VA awards $101K for genetic testing services, continuing a multi-year contract with Exact Sciences Corporation

Contract Overview

Contract Amount: $100,998 ($101.0K)

Contractor: Exact Sciences Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $277/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GENOMIC HEALTH GENETIC TESTING - VISN 19 OPTION YEAR 4 ORDER

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $100,997.72 to EXACT SCIENCES CORPORATION for work described as: GENOMIC HEALTH GENETIC TESTING - VISN 19 OPTION YEAR 4 ORDER Key points: 1. Value for money appears reasonable given the specialized nature of genetic testing services. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. No significant risk indicators are immediately apparent from the provided data. 4. This contract represents a continuation of services, implying established performance and utility. 5. The service falls within the broader healthcare sector, specifically medical laboratories. 6. The contract value is relatively small, indicating a focused scope of services.

Value Assessment

Rating: good

The contract value of approximately $101,000 for a one-year period for genetic testing services appears to be in line with specialized medical laboratory services. Without specific benchmarks for this exact type of genetic testing, a direct comparison is difficult. However, the firm fixed-price structure suggests that the government has locked in a price, which can be advantageous. The continuation of the contract with the same vendor also implies a level of satisfaction with the previous performance and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the method of competition suggests that pricing was likely driven by market forces. This approach generally leads to more competitive pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from the competitive pricing achieved through full and open competition, ensuring that the government is not overpaying for essential genetic testing services.

Public Impact

Veterans within VISN 19 will benefit from access to advanced genetic testing services. The services delivered are likely diagnostic or prognostic genetic tests to aid in patient care. The geographic impact is focused on VISN 19, which serves veterans in a specific region. This contract supports specialized roles within the healthcare workforce, such as genetic counselors and laboratory technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded via full and open competition, indicating a healthy market.
Firm fixed-price contract type helps control costs.
Continuation of services suggests vendor reliability and performance.
Contract value is modest, indicating a focused and manageable scope.

Sector Analysis

The contract falls within the Healthcare sector, specifically the sub-sector of Medical Laboratories and Diagnostic Services. The market for genetic testing is rapidly evolving, with significant investment in R&D and increasing adoption in clinical settings. Comparable spending benchmarks for genetic testing services can vary widely based on the complexity and volume of tests. This contract, with a value of around $101,000, represents a small to moderate expenditure within the broader federal healthcare procurement landscape for such specialized services.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting implications are not detailed, but given the specialized nature of genetic testing, it's possible that the prime contractor may utilize specialized labs or partners, which could include small businesses, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Care Programs
Diagnostic and Screening Services
Genomic Health Services
Laboratory Testing Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $100,997.72 to EXACT SCIENCES CORPORATION. GENOMIC HEALTH GENETIC TESTING - VISN 19 OPTION YEAR 4 ORDER

Who is the contractor on this award?

The obligated recipient is EXACT SCIENCES CORPORATION.

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 $100,997.72.

What is the period of performance?

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

What is the specific type of genetic testing being procured under this contract, and how does its cost compare to similar tests in the market?

The provided data does not specify the exact type of genetic testing. 'GENOMIC HEALTH GENETIC TESTING' is a broad category. The cost comparison is difficult without knowing the specific tests ordered. However, the contract value of approximately $101,000 for a year suggests either a limited number of highly specialized tests or a larger volume of less complex tests. The firm fixed-price nature implies a pre-negotiated rate. To assess value, one would need to compare the per-test cost against market rates for similar diagnostic genetic assays, considering factors like turnaround time, accuracy, and clinical utility. Benchmarking against other VA VISN procurements for similar services would also provide context.

What is the track record of Exact Sciences Corporation in fulfilling federal contracts, particularly with the Department of Veterans Affairs?

Exact Sciences Corporation is a known entity in the field of genomic testing, particularly with its Cologuard product for colorectal cancer screening. While this specific contract is for VISN 19, their broader experience with federal healthcare systems and large-scale diagnostic services would be relevant. A review of their contract history with the VA and other federal agencies would reveal their performance metrics, such as on-time delivery, quality of service, and any past performance issues or awards. Given this is an option year, it implies a satisfactory performance in previous years under this or a similar contract vehicle.

How does the annual spending on this specific genetic testing contract compare to the VA's overall budget for diagnostic and laboratory services?

The annual spending of approximately $101,000 for this contract is a very small fraction of the Department of Veterans Affairs' overall budget for diagnostic and laboratory services. The VA operates a vast healthcare network with numerous medical centers and clinics nationwide, incurring billions of dollars in annual spending on medical supplies, equipment, and services, including extensive laboratory testing. This particular contract likely addresses a specific need within VISN 19, possibly for specialized genomic tests not widely available or for a defined patient population. Therefore, its spending is localized and specialized, not representative of the VA's total laboratory expenditure.

What are the potential risks associated with relying on a single vendor, Exact Sciences Corporation, for these genetic testing services over multiple years?

The primary risk associated with relying on a single vendor, even through competitive bidding, is potential vendor lock-in and reduced leverage for future price negotiations. If Exact Sciences Corporation is the sole provider of a specific, critical genetic test, the VA might face challenges if the vendor significantly increases prices in subsequent years or if service quality declines. Other risks include potential disruptions in service due to the vendor's operational issues, supply chain problems, or changes in their business strategy. However, the firm fixed-price contract structure and the option for full and open competition in future renewals mitigate some of these risks by allowing for re-evaluation of the market.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data summary does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). These metrics would likely focus on aspects such as test turnaround time, accuracy rates, reporting timeliness, and potentially patient or clinician satisfaction. While the contract award notice itself doesn't detail these, they are crucial components of contract management and oversight within the VA to ensure the quality and effectiveness of the genetic testing services provided by Exact Sciences Corporation.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 441 CHARMANY DR, MADISON, WI, 53719

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

Financial Breakdown

Contract Ceiling: $100,998

Exercised Options: $100,998

Current Obligation: $100,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25921A0002

IDV Type: BPA

Timeline