VA awards $30.8M for genomic sequencing services to Personalis, Inc

Contract Overview

Contract Amount: $30,866,000 ($30.9M)

Contractor: Personalis, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-28

End Date: 2021-09-27

Contract Duration: 364 days

Daily Burn Rate: $84.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENOMIC SEQUENCING

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15212

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.9 million to PERSONALIS, INC. for work described as: GENOMIC SEQUENCING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $30.8 million over one year indicates a significant investment in advanced diagnostic services. 3. Fixed-price contract type aims to control costs and provide predictability for the agency. 4. The award to Personalis, Inc. positions them as a key provider for the VA's genomic sequencing needs. 5. Performance period of one year allows for evaluation of services before potential future extensions. 6. The NAICS code 541380 points to specialized testing laboratories and services, a niche but critical sector.

Value Assessment

Rating: good

The contract value of $30.8 million for a one-year period for genomic sequencing services appears to be within a reasonable range for specialized laboratory services. Benchmarking against similar contracts for advanced genomic analysis would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps in cost control, but the ultimate value will depend on the quality and comprehensiveness of the sequencing performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The specific exclusion of sources might indicate a pre-qualification or a specific technical requirement that narrowed the initial pool, but the 'full and open' aspect suggests a robust competition.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers, as multiple vendors vie for the contract. This process ensures that the government receives competitive pricing and the best value available in the market.

Public Impact

Veterans will benefit from potentially more accurate and personalized diagnostic information through advanced genomic sequencing. The services delivered will support the Department of Veterans Affairs' efforts to understand and treat diseases affecting the veteran population. The geographic impact is likely nationwide, as the VA serves veterans across the United States. This contract supports specialized jobs within the biotechnology and laboratory services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this becomes a sole-source follow-on without re-competition.
Ensuring the quality and accuracy of genomic data is critical for patient outcomes.
The rapid evolution of genomic technology may require frequent updates to service scope and pricing.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Fixed-price contract type helps manage budget predictability.
Focus on a critical health service area for veterans.

Sector Analysis

Genomic sequencing is a rapidly advancing field within the broader healthcare and biotechnology sector. This contract falls under specialized laboratory testing services, a market characterized by high technical expertise and significant R&D investment. The total addressable market for genomic sequencing services is growing, driven by advancements in personalized medicine and diagnostics. The VA's spending in this area reflects a commitment to leveraging cutting-edge technology for veteran healthcare.

Small Business Impact

The contract data does not indicate any specific small business set-aside. Given the specialized nature of genomic sequencing, it is possible that larger, more established firms with advanced capabilities are better positioned to compete. 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 overseeing this contract. Oversight mechanisms would typically include regular performance reviews, quality assurance checks, and financial audits to ensure compliance with contract terms and conditions. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA Precision Medicine Program
National Institutes of Health (NIH) Genomic Research
Department of Defense (DoD) Genomics Initiatives

Risk Flags

Data Accuracy Risk
Technological Obsolescence Risk
Contractor Performance Risk
Data Security and Privacy Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.9 million to PERSONALIS, INC.. GENOMIC SEQUENCING

Who is the contractor on this award?

The obligated recipient is PERSONALIS, 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 $30.9 million.

What is the period of performance?

Start: 2020-09-28. End: 2021-09-27.

What is the track record of Personalis, Inc. in performing government contracts, particularly for genomic sequencing?

A review of federal procurement data indicates that Personalis, Inc. has received multiple federal contracts, primarily from agencies like the Department of Veterans Affairs and the National Institutes of Health. While specific details on past performance for large-scale genomic sequencing contracts with the VA are not fully detailed in this summary, their consistent awards suggest a level of capability and reliability recognized by federal agencies. Further investigation into past performance reviews and any reported issues on previous contracts would provide a more comprehensive understanding of their track record. The current award itself, valued at $30.8 million, signifies a significant level of trust placed in the company for a critical service.

How does the $30.8 million contract value compare to similar genomic sequencing contracts awarded by the VA or other federal agencies?

The $30.8 million contract value for one year of genomic sequencing services is substantial and reflects the high cost associated with advanced molecular diagnostics. To benchmark this effectively, one would need to compare it against contracts for similar scope and volume from other federal agencies or large healthcare systems. For instance, contracts awarded by the National Institutes of Health (NIH) for large-scale genomic research projects, or by the Department of Defense (DoD) for diagnostic services, could serve as comparators. Without direct comparative data, it's challenging to definitively state if this represents excellent or fair value, but the amount suggests a significant commitment to this technology. The fixed-price nature of the contract provides some cost certainty for the VA.

What are the primary risks associated with this genomic sequencing contract for the VA?

Key risks include the accuracy and reliability of the genomic data generated, which is critical for clinical decision-making and veteran health outcomes. There's also a risk related to the rapid pace of technological advancement in genomics; the contracted services might become outdated quickly, necessitating costly updates or renegotiations. Another risk could be the contractor's ability to scale operations to meet the VA's demand consistently throughout the contract period. Finally, data security and privacy are paramount concerns when handling sensitive genetic information, posing a risk if breaches occur.

How effective is genomic sequencing in improving healthcare outcomes for veterans, and how does this contract support that effectiveness?

Genomic sequencing is increasingly vital for improving healthcare outcomes by enabling personalized medicine, identifying predispositions to diseases, and guiding targeted therapies. For veterans, this can translate to better diagnosis and treatment of conditions prevalent in this population, such as certain cancers or chronic diseases. This contract directly supports the VA's ability to offer these advanced diagnostic capabilities to its patient base. By securing these services, the VA aims to leverage genomic insights to provide more precise and effective care, potentially leading to improved treatment efficacy and reduced long-term healthcare costs.

What are the historical spending patterns of the VA on genomic sequencing and related laboratory services?

The VA's spending on genomic sequencing and related laboratory services has likely seen a significant increase over the past decade, mirroring the broader trend in healthcare and research. Historically, such advanced services might have been outsourced to specialized research institutions or limited to specific research programs. However, with the maturation of sequencing technologies and their increasing clinical utility, agencies like the VA are dedicating more resources to integrate these capabilities into routine care and research. This $30.8 million award represents a substantial single-year investment, suggesting a strategic focus and potentially an increase in the VA's overall budget allocation for these services compared to prior years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 OBRIEN DR, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,866,000

Exercised Options: $30,866,000

Current Obligation: $30,866,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA24017D0103

IDV Type: IDC

Timeline