VA awards $1.8M sole-source contract for radiopharmaceuticals to Trillamed LLC

Contract Overview

Contract Amount: $180,916 ($180.9K)

Contractor: Trillamed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-01

End Date: 2027-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $124/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE AND DELIVER AXUMNIN RADIOPHARMACEUTICALS

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $180,916.03 to TRILLAMED LLC for work described as: PROVIDE AND DELIVER AXUMNIN RADIOPHARMACEUTICALS Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Firm fixed-price contract type suggests predictable costs for the government. 3. Contract duration of 4 years indicates a long-term need for these pharmaceuticals. 4. The award is a purchase order, a common mechanism for acquiring goods. 5. The contractor, Trillamed LLC, is the sole awardee. 6. The contract is managed by the Department of Veterans Affairs. 7. The pharmaceuticals are for radiopharmaceutical use, a specialized medical field.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized product. Without competitive bids, it's difficult to ascertain if the $1.8 million price represents optimal value for money. The firm fixed-price structure, however, provides cost certainty for the VA. Further analysis would require comparing the unit prices of these specific radiopharmaceuticals to market rates or similar government contracts, which are not readily available in the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or capable of meeting the requirement. The lack of competition means the VA did not benefit from a bidding process that could drive down prices through market forces. The rationale for the sole-source award would need to be documented by the agency.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price.

Public Impact

Veterans will benefit from access to necessary radiopharmaceuticals for diagnosis and treatment. The contract ensures the supply of specialized pharmaceutical preparations. The geographic impact is primarily within Alabama, where the contract is managed. This contract supports the healthcare services provided by the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of detailed performance metrics in the provided data makes assessing effectiveness difficult.
Specialized nature of radiopharmaceuticals may limit the pool of potential suppliers.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long contract duration (4 years) ensures supply continuity for critical medical needs.
Award to a single contractor simplifies management and oversight.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly specialized, with significant regulatory hurdles and R&D investment. Radiopharmaceuticals, in particular, require stringent handling, storage, and distribution protocols due to their radioactive nature. This contract fits within the broader healthcare and pharmaceutical supply chain, ensuring the VA has access to critical diagnostic and therapeutic agents. Comparable spending benchmarks for such niche products are difficult to establish without detailed market analysis.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source award, it is unlikely that small businesses were specifically targeted for subcontracting opportunities unless Trillamed LLC itself is a small business and chooses to engage them. The impact on the small business ecosystem is therefore minimal based on this award alone.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the contractor's performance would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Supplies
Pharmaceutical Manufacturing Contracts
Radiopharmaceutical Procurement
Sole-Source Healthcare Contracts

Risk Flags

Sole-source award may indicate limited market availability or a lack of competitive justification.
Specialized nature of radiopharmaceuticals requires careful supply chain management.
Contract duration of 4 years requires ongoing monitoring of contractor performance and market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $180,916.03 to TRILLAMED LLC. PROVIDE AND DELIVER AXUMNIN RADIOPHARMACEUTICALS

Who is the contractor on this award?

The obligated recipient is TRILLAMED 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 $180,916.03.

What is the period of performance?

Start: 2023-08-01. End: 2027-07-31.

What is the specific type of radiopharmaceutical being procured and its intended use?

The provided data specifies 'AXUMNIN RADIOPHARMACEUTICALS' for 'PROVIDE AND DELIVER'. While 'Axumin' is a brand name for fluciclovine F-18, a radioactive tracer used in PET scans to detect prostate cancer, the data does not explicitly detail the specific intended use within the VA's facilities. Radiopharmaceuticals are generally used for diagnostic imaging (like PET or SPECT scans) or therapeutic purposes (like targeted radiation therapy). The contract's purpose is to ensure the VA has a reliable supply of these critical medical materials for patient care.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED', signifying a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines circumstances where sole-source procurements are permissible, such as when only one responsible source is available or capable of meeting the requirement. For specialized items like radiopharmaceuticals, this could be due to unique manufacturing capabilities, proprietary technology, or specific distribution and handling requirements that only one vendor can meet. The Department of Veterans Affairs would need to have documented this justification, likely citing reasons such as unique technical qualifications or the unavailability of other sources capable of meeting the VA's specific needs within the required timeframe and specifications.

How does the $1.8 million contract value compare to historical spending on similar radiopharmaceuticals by the VA or other agencies?

Direct comparison of the $1.8 million contract value to historical spending is difficult without more specific data on the exact radiopharmaceutical product (e.g., fluciclovine F-18) and its unit pricing. The provided data only gives the total contract value and duration. To perform a meaningful comparison, one would need to access historical contract databases (like FPDS or USASpending) for similar procurements of the same or comparable radiopharmaceuticals by the VA or other federal agencies. Factors such as quantity, formulation, delivery requirements, and the specific year of award significantly influence pricing. Benchmarking would ideally involve comparing the average unit cost under this contract to average unit costs from competitively awarded contracts for similar products.

What are the potential risks associated with a sole-source contract for critical medical supplies like radiopharmaceuticals?

The primary risk of a sole-source contract for critical medical supplies is the lack of price competition, potentially leading to higher costs for the government and taxpayers. It also creates a dependency on a single supplier, which can be risky if that supplier experiences production issues, quality control problems, or financial instability. Furthermore, without competition, there may be less incentive for the sole provider to innovate or improve service levels. For radiopharmaceuticals, which have short shelf lives and require specialized logistics, supply chain disruptions from a single source could have immediate and severe impacts on patient care.

What performance standards or metrics are likely included in this contract to ensure quality and timely delivery?

While the provided data does not detail specific performance standards, firm fixed-price contracts for medical supplies typically include clauses related to quality assurance, timely delivery, and proper handling/storage. For radiopharmaceuticals, these would likely be stringent, covering aspects like product purity, radioactivity levels, expiration dating, packaging integrity, and adherence to delivery schedules to minimize degradation. The contract may also reference specific FDA regulations and VA healthcare standards. Performance would likely be monitored by VA medical logistics and clinical staff, with potential remedies for non-compliance outlined in the contract terms.

What is Trillamed LLC's track record with the Department of Veterans Affairs or other federal agencies?

The provided data identifies Trillamed LLC as the contractor but does not offer details on their past performance or track record with the VA or other federal agencies. To assess their track record, one would need to consult federal procurement databases (e.g., FPDS, SAM.gov) for previous awards, contract performance evaluations (like CPARS), and any history of disputes or terminations. Understanding their experience with similar products, their financial stability, and their past performance ratings would be crucial for evaluating the risk associated with this sole-source award.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24723Q0653

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30100 TELEGRAPH RD, BINGHAM FARMS, MI, 48025

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $332,960

Exercised Options: $180,916

Current Obligation: $180,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline