. United Therapeutics Corp is the contractor, indicating a single awardee for this specific product. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The short duration of 7 days for the delivery order might indicate an urgent or specific need.

Value Assessment

Rating: good

The award amount of $17.4 million for a 7-day delivery order of TYVASO appears substantial. Benchmarking against similar pharmaceutical preparations would be necessary to definitively assess pricing, but the firm fixed price suggests cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. The specific details of the bidding process are not provided, but the method itself is favorable for competition.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process, potentially lowering costs compared to non-competitive methods.

Public Impact

Veterans will receive access to TYVASO, a medication likely critical for their treatment. The pharmaceutical industry sees continued government investment in specialized drug procurement. The short delivery window suggests a potential need for rapid medical supply fulfillment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (7 days) could indicate a one-time need or potential for future recurring needs.
Lack of small business participation noted (ss: false, sb: false).

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

The pharmaceutical sector is characterized by high R&D costs, patent protection, and significant regulatory oversight. Government spending in this area often focuses on essential medicines for specific populations, like veterans, with pricing influenced by market exclusivity and therapeutic value.

Small Business Impact

The data indicates no small business participation in this contract award (ss: false, sb: false). This suggests that the prime contractor is likely a large business, and opportunities for small businesses in this specific procurement were either not sought or not met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for this procurement. Oversight would typically involve ensuring the medication meets quality standards, is delivered on time, and that the pricing aligns with contractual terms. The use of full and open competition suggests a structured acquisition process.

Related Government Programs

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

Risk Flags

Potential for high per-unit cost given the award value and short duration.
Lack of small business participation.
Short contract duration may indicate potential for future sole-source or limited competition awards.
Urgency implied by delivery order could mask underlying systemic issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,351.6 to UNITED THERAPEUTICS CORP. TYVASO 64 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 $17,351.6.

What is the period of performance?

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

What is the specific therapeutic use of TYVASO, and how critical is it for the targeted veteran population?

TYVASO (treprostinil) is a medication used to treat pulmonary arterial hypertension (PAH). For the veteran population, particularly those with service-connected conditions or age-related health issues, access to effective PAH treatments is crucial for managing symptoms, improving quality of life, and preventing disease progression. The VA's procurement ensures these veterans receive necessary medical care.

Given the short 7-day delivery window, what is the risk of supply chain disruption or unmet demand?

A short 7-day delivery window for a critical medication like TYVASO presents a moderate risk of supply chain disruption. While the firm fixed price and full competition aim for reliability, any unforeseen issues with manufacturing, logistics, or unexpected surges in demand could lead to temporary shortages, impacting patient care. Contingency planning by the VA would be essential.

How does the $17.4 million award for a 7-day supply benchmark against typical pharmaceutical contract values for similar treatments?

The $17.4 million figure for a 7-day supply of TYVASO appears exceptionally high, suggesting either a very large patient cohort requiring immediate treatment or a misunderstanding of the quantity represented by the award value. Without knowing the exact dosage units or number of patients served, it's difficult to benchmark accurately. Further clarification on the quantity is needed.

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: $17,352

Exercised Options: $17,352

Current Obligation: $17,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0104

IDV Type: FSS

Timeline