VA awards $2.9M for ISTAT Point of Care System, highlighting analytical lab instrument needs

Contract Overview

Contract Amount: $2,903,748 ($2.9M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-15

End Date: 2025-09-30

Contract Duration: 1,295 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ISTAT POINT OF CARE SYSTEM

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to ABBOTT LABORATORIES INC. for work described as: ISTAT POINT OF CARE SYSTEM Key points: 1. Contract value of $2.9M for a critical point-of-care diagnostic system. 2. Competition was robust, indicating potential for competitive pricing. 3. Contract duration extends over three years, suggesting a long-term need. 4. The system supports analytical laboratory functions, crucial for patient care. 5. Fixed-price contract type offers cost certainty for the government. 6. Awarded by the Department of Veterans Affairs, serving veteran healthcare needs.

Value Assessment

Rating: good

The contract value of $2.9M for the ISTAT Point of Care System appears reasonable given the duration and the nature of advanced medical diagnostic equipment. Benchmarking against similar contracts for point-of-care testing systems would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests a degree of cost control. The award to Abbott Laboratories, a known provider in this space, indicates a reliance on established technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The fact that a single award was made indicates that Abbott Laboratories Inc. was selected as the most advantageous offer.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

Veterans will benefit from improved point-of-care diagnostic capabilities, leading to faster and more accurate medical decisions. The contract ensures the continued availability of essential analytical laboratory instruments for healthcare providers within the VA system. Services are delivered across the VA's network, potentially impacting healthcare delivery nationwide. The contract supports the healthcare workforce by providing them with advanced diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system requires proprietary consumables or maintenance.
Dependence on a single supplier for critical diagnostic equipment could pose supply chain risks.
Ensuring adequate training and support for VA staff to maximize system utilization.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Fixed-price contract type provides budget predictability.
Long-term contract duration indicates a sustained commitment to a valuable healthcare solution.

Sector Analysis

The market for analytical laboratory instruments, particularly point-of-care diagnostic systems, is a significant segment within the broader healthcare technology sector. These systems are crucial for rapid patient testing at the bedside or in clinics, reducing turnaround times for critical results. Spending in this area is driven by the need for efficiency, accuracy, and improved patient outcomes. Comparable spending benchmarks would involve analyzing other government or large healthcare systems' procurements of similar diagnostic platforms.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The award to Abbott Laboratories Inc., a large corporation, suggests that small businesses were likely not the primary focus for this specific procurement. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Accountability measures are inherent in the fixed-price contract structure, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration Medical Equipment Procurement
Department of Veterans Affairs Laboratory Services
Point-of-Care Diagnostic Testing Systems
Analytical Laboratory Instrument Contracts

Risk Flags

Potential for supply chain dependency
Need for robust user training and support
Risk of technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to ABBOTT LABORATORIES INC.. ISTAT POINT OF CARE SYSTEM

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES 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 $2.9 million.

What is the period of performance?

Start: 2022-03-15. End: 2025-09-30.

What is the track record of Abbott Laboratories Inc. with the Department of Veterans Affairs for similar diagnostic systems?

Abbott Laboratories Inc. has a history of providing medical devices and diagnostic solutions to various government agencies, including the Department of Veterans Affairs. While specific details on past contracts for the ISTAT Point of Care System with the VA would require deeper database analysis, Abbott is a well-established player in the diagnostics market. Their track record generally includes supplying a range of laboratory and point-of-care testing equipment. It is important to review past performance evaluations and any documented issues or successes related to their previous VA contracts to fully assess their reliability for this current award.

How does the awarded price compare to market rates for similar point-of-care diagnostic systems?

A precise comparison of the awarded price ($2.9M over approximately 3 years) to market rates for similar point-of-care diagnostic systems requires access to detailed pricing data for comparable systems from other manufacturers and potentially other government agencies. Factors influencing price include the specific capabilities of the ISTAT system, the number of units procured, associated maintenance and consumables, and the contract duration. Given that the contract was awarded under full and open competition, it suggests the price was deemed competitive at the time of award. However, without specific benchmark data for comparable systems, a definitive value-for-money assessment is challenging.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential supply chain disruptions for the ISTAT system or its consumables, technological obsolescence over the contract's lifespan, and ensuring effective user adoption and training among VA healthcare staff. Mitigation strategies likely involve the VA's standard contract management processes, which may include performance monitoring, contingency planning for supply issues, and requirements for contractor support and training. The fixed-price nature of the contract also shifts some financial risk to the contractor. Further review of the contract's specific terms and conditions would reveal more detailed risk mitigation clauses.

How effective is the ISTAT Point of Care System in improving patient outcomes and operational efficiency within the VA?

The effectiveness of the ISTAT Point of Care System in improving patient outcomes and operational efficiency within the VA is primarily measured by its ability to deliver rapid, accurate diagnostic results at the patient's location. This can lead to quicker clinical decision-making, reduced length of hospital stays, and improved patient safety by minimizing delays in treatment. Operational efficiency gains can stem from streamlined workflows and reduced need to transport samples to a central laboratory. Quantifying these benefits would typically involve analyzing VA internal performance metrics, patient outcome data, and clinician feedback related to the system's use.

What has been the historical spending pattern for point-of-care diagnostic systems by the Department of Veterans Affairs?

Historical spending patterns for point-of-care diagnostic systems by the Department of Veterans Affairs would reveal the VA's consistent or fluctuating investment in this technology. Analyzing past contract awards for similar systems, including their values, durations, and awarded vendors, can indicate trends in procurement strategies and technology adoption. This data can help contextualize the current $2.9M award, showing whether it represents an increase, decrease, or stable level of investment compared to previous periods. Understanding these patterns is crucial for forecasting future needs and budget allocations for diagnostic equipment.

What are the implications of this contract award for competition in the point-of-care diagnostics market serving federal agencies?

This contract award to Abbott Laboratories Inc. for the ISTAT Point of Care System, under full and open competition, signals continued demand for advanced diagnostic solutions within the VA. It reinforces Abbott's position in the federal market. The fact that it was competed openly suggests that other manufacturers of point-of-care systems had the opportunity to bid, potentially influencing their pricing and product development strategies for future federal opportunities. The outcome of this competition can serve as a benchmark for future procurements in this sector, encouraging innovation and competitive pricing among vendors vying for government contracts.

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: 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: 200 ABBOTT PARK RD, ABBOTT PARK, IL, 60064

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: $7,749,019

Exercised Options: $6,856,646

Current Obligation: $2,903,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: V797P7322A

IDV Type: FSS

Timeline