VA awards $16.6M contract for contrast media injectors to Bayer HealthCare LLC, impacting Fayetteville VA Medical Center

Contract Overview

Contract Amount: $16,591 ($16.6K)

Contractor: Bayer Healthcare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-17

End Date: 2026-03-15

Contract Duration: 1,063 days

Daily Burn Rate: $16/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE BAYER MEDRAD TO FAYETTEVILLE VA MEDICAL CENTER. BAYER MEDRAD IS REQUIRED TO INJECT CONTRAST INTO PATIENTS IMAGING MODALITY PURPOSES FOR EXAMINATION OF RADIOLOGIST.

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,591.34 to BAYER HEALTHCARE LLC for work described as: PROVIDE BAYER MEDRAD TO FAYETTEVILLE VA MEDICAL CENTER. BAYER MEDRAD IS REQUIRED TO INJECT CONTRAST INTO PATIENTS IMAGING MODALITY PURPOSES FOR EXAMINATION OF RADIOLOGIST. Key points: 1. Contract ensures availability of essential contrast media injectors for diagnostic imaging. 2. Sole-source award raises questions about potential price efficiencies and market alternatives. 3. Long-term contract (nearly 3 years) provides stability for critical medical supplies. 4. Focus on radiologist needs highlights the importance of specialized medical equipment. 5. Geographic impact is localized to the Fayetteville VA Medical Center in North Carolina. 6. Contract type is firm-fixed-price, shifting cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $16.6 million over approximately three years for contrast media injectors appears to be within a reasonable range for specialized medical equipment. However, without direct comparable contract data for similar injector systems or specific models, a precise value-for-money assessment is challenging. The firm-fixed-price structure suggests the government has negotiated a set price, but the lack of competition means there's no direct market benchmark to confirm optimal pricing. Further analysis would require understanding the specific technological capabilities and maintenance included in this price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Bayer HealthCare LLC, was solicited. This approach is typically used when a product is unique, proprietary, or when there are no other responsible sources capable of meeting the government's needs. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices through market forces. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, it's difficult to ascertain if the price reflects true market value or if alternative, potentially more cost-effective solutions were overlooked.

Public Impact

Patients undergoing diagnostic imaging procedures at the Fayetteville VA Medical Center will benefit from the availability of necessary contrast media injectors. Radiologists and imaging technicians will have access to reliable equipment for performing examinations. The contract supports the operational efficiency of the Fayetteville VA Medical Center's radiology department. The primary geographic impact is within North Carolina, specifically serving veterans at the Fayetteville facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may indicate a lack of market alternatives or a failure to explore them.
Contract duration of nearly three years could lock in potentially suboptimal pricing if market conditions change.

Positive Signals

Ensures consistent availability of critical medical supplies for veteran care.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long-term nature provides supply chain stability for a vital medical function.

Sector Analysis

The market for medical, dental, and hospital equipment is vast and highly specialized. Contrast media injectors are critical components within the radiology and medical imaging sector, supporting a range of diagnostic procedures. This contract falls under the broader category of medical equipment procurement, where innovation and specialized technology often lead to unique product offerings. While specific market size data for contrast media injectors is not readily available, the overall healthcare equipment market is substantial, with significant government spending allocated to ensuring veterans have access to modern medical technology.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large corporation (Bayer HealthCare LLC), there are no direct subcontracting implications for small businesses related to this specific procurement. The focus is on fulfilling a direct need with a specific manufacturer's product, rather than leveraging the broader small business industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers responsible for medical equipment procurement. The VA has an Office of Inspector General (OIG) that investigates fraud, waste, and abuse within the department, which could include reviewing sole-source procurements if concerns arise. Transparency is generally maintained through contract databases like FPDS, though the justification for sole-source awards can sometimes be less detailed than for competed contracts.

