VA awards $14.9M for Ortho Vision Analyzer Reagents and Service to Ortho-Clinical Diagnostics

Contract Overview

Contract Amount: $14,956 ($15.0K)

Contractor: Ortho-Clinical Diagnostics, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $41/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ORTHO VISION ANAYLZER REAGENTS AND SERVICE

Place of Performance

Location: RARITAN, SOMERSET County, NEW JERSEY, 08869

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14,955.8 to ORTHO-CLINICAL DIAGNOSTICS, INC for work described as: ORTHO VISION ANAYLZER REAGENTS AND SERVICE Key points: 1. The contract is for essential diagnostic reagents and service, crucial for healthcare operations. 2. Ortho-Clinical Diagnostics is the sole provider, raising concerns about competition. 3. The firm fixed price contract type helps mitigate cost uncertainty. 4. The Department of Veterans Affairs is the primary agency. 5. The contract duration is one year, with a potential for renewal.

Value Assessment

Rating: fair

The award amount of $14.9M for a one-year contract for reagents and service appears to be within a reasonable range for specialized medical equipment. However, without specific benchmarks for this particular system and its consumables, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Ensures continued access to critical diagnostic testing for veterans. Potential for increased costs due to sole-source nature. Reliability of diagnostic services is maintained for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in price negotiation

Positive Signals

Ensures continuity of critical medical services
Firm fixed price contract provides cost certainty

Sector Analysis

The healthcare sector, particularly in diagnostics, often involves specialized equipment and proprietary reagents. Spending in this area is driven by patient needs and technological advancements, with sole-source awards being common for maintenance and consumables.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The nature of the specialized equipment likely favors larger, established manufacturers.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The lack of competition warrants close monitoring to ensure fair pricing and value for taxpayer dollars.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in pricing
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14,955.8 to ORTHO-CLINICAL DIAGNOSTICS, INC. ORTHO VISION ANAYLZER REAGENTS AND SERVICE

Who is the contractor on this award?

The obligated recipient is ORTHO-CLINICAL DIAGNOSTICS, 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 $14,955.8.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical pricing trend for these reagents and services from Ortho-Clinical Diagnostics, and how does it compare to industry averages for similar diagnostic platforms?

Analyzing historical pricing data is crucial to determine if the current award reflects fair market value. Without this context, it's difficult to ascertain if the $14.9M represents an optimal price or if it's inflated due to the sole-source nature of the contract. Benchmarking against similar diagnostic systems from competitors, even if not directly applicable, could provide further insight into potential cost efficiencies.

What steps has the VA taken to ensure the best possible price given the sole-source nature of this award, and are there plans to explore competitive options in the future?

Given the sole-source award, the VA should have conducted thorough market research and price analysis to justify the negotiated price. Documenting these efforts is key for accountability. Future procurement strategies should actively seek opportunities to introduce competition, perhaps by bundling services differently or exploring alternative diagnostic technologies to avoid long-term sole-source reliance.

How critical is the Ortho Vision Analyzer system to the VA's overall diagnostic capabilities, and what would be the impact of service disruptions or reagent shortages?

The criticality of the Ortho Vision Analyzer system directly impacts the VA's ability to provide timely and accurate diagnoses for veterans. Service disruptions or reagent shortages could lead to significant delays in patient care, potentially affecting treatment outcomes and increasing overall healthcare costs. Ensuring a robust supply chain and reliable service is paramount for operational continuity.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ortho-Clinical Diagnostics, Inc.

Address: 1001 US HIGHWAY 202, RARITAN, NJ, 08869

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: $14,956

Exercised Options: $14,956

Current Obligation: $14,956

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25225D0025

IDV Type: IDC

Timeline