VA awards $49.7M contract for electromedical apparatus to Novocure Inc

Contract Overview

Contract Amount: $49,749 ($49.7K)

Contractor: Novocure Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-05-10

Contract Duration: 30 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DEVICE

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76109

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,748.73 to NOVOCURE INC for work described as: DEVICE Key points: 1. The contract is for a specific medical device, suggesting a specialized need. 2. Novocure Inc. is the sole awardee, raising questions about competition. 3. The award value is significant, warranting scrutiny of pricing and value. 4. The sector is healthcare technology, a rapidly evolving and critical area.

Value Assessment

Rating: fair

The award value of $49.7M for a 30-day delivery order appears high for a single device, especially with a benchmark of $1,658 per unit. Further analysis is needed to understand if this represents a bulk purchase or specialized equipment.

Cost Per Unit: $1,658

Competition Analysis

Competition Level: full-and-open

Despite being awarded to Novocure Inc., the contract was listed under 'FULL AND OPEN COMPETITION.' This suggests multiple vendors could have bid, but Novocure was selected. The price discovery mechanism relies on the competitive bidding process.

Taxpayer Impact: Taxpayer funds are being used for essential medical equipment. The value for money will depend on the necessity and effectiveness of the device.

Public Impact

Veterans will benefit from access to potentially advanced medical technology. The significant contract value could impact the market for similar devices. Transparency in the bidding process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost compared to benchmark.
Single awardee despite full and open competition.
Short performance period for a large value award.

Positive Signals

Addresses a specific medical need for veterans.
Utilizes a competitive bidding process.

Sector Analysis

The healthcare technology sector is characterized by innovation and high costs. Spending benchmarks can vary widely based on device complexity and intended use. This award falls within the electromedical apparatus manufacturing subsector.

Small Business Impact

There is no indication of small business participation in this specific award. Further investigation would be needed to determine if small businesses were involved in subcontracting or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's full and open competition status suggests a structured procurement process, but the high per-unit cost warrants close monitoring of delivery and performance.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High per-unit cost relative to benchmark.
Potential lack of transparency in sole awardee selection despite open competition.
Significant financial commitment for a short delivery period.
Limited information on the specific device and its necessity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,748.73 to NOVOCURE INC. DEVICE

Who is the contractor on this award?

The obligated recipient is NOVOCURE 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 $49,748.73.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-10.

What specific medical condition or need does this electromedical apparatus address, and is the $1,658 per-unit cost justified by its advanced capabilities or unique function?

The specific medical condition addressed by the 'DEVICE' is not detailed in the provided data. However, the significant discrepancy between the benchmark per-unit cost ($1,658) and the implied per-unit cost for this award (potentially much higher if $49.7M is for a single unit, or lower if it's a bulk purchase) necessitates further investigation into the device's specifications, intended use, and market value to justify the expenditure.

Given the 'FULL AND OPEN COMPETITION' designation, why was Novocure Inc. the sole awardee, and were alternative bids significantly higher or non-compliant?

The designation 'FULL AND OPEN COMPETITION' indicates that multiple vendors were eligible to bid. The selection of Novocure Inc. as the sole awardee suggests their proposal met or exceeded the government's requirements and offered the best value. Further details on the bidding process, including the number of bids received and the reasons for selecting Novocure over other potential offerors, would clarify the competitive landscape and price discovery.

What is the expected long-term impact of this $49.7M award on the VA's budget and the availability of similar electromedical devices for other healthcare providers?

A $49.7M award represents a substantial investment that could impact the VA's budget for medical equipment. If this purchase secures a significant quantity or a highly specialized device, it might influence market prices or availability for other healthcare providers. Understanding the volume and criticality of the devices procured is key to assessing the broader budgetary and market implications.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 COMMERCE WAY, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $49,749

Exercised Options: $49,749

Current Obligation: $49,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79723D0016

IDV Type: FSS

Timeline