VA awards $611K for IHC Instruments and Reagents to Leica Microsystems Inc., a sole-source contract

Contract Overview

Contract Amount: $611,525 ($611.5K)

Contractor: Leica Microsystems Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-10

End Date: 2025-05-09

Contract Duration: 364 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IHC INSTRUMENTS AND REAGENTS

Place of Performance

Location: DEERFIELD, LAKE County, ILLINOIS, 60015

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $611,525.35 to LEICA MICROSYSTEMS INC. for work described as: IHC INSTRUMENTS AND REAGENTS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is one year, suggesting a need for ongoing supplies. 3. The product service code (PSC) is not specified, making direct comparisons difficult. 4. The award is a BPA Call, indicating it's part of a larger agreement. 5. The fixed-price contract type aims to control costs for the government. 6. The geographic location of performance is Illinois.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the sole-source nature and lack of detailed service descriptions. However, the total award amount of $611,525.35 for a one-year period for instruments and reagents appears to be within a reasonable range for specialized medical equipment and supplies. Without competitive bids, it's difficult to definitively assess if the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP (Simplified Acquisition Procedures), indicating it was likely awarded directly to Leica Microsystems Inc. without soliciting bids from other vendors. The sole-source designation means there was no open competition, which can limit the government's ability to secure the lowest possible price and may suggest a lack of alternative suppliers or a specific need for this contractor's unique offerings.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the absence of competition removes the incentive for vendors to offer their most competitive pricing.

Public Impact

Veterans Affairs medical facilities will benefit from the provision of essential instruments and reagents for laboratory testing. The contract supports diagnostic and analytical functions within the VA healthcare system. Services are to be performed in Illinois, potentially impacting local VA facilities and their operational capacity. The contract ensures the availability of necessary supplies for medical analysis, indirectly supporting healthcare professionals and patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of detailed service description hinders comprehensive value assessment.
Potential for higher costs due to absence of open competition.

Positive Signals

Firm fixed-price contract type helps manage cost certainty.
One-year duration allows for timely procurement of essential supplies.
BPA Call structure suggests an established procurement vehicle.

Sector Analysis

The market for analytical laboratory instruments and reagents is a significant segment within the broader healthcare and life sciences industries. This contract falls under the 'Analytical Laboratory Instrument Manufacturing' (NAICS 334516) sector. Companies like Leica Microsystems Inc. are key players, providing specialized equipment essential for medical diagnostics and research. Spending in this sector is driven by the continuous need for accurate testing and analysis in healthcare settings.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to a single, likely large, vendor suggests that small businesses were not actively solicited or considered for this specific procurement. This could limit opportunities for small businesses to participate in supplying instruments and reagents to the VA.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and contracting offices. As a sole-source award, it may undergo specific review processes to justify the lack of competition. Transparency could be enhanced by making the justification for the sole-source award publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Laboratory Reagents and Supplies Contracts
Sole-Source Federal Procurements
Analytical Instrument Contracts

Risk Flags

Sole-source award may indicate limited market research or vendor lock-in.
Lack of competition could lead to suboptimal pricing.
Absence of detailed service description requires further inquiry into scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $611,525.35 to LEICA MICROSYSTEMS INC.. IHC INSTRUMENTS AND REAGENTS

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 $611,525.35.

What is the period of performance?

Start: 2024-05-10. End: 2025-05-09.

What is the specific justification for awarding this contract on a sole-source basis to Leica Microsystems Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when a compelling justification exists, such as unique capabilities, urgent needs, or follow-on work to a previous contract where competition is not feasible. The Department of Veterans Affairs would have a formal justification document outlining the reasons why other vendors could not be considered for this procurement of IHC instruments and reagents.

How does the $611,525.35 award amount compare to similar VA contracts for laboratory instruments and reagents?

Direct comparison is difficult without knowing the exact specifications of the instruments and reagents procured. However, the total award of $611,525.35 for a one-year period for specialized laboratory equipment and consumables is not unusually high for a federal agency like the VA. The VA procures a wide range of medical supplies, and costs can vary significantly based on the technology, volume, and specific product lines. A more precise benchmark would require analyzing contracts with identical or very similar product service codes and quantities.

What are the potential risks associated with a sole-source award for essential laboratory supplies?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may end up paying more than they would in a competitive environment. Additionally, sole-source awards can reduce flexibility, as the agency becomes dependent on a single supplier, potentially leading to supply chain vulnerabilities if that supplier faces issues. It also limits opportunities for other vendors, including small businesses, to enter the market or expand their share.

What is the expected performance period and scope of services for this contract?

The contract has a duration of 364 days, effectively one year, with an start date of May 10, 2024, and an end date of May 9, 2025. The scope of services involves the provision of 'IHC INSTRUMENTS AND REAGENTS.' IHC refers to Immunohistochemistry, a technique used in laboratories to detect specific antigens (proteins) in cells or tissue samples using antibodies. Therefore, the contract covers the supply of both the necessary instruments for performing these tests and the chemical reagents (like antibodies and stains) required for the analysis.

What does the 'BPA CALL' contract type signify in this context?

A 'BPA CALL' indicates that this award is a task order placed against a Blanket Purchase Agreement (BPA). A BPA is a simplified way to fill anticipated repetitive needs for supplies or services by establishing 'charge accounts' with qualified sources. When a specific need arises, a call (or order) is placed against the established BPA. This suggests that Leica Microsystems Inc. likely has an existing BPA with the VA, and this award is a specific order under that broader agreement, streamlining the procurement process for these particular instruments and reagents.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $611,525

Exercised Options: $611,525

Current Obligation: $611,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25524A0026

IDV Type: BPA

Timeline