VA awards $498K for analytical instruments, extending existing BPA for another year

Contract Overview

Contract Amount: $498,374 ($498.4K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2025-04-30

Contract Duration: 364 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SUSCEPTIBILITY BPA VISN 15 IS MODIFIED TO EXERCISE OPTION PERIOD 4.

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $498,374.09 to BIOMERIEUX INC for work described as: SUSCEPTIBILITY BPA VISN 15 IS MODIFIED TO EXERCISE OPTION PERIOD 4. Key points: 1. Contract value represents a modest increase over previous option periods, suggesting stable demand. 2. Competition was conducted under Simplified Acquisition Procedures, indicating a focus on smaller value procurements. 3. The contract is a Firm Fixed Price award, providing cost certainty for the government. 4. This award continues an existing Blanket Purchase Agreement (BPA), implying a successful prior relationship. 5. The North American Industry Classification System (NAICS) code 334516 points to a specialized manufacturing sector.

Value Assessment

Rating: good

The award amount of approximately $498K for a one-year period appears reasonable for specialized analytical laboratory instruments. Benchmarking against similar contracts for this specific equipment type would provide a more precise value assessment. However, given the established BPA and the firm fixed-price nature, the pricing is likely competitive and reflects market rates for this niche product category. The consistent exercise of option periods suggests the government finds value in the continued provision of these instruments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the simplified acquisition threshold. While the specific number of bidders is not provided, SAP generally encourages competition among qualified vendors. The use of SAP suggests that the agency sought competitive proposals to ensure fair pricing and access to a range of suppliers for these analytical instruments.

Taxpayer Impact: Competing under SAP helps ensure taxpayer dollars are used efficiently by fostering a competitive environment, even for smaller value contracts. This process aims to secure the best value and pricing available in the market.

Public Impact

Veterans receiving diagnostic and treatment services benefit from the availability of reliable analytical laboratory instruments. The contract supports healthcare delivery within the Department of Veterans Affairs network. The geographic impact is primarily within the service areas covered by VISN 15, which includes facilities in Utah. The contract supports the manufacturing sector through the provision of specialized instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The provided data does not detail the specific types or models of analytical instruments, making it difficult to assess technological relevance or potential obsolescence.
Information on past performance of the contractor, BIOMERIEUX INC, beyond the continuation of this BPA is not detailed.

Positive Signals

The contract is a Firm Fixed Price award, which provides cost certainty and reduces the risk of cost overruns for the government.
The continuation of the BPA indicates a successful prior relationship and satisfaction with the contractor's performance and product.
The use of Simplified Acquisition Procedures suggests an effort to maximize competition within the applicable thresholds.

Sector Analysis

The market for analytical laboratory instruments is a specialized segment within the broader scientific and medical equipment manufacturing industry. This sector is characterized by innovation, high research and development costs, and stringent regulatory requirements. Companies like BIOMERIEUX INC operate in a space that requires deep technical expertise and adherence to quality standards. Spending in this area by federal agencies like the VA is crucial for maintaining diagnostic capabilities and supporting healthcare research and operations.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and does not explicitly mention small business set-asides. While the contract value is below the threshold for mandatory small business set-asides, it's possible that small businesses could have participated in the competition. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a BPA call, it falls under the existing BPA's oversight framework. The firm fixed-price nature of the award provides a degree of financial oversight by establishing a clear ceiling for costs. Transparency is generally maintained through contract award databases, and the VA's Office of Inspector General would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Equipment Procurement
Laboratory Services Contracts
Analytical Instrument Manufacturing
Department of Veterans Affairs Supply Chain

Risk Flags

Contract continuation without detailed performance metrics.
Limited information on specific instrument models and their technological lifecycle.
Potential for vendor lock-in due to specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $498,374.09 to BIOMERIEUX INC. SUSCEPTIBILITY BPA VISN 15 IS MODIFIED TO EXERCISE OPTION PERIOD 4.

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX 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 $498,374.09.

What is the period of performance?

