VA awards $13.4M for Lumryx 7.5G to Accredo Health Group, Inc. for 91 days

Contract Overview

Contract Amount: $13,364 ($13.4K)

Contractor: Accredo Health Group, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2025-09-30

Contract Duration: 91 days

Daily Burn Rate: $147/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LUMRYX 7.5G

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38134

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13,363.91 to ACCREDO HEALTH GROUP, INC for work described as: LUMRYX 7.5G Key points: 1. The contract is for pharmaceutical preparation manufacturing, specifically Lumryx 7.5G. 2. Accredo Health Group, Inc. is the sole awardee. 3. The award is a Purchase Order with a Firm Fixed Price. 4. The contract duration is 91 days, with an estimated start date of July 1, 2025.

Value Assessment

Rating: questionable

The contract value of $13.4 million for a 91-day period suggests a high per-diem cost. Without specific unit details or comparison data for Lumryx 7.5G, it's difficult to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for this significant award raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Veterans may experience continuity of care for necessary pharmaceutical treatments. The award to a single provider could limit patient choice if alternative suppliers exist. Potential for higher costs due to the non-competitive nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-diem cost
Limited contract duration for a critical need

Positive Signals

Ensures supply of a specific pharmaceutical
Clear contract terms (FIRM FIXED PRICE)

Sector Analysis

The pharmaceutical sector is highly regulated and often involves specialized manufacturing. Spending benchmarks vary widely based on drug type, dosage, and manufacturing complexity. This award falls within the broader healthcare and pharmaceutical supply chain.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, as it appears to be a direct award to Accredo Health Group, Inc.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The non-competitive nature of this award warrants scrutiny to ensure fair pricing and necessity.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competition.
High cost for a short contract duration.
Potential for price gouging without competitive bidding.
Limited transparency on the necessity of sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13,363.91 to ACCREDO HEALTH GROUP, INC. LUMRYX 7.5G

Who is the contractor on this award?

The obligated recipient is ACCREDO HEALTH GROUP, 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 $13,363.91.

What is the period of performance?

Start: 2025-07-01. End: 2025-09-30.

What is the justification for the sole-source award of this pharmaceutical contract?

The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent and compelling needs, or the unavailability of the product from other sources. Without further documentation, it is unclear why this specific contract was not competed.

How does the per-unit cost of Lumryx 7.5G compare to similar pharmaceuticals or previous contracts?

Benchmarking the per-unit cost is crucial for assessing value. Given the $13.4 million award for a 91-day period, a detailed analysis of the quantity of Lumryx 7.5G procured and its price per unit is needed. Comparison with market prices or historical data for this or comparable drugs would reveal potential overpricing.

What is the long-term strategy for securing this pharmaceutical to ensure cost-effectiveness and availability for veterans?

The short 91-day duration and sole-source nature suggest a potential gap-filling measure or an interim solution. A long-term strategy should involve exploring competitive procurement options, negotiating bulk discounts, or identifying alternative suppliers to ensure sustained availability and better value for taxpayer money.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Priority Healthcare Distribution Inc

Address: 1640 CENTURY CENTER PKWY STE 105, MEMPHIS, TN, 38134

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

Financial Breakdown

Contract Ceiling: $13,364

Exercised Options: $13,364

Current Obligation: $13,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline