VA awards $2.6M for reagents and supplies, with Leica Microsystems Inc. as the contractor

Contract Overview

Contract Amount: $260,000 ($260.0K)

Contractor: Leica Microsystems Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $714/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REAGENTS AND SUPPLIES

Place of Performance

Location: DEERFIELD, LAKE County, ILLINOIS, 60015

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $260,000 to LEICA MICROSYSTEMS INC. for work described as: REAGENTS AND SUPPLIES Key points: 1. Contract awarded for essential laboratory reagents and supplies, supporting critical medical functions. 2. The contract value of $2.6 million over one year indicates a significant investment in healthcare infrastructure. 3. Competition dynamics for this contract need further examination to ensure optimal value. 4. Performance period extends through March 2027, suggesting a need for sustained supply. 5. The North American Industry Classification System (NAICS) code 334516 points to a specialized manufacturing sector. 6. Fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: fair

The contract value of $2.6 million for reagents and supplies over a 364-day period appears substantial. Benchmarking against similar contracts for laboratory consumables is necessary to determine if this represents a fair price. Without specific details on the types and quantities of reagents, a precise value-for-money assessment is challenging. However, the fixed-price nature suggests an attempt to manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While 'full-and-open' suggests broad solicitation, the specific number of bids received and the details of the competition are not provided. This level of competition is generally favorable for price discovery, but the effectiveness depends on the active participation of qualified vendors.

Taxpayer Impact: A competitive process, even under SAP, is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing, potentially leading to cost savings for the government.

Public Impact

Veterans will benefit from the reliable supply of necessary reagents and supplies for medical diagnostics and treatment. Essential laboratory services supporting healthcare delivery within the VA system will be maintained. The contract's impact is primarily within the Illinois region, where the supplies will be delivered. The contract supports the Analytical Laboratory Instrument Manufacturing sector, contributing to specialized industrial output.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed breakdown of reagents and supplies makes it difficult to assess true value for money.
Limited information on the number of bidders and specific competition details hinders a full understanding of price discovery.
Potential for price escalation in future contract renewals if current pricing is not benchmarked effectively.

Positive Signals

Contract awarded through a competitive process under SAP, suggesting an effort to secure fair pricing.
Firm Fixed Price contract type provides cost certainty for the duration of the award.
Longer performance period (364 days) indicates a stable supply chain for critical medical materials.

Sector Analysis

The contract falls within the Analytical Laboratory Instrument Manufacturing sector (NAICS 334516), which encompasses companies that produce laboratory instruments and equipment, including associated reagents and supplies. This sector is critical for scientific research, medical diagnostics, and quality control across various industries. Spending in this area is often driven by the needs of government agencies like the VA for healthcare services and research. Comparable spending benchmarks would typically involve analyzing procurement data for similar laboratory consumables and equipment across federal healthcare providers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Leica Microsystems Inc., may engage small businesses as subcontractors. Further investigation into subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods. Transparency is facilitated by public contract databases, though detailed performance metrics and specific oversight activities are not publicly detailed in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies Procurement
Laboratory Equipment and Reagents
Veterans Health Administration Services
Federal Healthcare Contracts

Risk Flags

Potential for price increases in future contract periods.
Dependence on a single contractor for critical supplies.
Limited public detail on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $260,000 to LEICA MICROSYSTEMS INC.. REAGENTS AND SUPPLIES

Who is the contractor on this award?

The obligated recipient is LEICA MICROSYSTEMS 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 $260,000.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific types and quantities of reagents and supplies are included in this $2.6 million contract?

The provided data does not specify the exact types and quantities of reagents and supplies covered under this $2.6 million contract. This level of detail is typically found in the contract's statement of work or line item details, which are not included in the summary data. Understanding the specific items is crucial for a thorough value-for-money assessment, as the cost can vary significantly based on the nature, volume, and criticality of the consumables. For instance, routine diagnostic reagents would differ in cost and volume from specialized research chemicals or advanced testing kits. Without this information, it's challenging to benchmark pricing effectively against market rates or similar government procurements.

How does the $2.6 million contract value compare to historical spending on similar reagents and supplies by the VA?

To compare the $2.6 million contract value to historical VA spending, one would need access to historical procurement data for similar reagents and supplies. This would involve identifying previous contracts with the same or similar NAICS codes (334516) and product service codes (if available) awarded by the Department of Veterans Affairs. Analyzing the annual spending trends, average contract values, and the number of vendors utilized over several fiscal years would provide context. A higher or lower value compared to historical averages, especially when adjusted for inflation or changes in service volume, could indicate shifts in pricing, demand, or procurement strategies. Without this historical data, it's difficult to ascertain if the current award represents an increase, decrease, or stable level of investment.

What is the track record of Leica Microsystems Inc. in fulfilling federal contracts, particularly for reagents and supplies?

Leica Microsystems Inc. has a history of federal contracting, often related to laboratory equipment and instrumentation. To assess their track record specifically for reagents and supplies, a review of their past performance on similar government contracts would be necessary. This would involve examining contract databases for awards made to Leica Microsystems, looking at contract performance evaluations (e.g., CPARS reports), and identifying any instances of delivery delays, quality issues, or disputes. A strong performance history with positive past performance ratings would indicate a lower risk for this current contract. Conversely, a history of issues could raise concerns about the contractor's reliability and ability to meet the VA's needs effectively.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include supply chain disruptions affecting the availability of reagents and supplies, potential price increases in future renewals if not adequately benchmarked now, and the possibility of performance issues from the contractor. Mitigation strategies often involve robust contract management by the VA, including regular performance reviews, clear communication channels with the contractor, and contingency planning for supply chain vulnerabilities. The firm fixed-price nature helps mitigate cost overrun risks for the government. However, specific risk mitigation plans are typically internal to the contracting agency and not always publicly disclosed.

How does the 'COMPETED UNDER SAP' designation impact the overall cost-effectiveness and taxpayer value?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) indicates that this contract was awarded through a streamlined procurement process designed for purchases below a certain dollar threshold (typically $250,000, though this can vary). While SAP aims for efficiency, it may involve less extensive market research and fewer formal bidding requirements compared to full and open competition for larger contracts. The impact on cost-effectiveness and taxpayer value is generally positive if the competition within the SAP framework is robust, meaning multiple qualified vendors actively participated and offered competitive pricing. However, there's a potential risk that a less rigorous competition could lead to suboptimal pricing compared to what might be achieved through larger-scale, more formal competitive processes. The VA's adherence to SAP guidelines and the actual level of vendor participation are key factors.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 10 PARKWAY NORTH, DEERFIELD, IL, 60015

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

Financial Breakdown

Contract Ceiling: $260,000

Exercised Options: $260,000

Current Obligation: $260,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25226D0024

IDV Type: IDC

Timeline