VA awards $175K purchase order for microbial identification systems to BIOMERIEUX INC

Contract Overview

Contract Amount: $174,682 ($174.7K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $480/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MICROBIAL ID AND SUSCEPTIBILITY TESTING

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $174,681.76 to BIOMERIEUX INC for work described as: MICROBIAL ID AND SUSCEPTIBILITY TESTING Key points: 1. The contract value appears reasonable for specialized laboratory equipment, but a direct comparison to similar systems is needed for a definitive value-for-money assessment. 2. The contract was not competed under SAP, suggesting potential limitations in market exploration and competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The duration of 364 days is standard for this type of procurement. 5. This procurement supports the VA's need for accurate diagnostic tools in healthcare delivery. 6. The contractor, BIOMERIEUX INC., is a known entity in the diagnostics market.

Value Assessment

Rating: fair

The award of $174,681.76 for microbial identification and susceptibility testing systems seems within a typical range for such specialized medical equipment. However, without specific details on the system's capabilities, features, and the number of units procured, a precise value-for-money assessment is challenging. Benchmarking against similar systems from other manufacturers or previous VA procurements of comparable equipment would provide a clearer picture of whether the pricing is competitive and represents good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was noted as 'NOT COMPETED UNDER SAP,' which typically indicates that the procurement was conducted using simplified acquisition procedures and may not have undergone full and open competition. The absence of information on the number of bidders or the specific reasons for limited competition makes it difficult to assess the extent of market engagement. This approach can sometimes lead to higher prices if a broader range of potential suppliers were not considered.

Taxpayer Impact: Limited competition may result in the government not securing the most cost-effective solution, potentially leading to higher expenditures for taxpayers compared to a fully competed contract.

Public Impact

Veterans receiving care from the Department of Veterans Affairs will benefit from potentially faster and more accurate diagnoses of microbial infections. The contract delivers essential analytical laboratory instruments for identifying microorganisms and determining their susceptibility to antibiotics. The services are likely to be utilized within VA healthcare facilities, primarily in Utah given the 'UT' state code. This procurement supports the healthcare workforce within the VA by providing them with necessary diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may have limited price discovery.
Specific system capabilities and unit count are not detailed, hindering precise value assessment.
The 'NOT COMPETED UNDER SAP' designation warrants further investigation into the justification for limited competition.

Positive Signals

The contract is a firm-fixed-price award, which provides cost certainty for the government.
The contractor, BIOMERIEUX INC., is an established provider in the microbial identification market.
The procurement duration is clearly defined, allowing for effective planning and execution.

Sector Analysis

The procurement falls within the Analytical Laboratory Instrument Manufacturing sector, specifically related to diagnostic equipment used in healthcare. This sector is characterized by innovation and specialized technology. The global market for in-vitro diagnostics, which includes microbial identification and susceptibility testing, is substantial and growing, driven by the increasing prevalence of infectious diseases and the need for rapid, accurate diagnostics. The VA's spending in this area is crucial for maintaining the health and readiness of its patient population.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made to BIOMERIEUX INC., a likely large business entity in the medical device industry. Further analysis would be needed to determine if any small business participation was mandated or occurred indirectly.

Oversight & Accountability

The primary oversight for this contract would fall under the Department of Veterans Affairs' contracting and procurement offices. As a purchase order, it is subject to standard government contracting regulations and internal VA policies. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration Medical Supplies
Clinical Laboratory Equipment Procurement
Diagnostic Testing Services
Medical Instrument Manufacturing Contracts

Risk Flags

Limited Competition
Lack of Detailed Specifications
Potential for Non-Competitive Pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $174,681.76 to BIOMERIEUX INC. MICROBIAL ID AND SUSCEPTIBILITY TESTING

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX 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 $174,681.76.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific model of microbial identification and susceptibility testing system was procured, and what are its key features and capabilities?

The provided data does not specify the exact model of the microbial identification and susceptibility testing system procured from BIOMERIEUX INC. To fully assess the value and appropriateness of this contract, understanding the specific capabilities of the system is crucial. This includes its speed of identification, the breadth of its microbial database, the types of susceptibility testing it performs (e.g., antibiotic resistance profiling), its throughput capacity, and any associated software or data management features. Without this information, it is difficult to benchmark its performance against market alternatives or determine if it meets the VA's precise clinical needs effectively.

How does the price of this purchase order compare to similar microbial identification systems purchased by the VA or other federal agencies in the past year?

Benchmarking the $174,681.76 purchase order against similar procurements is essential for evaluating value for money. A comprehensive analysis would involve searching federal procurement databases for awards of comparable microbial identification and susceptibility testing systems, considering factors like system capabilities, vendor, contract type, and duration. If comparable systems were recently acquired at significantly lower prices, it could indicate that this award may not be optimally priced. Conversely, if the price aligns with or is lower than similar recent awards, it suggests a more competitive outcome. The lack of specific system details in the provided data makes this comparison challenging without further research.

What was the justification for not competing this contract under Simplified Acquisition Procedures (SAP)?

The data indicates the contract was 'NOT COMPETED UNDER SAP.' Simplified Acquisition Procedures (SAP) are typically used for purchases below the simplified acquisition threshold (SAT), which is currently $250,000 for most agencies. If this purchase order was indeed below the SAT, the 'NOT COMPETED UNDER SAP' designation is unusual and suggests it might have been procured through other means or that there were specific reasons for not leveraging the standard SAP competition requirements. Agencies may use non-competitive SAP procedures under certain circumstances, such as when only one source is capable of meeting the requirement, or for specific types of acquisitions. Understanding the precise justification is key to assessing whether the government adequately explored competitive options.

What is BIOMERIEUX INC.'s track record with the Department of Veterans Affairs and other federal agencies for similar procurements?

BIOMERIEUX INC. is a known entity in the diagnostics market, and their track record with the VA and other federal agencies can be assessed by reviewing past contract awards. Examining previous procurements for microbial identification systems, reagents, or related services from BIOMERIEUX INC. would reveal their history of performance, pricing, and compliance. A history of successful, on-time deliveries and competitive pricing would be positive indicators. Conversely, any past issues related to contract performance, quality, or disputes could raise concerns. This historical context is vital for understanding the reliability and value proposition of awarding this contract to BIOMERIEUX INC.

What are the potential risks associated with awarding a sole-source or limited-competition contract for critical laboratory equipment?

Awarding a sole-source or limited-competition contract for critical laboratory equipment like microbial identification systems carries several potential risks. Primarily, it can lead to higher costs for the government due to the lack of competitive pressure, meaning taxpayers may pay more than necessary. It also limits the government's ability to explore innovative solutions or potentially better-performing equipment from a wider range of vendors. Furthermore, reliance on a single or limited number of suppliers can create vulnerabilities in the supply chain, potentially leading to delays or disruptions if the chosen vendor faces production issues or goes out of business. Ensuring the justification for limited competition is robust is crucial to mitigate these risks.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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

Financial Breakdown

Contract Ceiling: $174,682

Exercised Options: $174,682

Current Obligation: $174,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline