VA awards $80,000 for genomic classifier tests, raising questions about competition and value

Contract Overview

Contract Amount: $80,000 ($80.0K)

Contractor: Cytopath Biopsy LAB Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $220/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THYROSEQ GENOMIC CLASSIFIER TESTS

Place of Performance

Location: RYE BROOK, WESTCHESTER County, NEW YORK, 10573

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $80,000 to CYTOPATH BIOPSY LAB INC for work described as: THYROSEQ GENOMIC CLASSIFIER TESTS Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about whether the VA secured the best possible value. 3. The contract's duration of one year suggests a need for ongoing services. 4. The specific service, genomic classifier tests, is crucial for accurate medical diagnoses. 5. The awardee, Cytopath Biopsy Lab Inc., is a new entity in federal contracting. 6. The contract falls under the Medical Laboratories NAICS code, indicating a specific healthcare service.

Value Assessment

Rating: questionable

Benchmarking the value of this $80,000 contract is challenging due to the lack of competitive bidding. Without multiple offers, it's difficult to ascertain if the price is fair market value or if a more cost-effective solution could have been obtained. The firm fixed-price structure provides cost certainty, but the absence of competition means the VA may not have benefited from potential price reductions typically seen in competitive procurements. Further analysis would require comparing this award to similar genomic classifier test contracts awarded competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. The lack of competition means that only one vendor, Cytopath Biopsy Lab Inc., was considered for this requirement. This approach bypasses the opportunity for multiple vendors to submit proposals, which typically drives down prices and encourages innovation. The VA did not provide justification for this sole-source award, making it difficult to assess the necessity of this procurement approach.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without a competitive process, there's a risk that the price is higher than it would have been if multiple vendors had vied for the contract.

Public Impact

Veterans in New York will benefit from access to advanced genomic classifier tests. The contract supports accurate and timely medical diagnoses for patients. The services are delivered through Cytopath Biopsy Lab Inc. in New York. This contract supports specialized laboratory services within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency and potential for better value.
New contractor with no prior federal performance data.
Specific justification for sole-source award not provided.

Positive Signals

Provides essential diagnostic services to veterans.
Firm fixed-price contract offers cost certainty.
Contract duration aligns with potential ongoing need for services.

Sector Analysis

The healthcare sector, particularly diagnostic services, relies heavily on specialized laboratory testing. Genomic classifier tests represent a growing area within medical diagnostics, enabling more personalized and precise treatment plans. The market for such services is competitive, with numerous laboratories offering advanced testing capabilities. The VA's spending in this area is part of a broader effort to modernize healthcare delivery and improve patient outcomes through advanced medical technologies. Benchmarking this contract against other similar diagnostic service procurements would provide further insight into its value.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The awardee, Cytopath Biopsy Lab Inc., is a new entity, and its size status (small or large business) is not specified. Without set-aside provisions or clear subcontracting goals, the direct impact on the small business ecosystem for this specific procurement is likely minimal.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs (VA). As a sole-source award, transparency might be reduced compared to a competed contract. Accountability measures would typically involve performance monitoring against the contract's statement of work and adherence to the firm fixed-price terms. The VA's internal oversight mechanisms and potentially the VA Office of Inspector General (OIG) would be responsible for ensuring proper execution and identifying any potential issues.

Related Government Programs

VA Medical Services Contracts
Diagnostic Laboratory Services
Genomic Testing Contracts
Sole-Source Healthcare Procurements

Risk Flags

Sole-source award without clear justification.
New contractor with no federal performance history.
Potential for inflated pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $80,000 to CYTOPATH BIOPSY LAB INC. THYROSEQ GENOMIC CLASSIFIER TESTS

Who is the contractor on this award?

The obligated recipient is CYTOPATH BIOPSY LAB INC.

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 $80,000.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Cytopath Biopsy Lab Inc. with federal contracts?

As of the data provided, Cytopath Biopsy Lab Inc. appears to be a new entity in federal contracting, with this $80,000 award for THYROSEQ GENOMIC CLASSIFIER TESTS being its initial recorded federal contract. There is no historical data available regarding its past performance, reliability, or ability to meet federal requirements. This lack of a federal performance track record introduces a degree of uncertainty regarding the contractor's ability to successfully deliver the specified services within the agreed-upon timeframe and quality standards. Further due diligence would be required to assess their capabilities beyond this single award.

How does the pricing of this contract compare to similar genomic classifier tests?

Direct comparison of the pricing for this $80,000 contract is difficult without access to a competitive bidding process or a publicly available price list from Cytopath Biopsy Lab Inc. The contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs (VA) did not solicit multiple bids to establish a competitive price. To benchmark the value, one would need to identify comparable contracts for THYROSEQ GENOMIC CLASSIFIER TESTS or similar genomic tests awarded to other providers, ideally through a competitive process. Factors such as the number of tests included, the specific genomic panel, and the turnaround time would need to be considered for an accurate comparison.

What are the primary risks associated with this sole-source award?

The primary risks associated with this sole-source award stem from the lack of competition. Firstly, there is a significant risk of paying a higher price than necessary, as there was no competitive pressure to drive down costs. Secondly, the VA may not have secured the best available technology or service provider, as alternative vendors were not evaluated. Thirdly, the absence of a competitive process reduces transparency and makes it harder to ensure optimal value for taxpayer money. Lastly, as Cytopath Biopsy Lab Inc. appears to be a new federal contractor, there's an inherent risk related to their unproven track record in meeting federal procurement standards and service delivery expectations.

How effective is the VA in obtaining value for money on sole-source healthcare contracts?

The effectiveness of the VA in obtaining value for money on sole-source healthcare contracts can vary significantly. While sole-source awards are sometimes necessary due to unique requirements, specialized services, or urgent needs, they inherently carry a higher risk of suboptimal pricing and value compared to competitively awarded contracts. The VA has internal policies and procedures to justify sole-source procurements and ensure fair and reasonable pricing, often involving market research and price analysis. However, the absence of direct price competition means that the potential for savings and innovation is often limited. Oversight mechanisms, including the VA OIG, play a crucial role in scrutinizing these awards to ensure accountability and value.

What is the historical spending trend for genomic classifier tests by the VA?

Analyzing the historical spending trend for genomic classifier tests by the VA requires access to comprehensive federal procurement data beyond this single award. This contract for $80,000 represents a specific instance of spending. To understand the trend, one would need to aggregate data on similar contracts awarded over several fiscal years, noting the total dollar amounts, number of awards, and the types of genomic tests procured. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and whether the VA is increasingly relying on sole-source awards for these services or utilizing competitive strategies.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 760 WESTCHESTER AVE, RYE BROOK, NY, 10573

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

Financial Breakdown

Contract Ceiling: $80,000

Exercised Options: $80,000

Current Obligation: $80,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24624A0017

IDV Type: BPA

Timeline