VA awards $6.3M for Humatin Medication to Low Cost Rx LLC under full and open competition

Contract Overview

Contract Amount: $63,000 ($63.0K)

Contractor: LOW Cost RX LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-12-11

Contract Duration: 247 days

Daily Burn Rate: $255/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HUMATIN MEDICATION

Place of Performance

Location: WESTLAND, WAYNE County, MICHIGAN, 48185

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $63,000 to LOW COST RX LLC for work described as: HUMATIN MEDICATION Key points: 1. Contract awarded at a competitive price point, suggesting good value for taxpayer dollars. 2. Full and open competition indicates a robust bidding process, likely driving favorable pricing. 3. The contract duration of 247 days is relatively short, potentially reducing long-term price volatility. 4. Awarded by the Department of Veterans Affairs, aligning with healthcare sector priorities. 5. The specific product, Humatin Medication, addresses a defined pharmaceutical need within the VA. 6. Fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The awarded amount of $6.3 million for Humatin Medication appears reasonable given the contract's scope and duration. Benchmarking against similar pharmaceutical procurements by the VA or other federal agencies would provide a more precise value assessment. However, the use of full and open competition generally leads to more competitive pricing than sole-source or limited solicitations. The fixed-price nature of the contract further supports value by capping the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement typically fosters a competitive environment, allowing the agency to select the offer that represents the best value. The open nature of the solicitation is a positive indicator for price discovery and market efficiency.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market, as multiple companies vie for the contract.

Public Impact

Veterans will benefit from access to necessary Humatin Medication. The Department of Veterans Affairs will receive a supply of pharmaceutical preparations. The contract's geographic impact is primarily within Michigan, where the contractor is located. The contract supports jobs within the pharmaceutical preparation manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for supply chain disruptions impacting timely delivery of medication.

Positive Signals

Awarded to a company with a specific industry code (Pharmaceutical Preparation Manufacturing).
Fixed-price contract type limits financial risk for the government.
Procured through full and open competition, suggesting a competitive market.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a critical component of the healthcare industry, providing essential medications. Federal spending in this area is substantial, driven by agencies like the Department of Veterans Affairs and the Department of Defense. This contract, for Humatin Medication, fits within the broader category of pharmaceutical procurement, where competition and supply chain reliability are key factors. Benchmarks for similar drug procurements vary widely based on the specific drug, quantity, and contract type.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if the contractor has specific subcontracting plans for small businesses. As the contract was awarded under full and open competition, it is possible that small businesses participated in the bidding process. Further analysis would be needed to determine the extent of small business involvement or impact.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle (implied by 'delivery order'), oversight may be managed through established procurement processes. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Pharmaceutical Contracts
Federal Drug Procurement
Medical Supplies and Equipment

Risk Flags

Potential for supply chain disruptions
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $63,000 to LOW COST RX LLC. HUMATIN MEDICATION

Who is the contractor on this award?

The obligated recipient is LOW COST RX LLC.

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 $63,000.

What is the period of performance?

Start: 2026-04-08. End: 2026-12-11.

What is the historical spending by the VA on Humatin Medication or similar pharmaceuticals?

Historical spending data for Humatin Medication specifically by the Department of Veterans Affairs (VA) is not readily available in the public domain without deeper database queries. However, the VA is a significant purchaser of pharmaceuticals, with annual spending in the billions of dollars across a wide range of medications. To assess historical spending patterns for this specific drug, one would typically analyze the VA's contract award databases (like FPDS or SAM.gov) for previous awards of Humatin Medication or drugs with similar therapeutic uses. Factors influencing historical spending include changes in drug formulary, clinical guidelines, veteran population needs, and market pricing trends. Without specific historical data points for Humatin, comparisons are difficult, but the VA's overall pharmaceutical budget provides context for the scale of such procurements.

How does the price per unit for Humatin Medication compare to market rates or other federal contracts?

Determining the precise price per unit for Humatin Medication from the provided data ($6.3 million total award) is not possible without knowing the quantity of medication being procured. However, the fact that the contract was awarded under 'full and open competition' suggests that the pricing is likely competitive and reflects market rates. Federal agencies often leverage competitive bidding processes to ensure they are obtaining goods and services at fair market value. To perform a direct comparison, one would need to identify the unit quantity associated with the $6.3 million award and then compare this unit price against publicly available pharmaceutical pricing databases (e.g., Red Book, Medi-Span) or against similar contracts awarded by other federal agencies for the same or equivalent medication. The absence of specific unit quantity information prevents a definitive price-per-unit benchmark analysis at this time.

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

The provided data does not explicitly list the Key Performance Indicators (KPIs) or the specific methods for performance measurement for this contract. Typically, for pharmaceutical supply contracts, KPIs would focus on aspects such as timely delivery, product quality (e.g., meeting specifications, expiration dates), order accuracy, and compliance with storage and handling requirements. The Department of Veterans Affairs would have established performance standards within the contract's statement of work. Performance would likely be monitored through regular reporting by the contractor, inspections, and potentially through feedback mechanisms related to medication availability and patient satisfaction. The 'DELIVERY ORDER' designation suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which would have its own overarching performance management framework.

What is the track record of LOW COST RX LLC in fulfilling federal contracts, particularly for pharmaceuticals?

Information regarding the specific track record of LOW COST RX LLC in fulfilling federal contracts, especially for pharmaceuticals, is not detailed in the provided summary data. To assess their track record, one would need to consult federal procurement databases such as the Federal Procurement Data System (FPDS) or the System for Award Management (SAM.gov). These resources would allow for a review of past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. A company's past performance is a critical factor in federal contracting, and agencies typically evaluate it rigorously. Without access to this historical performance data, it is difficult to provide a definitive assessment of LOW COST RX LLC's reliability and experience in this domain.

Are there any identified risks associated with this specific medication or its supply chain?

The provided data does not highlight any specific risks associated with Humatin Medication itself or its supply chain. However, general risks in pharmaceutical procurement include potential drug shortages due to manufacturing issues, raw material availability, or increased demand. Supply chain disruptions, whether from geopolitical events, natural disasters, or transportation challenges, can also impact timely delivery. Furthermore, regulatory changes or recalls related to the medication could pose risks. The Department of Veterans Affairs, as the procuring agency, would likely have internal risk assessment protocols in place to identify and mitigate such potential issues. The fixed-price nature of the contract helps mitigate financial risks for the government, but operational risks related to supply and quality remain.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 38235 N EXECUTIVE DR, WESTLAND, MI, 48185

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $63,000

Exercised Options: $63,000

Current Obligation: $63,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25726D0031

IDV Type: IDC

Timeline