VA Spends $463K on Leica Reagents for IHC Testing, Awarded Sole Source

Contract Overview

Contract Amount: $463,747 ($463.7K)

Contractor: Leica Microsystems Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-14

End Date: 2027-04-13

Contract Duration: 364 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LEICA REAGENTS FOR IHC TESTING AND STAINING OPY4

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $463,747.23 to LEICA MICROSYSTEMS INC. for work described as: LEICA REAGENTS FOR IHC TESTING AND STAINING OPY4 Key points: 1. High reliance on a single supplier for critical lab reagents. 2. Limited competition raises concerns about price optimization. 3. Potential risk of supply chain disruption if Leica is unable to fulfill. 4. Sector: Analytical Laboratory Instrument Manufacturing, specialized but essential.

Value Assessment

Rating: questionable

The contract price of $463,747.23 for Leica reagents lacks a clear benchmark due to the sole-source nature of the award. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar contracts or alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded sole-source to Leica Microsystems Inc. This limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for other vendors to offer competitive pricing.

Taxpayer Impact: The sole-source award potentially results in higher spending than if the contract were competed, impacting taxpayer funds negatively.

Public Impact

Ensures availability of essential reagents for diagnostic testing at VA facilities. Supports critical healthcare services for veterans. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of critical reagents
Supports veteran healthcare

Sector Analysis

The Department of Veterans Affairs is procuring specialized reagents for Immunohistochemistry (IHC) testing and staining. This falls within the Analytical Laboratory Instrument Manufacturing sector, which often involves high-value, specialized equipment and consumables critical for medical diagnostics.

Small Business Impact

The award was made to Leica Microsystems Inc., a large business. There is no indication that small businesses were involved in the competition or subcontracting for this specific award, missing an opportunity to support small business participation.

Oversight & Accountability

The sole-source nature of this award warrants careful review by oversight bodies to ensure the price is justified and that future procurements are competed whenever possible to maximize value for taxpayer dollars.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Risk of supply chain disruption.
Lack of small business participation.
Limited transparency on justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $463,747.23 to LEICA MICROSYSTEMS INC.. LEICA REAGENTS FOR IHC TESTING AND STAINING OPY4

Who is the contractor on this award?

The obligated recipient is LEICA MICROSYSTEMS 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 $463,747.23.

What is the period of performance?

Start: 2026-04-14. End: 2027-04-13.

What is the justification for the sole-source award, and have alternatives been explored?

The justification for the sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Agencies must document extensive market research to confirm the absence of competition and justify the sole-source determination to ensure fair and reasonable pricing.

How does the unit cost of these reagents compare to industry benchmarks for similar IHC testing supplies?

Without specific unit pricing and detailed product information, a direct comparison to industry benchmarks is challenging. However, given the sole-source nature, there's a heightened risk that the unit costs may be higher than if the contract had been competitively bid. Further analysis would require access to detailed pricing data and comparable market information.

What is the potential impact on VA's diagnostic capabilities if this supplier faces disruptions?

A disruption from Leica Microsystems Inc. could significantly impact the VA's diagnostic capabilities, as these reagents are critical for IHC testing. The reliance on a single supplier for such essential materials creates a vulnerability in the supply chain, potentially delaying or hindering patient diagnoses and treatment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Parent Company: Danaher Corporation

Address: 10 PARKWAY NORTH, DEERFIELD, IL, 60015

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

Financial Breakdown

Contract Ceiling: $463,747

Exercised Options: $463,747

Current Obligation: $463,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25923A0010

IDV Type: BPA

Timeline