Related Government Programs

Medical Equipment Procurement
Radiology Supplies
Veterans Health Administration
Contrast Media Agents

Risk Flags

Sole-source award lacks competition
Potential for overpayment due to lack of bidding
Dependency on a single supplier for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,591.34 to BAYER HEALTHCARE LLC. PROVIDE BAYER MEDRAD TO FAYETTEVILLE VA MEDICAL CENTER. BAYER MEDRAD IS REQUIRED TO INJECT CONTRAST INTO PATIENTS IMAGING MODALITY PURPOSES FOR EXAMINATION OF RADIOLOGIST.

Who is the contractor on this award?

The obligated recipient is BAYER HEALTHCARE 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 $16,591.34.

What is the period of performance?

Start: 2023-04-17. End: 2026-03-15.

What is the specific model of Bayer Medrad injector being procured, and what are its key features and capabilities?

The provided data does not specify the exact model of the Bayer Medrad injector. Bayer HealthCare LLC offers a range of contrast media injection systems, such as the MEDRAD Mark 7 Arterial Injector or the MEDRAD Stellant D, which are designed for various imaging modalities like CT, MRI, and angiography. These systems typically feature automated injection protocols, precise volume and flow rate control, and safety mechanisms to ensure accurate and safe delivery of contrast agents. The specific model chosen would depend on the imaging modalities and clinical needs of the Fayetteville VA Medical Center's radiology department. Without the specific model, a detailed feature comparison or performance benchmark is not possible.

What is the historical spending by the VA on contrast media injectors, and how does this award compare?

The provided data does not include historical spending information for contrast media injectors by the VA. To conduct a comparative analysis, one would need to access historical contract data for similar procurements, looking at both the quantity of units and the total dollar value over time. This would help determine if the current $16.6 million award represents an increase, decrease, or stable spending trend. Analyzing past awards for the same or comparable injector systems, and noting any changes in pricing or contract duration, would provide valuable context for assessing the current contract's financial implications and potential value.

What was the justification for awarding this contract on a sole-source basis to Bayer HealthCare LLC?

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include the proprietary nature of the product, the unavailability of alternatives, or the need for compatibility with existing systems. For contrast media injectors, it might be that Bayer Medrad's system is considered unique in its technological capabilities, performance, or integration with specific imaging equipment already in place at the Fayetteville VA Medical Center. Without the official justification document (often referred to as a Justification and Approval or J&A), the precise rationale remains speculative. However, the government must demonstrate that only one source can fulfill the requirement.

Are there any known performance issues or quality concerns associated with Bayer Medrad injectors that the VA should be aware of?

Based on the provided data, there are no specific performance issues or quality concerns mentioned regarding Bayer Medrad injectors. Bayer HealthCare LLC is a well-established manufacturer of medical devices, and their contrast media injectors are widely used in healthcare settings. However, like any complex medical equipment, individual units can experience malfunctions, and user feedback can vary. A comprehensive assessment of performance would require reviewing user satisfaction surveys, maintenance logs, and any reported adverse events associated with these specific injectors. Federal agencies often track contractor performance through systems like the Contractor Performance Assessment Reporting System (CPARS), which could offer insights if this contract was previously active.

What are the potential risks associated with relying on a single supplier for critical medical equipment like contrast media injectors?

Relying on a single supplier for critical medical equipment like contrast media injectors presents several potential risks. Firstly, it eliminates competitive pressure, which can lead to higher prices and potentially less favorable contract terms over time. Secondly, it creates a dependency on that specific supplier for maintenance, repairs, and future upgrades, potentially limiting flexibility if the supplier's product line changes or if they face financial difficulties. Thirdly, supply chain disruptions affecting the sole provider could directly impact the availability of essential equipment, leading to delays in patient care. Finally, without alternative options, the government has limited leverage if the supplier's quality or service declines.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 BAYER BLVD, WHIPPANY, NJ, 07981

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,647

Exercised Options: $16,591

Current Obligation: $16,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline