VA Awards $2.4M Bridge Contract for Roche Histology Services Amidst Ongoing Competition Concerns

Contract Overview

Contract Amount: $239,858 ($239.9K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2027-04-01

Contract Duration: 364 days

Daily Burn Rate: $659/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY HISTOLOGY ROCHE ONE YEAR BRIDGE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46256

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $239,857.65 to ROCHE DIAGNOSTICS CORPORATION for work described as: EMERGENCY HISTOLOGY ROCHE ONE YEAR BRIDGE Key points: 1. The VA is extending a contract for histology services with Roche Diagnostics, totaling $2.4 million. 2. The contract was not competed, raising questions about market competition and potential price discovery. 3. This bridge contract suggests a potential gap in services or a delay in a more competitive procurement. 4. The sector involves analytical laboratory instruments, a critical area for healthcare diagnostics.

Value Assessment

Rating: questionable

The contract value of $2.4 million for a one-year bridge is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives for similar histology services and equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED,' indicating a sole-source award to Roche Diagnostics. This limits price discovery and may prevent other qualified vendors from offering their services, potentially leading to higher costs.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore potentially lower-cost options from other providers.

Public Impact

Veterans may experience continuity of essential histology services, crucial for accurate medical diagnoses. The lack of competition could impact the VA's ability to secure the best value for taxpayer dollars in the long term. This award highlights potential challenges in the VA's procurement process for specialized medical equipment and services.

Waste & Efficiency Indicators

Waste Risk Score: 65 / 10

Warning Flags

Lack of competition
Potential for overpayment
Reliance on a single vendor

Positive Signals

Ensures continuity of critical services
Bridge contract allows time for a more robust procurement

Sector Analysis

The analytical laboratory instrument manufacturing sector is vital for healthcare diagnostics. Spending in this area is typically driven by technological advancements and the need for accurate testing. Benchmarks are hard to establish without knowing the specific services and equipment covered.

Small Business Impact

This contract does not appear to involve small businesses, as it was awarded directly to a large corporation, Roche Diagnostics. There is no indication of subcontracting opportunities for small businesses in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the VA is actively pursuing competitive strategies for future procurements to achieve better value and manage costs effectively.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited vendor options
Extended reliance on a single supplier
Oversight needed on future procurement strategy

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $239,857.65 to ROCHE DIAGNOSTICS CORPORATION. EMERGENCY HISTOLOGY ROCHE ONE YEAR BRIDGE

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

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 $239,857.65.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-01.

What is the VA's strategy to ensure competitive pricing for histology services beyond this bridge contract?

The VA's strategy should involve a thorough market analysis to identify potential competitors and develop a robust solicitation that encourages broad participation. This includes clearly defining the scope of work and performance requirements to allow vendors to propose innovative and cost-effective solutions, thereby ensuring competitive pricing for future contracts.

What are the risks associated with relying on a sole-source provider for critical medical equipment and services?

Sole-source reliance carries risks such as inflated prices due to lack of competition, potential vendor lock-in limiting flexibility, and reduced innovation as the vendor may face less pressure to improve offerings. It also increases vulnerability if the sole provider experiences disruptions, potentially impacting essential services.

How does this contract contribute to the VA's overall mission effectiveness in providing healthcare to veterans?

This bridge contract ensures the immediate continuity of essential histology services, which are critical for accurate diagnosis and treatment planning for veterans. While it addresses an immediate need, the lack of competition raises concerns about long-term cost-effectiveness and the VA's ability to leverage market dynamics for optimal value, potentially impacting overall mission efficiency.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $239,858

Exercised Options: $239,858

Current Obligation: $239,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline