VA awards $98,984 for Ropivacaine HCl, bypassing competition for pharmaceutical preparation

Contract Overview

Contract Amount: $98,985 ($99.0K)

Contractor: Denver Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-13

End Date: 2024-02-12

Contract Duration: 91 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ROPIVACAINE HCI 0.2% (2 MG/ML) (FROM API), 545 ML FILL IN ON-Q AND ON-Q CB006 PASSTHROUGH PUMP

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $98,984.6 to DENVER SOLUTIONS, LLC for work described as: ROPIVACAINE HCI 0.2% (2 MG/ML) (FROM API), 545 ML FILL IN ON-Q AND ON-Q CB006 PASSTHROUGH PUMP Key points: 1. The Department of Veterans Affairs (VA) procured Ropivacaine HCl for $98,984. 2. The contract was awarded to DENVER SOLUTIONS, LLC. 3. This procurement falls under Pharmaceutical Preparation Manufacturing. 4. The contract duration is 91 days. 5. The award was not competed under Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: fair

The price of $98,984 for 545 ML of Ropivacaine HCl in On-Q pumps appears reasonable given the specialized nature of the product and delivery system. However, without direct comparable contract data, a precise benchmark is difficult to establish.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, suggesting a limited competition approach. This method may not yield the best possible price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of full and open competition could result in a higher cost to taxpayers than if multiple vendors had been solicited.

Public Impact

Veterans will receive essential pain management medication. The procurement ensures a supply of Ropivacaine HCl for VA facilities. The use of specialized On-Q pumps indicates a specific clinical application.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark

Positive Signals

Ensures supply of critical medication
Supports veteran healthcare needs

Sector Analysis

This procurement falls within the pharmaceutical preparation manufacturing sector, which is critical for healthcare services. Spending benchmarks in this area can vary widely based on drug type, volume, and delivery method.

Small Business Impact

There is no indication that small businesses were involved in this specific procurement, as it was awarded to DENVER SOLUTIONS, LLC without mention of subcontracting or set-asides.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be applied to ensure proper execution and value for money.

Related Government Programs

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

Risk Flags

Limited competition
Potential for higher cost due to non-competitive award
Lack of clear price benchmark
Short contract duration may indicate a specific, immediate need

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $98,984.6 to DENVER SOLUTIONS, LLC. ROPIVACAINE HCI 0.2% (2 MG/ML) (FROM API), 545 ML FILL IN ON-Q AND ON-Q CB006 PASSTHROUGH PUMP

Who is the contractor on this award?

The obligated recipient is DENVER SOLUTIONS, LLC.

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 $98,984.6.

What is the period of performance?

Start: 2023-11-13. End: 2024-02-12.

What is the justification for not competing this procurement under SAP?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. A detailed justification would typically be documented within the procurement file, potentially citing reasons such as urgency, a specific vendor's unique capability, or a prior relationship that made full competition impractical or less advantageous for the government.

How does the unit cost compare to industry standards for similar pain management solutions?

Without specific details on the formulation, concentration, and the exact On-Q pump model, a precise unit cost comparison is challenging. However, specialized drug-delivery systems and compounded medications often carry a premium. Further analysis would require access to detailed product specifications and market pricing data for comparable items.

What is the potential impact on future VA pharmaceutical spending if limited competition becomes a trend?

If limited competition becomes a trend for pharmaceutical procurements, it could lead to increased costs for the VA and, consequently, taxpayers. Reduced competition can stifle innovation and prevent the government from leveraging market dynamics to secure the best prices and terms, potentially impacting the overall budget allocated for healthcare.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C261-24-AP-0573

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13796 COMPARK BLVD, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,985

Exercised Options: $98,985

Current Obligation: $98,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline