VA awards $346K for blood products to American National Red Cross, a sole-source BPA call

Contract Overview

Contract Amount: $346,271 ($346.3K)

Contractor: American National RED Cross, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $951/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HUMAN BLOOD & BLOOD PRODUCTS - MT AND SLC VA

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28273

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $346,270.68 to AMERICAN NATIONAL RED CROSS, THE for work described as: HUMAN BLOOD & BLOOD PRODUCTS - MT AND SLC VA Key points: 1. Contract awarded via a sole-source BPA call, limiting price discovery and potentially increasing costs. 2. The contract value is relatively small, suggesting a focused need for specific blood products. 3. Performance period is one year, indicating a short-term requirement or a need for frequent re-evaluation. 4. The fixed-price contract type provides cost certainty but may not incentivize efficiency. 5. Awarded to a single, established provider, raising questions about alternative sourcing and competition. 6. The North Carolina location of the contractor may influence delivery logistics and regional availability.

Value Assessment

Rating: fair

The contract value of $346,270.68 for blood products is modest. Without comparable sole-source contracts for similar blood products from the VA or other agencies, a precise value-for-money assessment is difficult. However, sole-source awards generally carry a higher risk of inflated pricing compared to competitively bid contracts. The fixed-price nature offers budget predictability, but the lack of competition means the VA is not leveraging market forces to secure the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source BPA call, meaning it was not competed. The data indicates it was not competed under SAP (Simplified Acquisition Procedures), suggesting it may have been justified under specific sole-source circumstances. The lack of competition means only one bidder, The American National Red Cross, was considered. This limits the VA's ability to explore alternative suppliers or negotiate based on multiple offers, potentially impacting price discovery.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

Veterans receiving care at VA facilities will benefit from the availability of necessary blood products. The contract ensures a supply of human blood and blood products for medical and transfusion purposes. The geographic impact is likely localized to VA facilities served by this specific BPA call, potentially within North Carolina. The contract supports the operational needs of the VA's healthcare services, indirectly impacting medical professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for taxpayer dollars.
Lack of transparency in the justification for sole-source award.
Potential for price increases in future contract renewals due to established relationship.
Limited visibility into alternative sourcing options for blood products.

Positive Signals

Ensures critical supply of blood products for veteran healthcare.
Award to a well-established and reputable organization (American National Red Cross).
Fixed-price contract provides cost certainty for the current performance period.

Sector Analysis

The healthcare sector, specifically blood and organ banks (NAICS 621991), is critical for patient care. This contract falls within the broader healthcare services category, where reliable sourcing of essential medical supplies like blood products is paramount. The market for blood products is often characterized by specialized providers and regulatory oversight. Benchmarking this contract's value is challenging without specific product details, but the overall spending on blood products by federal agencies is substantial, driven by the needs of military and veteran healthcare systems.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The award is to a large, established organization. There is no explicit information regarding subcontracting plans for small businesses. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem within the blood product supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a BPA call, it is a task order under a broader agreement, implying that the underlying BPA likely has established oversight mechanisms. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Services
Federal Supply Schedule (FSS) for Medical Supplies
Defense Health Agency Contracts
National Institutes of Health (NIH) Research Grants

Risk Flags

Sole-source award
Limited competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $346,270.68 to AMERICAN NATIONAL RED CROSS, THE. HUMAN BLOOD & BLOOD PRODUCTS - MT AND SLC VA

Who is the contractor on this award?

The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.

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 $346,270.68.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the specific justification for awarding this contract on a sole-source basis to the American National Red Cross?

The provided data indicates the contract was awarded as a 'NOT COMPETED UNDER SAP' and is a 'BPA CALL' with 'st': 'NC' (likely meaning 'Not Competed'). While the specific justification for the sole-source award is not detailed in the provided data, common reasons for sole-source awards in healthcare include unique capabilities, urgent needs, or the unavailability of other sources. For blood products, the American National Red Cross is a primary national supplier. The VA may have determined that the Red Cross possesses unique capabilities or that an urgent need existed that precluded a competitive process. Further investigation into the contract file or agency justifications would be required to ascertain the precise rationale.

How does the pricing of this contract compare to similar blood product contracts awarded by the VA or other federal agencies?

A direct price comparison is challenging without knowing the specific types and quantities of blood products included in this $346,270.68 contract. However, given that this is a sole-source award to the American National Red Cross, it is reasonable to assume that the pricing may be higher than if the contract had been competitively bid. Federal agencies often leverage competitive bidding to achieve lower unit costs. To perform a robust comparison, one would need to identify comparable contracts for the same or similar blood products, analyze their unit prices, and account for differences in volume, delivery terms, and contract duration. The absence of competition inherently limits the ability to benchmark value effectively.

What are the potential risks associated with awarding a contract for essential medical supplies like blood products on a sole-source basis?

The primary risk of a sole-source award for essential medical supplies is the potential for inflated pricing due to the lack of competition. Without competing offers, the contractor may not feel pressured to offer the most competitive rates. Another risk is a reduced incentive for the contractor to innovate or improve efficiency, as they are the sole provider. Furthermore, reliance on a single source can create vulnerabilities in the supply chain; if the contractor experiences disruptions, the VA's access to critical blood products could be jeopardized. Finally, sole-source awards can raise concerns about fairness and the efficient use of taxpayer funds.

What is the expected performance period and value of this contract, and how does it align with typical needs for blood products?

This contract has a performance period of 364 days, running from October 1, 2024, to September 30, 2025, with a total value of $346,270.68. This one-year duration is relatively short for a supply contract, suggesting either a specific, time-limited need or a strategy to re-evaluate requirements and potentially introduce competition more frequently. For essential items like blood products, a consistent and reliable supply is crucial. A one-year term allows for flexibility but also necessitates timely renewal or re-competition to ensure uninterrupted service. The contract value is modest, indicating it likely covers a specific set of products or serves a particular VA facility or region.

What is the track record of the American National Red Cross as a federal contractor, particularly for supplying blood products?

The American National Red Cross is a well-established and primary national supplier of blood and blood products in the United States. They have a long history of providing these critical resources to hospitals, healthcare systems, and government entities, including the Department of Defense and the Department of Veterans Affairs. Their track record as a federal contractor for blood products is extensive, characterized by their role in national blood collection, processing, and distribution. While specific performance metrics for individual contracts are not publicly detailed here, their consistent role as a major supplier indicates a significant operational capacity and experience in meeting the demands of large healthcare organizations.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

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

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

Address: 13500 S POINT BLVD STE L, CHARLOTTE, NC, 28273

Business Categories: Category Business, Community Development Corporation, Corporate Entity Tax Exempt, Domestic Shelter, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $346,271

Exercised Options: $346,271

Current Obligation: $346,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25924A0003

IDV Type: BPA

Timeline