VA awards $17.4M for TYVASO, a pharmaceutical, 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: 2026-04-10

End Date: 2026-04-17

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 VA is procuring TYVASO, a pharmaceutical preparation, for $17.4 million. 2. The contract was awarded to UNITED THERAPEUTICS CORP. 3. This procurement falls under the pharmaceutical manufacturing sector. 4. The contract was awarded via full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The VA's award of $17.4 million for TYVASO appears reasonable given the nature of specialized pharmaceuticals. Benchmarking against similar high-value drug procurements would provide further context on pricing.

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 possible range of bidders. This method is expected to foster price discovery and potentially lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required pharmaceutical.

Public Impact

Veterans will benefit from access to TYVASO, a critical medication. The procurement supports the pharmaceutical manufacturing industry. Transparency in the bidding process ensures fair allocation of resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Clear contract end date specified

Sector Analysis

This procurement is within the pharmaceutical preparation manufacturing sector, which is characterized by high research and development costs and stringent regulatory requirements. Spending benchmarks for similar specialized drug procurements can vary significantly.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this particular contract award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of a firm fixed-price contract type provides cost certainty and accountability.

Related Government Programs

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

Risk Flags

Potential for future sole-source reliance
Lack of specific small business participation noted

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: 2026-04-10. End: 2026-04-17.

What is the specific therapeutic use of TYVASO and its importance to veteran healthcare?

TYVASO is a medication used to treat pulmonary arterial hypertension (PAH), a serious condition affecting blood vessels in the lungs. Ensuring access to such critical treatments is a key component of the VA's healthcare mission for veterans suffering from this condition.

How does the benchmark price of $17.4 million compare to similar pharmaceutical procurements for PAH treatments?

A comprehensive benchmark analysis would require comparing this award to other VA or government procurements of TYVASO or comparable PAH medications. Factors like dosage, duration, and specific formulation can influence price, making direct comparisons challenging without detailed specifications.

What are the potential risks associated with relying on a single supplier for specialized pharmaceuticals like TYVASO?

While this contract was awarded competitively, future reliance on a single supplier could pose risks such as price increases, supply chain disruptions, or limited negotiation leverage. Diversification of suppliers or alternative treatment options should be considered long-term.

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