VA awards $157K contract to Natera Inc. for kidney disease genetic testing

Contract Overview

Contract Amount: $157,000 ($157.0K)

Contractor: Natera Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2027-04-06

Contract Duration: 364 days

Daily Burn Rate: $431/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NATERA KIDNEY DISEASE GENETIC PANEL TESTING

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46202

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $157,000 to NATERA INC for work described as: NATERA KIDNEY DISEASE GENETIC PANEL TESTING Key points: 1. The contract is for Natera Kidney Disease Genetic Panel Testing. 2. Natera Inc. is the sole awardee. 3. The contract duration is 364 days. 4. The contract is Firm Fixed Price.

Value Assessment

Rating: questionable

Pricing for this specific genetic panel testing is not readily available for direct comparison. Without competitive bidding, it's difficult to assess if the $157,000 award represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award raises concerns about potential overpayment and inefficient use of taxpayer funds due to the absence of competitive pressure.

Public Impact

Veterans may experience delays or limited access to advanced genetic testing if competitive pricing isn't secured. The VA's reliance on a single provider could stifle innovation and cost-saving measures in diagnostic services. Taxpayers may bear the cost of potentially inflated prices for essential medical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Definitive contract awarded
Firm Fixed Price contract type

Sector Analysis

The healthcare sector, particularly diagnostic services like genetic testing, often sees significant investment. Benchmarks for similar laboratory services can vary widely based on complexity and technology.

Small Business Impact

There is no indication that small businesses were considered or involved in this sole-source award, potentially missing opportunities for small business participation.

Oversight & Accountability

The lack of competition in this sole-source award warrants further oversight to ensure the VA is obtaining services at a reasonable cost and meeting the needs of veterans effectively.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for non-competitive pricing.
Lack of transparency in justification for sole-source.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $157,000 to NATERA INC. NATERA KIDNEY DISEASE GENETIC PANEL TESTING

Who is the contractor on this award?

The obligated recipient is NATERA 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 $157,000.

What is the period of performance?

Start: 2026-04-07. End: 2027-04-06.

What is the specific clinical necessity driving the sole-source award for this genetic panel testing?

The specific clinical necessity for the Natera Kidney Disease Genetic Panel Testing under a sole-source award is not detailed in the provided data. Understanding the unique capabilities of Natera's panel or a lack of alternatives would be crucial to justifying this procurement approach and ensuring it aligns with patient care needs.

How does the VA ensure fair pricing without competitive bidding for sole-source contracts?

Without competitive bidding, the VA typically relies on mechanisms like price analysis based on historical data, commercial price lists, comparison to similar items, or certified cost or pricing data from the contractor to ensure fair and reasonable pricing. However, the effectiveness of these methods can be limited without market competition.

What is the long-term strategy for procuring such specialized genetic testing services to ensure value and access for veterans?

The long-term strategy is unclear from this single award. The VA should explore options for future procurements, potentially through competitive bidding if multiple vendors can offer similar services, or by establishing pre-negotiated pricing agreements with multiple qualified providers to ensure ongoing value and access.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25026Q0345

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13011 MCCALLEN PASS, AUSTIN, TX, 78753

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

Financial Breakdown

Contract Ceiling: $157,000

Exercised Options: $157,000

Current Obligation: $157,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline