VA awards $232K for Lu 177 Pluvicto, a critical radiopharmaceutical for cancer treatment

Contract Overview

Contract Amount: $232,604 ($232.6K)

Contractor: Advanced Accelerator Applications USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $639/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RADIOPHARMACEUTICALS: LUTETIUM LU 177 PLUVICTO 27MCI/ML.

Place of Performance

Location: EAST HANOVER, MORRIS County, NEW JERSEY, 07936

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $232,603.98 to ADVANCED ACCELERATOR APPLICATIONS USA INC for work described as: RADIOPHARMACEUTICALS: LUTETIUM LU 177 PLUVICTO 27MCI/ML. Key points: 1. Contract ensures access to a high-value, specialized cancer therapy. 2. Single award indicates potential for limited competition in niche pharmaceutical markets. 3. Firm fixed-price contract provides cost certainty for the VA. 4. Performance period aligns with anticipated patient treatment cycles. 5. Geographic focus on New Jersey for distribution or administration. 6. Specialized nature of the product may limit broad market competition.

Value Assessment

Rating: good

The contract value of $232,603.98 for 27mCi/ml Lu 177 Pluvicto appears reasonable given the specialized and high-cost nature of radiopharmaceuticals used in advanced cancer therapies. Benchmarking against similar contracts for radioligand therapies would provide a more precise value assessment, but initial indications suggest it is within expected ranges for such critical medical supplies. The firm fixed-price structure helps manage cost predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. However, the specific nature of radiopharmaceuticals like Lu 177 Pluvicto, which often involves complex manufacturing and distribution, can limit the number of actual bidders. The VA's approach indicates a commitment to seeking the best value through a competitive process, even for highly specialized medical supplies.

Taxpayer Impact: Full and open competition, even with a limited number of responsive bidders for specialized items, is beneficial for taxpayers as it drives price discovery and encourages potential suppliers to offer competitive terms.

Public Impact

Veterans diagnosed with specific types of cancer (e.g., prostate cancer) will benefit from access to this advanced treatment. The contract facilitates the delivery of Lu 177 Pluvicto, a targeted radiopharmaceutical therapy. Services are likely concentrated in areas served by the VA network in New Jersey. This contract supports specialized roles within the healthcare sector, including nuclear medicine and oncology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions for critical radiopharmaceuticals.
Dependence on a single supplier for a specific therapeutic agent could pose risks.
Ensuring consistent availability and timely delivery of a time-sensitive treatment.

Positive Signals

Commitment to providing advanced cancer treatment options for veterans.
Use of a firm fixed-price contract for cost control.
Awarding through full and open competition promotes market engagement.

Sector Analysis

This contract falls within the pharmaceutical manufacturing and healthcare sector, specifically focusing on radiopharmaceuticals for targeted cancer therapy. The market for radioligand therapies is growing, driven by advancements in nuclear medicine and oncology. Spending in this area is critical for providing cutting-edge treatments, and contracts like this represent a significant investment in specialized medical supplies. Comparable spending benchmarks would likely be found within other federal healthcare procurements for high-cost, low-volume pharmaceuticals.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the highly specialized nature of radiopharmaceutical manufacturing and distribution, it is unlikely that small businesses would be primary bidders or manufacturers for this specific product. Subcontracting opportunities for small businesses are not explicitly indicated but could potentially arise in logistics or support services if utilized by the prime contractor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs is responsible for monitoring contract performance, ensuring compliance with terms and conditions, and verifying delivery of goods. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this procurement.

Related Government Programs

Radiopharmaceutical Procurement
Cancer Treatment Services
Medical Supplies and Equipment
Department of Veterans Affairs Healthcare

Risk Flags

Potential for supply chain vulnerability
Reliance on specialized manufacturing capabilities
Time-sensitive delivery requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $232,603.98 to ADVANCED ACCELERATOR APPLICATIONS USA INC. RADIOPHARMACEUTICALS: LUTETIUM LU 177 PLUVICTO 27MCI/ML.

Who is the contractor on this award?

The obligated recipient is ADVANCED ACCELERATOR APPLICATIONS USA 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 $232,603.98.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What is the track record of ADVANCED ACCELERATOR APPLICATIONS USA INC with the federal government, particularly for similar radiopharmaceutical contracts?

ADVANCED ACCELERATOR APPLICATIONS USA INC has a history of federal contracts, primarily with the Department of Veterans Affairs and other health-related agencies. While specific details on past radiopharmaceutical contracts of this exact nature (Lu 177 Pluvicto) are not immediately available in summary data, the company is known for its work in radioligand therapies. Reviewing historical contract awards, performance evaluations, and any associated task orders would provide a clearer picture of their reliability, pricing consistency, and ability to meet federal requirements for specialized medical supplies. Past performance data, if available, would indicate their experience in managing complex supply chains and ensuring timely delivery of critical treatments.

How does the awarded price compare to market rates for Lu 177 Pluvicto, considering its therapeutic value?

The awarded price of $232,603.98 for 27mCi/ml of Lu 177 Pluvicto needs to be benchmarked against industry pricing and other government contracts for similar radioligand therapies. Lu 177 Pluvicto is a high-value, specialized treatment, and its cost is influenced by complex manufacturing processes, isotope availability, and clinical efficacy. Without direct comparative contract data or published market rates, a definitive assessment is challenging. However, given its role in treating advanced cancers, the price is likely reflective of significant research, development, and production costs. Further analysis would involve comparing this unit price to other federal procurements of similar radiopharmaceuticals or to pricing from major pharmaceutical distributors.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential supply chain disruptions for a critical radiopharmaceutical, the time-sensitive nature of the product requiring precise logistics, and the possibility of limited competition in the future for such specialized therapies. Mitigation strategies likely involve robust contract management by the VA, including close monitoring of the supplier's production and delivery schedules, maintaining open communication channels, and potentially establishing contingency plans for alternative sourcing if feasible. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government. Ensuring the contractor has strong quality control measures in place is also crucial to avoid product-related risks.

How effective is the VA in securing advanced cancer treatments like Lu 177 Pluvicto for veterans through competitive contracting?

The VA's approach to securing advanced cancer treatments like Lu 177 Pluvicto through full and open competition, as indicated in this award, suggests a commitment to leveraging market dynamics for the best outcome. The effectiveness is measured by the ability to consistently obtain necessary treatments at reasonable prices while ensuring availability for eligible veterans. The success of this specific contract will depend on factors such as the number of responsive bidders, the final negotiated price, and the reliability of the awarded contractor in meeting delivery and quality standards. Ongoing monitoring of veteran access to this therapy and overall spending trends in this category will provide further insights into the VA's effectiveness.

What are the historical spending patterns for radiopharmaceuticals by the Department of Veterans Affairs?

Historical spending patterns for radiopharmaceuticals by the Department of Veterans Affairs would likely show a trend of increasing investment in advanced therapies as medical technology evolves. The VA, like other large healthcare providers, would procure a range of radiopharmaceuticals for diagnostic imaging and therapeutic purposes. Spending would be influenced by the availability of new treatments, the prevalence of specific diseases among the veteran population, and budget allocations. Analyzing past contract awards for similar high-value pharmaceuticals, including their volume, price, and duration, would reveal trends in procurement strategies and overall expenditure in this critical medical supply category.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 5TH AVE STE 6902, NEW YORK, NY, 10118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $232,604

Exercised Options: $232,604

Current Obligation: $232,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26025A0008

IDV Type: BPA

Timeline