VA awards $240K for reagents and supplies to Leica Microsystems Inc., with delivery through April 2027

Contract Overview

Contract Amount: $240,000 ($240.0K)

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: $659/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 $240,000 to LEICA MICROSYSTEMS INC. for work described as: REAGENTS AND SUPPLIES Key points: 1. The contract value of $240,000 over approximately one year suggests a moderate investment in essential laboratory materials. 2. Competition dynamics for this contract are not fully detailed, but the award was made under SAP, indicating a potentially streamlined procurement process. 3. Risk indicators appear low given the relatively small contract value and the established nature of the supplier. 4. Performance context is tied to the Department of Veterans Affairs' need for laboratory reagents and supplies, crucial for medical diagnostics and research. 5. The sector positioning is within the analytical laboratory instrument manufacturing industry, supporting healthcare services. 6. The firm-fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of $240,000 for reagents and supplies appears reasonable for a one-year duration. Benchmarking against similar contracts for laboratory consumables within the VA or other federal agencies would provide a more precise value-for-money assessment. However, given the specialized nature of reagents and the supplier's role, the pricing is likely competitive within its niche. The firm-fixed-price structure offers cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for a broader range of competition than sole-source but may involve fewer formal requirements than full and open competition for larger contracts. The number of bidders is not specified, but the use of SAP suggests an effort to ensure fair pricing and access to qualified suppliers. The specific competition level within SAP would determine the extent of price discovery.

Taxpayer Impact: Utilizing SAP aims to balance efficient procurement with taxpayer value by ensuring multiple vendors have an opportunity to bid, potentially leading to better pricing than a sole-source award.

Public Impact

Veterans receiving medical care through the VA will benefit from the availability of necessary diagnostic reagents and supplies. The contract ensures the continuity of laboratory services essential for accurate medical diagnoses and treatment planning. The geographic impact is primarily within Illinois, where the supplier is located, but the services ultimately support VA facilities nationwide. The contract supports jobs within the analytical laboratory instrument manufacturing sector, contributing to the broader healthcare supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the supplier faces production or logistical issues.
Dependence on a single supplier for critical reagents could pose a risk if alternatives are not readily available.
Ensuring the quality and efficacy of reagents over the contract period requires ongoing monitoring.

Positive Signals

The contract is with an established supplier, Leica Microsystems Inc., suggesting reliability and experience.
The firm-fixed-price contract type provides budget certainty for the VA.
The duration of the contract allows for consistent supply of essential materials.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, a critical component of the broader healthcare and life sciences industry. This sector is characterized by innovation and specialized production, supplying essential tools and consumables for research, diagnostics, and quality control. Spending in this area is driven by the needs of healthcare providers, research institutions, and government agencies like the VA. Comparable spending benchmarks would involve analyzing procurement data for similar laboratory supplies across federal health agencies.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Leica Microsystems Inc. utilizes small businesses in its supply chain. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified reagents and supplies. Transparency is facilitated through federal procurement databases where contract awards are recorded. The Inspector General's office may conduct audits or investigations if specific concerns regarding performance or financial integrity arise.

Related Government Programs

Medical Supplies and Equipment
Laboratory Equipment and Services
Healthcare Services Procurement
Department of Veterans Affairs Medical Services

Risk Flags

Potential supply chain dependency
Limited competition visibility under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $240,000 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 $240,000.

What is the period of performance?

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

What is the historical spending pattern of the Department of Veterans Affairs on reagents and supplies from Leica Microsystems Inc. or similar vendors?

Analyzing historical spending data for the Department of Veterans Affairs (VA) on reagents and supplies, particularly from vendors like Leica Microsystems Inc. or those in the analytical laboratory instrument manufacturing sector, is crucial for understanding spending patterns. Without specific historical data for this contract or vendor, a general assessment can be made. Federal procurement databases (like FPDS or USASpending) would reveal if the VA has a recurring need for these types of supplies and the typical contract values awarded. Consistent awards to Leica Microsystems Inc. or competitors would indicate a stable demand and established supplier relationships. Conversely, fluctuating awards might suggest changes in technology, agency needs, or competitive landscape. Understanding past spending helps in evaluating the current $240,000 award for reasonableness and identifying potential trends in the VA's procurement of laboratory consumables.

How does the per-unit cost of these reagents and supplies compare to market rates or similar federal contracts?

Assessing the per-unit cost of reagents and supplies against market rates and similar federal contracts is a key aspect of value-for-money analysis. For this specific contract, the provided data does not include per-unit pricing details, making a direct comparison difficult. However, the overall contract value of $240,000 for a 364-day period suggests an average monthly expenditure of approximately $66,000. To benchmark, one would need to identify specific reagents or supply categories within this contract and compare their prices to those listed on federal supply schedules (e.g., GSA schedules), commercial price lists, or recent awards for comparable items to other federal agencies. Factors such as volume discounts, contract terms, and specific product formulations can influence pricing. If the VA has established baseline costs or benchmarks for these consumables, comparing the awarded price against those benchmarks would be the most effective method.

What is Leica Microsystems Inc.'s track record with federal contracts, particularly with the Department of Veterans Affairs?

Leica Microsystems Inc. has a track record of receiving federal contracts, including those with the Department of Veterans Affairs (VA). A review of federal procurement databases would likely show a history of awards for laboratory equipment, instruments, and potentially related consumables. The VA, being a major healthcare provider, frequently procures such items to support its medical facilities. Analyzing past performance, contract values, and any reported issues or successes associated with Leica Microsystems Inc.'s previous federal awards would provide insight into their reliability and capability. Positive past performance, especially with the VA, suggests a lower risk for this current contract. Conversely, any history of contract disputes, performance failures, or significant overruns on previous contracts would raise concerns and warrant closer scrutiny of this new award.

What are the potential risks associated with relying on a single supplier for these critical reagents and supplies?

Relying on a single supplier, even a reputable one like Leica Microsystems Inc., for critical reagents and supplies introduces several potential risks. Firstly, there's the risk of supply chain disruption. If Leica Microsystems Inc. experiences manufacturing issues, logistical problems, or unforeseen events (like natural disasters or pandemics), the VA's access to essential materials could be jeopardized, potentially impacting patient care and research. Secondly, a lack of competition can lead to less favorable pricing over time, as the supplier may face reduced pressure to offer the most competitive rates. Thirdly, there's a risk of vendor lock-in, where the VA becomes highly dependent on the supplier's specific product ecosystem, making it difficult or costly to switch to alternatives if needed. Mitigating these risks often involves maintaining strong communication with the supplier, exploring alternative sources proactively, and ensuring robust inventory management practices.

How does this contract align with the VA's broader objectives for laboratory services and medical diagnostics?

This contract for reagents and supplies directly aligns with the VA's broader objectives of providing high-quality medical diagnostics and laboratory services to veterans. These consumables are fundamental to the operation of clinical laboratories, enabling a wide range of tests from routine blood work to complex analyses. By ensuring a steady supply of necessary materials, the VA can maintain the efficiency and accuracy of its diagnostic capabilities, which are critical for timely and effective patient care, disease management, and treatment planning. The procurement supports the VA's mission to deliver comprehensive healthcare, ensuring that its medical professionals have the tools they need to diagnose and treat a diverse patient population. The continuity of supply facilitated by this contract is essential for the reliable functioning of the VA's healthcare infrastructure.

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: $240,000

Exercised Options: $240,000

Current Obligation: $240,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25226D0024

IDV Type: IDC

Timeline