VA awards $17.6M pharmacy reverse distribution contract to Pharmalink Inc. for waste collection services

Contract Overview

Contract Amount: $17,625 ($17.6K)

Contractor: Pharmalink Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2026-06-30

Contract Duration: 545 days

Daily Burn Rate: $32/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHARMACY REVERSE DISTRIBUTION SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,625 to PHARMALINK INC for work described as: PHARMACY REVERSE DISTRIBUTION SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed under simplified acquisition procedures, suggesting potential for higher costs. 3. Services are for pharmacy reverse distribution, a critical function for managing pharmaceutical waste. 4. The contract duration is 545 days, providing a defined period for service delivery. 5. The contractor, Pharmalink Inc., is responsible for waste collection services. 6. The contract is managed by the Department of Veterans Affairs. 7. The North American Industry Classification System (NAICS) code is 562119, indicating 'Other Waste Collection'.

Value Assessment

Rating: fair

The contract's value of $17.6 million for pharmacy reverse distribution services over approximately 18 months appears to be within a reasonable range for such specialized waste management. However, without specific benchmarks for reverse distribution services or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition raises concerns about whether the government secured the most competitive pricing available. Further analysis would require comparing this contract's unit costs or overall value to similar contracts awarded by other federal agencies or within the private sector for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a purchase order and noted as 'NOT COMPETED UNDER SAP'. This indicates that the contract was not competed using the standard Simplified Acquisition Procedures, which are typically used for purchases below a certain threshold (e.g., $250,000). The specific method of non-competitive award is not detailed, making it difficult to assess the extent of competition. It is unclear if this was a sole-source award, a limited competition, or if other factors prevented a broader solicitation. The lack of transparency regarding the procurement process limits the ability to evaluate if the government explored all available options to ensure fair and reasonable pricing.

Taxpayer Impact: The lack of clear competition for this contract means taxpayers may not have benefited from the most cost-effective pricing that a competitive bidding process could have yielded. This could result in a higher overall expenditure for the government.

Public Impact

Veterans will benefit from the safe and compliant disposal of pharmaceutical waste generated within VA facilities. The contract ensures the proper handling and removal of expired, unused, or recalled medications. Services are primarily focused on waste collection, supporting the operational efficiency of VA pharmacies. The geographic impact is likely concentrated within the service areas of the VA facilities managed by the Department of Veterans Affairs. This contract supports the environmental compliance and public health mandates related to pharmaceutical waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing for taxpayers.
Award method 'NOT COMPETED UNDER SAP' requires further investigation into procurement justification.
Limited transparency on the procurement process hinders a full value assessment.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract addresses a critical need for pharmaceutical waste management.
Awarded to a single contractor, potentially simplifying administration.

Sector Analysis

The pharmaceutical reverse distribution sector involves the management and disposal of unused, expired, or recalled medications from healthcare facilities. This contract falls under the broader waste management and collection services industry, specifically addressing the unique requirements of pharmaceutical waste. The market for these services is driven by stringent regulatory compliance, environmental concerns, and the need for secure disposal methods. Comparable spending benchmarks would typically involve analyzing the cost per pound or per unit of medication processed by reverse distributors, as well as the overall contract values for similar services provided to large healthcare networks or government entities.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from this award based on set-aside provisions. The impact on the small business ecosystem is likely minimal unless Pharmalink Inc. voluntarily engages small businesses as subcontractors, which is not specified in the data.

Oversight & Accountability

Oversight for this contract will be primarily managed by the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Pharmalink Inc. to fulfill specific service obligations. Transparency regarding the contract's performance and any potential issues would typically be available through federal procurement databases and agency reporting mechanisms. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Pharmaceutical Waste Management Services
Medical Waste Disposal
Healthcare Logistics
Government Procurement of Services
Department of Veterans Affairs Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency in Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,625 to PHARMALINK INC. PHARMACY REVERSE DISTRIBUTION SERVICES

Who is the contractor on this award?

The obligated recipient is PHARMALINK 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 $17,625.

What is the period of performance?

Start: 2025-01-01. End: 2026-06-30.

What is Pharmalink Inc.'s track record with the federal government, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that Pharmalink Inc. has received federal contracts, though specific details on their historical performance with the Department of Veterans Affairs (VA) are not fully elaborated in the provided data. To assess their track record, one would typically examine past performance evaluations, any reported disputes or contract terminations, and the volume and type of previous awards. A deeper dive into contract databases like SAM.gov or FPDS would reveal the extent of their federal engagement, including prior awards from the VA, and potentially provide insights into their reliability and quality of service delivery in similar capacities. Understanding their history with the VA is crucial for gauging their suitability for this new award.

How does the $17.6 million contract value compare to similar pharmacy reverse distribution contracts?

Benchmarking the $17.6 million contract value requires comparing it against similar pharmacy reverse distribution contracts awarded by federal agencies or large healthcare systems. The provided data does not include specific unit costs (e.g., cost per pound, cost per returned item) or the volume of waste handled, which are essential for a precise comparison. However, for a contract spanning approximately 18 months (545 days), $17.6 million suggests a significant volume of pharmaceutical waste is being managed. Without access to detailed pricing structures of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value. A comprehensive analysis would involve identifying contracts with similar scope, duration, and service requirements to establish a more accurate market rate.

What are the primary risks associated with this contract award, given its non-competitive nature?

The primary risk associated with this contract award is the potential for suboptimal pricing due to the lack of competition. When a contract is not competed, especially under procedures other than standard acquisition, there is a reduced incentive for the contractor to offer the most competitive rates. This could lead to the government paying more than necessary for the services. Another risk relates to the quality and efficiency of service delivery; without the pressure of competing bids, there might be less motivation to innovate or maintain the highest standards. Furthermore, the 'NOT COMPETED UNDER SAP' designation warrants scrutiny to ensure that the justification for non-competition was valid and that the government adequately explored all avenues for obtaining best value.

What is the expected effectiveness of Pharmalink Inc. in fulfilling the VA's pharmacy reverse distribution needs?

The expected effectiveness of Pharmalink Inc. in fulfilling the VA's pharmacy reverse distribution needs hinges on their operational capabilities, adherence to regulatory requirements, and past performance. As a provider of waste collection services, their effectiveness will be measured by their ability to collect, transport, and process pharmaceutical waste in a compliant, secure, and timely manner. The firm-fixed-price nature of the contract incentivizes them to manage costs efficiently while meeting service level agreements. The VA's oversight and performance monitoring will be critical in ensuring that Pharmalink Inc. effectively manages the reverse distribution process, thereby supporting the VA's operational and environmental objectives.

How does historical spending on pharmacy reverse distribution services by the VA compare to this award?

Analyzing historical spending patterns for pharmacy reverse distribution services by the Department of Veterans Affairs (VA) is crucial for contextualizing this $17.6 million award. Without specific historical data readily available in the provided snippet, a direct comparison is not possible. However, federal agencies typically award such contracts periodically. Understanding the VA's spending trends in this area—whether spending has increased, decreased, or remained stable—can indicate market dynamics, changes in pharmaceutical usage, or shifts in regulatory requirements. A thorough review of past VA contracts for similar services would reveal average contract values, durations, and the number of contractors involved over time, providing a baseline against which this new award can be assessed for its significance and potential cost-effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

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

Address: 8285 BRYAN DAIRY RD, LARGO, FL, 33777

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,625

Exercised Options: $17,625

Current Obligation: $17,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline