VA Awards $64.9M Contract for Glucose Strips and Meters to Nova Biomedical Corp

Contract Overview

Contract Amount: $64,940 ($64.9K)

Contractor: Nova Biomedical Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2031-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $36/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STATSTRIP GLUCOSE STRIPS & METER WARRANTY BASE + 4 OY'S

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02454

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $64,940 to NOVA BIOMEDICAL CORP for work described as: STATSTRIP GLUCOSE STRIPS & METER WARRANTY BASE + 4 OY'S Key points: 1. Contract awarded to Nova Biomedical Corp for glucose monitoring supplies. 2. The contract has a base period and four option years, ending in 2031. 3. The award was not competed under Simplified Acquisition Procedures, raising potential competition concerns. 4. The sector is Analytical Laboratory Instrument Manufacturing, with a PSC code not specified.

Value Assessment

Rating: fair

The contract's total value is $64.9 million over approximately 15 years. Without specific unit pricing or comparison data, it's difficult to definitively assess value for money against market rates for similar glucose monitoring systems.

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 pricing for the government, as it bypasses a broader solicitation process.

Taxpayer Impact: The $64.9 million price tag over 15 years represents a significant taxpayer investment. The lack of robust competition could lead to higher costs than necessary.

Public Impact

Veterans will receive essential glucose monitoring supplies, crucial for managing diabetes. The long contract duration ensures a stable supply chain for these medical devices. Potential for higher costs due to limited competition impacts overall healthcare spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration without clear price adjustments

Positive Signals

Ensures supply of critical medical devices
Long-term relationship with a known supplier

Sector Analysis

The Analytical Laboratory Instrument Manufacturing sector involves the production of devices used for testing and analysis. Spending in this sector can vary widely based on technological advancements and healthcare needs. This contract appears to be for established, essential medical devices rather than cutting-edge research equipment.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify any small business participation. Therefore, the impact on small businesses in this sector is likely minimal or non-existent for this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's limited competition and long duration warrant close monitoring to ensure continued value and performance.

Related Government Programs

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

Risk Flags

Lack of competition may lead to inflated prices.
Long contract duration could lock in suboptimal pricing.
Potential for vendor lock-in.
Limited transparency on specific unit costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $64,940 to NOVA BIOMEDICAL CORP. STATSTRIP GLUCOSE STRIPS & METER WARRANTY BASE + 4 OY'S

Who is the contractor on this award?

The obligated recipient is NOVA BIOMEDICAL CORP.

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 $64,940.

What is the period of performance?

Start: 2026-04-01. End: 2031-03-31.

What is the specific unit cost of the glucose strips and meters, and how does it compare to commercial pricing or other government contracts for similar items?

The provided data does not include specific unit costs for the glucose strips and meters. A thorough analysis would require access to the contract's detailed pricing structure and comparison with benchmarks from the commercial market and other federal procurements to determine if the government is receiving a fair and reasonable price.

What were the justifications for not competing this contract under SAP, and were alternative limited competition strategies considered?

The data states the contract was 'NOT COMPETED UNDER SAP,' implying a justification was made for a limited competition approach. Understanding the specific rationale, such as sole-source justification or specific agency needs, is crucial to assess if the limited competition was appropriate and if taxpayer funds were used efficiently.

How will the VA ensure continued value and performance from Nova Biomedical Corp over the 15-year contract period, especially given the fixed-price structure?

The VA will need robust contract management and performance monitoring. Regular reviews of delivery schedules, product quality, and adherence to contract terms are essential. The fixed-price nature requires careful oversight to prevent potential cost overruns or quality degradation over the extended period.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26126Q0271

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 PROSPECT ST, WALTHAM, MA, 02453

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: $254,300

Exercised Options: $64,940

Current Obligation: $64,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline