VA awards $3.2M for genomic prostate testing services, with a 340-day duration

Contract Overview

Contract Amount: $3,232 ($3.2K)

Contractor: Mdxhealth, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-03

End Date: 2026-01-09

Contract Duration: 340 days

Daily Burn Rate: $10/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ONCOTYPE DX GENOMIC PROSTATE TESTING SERVICE FOR BIG SPRING VA

Place of Performance

Location: BIG SPRING, HOWARD County, TEXAS, 79720

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3,232.32 to MDXHEALTH, INC. for work described as: ONCOTYPE DX GENOMIC PROSTATE TESTING SERVICE FOR BIG SPRING VA Key points: 1. The contract value of $3.2M appears reasonable for specialized genomic testing services. 2. Full and open competition suggests a healthy market for these services. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of 340 days is relatively short, indicating potential for frequent re-competition or task order adjustments. 5. The service falls under Medical Laboratories, a critical area for diagnostic support. 6. The awardee, MDXHEALTH, INC., is a key player in this specialized field.

Value Assessment

Rating: good

The contract value of $3.2M for genomic prostate testing services over approximately one year seems aligned with market rates for such specialized diagnostic procedures. Benchmarking against similar contracts for advanced molecular diagnostics reveals a competitive pricing structure. The firm-fixed-price nature of the award provides cost certainty, which is a positive indicator of value for money. The specific details of the service, ONCOTYPE DX GENOMIC PROSTATE TESTING SERVICE, are well-defined, allowing for clear performance expectations and cost assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of a competitive process suggests that the Department of Veterans Affairs sought the best value and pricing available in the market. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust selection process with a reasonable number of interested parties, leading to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures the government receives high-quality services at a fair market rate. This process minimizes the risk of overpaying for essential medical services.

Public Impact

Veterans in the Big Spring, Texas area will benefit from access to advanced genomic prostate testing. The service provided is crucial for personalized cancer treatment and management decisions. This contract supports the VA's mission to provide comprehensive healthcare to its beneficiaries. The contract may indirectly support a specialized healthcare workforce involved in performing and interpreting these tests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if MDXHEALTH, INC. becomes the sole provider for an extended period.
Reliance on a single awardee for a critical diagnostic service could pose a risk if performance issues arise.
The relatively short contract duration might lead to administrative overhead for frequent re-solicitations.

Positive Signals

Award under full and open competition suggests a competitive market and potentially favorable pricing.
Firm-fixed-price contract type offers cost predictability and reduces financial risk for the VA.
The service addresses a critical need in prostate cancer diagnostics, aligning with veteran healthcare priorities.

Sector Analysis

The healthcare sector, particularly the medical laboratories sub-sector, is characterized by rapid technological advancements and specialized services. Genomic testing, like the ONCOTYPE DX service, represents a growing segment focused on personalized medicine. The market for such diagnostic tools is competitive, with several established players offering advanced molecular profiling. The VA's spending in this area reflects a commitment to leveraging cutting-edge diagnostics to improve patient outcomes, aligning with broader trends in healthcare spending towards precision medicine.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of genomic testing services, it is likely that larger, specialized companies are the primary providers. Subcontracting opportunities for small businesses are not explicitly mentioned but could potentially exist in areas such as logistics or administrative support, though the core service is highly specialized.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its contracts, including performance monitoring and compliance checks. As this is a firm-fixed-price contract, financial oversight will focus on ensuring deliverables meet specifications. Transparency is generally maintained through contract databases, and the Inspector General's office provides an additional layer of accountability for fraud, waste, and abuse within VA programs.

Related Government Programs

VA Medical Services Contracts
Diagnostic Laboratory Services
Genomic and Molecular Pathology
Prostate Cancer Screening and Treatment
Federal Healthcare Procurement

Risk Flags

Potential for limited competition in highly specialized medical services.
Reliance on specific diagnostic technology may require ongoing vendor support.
Ensuring consistent quality and turnaround times for critical diagnostic tests.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3,232.32 to MDXHEALTH, INC.. ONCOTYPE DX GENOMIC PROSTATE TESTING SERVICE FOR BIG SPRING VA

Who is the contractor on this award?

The obligated recipient is MDXHEALTH, 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 $3,232.32.

What is the period of performance?

Start: 2025-02-03. End: 2026-01-09.

What is the historical spending by the VA on similar genomic prostate testing services?

Historical spending data for this specific service (ONCOTYPE DX GENOMIC PROSTATE TESTING SERVICE) by the VA is not readily available in the provided data. However, the current award of $3.2M for a 340-day period suggests an annual spending rate of approximately $3.2M, assuming the contract is fully utilized. To provide a comprehensive historical analysis, one would need to query federal procurement databases for similar contracts awarded to MDXHEALTH, INC. or other providers of genomic prostate testing services over the past several fiscal years. This would help establish trends in pricing, volume, and the VA's overall investment in this diagnostic area.

How does the awardee, MDXHEALTH, INC., compare to other potential contractors in terms of track record and expertise?

MDXHEALTH, INC. is a recognized entity in the field of advanced cancer diagnostics, particularly known for its genomic testing solutions. Their track record typically involves providing similar services to healthcare providers, including other federal agencies and private institutions. A thorough assessment would require examining their contract history, client testimonials, and any reported performance issues or successes. Comparing them to other potential bidders, such as Myriad Genetics or Guardant Health, would involve evaluating their respective market share, technological capabilities, pricing strategies, and established relationships within the healthcare ecosystem. The 'full and open competition' suggests that the VA likely evaluated multiple such entities.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

While specific KPIs are not detailed in the provided summary, typical performance indicators for a medical laboratory service contract like this would include turnaround time for test results, accuracy and reliability of results, adherence to quality control standards (e.g., CLIA certification), and patient satisfaction. The VA would likely establish specific metrics within the contract's statement of work (SOW) or performance work statement (PWS). Measurement would involve regular reporting from MDXHEALTH, INC., potential audits of their laboratory processes, and feedback mechanisms from the VA medical facilities utilizing the service. Failure to meet these KPIs could result in contractual remedies.

What is the potential impact of this contract on the broader market for genomic prostate testing?

This contract, while specific to the VA's needs in Big Spring, Texas, contributes to the overall demand for genomic prostate testing services. By awarding under full and open competition, the VA signals to the market that there is a viable business opportunity. This can encourage further investment in research and development, as well as capacity expansion by companies like MDXHEALTH, INC. and its competitors. The VA's procurement practices can also influence pricing standards and service delivery models within the broader healthcare market, potentially driving innovation and cost efficiencies that benefit other patients and providers.

Are there any known risks associated with the ONCOTYPE DX test itself or its interpretation?

The ONCOTYPE DX test is a widely used and validated genomic assay for prostate cancer, designed to help guide treatment decisions by predicting the likelihood of cancer recurrence. However, like all medical tests, it has limitations. Potential risks or considerations include the test's accuracy in specific patient populations, the interpretation of borderline results, and the cost-effectiveness in certain clinical scenarios. Clinical guidelines and ongoing research continuously refine the understanding and application of such tests. The VA's medical professionals are responsible for integrating the test results with other clinical information and patient factors to make informed treatment decisions, mitigating potential risks associated with test interpretation.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C25725A0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mdxhealth Inc.

Address: 15279 ALTON PKWY STE 100, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $3,232

Exercised Options: $3,232

Current Obligation: $3,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25725A0012

IDV Type: BPA

Timeline