VA awards $3.48M for radiopharmaceutical manufacturing to Advanced Accelerator Applications USA Inc

Contract Overview

Contract Amount: $3,485,014 ($3.5M)

Contractor: Advanced Accelerator Applications USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PLUVICTO AND LUTATHERA FY 25

Place of Performance

Location: MILLBURN, ESSEX County, NEW JERSEY, 07041

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to ADVANCED ACCELERATOR APPLICATIONS USA INC for work described as: PLUVICTO AND LUTATHERA FY 25 Key points: 1. The contract is for radiopharmaceutical preparation manufacturing, a specialized sector. 2. Advanced Accelerator Applications USA Inc. is the sole awardee. 3. The contract value is $3.48 million for a 1-year period. 4. The award is a delivery order under an existing contract. 5. The Pharmaceutical Preparation Manufacturing sector has high barriers to entry.

Value Assessment

Rating: good

The contract is a Firm Fixed Price award, which provides cost certainty. The award amount appears reasonable for specialized radiopharmaceutical manufacturing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential pharmaceutical preparations.

Public Impact

Ensures continued access to critical radiopharmaceuticals for veterans. Supports advanced medical treatments and diagnostics. Maintains supply chain for specialized pharmaceutical products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for single-source reliance if follow-on contracts are not competitively bid.
Dependence on a single manufacturer for critical medical supplies.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost predictability.
Supports critical healthcare needs for veterans.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing sector, which is characterized by high research and development costs, stringent regulatory requirements, and specialized production capabilities. Spending in this sector is critical for healthcare advancements.

Small Business Impact

The awardee, Advanced Accelerator Applications USA Inc., is not identified as a small business. The contract does not appear to have specific small business set-aside provisions.

Oversight & Accountability

The award is a delivery order under an existing contract, suggesting prior oversight. Continued monitoring of performance and pricing for future contract actions is recommended.

Related Government Programs

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

Risk Flags

Potential for single-source reliance in future
Dependence on specific manufacturing capabilities
High cost of specialized pharmaceutical production
Supply chain vulnerability for critical medical items

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to ADVANCED ACCELERATOR APPLICATIONS USA INC. PLUVICTO AND LUTATHERA FY 25

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 $3.5 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

What is the historical pricing for similar radiopharmaceutical manufacturing contracts awarded by the VA or other federal agencies?

Benchmarking historical pricing for similar radiopharmaceutical manufacturing contracts is crucial for assessing value. Without specific data on comparable contracts, it's difficult to definitively state if $3.48 million is optimal. However, given the specialized nature and regulatory hurdles in this field, costs can be significantly higher than standard pharmaceutical production.

What are the risks associated with relying on a single vendor for critical radiopharmaceuticals, even if awarded competitively?

The primary risk of relying on a single vendor, even after competitive bidding, is potential supply chain disruption due to unforeseen events (e.g., manufacturing issues, natural disasters, geopolitical instability). This could impact patient care. Additionally, future competition might be limited if the vendor gains significant market dominance or if the technology evolves rapidly.

How effectively does this contract support the VA's mission to provide advanced medical treatments to veterans?

This contract directly supports the VA's mission by ensuring the availability of specialized radiopharmaceuticals, which are essential for advanced diagnostics and treatments like targeted radionuclide therapy. Consistent and reliable access to these critical medical supplies is vital for providing high-quality care and improving health outcomes for veterans.

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

Solicitation ID: 36C26224Q1822

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: $3,485,014

Exercised Options: $3,485,014

Current Obligation: $3,485,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0169

IDV Type: FSS

Timeline