VA Awards $16.8M Contract for Pharmaceutical Repacking Services to Aphena Pharma Solutions

Contract Overview

Contract Amount: $16,771,429 ($16.8M)

Contractor: Aphena Pharma Solutions-Tennessee, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-30

End Date: 2026-04-30

Contract Duration: 365 days

Daily Burn Rate: $45.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHARMACEUTICAL REPACKER ORDER

Place of Performance

Location: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.8 million to APHENA PHARMA SOLUTIONS-TENNESSEE, LLC for work described as: PHARMACEUTICAL REPACKER ORDER Key points: 1. The Department of Veterans Affairs (VA) has awarded a significant contract for pharmaceutical repacking. 2. Aphena Pharma Solutions-Tennessee, LLC secured the contract, indicating potential consolidation or specialization in this service area. 3. The contract's value of $16.8 million warrants scrutiny for cost-effectiveness and necessity. 4. The sector is critical for healthcare supply chain integrity and patient safety.

Value Assessment

Rating: fair

The contract value of $16.8 million for packaging and labeling services appears substantial. Benchmarking against similar contracts for pharmaceutical repacking is necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The $16.8 million expenditure represents taxpayer funds allocated for essential pharmaceutical services, aiming to ensure the safe and efficient distribution of medications to veterans.

Public Impact

Ensures the safe and compliant repackaging of pharmaceuticals for veterans' healthcare. Supports the VA's supply chain by providing essential packaging and labeling services. The contract's duration of one year (with potential for extensions) allows for flexibility in meeting ongoing needs. Potential impact on the availability and cost of specific pharmaceutical products for beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract value may be high for packaging services.
Limited duration could lead to frequent re-competition and potential price increases.
No small business participation noted.

Positive Signals

Awarded through full and open competition.
Fixed-price contract type can control costs.
Essential service for healthcare delivery.

Sector Analysis

The pharmaceutical repacking sector is a niche but vital part of the healthcare supply chain, ensuring medications are properly prepared for distribution. Spending benchmarks for such services can vary widely based on volume, complexity, and regulatory requirements.

Small Business Impact

The data indicates no small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the service inherently favors larger, specialized firms.

Oversight & Accountability

The VA's procurement process, including full and open competition, provides a degree of oversight. However, ongoing monitoring of performance and cost against benchmarks is crucial for accountability.

Related Government Programs

Packaging and Labeling Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High contract value for packaging services.
No small business participation.
Potential for price increases upon re-competition.
Dependence on a single vendor for critical repacking services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.8 million to APHENA PHARMA SOLUTIONS-TENNESSEE, LLC. PHARMACEUTICAL REPACKER ORDER

Who is the contractor on this award?

The obligated recipient is APHENA PHARMA SOLUTIONS-TENNESSEE, 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 $16.8 million.

What is the period of performance?

Start: 2025-04-30. End: 2026-04-30.

What is the specific scope of 'pharmaceutical repacking' covered by this contract, and how does it align with VA's overall pharmaceutical needs?

The contract covers packaging and labeling services for pharmaceuticals. This likely includes activities such as breaking down bulk pharmaceutical supplies into smaller units, relabeling them with appropriate information for patient use, and ensuring compliance with all relevant regulations. The scope is critical for the VA's ability to dispense medications efficiently and safely to its patient population.

Are there any identified risks associated with the chosen vendor, Aphena Pharma Solutions-Tennessee, LLC, regarding their capacity or past performance in handling pharmaceutical repacking?

While the contract was awarded through full and open competition, a thorough risk assessment should include evaluating Aphena Pharma Solutions-Tennessee, LLC's track record. This involves reviewing their past performance data, any quality control issues, supply chain reliability, and adherence to regulatory standards. Understanding these factors is crucial to mitigate potential disruptions in pharmaceutical supply.

How does the $16.8 million contract value compare to industry benchmarks for similar pharmaceutical repacking services, and what factors justify this amount?

Benchmarking this $16.8 million contract against similar pharmaceutical repacking services is essential. Factors influencing the cost include the volume of pharmaceuticals handled, the complexity of the repacking process, specific labeling requirements, and adherence to stringent regulatory standards (e.g., FDA, DEA). A detailed cost analysis comparing this award to market rates will determine if it represents good value for taxpayer money.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Packaging and Labeling Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1920 FISK RD, COOKEVILLE, TN, 38506

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

Financial Breakdown

Contract Ceiling: $16,771,429

Exercised Options: $16,771,429

Current Obligation: $16,771,429

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77020D0001

IDV Type: IDC

Timeline