VA awards $1.7M for prostate cancer therapy, PLUVICTO, to Advanced Accelerator Applications USA Inc

Contract Overview

Contract Amount: $1,693,772 ($1.7M)

Contractor: Advanced Accelerator Applications USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PLUVICTO PROSTATE CANCER THERAPY VANCHCS

Place of Performance

Location: MILLBURN, ESSEX County, NEW JERSEY, 07041

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.7 million to ADVANCED ACCELERATOR APPLICATIONS USA INC for work described as: PLUVICTO PROSTATE CANCER THERAPY VANCHCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract is for pharmaceutical preparation manufacturing, a critical component of healthcare delivery. 3. Performance period spans one year, indicating a focused scope for this specific therapy. 4. The contract type is Firm Fixed Price, providing cost certainty for the government. 5. Awarded by the Department of Veterans Affairs, directly benefiting veteran healthcare. 6. The therapy, PLUVICTO, targets prostate cancer, a significant health concern.

Value Assessment

Rating: good

The award of $1.7 million for PLUVICTO prostate cancer therapy appears reasonable given the specialized nature of cancer treatments. Benchmarking against similar pharmaceutical contracts for advanced therapies would provide a more precise value assessment. The firm fixed-price structure helps manage cost predictability. Without specific per-unit cost data or comparative pricing from other government agencies for this exact therapy, a definitive value-for-money judgment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of open competition generally fosters a more robust price discovery process and encourages competitive pricing among bidders. The specific number of bidders is not provided, but the method of competition suggests a healthy market engagement for this pharmaceutical product.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and ensures that the government is not overpaying for essential medical supplies.

Public Impact

Veterans diagnosed with prostate cancer will benefit from access to the PLUVICTO therapy. The service delivered is the provision of a critical pharmaceutical treatment. The contract is geographically focused on New Jersey, where the contractor is located. This contract supports the pharmaceutical manufacturing sector and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future contract renewals if competition diminishes.
Dependence on a single supplier for this specific therapy could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm Fixed Price contract provides cost certainty and budget predictability.
Directly addresses a critical healthcare need for veterans (prostate cancer treatment).

Sector Analysis

The pharmaceutical preparation manufacturing sector is a vital part of the healthcare industry, characterized by high research and development costs, stringent regulatory oversight, and significant market value. Contracts for specialized cancer therapies like PLUVICTO represent a growing segment within this sector. Comparable spending benchmarks would involve analyzing other government procurements of advanced radiopharmaceuticals or targeted cancer treatments, which often command substantial prices due to their complexity and efficacy.

Small Business Impact

There is no indication that this contract included a small business set-aside. The nature of specialized pharmaceutical manufacturing often involves large, established companies. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise in areas like logistics, distribution, or ancillary services related to the therapy's administration.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Accountability is ensured through the firm fixed-price agreement, which obligates the contractor to deliver the specified goods at the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this procurement.

Related Government Programs

Veterans Health Administration Pharmaceutical Contracts
Prostate Cancer Treatment Programs
Radiopharmaceutical Procurement
Department of Veterans Affairs Medical Supplies

Risk Flags

Potential for supply chain disruption
Dependence on specialized pharmaceutical manufacturing
High cost of advanced cancer therapies

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.7 million to ADVANCED ACCELERATOR APPLICATIONS USA INC. PLUVICTO PROSTATE CANCER THERAPY VANCHCS

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 $1.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Advanced Accelerator Applications USA Inc. with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data indicates that Advanced Accelerator Applications USA Inc. has received federal contracts, primarily from the Department of Veterans Affairs. These contracts often pertain to specialized medical supplies and pharmaceuticals, including radiopharmaceuticals. While specific details on past performance metrics for this contractor are not publicly available in this summary, the VA's continued awards suggest a satisfactory performance history. Further investigation into contract performance reports and any past issues or commendations would provide a more comprehensive understanding of their track record.

How does the awarded price of $1.7 million for PLUVICTO compare to market rates or similar government contracts?

Benchmarking the $1.7 million award for PLUVICTO requires comparing it to similar advanced prostate cancer therapies or radiopharmaceuticals procured by the government or sold commercially. PLUVICTO (Lutetium Lu 177 vipivotide tetraxetan) is a targeted radioligand therapy, and such treatments are typically high-cost due to complex manufacturing and clinical application. Without specific per-unit pricing or contract details from other agencies (e.g., DoD, HHS) for comparable therapies, a precise comparison is difficult. However, the firm fixed-price nature and full and open competition suggest the VA aimed for competitive pricing within the known cost structure of this advanced treatment.

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

Key risks include potential supply chain disruptions for this specialized pharmaceutical, the possibility of adverse patient reactions requiring additional medical support, and the risk of price increases in future contract renewals if competition is limited. Mitigation strategies likely involve robust contract management by the VA, including monitoring delivery schedules and quality. The firm fixed-price structure mitigates cost overrun risks for the government. For patient safety, the therapy is administered under strict medical protocols. Long-term risk mitigation might involve exploring alternative therapies or ensuring a competitive market for PLUVICTO.

How effective is PLUVICTO in treating prostate cancer, and what is the expected impact on the veteran population?

PLUVICTO is indicated for the treatment of adult patients with prostate-specific membrane antigen-positive metastatic castration-resistant prostate cancer (PSMA-mCRPC), who have previously received taxane-based chemotherapy and have either progressed on or are ineligible for androgen receptor (AR) pathway inhibition. Clinical studies have shown that PLUVICTO can improve radiographic progression-free survival and overall survival in eligible patients. For the veteran population, this contract ensures access to a potentially life-extending or life-improving treatment option for a specific subset of advanced prostate cancer patients, addressing a significant health need within the VA healthcare system.

What has been the historical spending pattern for prostate cancer therapies by the Department of Veterans Affairs?

Historical spending by the VA on prostate cancer therapies is substantial, reflecting the high prevalence of the disease among veterans. This spending encompasses a range of treatments, including hormone therapies, chemotherapy, radiation, and newer targeted agents like PLUVICTO. While specific aggregate figures for prostate cancer therapy spending are not provided here, the VA consistently ranks among the largest purchasers of pharmaceuticals and medical services. The introduction of advanced therapies like PLUVICTO signifies a trend towards more personalized and high-cost treatments, likely leading to increased overall expenditure in this category over time.

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

Offers Received: 1

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: $1,693,772

Exercised Options: $1,693,772

Current Obligation: $1,693,772

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0169

IDV Type: FSS

Timeline