VA awards $1.45M BPA Call for F-18 FDG and F-18 Sodium Fluoride to Hot Shots NM LLC

Contract Overview

Contract Amount: $145,050 ($145.1K)

Contractor: HOT Shots NM LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $398/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BPA F-18 FDG AND F-18 SODIUM FLUORIDE- FY 25 DO

Place of Performance

Location: DAVENPORT, SCOTT County, IOWA, 52807

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $145,050 to HOT SHOTS NM LLC for work described as: BPA F-18 FDG AND F-18 SODIUM FLUORIDE- FY 25 DO Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated agreement for recurring needs. 3. Fixed-price contract type limits risk for the government regarding cost overruns. 4. Awarded to a single vendor, Hot Shots NM LLC, for the specified period. 5. The product category, Pharmaceutical Preparation Manufacturing, is critical for medical diagnostics. 6. Geographic location of the awardee is in New Mexico, though the service area is listed as Iowa.

Value Assessment

Rating: fair

The award amount of $1.45 million for a one-year period is a moderate expenditure for specialized radiopharmaceuticals. Benchmarking this against similar BPAs or calls for these specific isotopes is challenging without more detailed market data. The fixed-price nature is positive for cost control. However, the lack of competitive bidding in this specific BPA call warrants further scrutiny to ensure fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of quotes or a less extensive competition than full and open procedures. While the BPA itself might have been competed previously, this specific call was awarded to a single vendor. The limited competition for this call means that price discovery may not have been fully optimized, potentially leading to higher costs than a broader competition might yield.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the limited competition under SAP for this specific BPA call. A more robust competition could have potentially driven down costs.

Public Impact

Patients requiring diagnostic imaging procedures utilizing F-18 FDG and F-18 Sodium Fluoride will benefit from the availability of these radiopharmaceuticals. The services delivered are critical for nuclear medicine departments within the VA healthcare system. The geographic impact is primarily focused on the Iowa region, as indicated by the service area. This contract supports specialized roles within pharmaceutical preparation and radiopharmaceutical handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition for this specific BPA call may result in suboptimal pricing for taxpayers.
The award to a single vendor for this call raises questions about the extent of market research and price validation.
Potential for vendor lock-in if this BPA call is renewed without re-competition.

Positive Signals

The use of a BPA streamlines the procurement process for recurring needs, potentially leading to faster delivery of essential medical supplies.
Fixed-price contract type provides cost certainty for the VA.
Awarding to a specialized vendor ensures access to critical radiopharmaceuticals for patient care.

Sector Analysis

The market for radiopharmaceuticals, particularly isotopes like F-18 FDG and F-18 Sodium Fluoride, is a specialized segment within the broader pharmaceutical and medical device industry. This sector is characterized by high barriers to entry due to regulatory requirements, specialized manufacturing processes, and the need for cold chain logistics. The VA's spending in this area is crucial for providing advanced diagnostic capabilities to its patient population. Comparable spending benchmarks are difficult to ascertain without access to proprietary market data or specific contract details from other agencies procuring similar isotopes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The procurement was conducted under Simplified Acquisition Procedures, which can sometimes favor small businesses, but this was not explicitly stated as a set-aside.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs (VA). As a BPA Call, it is part of a larger framework that should have established oversight mechanisms. Accountability measures would include performance monitoring against the BPA terms and conditions, and adherence to the fixed-price agreement. Transparency is generally facilitated through contract databases, though specific details of the competition under SAP might be less publicly accessible. The VA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Pharmaceutical Contracts
Radiopharmaceutical Procurement
Medical Diagnostic Imaging Supplies
Department of Veterans Affairs Medical Services
Simplified Acquisition Procedures (SAP) Awards

Risk Flags

Limited Competition Risk
Potential for Non-Competitive Pricing
Supply Chain Dependency on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $145,050 to HOT SHOTS NM LLC. BPA F-18 FDG AND F-18 SODIUM FLUORIDE- FY 25 DO

Who is the contractor on this award?

The obligated recipient is HOT SHOTS NM 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 $145,050.

What is the period of performance?

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

What is the track record of Hot Shots NM LLC in supplying radiopharmaceuticals to federal agencies?

Information regarding Hot Shots NM LLC's specific track record in supplying radiopharmaceuticals to federal agencies is not detailed in the provided data. A thorough review would require searching federal procurement databases like SAM.gov and FPDS for past awards, performance evaluations (e.g., CPARS), and any reported issues. Understanding their history with similar products, contract types, and agencies like the VA would be crucial for assessing their reliability and performance capabilities. Without this historical data, it's difficult to definitively gauge their past performance in fulfilling federal requirements.

How does the $1.45 million award compare to other VA procurements for F-18 FDG and F-18 Sodium Fluoride?

The provided data indicates a $1.45 million award for a one-year BPA Call for F-18 FDG and F-18 Sodium Fluoride. To compare this to other VA procurements, one would need to analyze historical contract data for similar radiopharmaceuticals. This would involve searching for contracts with the same or comparable National Stock Numbers (NSNs) or Product Service Codes (PSCs) within the VA. Factors such as contract duration, quantity, and specific isotopes procured would need to be considered for a meaningful comparison. Without access to this broader dataset, it is challenging to determine if this award represents a high, low, or average expenditure for the VA in this category.

What are the primary risks associated with this contract, given it was competed under SAP and awarded to a single vendor?

The primary risks associated with this contract stem from its limited competition under Simplified Acquisition Procedures (SAP) and the award to a single vendor for this specific BPA call. The most significant risk is the potential for suboptimal pricing, as a less competitive environment may not drive costs down as effectively as a full and open competition. There's also a risk of vendor lock-in if this vendor becomes the sole source for these critical radiopharmaceuticals without periodic re-competition. Furthermore, reliance on a single vendor could pose supply chain risks if the vendor experiences production issues or delivery delays. Ensuring robust performance monitoring and exploring future competitive opportunities are key mitigation strategies.

What is the expected effectiveness of this contract in ensuring the availability of essential radiopharmaceuticals for VA patients?

This contract is expected to be effective in ensuring the availability of F-18 FDG and F-18 Sodium Fluoride for VA patients in the Iowa region, as it establishes a direct procurement mechanism through a BPA Call. The fixed-price nature provides cost certainty, and the award to a specialized vendor suggests they possess the necessary capabilities. The effectiveness hinges on the vendor's ability to consistently meet delivery schedules and quality standards for these time-sensitive diagnostic agents. The limited competition, however, introduces a potential risk to cost-effectiveness, which could indirectly impact the overall value and reach of the services provided.

How does the geographic service area (Iowa) align with the awardee's location (New Mexico)?

The awardee, Hot Shots NM LLC, is located in New Mexico, while the service area is specified as Iowa. This indicates that the radiopharmaceuticals will likely be shipped or delivered from the vendor's facility in New Mexico to VA facilities in Iowa. This arrangement is common in the specialized field of radiopharmaceuticals, where manufacturing is often centralized due to the complex infrastructure and regulatory requirements. The effectiveness of this arrangement depends on the vendor's logistical capabilities, particularly their ability to maintain the cold chain and ensure timely delivery of these short-half-life isotopes to the designated service area. The VA would have assessed these logistical capabilities during the procurement process.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2017 E KIMBERLY RD, DAVENPORT, IA, 52807

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $145,050

Exercised Options: $145,050

Current Obligation: $145,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26320A0020

IDV Type: BPA

Timeline