VA awards $2.47M for Pluvicto drug, a specialized pharmaceutical preparation

Contract Overview

Contract Amount: $2,465,991 ($2.5M)

Contractor: Advanced Accelerator Applications USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-20

End Date: 2026-12-19

Contract Duration: 364 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN PADIOPHARMACEUTICAL PLUVICTO DRUG

Place of Performance

Location: EAST HANOVER, MORRIS County, NEW JERSEY, 07936

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to ADVANCED ACCELERATOR APPLICATIONS USA INC for work described as: VISN PADIOPHARMACEUTICAL PLUVICTO DRUG Key points: 1. Contract value appears reasonable for a specialized pharmaceutical product. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of one year aligns with typical pharmaceutical supply needs. 5. The award is for a specific drug, indicating a focused procurement need. 6. The contractor is a known entity in the advanced accelerator applications field.

Value Assessment

Rating: good

The contract value of $2.47 million for Pluvicto drug appears to be within a reasonable range for specialized pharmaceuticals, though direct comparisons are difficult without more specific market data. The firm fixed-price structure is advantageous, locking in costs and reducing the government's exposure to price fluctuations. Benchmarking against similar pharmaceutical procurements for high-cost, specialized drugs would provide a clearer picture of value for money, but the current data suggests a fair assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the open competition suggests a healthy level of market interest and potential for price discovery. This approach is generally favored to ensure the government receives the best possible pricing and quality.

Taxpayer Impact: Full and open competition maximizes the potential for competitive pricing, which directly benefits taxpayers by ensuring the government is not overpaying for essential pharmaceuticals.

Public Impact

Veterans will benefit from access to the Pluvicto drug, likely for cancer treatment. The service delivered is the provision of a critical pharmaceutical preparation. The geographic impact is focused on New Jersey, where the contractor is located. Workforce implications are minimal, primarily related to the distribution and administration of the drug.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality standards in the provided data.
Limited insight into the number of bidders and the intensity of competition.
No information on potential supply chain disruptions for this specialized drug.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition suggests a robust bidding process.
Contract awarded to a company with relevant expertise in advanced applications.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly specialized and regulated. This contract falls within the broader healthcare and pharmaceutical industry, which is characterized by significant research and development costs, stringent quality controls, and complex supply chains. The market for specialized cancer drugs like Pluvicto is often dominated by a few key manufacturers, making competitive bidding crucial for government procurement.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of pharmaceutical manufacturing and the specific drug procured, it is likely that the primary awardee is a large business with the necessary capabilities and certifications. Subcontracting opportunities for small businesses are not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and contracting offices. The firm fixed-price nature of the award simplifies some aspects of oversight by focusing on delivery and compliance rather than cost reconciliation. Transparency is generally maintained through contract databases, but specific performance monitoring details are not publicly available.

Related Government Programs

Department of Veterans Affairs Pharmaceutical Contracts
Specialized Cancer Drug Procurement
Pharmaceutical Preparation Manufacturing Contracts

Risk Flags

Specialized Pharmaceutical Procurement
Potential Supply Chain Vulnerabilities
High-Cost Drug Acquisition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to ADVANCED ACCELERATOR APPLICATIONS USA INC. VISN PADIOPHARMACEUTICAL PLUVICTO DRUG

Who is the contractor on this award?

The obligated recipient is ADVANCED ACCELERATOR APPLICATIONS USA 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 $2.5 million.

What is the period of performance?

Start: 2025-12-20. End: 2026-12-19.

What is the track record of Advanced Accelerator Applications USA Inc. with federal contracts, particularly for pharmaceuticals?

Advanced Accelerator Applications USA Inc. has a history of federal contracting, primarily within the Department of Veterans Affairs and other health-related agencies. Their expertise often lies in specialized areas, including radiopharmaceuticals and advanced therapeutic applications. While specific details on past pharmaceutical contracts are not fully elaborated in this summary, their involvement in this Pluvicto drug award suggests a recognized capability in supplying critical medical treatments. A deeper dive into their contract history would reveal the volume and types of pharmaceuticals previously supplied to the government, as well as their performance ratings on those contracts.

How does the $2.47 million award compare to market rates for Pluvicto or similar specialized cancer drugs?

Directly comparing the $2.47 million award to market rates for Pluvicto or similar specialized cancer drugs is challenging without access to proprietary pricing data and specific contract terms. Pluvicto is a high-cost, targeted therapy, and its price can vary significantly based on dosage, treatment duration, and geographic market. Federal agencies often leverage bulk purchasing power and competitive bidding to secure favorable pricing. However, the firm fixed-price nature of this award suggests the VA has negotiated a set price. Benchmarking against publicly available drug pricing databases or reports from other healthcare systems could offer some context, but a definitive value-for-money assessment requires more granular data on unit costs and treatment protocols.

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

The primary risks associated with this contract include potential supply chain disruptions for a specialized pharmaceutical, the possibility of unforeseen price increases if the fixed price was not adequately set, and ensuring the drug meets all quality and efficacy standards. Mitigation strategies are inherent in the contract structure: the firm fixed-price agreement caps the government's financial exposure. The full and open competition aims to ensure multiple qualified suppliers are available, reducing reliance on a single source. Furthermore, the Department of Veterans Affairs likely has stringent quality assurance protocols and oversight mechanisms in place to monitor drug quality and delivery, and the contractor's track record in advanced applications suggests a level of reliability.

What is the expected effectiveness or program outcome of procuring Pluvicto through this contract?

The expected outcome of this contract is to ensure a reliable supply of Pluvicto for eligible veterans receiving treatment. Pluvicto is a targeted radioligand therapy used for treating prostate cancer that has spread and is resistant to other treatments. By securing this drug, the VA aims to provide veterans with access to advanced, potentially life-saving medical interventions. The effectiveness of the program is measured by the availability of the drug when needed, its quality, and ultimately, its contribution to improved patient outcomes for veterans suffering from advanced prostate cancer. The contract's success hinges on timely delivery and the drug's therapeutic efficacy in the patient population.

What are the historical spending patterns for Pluvicto or similar drugs by the Department of Veterans Affairs?

Historical spending patterns for Pluvicto or similar highly specialized cancer drugs by the Department of Veterans Affairs are not detailed in the provided data. However, it is reasonable to infer that spending on such treatments would be significant due to the high cost of these therapies and the VA's commitment to providing comprehensive care to veterans. Procurements for advanced pharmaceuticals often represent a growing portion of healthcare budgets. Analyzing past VA pharmaceutical spending reports, particularly for oncology drugs, would reveal trends in the volume and value of similar acquisitions, helping to contextualize the current $2.47 million award within a broader historical perspective of VA healthcare expenditures.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation 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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 5TH AVE STE 6902, NEW YORK, NY, 10118

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

Financial Breakdown

Contract Ceiling: $2,469,187

Exercised Options: $2,469,187

Current Obligation: $2,465,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24925A0031

IDV Type: BPA

Timeline