VA awards $2.2M for hematology instruments, with 2 bidders in a full and open competition

Contract Overview

Contract Amount: $2,211,360 ($2.2M)

Contractor: Sysmex America, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-01

End Date: 2025-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLINICAL LABORATORY HEMATOLOGY INSTRUMENTATION

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to SYSMEX AMERICA, INC for work described as: CLINICAL LABORATORY HEMATOLOGY INSTRUMENTATION Key points: 1. Contract value appears reasonable given the duration and scope of providing clinical laboratory instrumentation. 2. Full and open competition suggests a healthy market for these specialized instruments. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar laboratory equipment procurements. 5. This contract supports essential diagnostic services within the VA healthcare system. 6. The award is for a critical component of laboratory operations, ensuring continuity of care.

Value Assessment

Rating: good

The total award of $2.21 million over five years for hematology instrumentation is within a reasonable range for specialized medical equipment. Benchmarking against similar contracts for laboratory instruments reveals that pricing for such advanced systems can vary significantly based on features and service agreements. The firm fixed-price structure provides cost certainty. While specific per-unit costs are not detailed, the overall contract value suggests a competitive procurement process likely yielded fair market pricing for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders participating, the competition level is moderate. While more bidders could potentially drive prices lower, two offers suggest that the market is not overly concentrated and that the VA received at least one competitive proposal. This level of competition is generally sufficient to ensure price discovery and prevent undue market power by a single vendor.

Taxpayer Impact: The full and open competition with two bidders suggests that taxpayers are likely receiving a fair price for the hematology instrumentation, as the VA was able to solicit offers from multiple qualified vendors.

Public Impact

Veterans receiving care within VA facilities will benefit from accurate and timely diagnostic testing. The contract ensures the provision of essential clinical laboratory hematology instrumentation. The geographic impact is national, supporting VA healthcare facilities across the country. Laboratory technicians and medical staff will utilize the instruments, maintaining workforce capabilities. Improved diagnostic capabilities can lead to better patient outcomes and more efficient healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service and maintenance are not competitively bid in the future.
Dependence on a single manufacturer for critical laboratory equipment could pose supply chain risks.
Ensuring adequate training for VA staff on new instrumentation is crucial for effective utilization.

Positive Signals

The use of full and open competition promotes market responsiveness and potential for innovation.
Firm fixed-price contract type offers budget predictability and risk mitigation for the government.
The contract duration allows for stable provision of essential services and equipment.

Sector Analysis

The market for clinical laboratory instrumentation is a significant segment of the broader healthcare technology sector. This contract falls within the Analytical Laboratory Instrument Manufacturing sub-sector. The global market for in-vitro diagnostics (IVD) and laboratory equipment is substantial, driven by increasing healthcare demands, technological advancements, and a growing emphasis on early disease detection. The VA's procurement of hematology instruments is a routine but critical expenditure within this sector, ensuring diagnostic capabilities are maintained and updated.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of specialized, high-value instrumentation often favors larger, established manufacturers. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise in areas such as maintenance, calibration, or supply of consumables if not handled directly by the prime contractor.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts, including this one. Accountability is typically managed through contract officers and program managers who monitor performance against contract terms and conditions. Transparency is facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Procurement
Clinical Laboratory Services
Diagnostic Instrumentation
Federal Healthcare IT Spending

Risk Flags

Potential for vendor lock-in
Technological obsolescence risk
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to SYSMEX AMERICA, INC. CLINICAL LABORATORY HEMATOLOGY INSTRUMENTATION

Who is the contractor on this award?

The obligated recipient is SYSMEX AMERICA, 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 $2.2 million.

What is the period of performance?

Start: 2021-01-01. End: 2025-12-31.

What is the track record of Sysmex America, Inc. with the Department of Veterans Affairs?

Sysmex America, Inc. has a history of receiving contracts from the Department of Veterans Affairs, primarily for the provision of hematology and urinalysis instrumentation and related services. Reviewing past awards indicates a pattern of supplying essential laboratory equipment to VA medical centers. The VA often relies on established vendors for critical medical technology due to the need for reliability, compatibility, and ongoing support. While specific performance metrics for past contracts are not detailed here, the continued awarding of contracts suggests a generally satisfactory performance history, though a deeper dive into past performance reviews and any disputes would provide a more comprehensive picture.

How does the $2.21 million contract value compare to similar VA procurements for hematology instruments?

The $2.21 million contract value over five years represents an average annual expenditure of approximately $442,000 for hematology instrumentation. This figure is generally in line with procurements for advanced, automated hematology analyzers used in large clinical laboratories. The VA operates numerous medical centers, each requiring robust diagnostic capabilities. Comparable contracts for similar equipment at other federal or large civilian hospital systems often fall within a similar price range, depending on the specific models, features, and service level agreements included. Without detailed specifications of the instruments procured, a precise comparison is difficult, but the overall value appears consistent with market rates for such essential medical technology.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract include potential vendor lock-in, where the VA becomes heavily reliant on Sysmex America, Inc. for not only the initial instrumentation but also for ongoing maintenance, reagents, and future upgrades, potentially limiting future competitive opportunities. Another risk is the technological obsolescence of the instruments over the contract period, requiring potential mid-term adjustments or early replacement. Supply chain disruptions for critical components or reagents could also impact laboratory operations. Finally, ensuring adequate training and proficiency of VA staff operating the new or updated instrumentation is crucial to avoid errors and maintain diagnostic accuracy.

How effective is the current instrumentation in meeting the VA's diagnostic needs?

The effectiveness of the current instrumentation in meeting the VA's diagnostic needs is presumed to be adequate, given the renewal or continuation of this contract. Hematology instruments are fundamental to diagnosing a wide range of conditions, including anemia, infections, and cancers. The VA's reliance on such technology underscores its importance in providing comprehensive patient care. The specific effectiveness would depend on the throughput, accuracy, and range of tests the instruments can perform, as well as their integration with the VA's electronic health record system. Continuous monitoring of laboratory turnaround times and diagnostic error rates would provide a clearer picture of ongoing effectiveness.

What are the historical spending patterns for hematology instrumentation within the VA?

Historical spending patterns for hematology instrumentation within the VA indicate a consistent need for these diagnostic tools across its network of medical facilities. The VA has historically awarded contracts for hematology analyzers, reagents, and associated services on a recurring basis, often through multi-year agreements. Spending levels can fluctuate based on technological upgrades, consolidation of laboratory services, and overall budget allocations for medical equipment. The total expenditure on hematology instrumentation likely represents a significant portion of the VA's overall clinical laboratory budget, reflecting the critical role these instruments play in patient care.

What is the potential impact of this contract on VA laboratory efficiency and patient care?

This contract has a direct positive impact on VA laboratory efficiency and patient care by ensuring the availability of modern hematology instrumentation. Advanced instruments can process samples faster, perform a wider array of tests, and offer greater accuracy than older models, leading to quicker diagnoses and treatment initiation. This improved efficiency can reduce patient wait times for results and allow laboratory personnel to focus on more complex analyses. Ultimately, reliable and up-to-date diagnostic tools are fundamental to effective patient care, enabling clinicians to make informed decisions and monitor treatment efficacy.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sysmex Corporation

Address: 577 APTAKISIC RD, LINCOLNSHIRE, IL, 60069

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

Financial Breakdown

Contract Ceiling: $2,567,170

Exercised Options: $2,211,360

Current Obligation: $2,211,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: V797D40235

IDV Type: FSS

Timeline