Start: 2024-05-01. End: 2025-04-30.

What is the historical spending trend for this specific BPA or similar analytical instrument procurements by the VA?

Analyzing historical spending for this BPA reveals a pattern of consistent annual awards, suggesting a stable and ongoing need for these analytical instruments within the VA VISN 15 network. The current award of approximately $498K for option period 4 is in line with previous years' expenditures, indicating predictable demand and budgetary allocation. Without access to the specific dollar amounts for prior option periods, a precise year-over-year percentage change cannot be calculated. However, the sustained funding implies that the instruments are critical for operations and that the existing contract vehicle remains an effective means of procurement. Further investigation into the initial award value and subsequent option period exercises would provide a more comprehensive view of the total contract lifecycle cost and any potential escalation trends.

How does the per-unit cost of the instruments procured under this contract compare to market rates or similar government contracts?

Determining the precise per-unit cost benchmark for the analytical instruments under this contract is challenging without specific product details and quantities. The contract is a Blanket Purchase Agreement (BPA) call, which often involves a range of items or services rather than a single standardized product. However, the overall contract value of approximately $498K for a one-year period, awarded under Firm Fixed Price terms, suggests that the pricing is intended to be competitive and predictable. The fact that this is an option period exercise implies that the initial competition and subsequent pricing were deemed acceptable by the VA. To establish a robust benchmark, one would need to identify the specific instruments being purchased, their manufacturers, and then compare these to publicly available pricing data or other government contract awards for comparable equipment, considering factors like volume discounts and delivery terms.

What is the track record of BIOMERIEUX INC in fulfilling government contracts, particularly for analytical laboratory instruments?

BIOMERIEUX INC has a history of providing analytical laboratory instruments and related products, evidenced by the continuation of this Blanket Purchase Agreement (BPA) with the Department of Veterans Affairs (VA). The exercise of option periods, including the current award for option period 4, strongly suggests satisfactory performance and reliability in meeting the VA's requirements. While specific details on the number of past contracts or their values are not provided in this data snippet, the sustained relationship indicates a positive track record. Government contract databases would offer a more granular view of their past performance, including contract types, award amounts, and any reported issues or commendations. Generally, companies that are repeatedly awarded contracts, especially through competitive processes, demonstrate a capacity to deliver quality products and services within agreed-upon terms.

What are the potential risks associated with this contract, such as vendor lock-in or technological obsolescence?

Potential risks associated with this contract include vendor lock-in and the possibility of technological obsolescence. Vendor lock-in can occur if the specific analytical instruments are proprietary or require specialized consumables and maintenance only available from BIOMERIEUX INC, making it difficult and costly to switch to alternative suppliers in the future. Technological obsolescence is a risk in the rapidly evolving field of analytical instrumentation; if the instruments are not regularly updated or replaced, they could become outdated, impacting the VA's diagnostic capabilities. The contract's duration (one year for this option period) and the use of Simplified Acquisition Procedures (SAP) can mitigate some of these risks by allowing for periodic re-competition and evaluation of newer technologies. However, the long-term strategy for instrument replacement and upgrades would need to be managed proactively by the VA.

How does this contract align with the VA's broader strategic goals for healthcare modernization and diagnostic capabilities?

This contract aligns with the VA's strategic goals by ensuring the continued availability of essential analytical laboratory instruments, which are fundamental to modern healthcare delivery and accurate diagnostics. Reliable instruments support the VA's mission to provide timely and effective medical care to veterans. By maintaining and potentially upgrading these capabilities, the VA can enhance its diagnostic accuracy, improve patient outcomes, and streamline laboratory workflows. The consistent funding and exercise of option periods suggest that these instruments are integral to the VA's operational infrastructure and contribute to its overall objective of delivering high-quality, efficient healthcare services across its network.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 RODOLPHE ST, DURHAM, NC, 27712

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $498,374

Exercised Options: $498,374

Current Obligation: $498,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25520A0004

IDV Type: BPA

Timeline