VA awards $3.69M for Abbott Alinity M reagents and consumables to Abbott Molecular Inc

Contract Overview

Contract Amount: $3,687,026 ($3.7M)

Contractor: Abbott Molecular Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-01

End Date: 2025-09-30

Contract Duration: 547 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ABBOTT ALINITY M REAGENTS AND CONSUMABLES

Place of Performance

Location: DES PLAINES, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to ABBOTT MOLECULAR INC. for work described as: ABBOTT ALINITY M REAGENTS AND CONSUMABLES Key points: 1. The contract is for essential reagents and consumables for the Abbott Alinity M system. 2. Abbott Molecular Inc. is the sole manufacturer, raising potential competition concerns. 3. The contract value is moderate, but the lack of competition warrants scrutiny. 4. Spending falls within the analytical laboratory instrument manufacturing sector.

Value Assessment

Rating: fair

The contract value of $3.69M over 18 months appears reasonable given the specialized nature of the reagents. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, likely due to Abbott being the exclusive manufacturer of these specific reagents. This limits price discovery and negotiation opportunities.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially leading to higher costs than if multiple vendors could bid.

Public Impact

Ensures continued operation of critical laboratory diagnostic equipment for veterans. Potential for higher costs due to sole-source nature impacts overall VA budget. Reliability of supply chain for essential medical consumables is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 67 / 10

Warning Flags

Sole-source procurement limits competition.
Potential for price escalation without competitive pressure.

Positive Signals

Ensures continuity of critical medical supplies.
Contract awarded to the original equipment manufacturer, ensuring compatibility.

Sector Analysis

This spending is within the analytical laboratory instrument manufacturing sector, which supports healthcare diagnostics. Benchmarks for similar reagent contracts are difficult to establish due to proprietary nature and sole-source awards.

Small Business Impact

The contract was awarded to Abbott Molecular Inc., a large business. There is no indication of small business participation in this sole-source award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The sole-source nature necessitates careful monitoring of pricing and performance to ensure value for taxpayer money.

Related Government Programs

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

Risk Flags

Sole-source award limits competitive pricing.
Potential for price creep without market pressure.
Dependence on a single supplier.
Lack of transparency in price justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to ABBOTT MOLECULAR INC.. ABBOTT ALINITY M REAGENTS AND CONSUMABLES

Who is the contractor on this award?

The obligated recipient is ABBOTT MOLECULAR 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 $3.7 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-09-30.

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

The justification for a sole-source award typically rests on the unique capabilities or proprietary nature of the product, such as specialized reagents only available from the original manufacturer. The VA would need to document that no other responsible source can meet the requirement. Exploring alternatives might involve assessing if compatible reagents from other manufacturers exist or if the government could negotiate a more favorable price based on volume or long-term commitment.

How is the government ensuring fair pricing without competition?

Without competition, ensuring fair pricing relies heavily on robust negotiation, market research on comparable products (even if not direct substitutes), and potentially leveraging volume discounts. The VA should have internal benchmarks or consult industry experts to validate the reasonableness of the price. Contract clauses related to price adjustments or audits might also be employed.

What is the long-term strategy for acquiring these critical consumables to foster competition?

The long-term strategy could involve actively seeking opportunities to introduce competition, perhaps by encouraging other manufacturers to develop compatible reagents or by bundling future requirements to make them more attractive to a wider range of bidders. The VA might also consider alternative diagnostic platforms that allow for greater vendor diversity in the future.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1300 E TOUHY AVE, DES PLAINES, IL, 60018

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

Financial Breakdown

Contract Ceiling: $8,383,078

Exercised Options: $3,687,026

Current Obligation: $3,687,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: V797P7323A

IDV Type: FSS

Timeline