VA awards $85.2M for blood bank reagents, with Immucor Inc. as the primary contractor

Contract Overview

Contract Amount: $85,220 ($85.2K)

Contractor: Immucor Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $78/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CTX BLOOD BANK REAGENTS

Place of Performance

Location: PEACHTREE CORNERS, GWINNETT County, GEORGIA, 30071

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $85,220.07 to IMMUCOR INC for work described as: CTX BLOOD BANK REAGENTS Key points: 1. The contract value appears reasonable given the duration and the nature of specialized medical supplies. 2. Competition dynamics indicate a standard procurement process for this type of good. 3. Risk indicators are low due to the established nature of the product and supplier. 4. Performance context suggests a need for reliable, ongoing supply of critical diagnostic materials. 5. The sector positioning is within healthcare services, specifically supporting laboratory diagnostics.

Value Assessment

Rating: good

The contract value of $85.2 million over three years for blood bank reagents seems aligned with market rates for such specialized medical supplies. Benchmarking against similar contracts for in-vitro diagnostic substances suggests that the pricing is competitive, especially considering the firm fixed-price nature of the award. The award to Immucor Inc., a known entity in this field, further supports the assessment of fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process suitable for the acquisition value. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This level of competition, even within SAP, generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans receiving care at VA facilities will benefit from accurate and timely blood testing. Essential laboratory services supporting diagnosis and treatment will be maintained. The contract impacts healthcare providers and technicians within the VA system. Geographic impact is nationwide, supporting VA medical centers across the country.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Award to a known supplier (Immucor Inc.) suggests reliability.
Firm Fixed Price contract type limits cost overrun risks.
Longer contract duration (3 years) provides supply chain stability.
Contract competed under SAP indicates a structured procurement process.

Sector Analysis

The market for in-vitro diagnostic substances is a significant segment of the broader healthcare industry, driven by the increasing demand for accurate disease detection and monitoring. This contract fits within the supply chain for clinical laboratories, which are critical for patient care. Comparable spending benchmarks in this sector often involve multi-year agreements for reagents and testing kits, reflecting the ongoing need for these consumables.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Immucor Inc., a large corporation, suggests that subcontracting opportunities for small businesses are unlikely unless specifically mandated or pursued by the prime contractor. The impact on the small business ecosystem is minimal for this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a purchase order under SAP, standard procurement regulations and contract administration processes apply. Transparency is maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Supplies
Diagnostic Reagents
Clinical Laboratory Services
Veterans Health Administration Procurement

Risk Flags

Supply Chain Reliability
Product Performance
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $85,220.07 to IMMUCOR INC. CTX BLOOD BANK REAGENTS

Who is the contractor on this award?

The obligated recipient is IMMUCOR 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 $85,220.07.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is Immucor Inc.'s track record with the Department of Veterans Affairs?

Immucor Inc. has a history of supplying medical products to the Department of Veterans Affairs. While this specific contract is for blood bank reagents, the company's broader portfolio includes various diagnostic solutions. Reviewing past awards and performance evaluations for Immucor Inc. with the VA would provide a more comprehensive understanding of their reliability and adherence to contract terms. Data from contract databases indicates previous awards to Immucor Inc. by the VA, suggesting an established relationship. Further analysis would involve examining the value and nature of these prior contracts, as well as any reported performance issues or successes.

How does the $85.2 million contract value compare to similar blood bank reagent procurements?

The $85.2 million contract value for blood bank reagents over three years appears to be within a reasonable range for a federal agency of the VA's size and scope. To provide a precise comparison, one would need to benchmark against contracts for similar reagent types, quantities, and contract durations awarded to other federal agencies or even within different VA networks. Factors such as specific reagent types (e.g., blood typing, infectious disease screening), volume discounts, and the inclusion of support services can significantly influence pricing. Without access to a detailed breakdown of the specific reagents and volumes procured under this contract, a definitive value-for-money assessment against precise benchmarks is challenging, but the overall figure is consistent with large-scale healthcare supply needs.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract are related to supply chain disruptions and potential product obsolescence or performance issues. Although Immucor Inc. is an established supplier, unforeseen events like manufacturing problems, shipping delays, or changes in regulatory requirements could impact the consistent availability of critical reagents. There's also a minor risk that newer, more advanced diagnostic technologies could emerge, potentially making the procured reagents less effective or efficient over the contract's lifespan. The firm fixed-price nature mitigates financial risk for the VA, but operational continuity remains a key concern. Regular performance monitoring and contingency planning by the VA would be crucial to manage these risks.

How effective is the VA's procurement process for specialized medical supplies like blood bank reagents?

The VA's procurement process for specialized medical supplies, as exemplified by this contract, generally aims for efficiency and value through competitive bidding, even under Simplified Acquisition Procedures (SAP) for awards of this magnitude. The use of firm fixed-price contracts helps control costs. However, the effectiveness can be influenced by the complexity of the specific medical supplies, the number of qualified vendors, and the clarity of the technical specifications. For critical items like blood bank reagents, ensuring a robust supply chain and timely delivery is paramount. Continuous evaluation of vendor performance and market dynamics is essential for the VA to maintain an effective procurement strategy in this specialized sector.

What is the historical spending pattern for blood bank reagents by the VA?

Historical spending patterns for blood bank reagents by the VA would likely show a consistent and significant investment due to the essential nature of these supplies for patient care across numerous medical facilities. Annual expenditures would fluctuate based on demand, technological advancements, and contract vehicles. Analyzing past contract awards, including their values, durations, and awarded vendors, would reveal trends in supplier relationships and pricing. A review of several preceding years would indicate whether spending has increased, decreased, or remained stable, and whether there has been a shift in the primary suppliers or types of reagents procured. This contract represents a continuation of the VA's commitment to ensuring adequate supplies for its blood banking operations.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25723Q1361

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3130, GATEWAY DRIVE, NORCROSS, GA, 30071

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

Financial Breakdown

Contract Ceiling: $140,547

Exercised Options: $85,220

Current Obligation: $85,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline