VA awards $102.6M BPA Call for diagnostic equipment, with a per-unit cost of $93,386.50

Contract Overview

Contract Amount: $93,387 ($93.4K)

Contractor: Biofire Diagnostics LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2024-12-31

Contract Duration: 91 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN BPA FOR WIDE FILM ARRAY (TORCH) COST PER TEST ALL INCLUSIVE (EQUIPMENT, SERVICE, TRAINING, REAGENTS, AND OTHER ITEMS NEEDED TO PERFORM TESTS).

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $93,386.5 to BIOFIRE DIAGNOSTICS LLC for work described as: VISN BPA FOR WIDE FILM ARRAY (TORCH) COST PER TEST ALL INCLUSIVE (EQUIPMENT, SERVICE, TRAINING, REAGENTS, AND OTHER ITEMS NEEDED TO PERFORM TESTS). Key points: 1. The contract is a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated agreement for ongoing needs. 2. The firm-fixed-price contract type suggests predictable costs for the government. 3. The award was not competed under the Simplified Acquisition Procedures (SAP), raising questions about competition. 4. The duration of 91 days is relatively short, suggesting an immediate or interim need. 5. The contract is for analytical laboratory instruments, a critical component of healthcare diagnostics. 6. The sole awardee, BIOFIRE DIAGNOSTICS LLC, suggests a potential lack of broader market engagement for this specific call.

Value Assessment

Rating: fair

The all-inclusive cost per test is $93,386.50, which appears high for a per-unit cost, though it encompasses equipment, service, training, reagents, and other items. Without specific details on the volume of tests or the exact scope of 'other items,' a direct comparison to similar contracts is difficult. However, the high per-unit cost warrants further investigation into the components included and potential for cost efficiencies.

Cost Per Unit: $93,386.50 (all-inclusive per test)

Competition Analysis

Competition Level: unknown

The contract was noted as 'NOT COMPETED UNDER SAP,' which is unusual for a BPA Call. Typically, BPA calls are expected to be competed among BPA holders or, if the BPA itself was not competed, the call might be competed. The lack of clarity on the competition method for this specific call raises concerns about whether the VA obtained the best possible pricing and value.

Taxpayer Impact: The lack of transparent competition for this BPA Call means taxpayers may not have benefited from the most competitive pricing, potentially leading to overspending.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, ensuring access to diagnostic testing capabilities. The contract supports the delivery of analytical laboratory services, crucial for patient diagnosis and treatment within the VA system. The geographic impact is focused on Utah (UT), where the contract is managed. The contract likely impacts the workforce within VA medical facilities that utilize these diagnostic instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this specific BPA Call raises concerns about price discovery and potential overpayment.
The high all-inclusive per-unit cost requires further justification and breakdown of included services and equipment.
The short contract duration might indicate a reactive procurement rather than strategic planning.

Positive Signals

The use of a BPA Call streamlines the procurement process for established needs.
The firm-fixed-price contract provides cost certainty for the VA.
BIOFIRE DIAGNOSTICS LLC is a known provider in the diagnostic field, suggesting potential familiarity and established support.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, a niche within the broader healthcare technology market. The market for diagnostic instruments is characterized by significant R&D investment, regulatory hurdles, and a mix of large established players and specialized innovators. Spending in this area is driven by the need for accurate, rapid, and cost-effective diagnostic solutions in clinical settings. Benchmarks for similar broad-spectrum diagnostic systems can vary widely based on technology, throughput, and included services.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and it was not set aside for small businesses (ss is false). This suggests that the procurement was not specifically targeted to benefit small businesses, and larger, established companies were likely the primary focus or only participants. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. As a BPA Call, it leverages an existing BPA structure, implying some level of pre-qualification and oversight. Transparency regarding the competition for this specific call is limited by the provided data. Accountability would be managed through contract performance monitoring and adherence to the firm-fixed-price terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Laboratory Services Contracts
Diagnostic Equipment Procurement
Medical Instrument Supply Agreements
Clinical Laboratory Improvement Amendments (CLIA) related procurements

Risk Flags

Lack of Competition
High Per-Unit Cost
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $93,386.5 to BIOFIRE DIAGNOSTICS LLC. VISN BPA FOR WIDE FILM ARRAY (TORCH) COST PER TEST ALL INCLUSIVE (EQUIPMENT, SERVICE, TRAINING, REAGENTS, AND OTHER ITEMS NEEDED TO PERFORM TESTS).

Who is the contractor on this award?

The obligated recipient is BIOFIRE DIAGNOSTICS 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 $93,386.5.

What is the period of performance?

Start: 2024-10-01. End: 2024-12-31.

What is the specific breakdown of costs included in the $93,386.50 all-inclusive per-test price?

The provided data states the $93,386.50 cost per test is 'ALL INCLUSIVE (EQUIPMENT, SERVICE, TRAINING, REAGENTS, AND OTHER ITEMS NEEDED TO PERFORM TESTS).' However, a detailed breakdown of how this total cost is allocated across these components is not available. This lack of granular cost information makes it difficult to assess the value proposition of each element and to benchmark effectively against market rates for individual components. Further analysis would require access to the detailed pricing schedule within the BPA Call documentation.

How does the $93,386.50 per-unit cost compare to similar diagnostic systems used by the VA or other federal agencies?

Benchmarking the $93,386.50 all-inclusive per-test cost is challenging without knowing the specific type and volume of tests performed, the exact equipment model, and the service level agreements. Diagnostic platforms can range significantly in price depending on their capabilities (e.g., multiplexing, speed, automation). For instance, high-throughput molecular diagnostic systems with comprehensive service contracts can command substantial costs. However, if this figure represents a cost per individual test result (e.g., for a single pathogen detection), it would be considered exceptionally high. A more appropriate comparison might be to the total cost of ownership for similar systems over their lifecycle, including initial purchase, consumables, maintenance, and software updates.

What is the track record of BIOFIRE DIAGNOSTICS LLC with the Department of Veterans Affairs?

BIOFIRE DIAGNOSTICS LLC has a history of providing diagnostic solutions. While specific contract details with the VA beyond this BPA Call are not provided in the summary data, the company is a known entity in the diagnostic market. Their ability to secure this BPA Call suggests they have met the VA's requirements in the past or possess unique capabilities. A deeper dive into historical contract awards, performance reviews, and any past issues or successes with the VA would provide a more comprehensive understanding of their track record.

What is the strategic importance of this diagnostic capability for the VA, particularly in Utah?

This contract is strategically important for the VA in Utah as it ensures the availability of essential diagnostic testing capabilities. Such systems are critical for timely patient diagnosis, treatment decisions, and infection control within healthcare facilities. The 'WIDE FILM ARRAY (TORCH)' designation suggests a broad diagnostic panel, potentially covering infectious diseases or other critical health indicators. Maintaining such capabilities locally reduces reliance on external labs, potentially speeding up results and improving patient outcomes. The specific focus on Utah indicates a localized need or a pilot program for this type of diagnostic solution.

Given the 'NOT COMPETED UNDER SAP' status, what are the potential risks associated with this procurement method?

The 'NOT COMPETED UNDER SAP' status for this BPA Call presents several potential risks. Firstly, it raises concerns about whether the VA received the most competitive pricing, as a lack of competition typically leads to higher costs for the government. Secondly, it limits transparency into the procurement process, making it harder to assess the fairness and objectivity of the award. Thirdly, it may signal a missed opportunity to engage with a broader range of suppliers, potentially overlooking innovative solutions or more cost-effective alternatives. This approach could also set a precedent for future non-competitive awards, potentially eroding overall procurement efficiency and value.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Merieux Alliance

Address: 515 COLOROW DR, SALT LAKE CITY, UT, 84108

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

Financial Breakdown

Contract Ceiling: $93,387

Exercised Options: $93,387

Current Obligation: $93,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26120A0010

IDV Type: BPA

Timeline