VA awards $903K for VCU Health's lab reference testing, a sole-source contract

Contract Overview

Contract Amount: $90,319 ($90.3K)

Contractor: Virginia Commonwealth University Health System Authority

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $248/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VCU HLA LAB REFERENCE TESTING SERVICES

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23249

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $90,319.46 to VIRGINIA COMMONWEALTH UNIVERSITY HEALTH SYSTEM AUTHORITY for work described as: VCU HLA LAB REFERENCE TESTING SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Pricing appears reasonable given the fixed-price nature and duration. 3. Performance period aligns with typical annual service needs. 4. No small business set-aside was utilized. 5. Contract falls within the 'Testing Laboratories and Services' NAICS code. 6. Delivery order structure suggests a call against an existing agreement.

Value Assessment

Rating: fair

The contract value of $903,194.60 for a one-year period for laboratory reference testing services appears within a reasonable range for specialized medical services. However, without direct comparable contracts or detailed service breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the VA. Benchmarking against similar sole-source contracts for reference lab services would offer further insight into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Virginia Commonwealth University Health System Authority. This means that the VA did not solicit offers from multiple potential contractors. While sole-source awards can be justified for specific reasons, such as unique capabilities or existing relationships, they inherently reduce the potential for competitive pricing and may limit the VA's access to the broader market of service providers.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the most cost-effective pricing that could have been achieved through an open bidding process. This could lead to higher overall spending for the services provided.

Public Impact

Veterans in Virginia will benefit from access to specialized laboratory reference testing services. The services provided are crucial for accurate diagnosis and treatment planning. The contract supports the operational capacity of the VA healthcare system in Virginia. This contract sustains jobs and resources within the Virginia Commonwealth University Health System Authority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities for taxpayers.
Lack of detailed service scope makes precise value assessment difficult.
No small business participation noted, potentially missing economic development opportunities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract duration of one year allows for regular performance review.
Award to a known health system authority suggests established relationship and potential for seamless service integration.

Sector Analysis

The healthcare sector, particularly laboratory services, is a critical component of the federal healthcare system. Reference testing involves specialized analyses not typically performed in-house by all facilities. The market for these services is competitive, with numerous commercial and academic laboratories offering such capabilities. This contract represents a specific instance of the VA leveraging external expertise to supplement its internal diagnostic capacity, fitting within the broader trend of healthcare outsourcing for specialized functions.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The award to a large health system authority suggests that the primary focus was on securing specialized services rather than promoting small business participation. This could represent a missed opportunity to engage small businesses in the healthcare support ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order, it likely operates under a broader contract vehicle with established terms and conditions. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. The VA's Office of Inspector General may also conduct audits or investigations if specific concerns arise regarding performance or financial integrity.

Related Government Programs

VA Medical Care
Laboratory Services
Reference Laboratories
Healthcare Services Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed service scope hinders precise value assessment.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $90,319.46 to VIRGINIA COMMONWEALTH UNIVERSITY HEALTH SYSTEM AUTHORITY. VCU HLA LAB REFERENCE TESTING SERVICES

Who is the contractor on this award?

The obligated recipient is VIRGINIA COMMONWEALTH UNIVERSITY HEALTH SYSTEM AUTHORITY.

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 $90,319.46.

What is the period of performance?

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

What specific types of laboratory reference tests are covered under this contract?

The provided data does not specify the exact types of laboratory reference tests included in this contract. Typically, reference testing encompasses specialized analyses that a healthcare facility's in-house laboratory may not be equipped to perform due to complexity, cost of equipment, or low volume. This could include advanced genetic testing, specialized toxicology, complex infectious disease panels, or rare disease diagnostics. A detailed statement of work or contract line item details would be required to identify the specific services.

How does the pricing of this contract compare to similar sole-source reference laboratory contracts awarded by the VA or other federal agencies?

A direct comparison of pricing is difficult without access to a database of similar sole-source contracts for reference laboratory services. Sole-source awards inherently lack the price discovery mechanism of open competition. However, the firm-fixed-price nature of this $903,194.60 contract for a one-year period suggests a defined cost for the VA. Benchmarking would require identifying contracts with comparable service scopes, patient volumes, and turnaround times, which are not detailed here. The VA's internal cost analysis or market research conducted prior to the sole-source justification would be the best source for such comparisons.

What is the justification for awarding this contract on a sole-source basis to Virginia Commonwealth University Health System Authority?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source justification was made. Common reasons for sole-source awards include unique capabilities possessed by only one source, urgent and compelling needs where competition is not feasible, or when a specific entity is the only responsible source capable of providing the required services. For a health system authority, it might be due to established infrastructure, specialized personnel, existing patient data integration, or a specific research affiliation that makes them uniquely qualified to provide these reference testing services to the VA.

What is the expected impact of these reference testing services on veteran healthcare outcomes in Virginia?

Access to specialized reference laboratory testing is critical for accurate diagnosis, effective treatment planning, and monitoring of patient conditions. By outsourcing these tests to VCU Health System Authority, the VA ensures that veterans receive comprehensive diagnostic services, even for complex or rare conditions that may not be testable at all VA facilities. This can lead to more timely and appropriate medical interventions, potentially improving health outcomes, reducing the need for more invasive procedures, and enhancing the overall quality of care provided to veterans in the region.

Has Virginia Commonwealth University Health System Authority previously held contracts with the VA for similar services?

The provided data does not explicitly state VCU Health System Authority's prior contracting history with the VA. However, awarding a sole-source contract to an established health system authority often implies a pre-existing relationship or a recognized capability. It is common for large healthcare providers like VCU Health to have multiple contracts with federal agencies, including the VA, for various medical services. Further research into federal procurement databases would be needed to confirm the extent and nature of their past performance with the VA.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 830 E MAIN ST, RICHMOND, VA, 23219

Business Categories: Category Business, Government, Hospital, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations

Financial Breakdown

Contract Ceiling: $90,319

Exercised Options: $90,319

Current Obligation: $90,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24625D0029

IDV Type: IDC

Timeline