VA awards $15.7M for TYVASO refill kits, a pharmaceutical preparation, to United Therapeutics Corp

Contract Overview

Contract Amount: $15,746 ($15.7K)

Contractor: United Therapeutics Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-04-10

Contract Duration: 2 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TYVASO 0.6 MG REFILL KIT

Place of Performance

Location: LAKE MARY, SEMINOLE County, FLORIDA, 32746

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,746.12 to UNITED THERAPEUTICS CORP for work described as: TYVASO 0.6 MG REFILL KIT Key points: 1. The contract value of $15.7M for a 2-year duration appears reasonable given the specialized nature of pharmaceutical manufacturing. 2. United Therapeutics Corp. is the sole manufacturer of TYVASO, indicating limited competition dynamics for this specific product. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This award supports the ongoing treatment needs of veterans requiring TYVASO. 5. The contract falls under pharmaceutical preparation manufacturing, a niche but critical sector for healthcare. 6. The award is a delivery order, suggesting it's part of a larger, potentially indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $15.7 million for two years of TYVASO refill kits is difficult to benchmark directly against similar contracts due to the specialized nature of the drug and its manufacturer. However, given that United Therapeutics Corp. is the sole producer of TYVASO, the pricing is likely set by the manufacturer. The firm fixed-price structure provides cost certainty for the VA. Without access to internal VA cost analyses or market research on pharmaceutical pricing for similar specialized treatments, a definitive value-for-money assessment is challenging, but the price appears aligned with single-source pharmaceutical procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement. TYVASO is a specific pharmaceutical product manufactured exclusively by United Therapeutics Corp. Therefore, competition is inherently limited to this single entity for the supply of its proprietary refill kits. This approach is common for patented or uniquely manufactured pharmaceuticals where no viable alternatives exist.

Taxpayer Impact: Sole-source procurement for essential pharmaceuticals can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. However, it ensures access to necessary medications for beneficiaries.

Public Impact

Veterans requiring TYVASO for their medical conditions will have continued access to necessary refill kits. The services delivered are the provision of pharmaceutical refill kits for a specific medication. The geographic impact is primarily Florida, where the contract is being performed. This contract supports the pharmaceutical manufacturing sector and ensures the supply chain for critical veteran healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source nature limits price negotiation leverage for the government.
Reliance on a single manufacturer creates supply chain vulnerability.
Potential for higher costs compared to a competitive bidding process.

Positive Signals

Ensures continuity of care for veterans dependent on TYVASO.
Firm fixed-price contract provides budget predictability.
Direct award to the sole manufacturer streamlines acquisition of a critical drug.

Sector Analysis

The pharmaceutical preparation manufacturing sector is characterized by high research and development costs, stringent regulatory requirements, and significant intellectual property protection. Companies in this sector often hold patents for unique drugs, leading to sole-source or limited competition scenarios for procurement. The market size for specialized pharmaceuticals like TYVASO is driven by specific patient populations and medical needs. This contract fits within the broader healthcare and pharmaceutical supply chain, ensuring the availability of essential medications for government beneficiaries.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature of the award to United Therapeutics Corp., a large pharmaceutical manufacturer, subcontracting opportunities for small businesses are unlikely to be a primary focus of this specific contract. The impact on the small business ecosystem is minimal as the award is directed to an established, specialized entity.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. As a delivery order under a larger contract vehicle, it is subject to standard procurement regulations and VA's internal oversight mechanisms. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Pharmaceutical Manufacturing
Medical Supplies
Veteran Healthcare Services
Drug Procurement

Risk Flags

Sole Source Procurement
Potential for Price Escalation
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,746.12 to UNITED THERAPEUTICS CORP. TYVASO 0.6 MG REFILL KIT

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 $15,746.12.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-10.

What is the historical spending pattern for TYVASO refill kits by the Department of Veterans Affairs?

Historical spending data for TYVASO refill kits by the Department of Veterans Affairs (VA) is not explicitly detailed in the provided data. However, the current award of $15.7 million for a 2-year period (2026-2028) suggests a consistent need for this medication. To understand historical patterns, one would need to analyze past VA contracts for TYVASO or similar treatments, looking at award amounts, durations, and quantities over several fiscal years. This would help determine if the current award represents an increase, decrease, or stable level of spending for this specific pharmaceutical product. Without prior contract data, it's difficult to establish a trend, but the current award indicates ongoing procurement.

How does the pricing of TYVASO refill kits compare to other pulmonary hypertension medications procured by the VA?

A direct comparison of TYVASO refill kit pricing to other pulmonary hypertension medications procured by the VA is challenging without specific unit cost data for all relevant drugs. TYVASO (treprostinil) is a prostacyclin analog, and its pricing is influenced by its manufacturing complexity, patent status, and the specific patient population it serves. Other pulmonary hypertension medications may belong to different drug classes (e.g., endothelin receptor antagonists, PDE5 inhibitors) with varying manufacturing costs and market dynamics. As TYVASO is a sole-source product from United Therapeutics Corp., its price is not subject to competitive bidding, which can lead to higher costs compared to drugs with multiple generic or branded competitors. A comprehensive analysis would require benchmarking the per-unit cost of TYVASO against similarly specialized, sole-source drugs within the VA's formulary.

What are the risks associated with relying on a sole-source manufacturer for critical pharmaceuticals like TYVASO?

Relying on a sole-source manufacturer for critical pharmaceuticals like TYVASO presents several risks. Firstly, there is a significant risk of price escalation, as the government lacks competitive leverage to negotiate lower costs. The manufacturer can dictate terms, knowing there are no immediate alternatives. Secondly, supply chain disruptions are a major concern; any manufacturing issues, raw material shortages, or logistical problems faced by the sole producer can directly impact the availability of the drug for veterans. This could lead to treatment interruptions and adverse health outcomes. Thirdly, the government is dependent on the manufacturer's business decisions, such as whether to continue producing the drug or to discontinue it, which could force a rapid and potentially costly search for alternatives. Finally, the lack of competition can stifle innovation in manufacturing processes or alternative formulations.

What is the track record of United Therapeutics Corp. in supplying pharmaceuticals to the federal government?

United Therapeutics Corp. has a history of supplying pharmaceuticals to the federal government, including the Department of Veterans Affairs (VA) and other agencies. As the developer and sole manufacturer of TYVASO, their track record is intrinsically linked to the availability and supply of this specific medication. Analysis of past contracts would reveal their performance in terms of delivery timeliness, product quality, and adherence to contract terms. Given the critical nature of pharmaceuticals, consistent and reliable supply is paramount. While specific performance metrics for past contracts are not detailed here, the repeated awards suggest a level of satisfaction with their ability to meet the government's needs for TYVASO, albeit under sole-source conditions.

How does the firm fixed-price contract type mitigate risks for the VA in this procurement?

The firm fixed-price (FFP) contract type is highly beneficial for the VA in this procurement of TYVASO refill kits. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means that United Therapeutics Corp. assumes all the risk of cost overruns. If their manufacturing costs increase, they cannot seek additional funds from the VA. This provides the VA with significant budget certainty and predictability, as the total cost of the contract is known upfront. It eliminates the risk of unexpected cost increases that could occur with cost-reimbursement contracts, making financial planning more straightforward and protecting taxpayer funds from potential cost overruns inherent in production.

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: $15,746

Exercised Options: $15,746

Current Obligation: $15,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0104

IDV Type: FSS

Timeline