VA awards $36.4M contract for pharmaceutical preparations, with 15 offers received

Contract Overview

Contract Amount: $36,432 ($36.4K)

Contractor: Pharmacy Buying Association, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-06-20

Contract Duration: 71 days

Daily Burn Rate: $513/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ALFUZOSIN

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64120

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36,432 to PHARMACY BUYING ASSOCIATION, INC. for work described as: ALFUZOSIN Key points: 1. Contract awarded to Pharmacy Buying Association, Inc. for pharmaceutical preparations. 2. The contract was competed under the Simplified Acquisition Procedures (SAP). 3. A total of 15 offers were received, indicating a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. The period of performance is 71 days, suggesting a short-term need. 6. The award is a Purchase Order, typically used for smaller value acquisitions. 7. The contract is not set aside for small businesses. 8. The contractor is involved in Pharmaceutical Preparation Manufacturing.

Value Assessment

Rating: good

The contract value of $36.4 million for a 71-day period for pharmaceutical preparations appears to be within a reasonable range, given the specialized nature of pharmaceutical manufacturing and procurement. Without specific per-unit cost data or direct comparisons to similar large-scale pharmaceutical preparation contracts, a definitive value-for-money assessment is challenging. However, the competitive nature of the award suggests that pricing was scrutinized. The firm fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchase thresholds but is less formal than full and open competition for larger contracts. Fifteen offers were received, indicating a healthy level of interest and competition among potential suppliers. This level of competition is generally positive for price discovery and ensures the government receives multiple options.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers are likely benefiting from competitive pricing, as multiple companies vied for the award. The SAP process, when well-executed with sufficient bidders, can lead to cost savings compared to sole-source or limited competition scenarios.

Public Impact

The Department of Veterans Affairs (VA) will benefit from the reliable supply of pharmaceutical preparations. Veterans will receive necessary medications and treatments facilitated by this contract. The contract supports the pharmaceutical manufacturing sector. The geographic impact is primarily within Missouri, where the contractor is located. The contract ensures the availability of critical pharmaceutical supplies for VA healthcare facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (71 days) may indicate a potential need for follow-on contracts or could suggest a gap-filling measure.
Reliance on a single awardee for a significant value contract necessitates monitoring contractor performance closely.
The specific pharmaceutical preparations procured are not detailed, making it difficult to assess the criticality or potential supply chain risks.
Competition under SAP, while broad, may not always yield the absolute lowest prices achievable through full and open competition for very large dollar values.

Positive Signals

Award to a single contractor with a firm fixed price provides budget certainty for the VA.
Receiving 15 offers demonstrates a competitive marketplace for these pharmaceutical preparations.
The contract is managed by the Department of Veterans Affairs, an agency with significant experience in healthcare procurement.
The contractor is in the Pharmaceutical Preparation Manufacturing industry, suggesting relevant expertise.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a critical component of the healthcare industry, involving the production of a wide range of medications. This contract falls within the broader healthcare and pharmaceutical supply chain. Spending in this sector is substantial, driven by demand from government agencies like the VA, as well as private healthcare providers and consumers. Benchmarking this contract's value would require comparing it to similar procurements for specific types of pharmaceutical preparations, considering volume, complexity, and regulatory requirements.

Small Business Impact

This contract was not set aside for small businesses. As a result, large businesses were eligible to compete and likely submitted offers. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation in this specific award are not guaranteed and would depend on the prime contractor's subcontracting decisions.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a Purchase Order awarded under SAP, the oversight mechanisms may be less formalized than for larger, more complex contracts. However, standard procurement regulations and contract administration processes would apply. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Pharmaceutical Contracts
Federal Drug Procurement
Medical Supplies Contracts
Department of Defense Pharmaceutical Purchases
Healthcare Services Contracts

Risk Flags

Potential misapplication of Simplified Acquisition Procedures (SAP) given the contract value.
Short performance period for a high-value contract requires monitoring for follow-on needs or potential gaps.
Lack of specific product details hinders in-depth risk and value assessment.
No explicit small business subcontracting requirements mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36,432 to PHARMACY BUYING ASSOCIATION, INC.. ALFUZOSIN

Who is the contractor on this award?

The obligated recipient is PHARMACY BUYING ASSOCIATION, 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 $36,432.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-20.

What is the specific type of pharmaceutical preparation being procured under this contract, and what is its intended use within the VA healthcare system?

The provided data indicates the contract is for 'Pharmaceutical Preparation Manufacturing' (ND: 325412) and the award is to 'PHARMACY BUYING ASSOCIATION, INC.' (CO). However, the specific type of pharmaceutical preparation (e.g., antibiotics, pain relievers, vaccines, specific formulations) and its intended use (e.g., for specific VA hospitals, nationwide distribution, particular treatment programs) are not detailed in the provided data. This information is crucial for understanding the contract's criticality, potential supply chain risks, and for performing a more granular value analysis against comparable products. Further details would typically be found in the contract's statement of work or product descriptions.

How does the per-unit cost of these pharmaceutical preparations compare to market rates or similar government contracts?

The provided data does not include per-unit cost information for the pharmaceutical preparations. The total award amount is $36,432,000 with a duration of 71 days. To assess the per-unit cost, one would need the quantity of units being procured. Without this, a direct comparison to market rates or similar federal contracts is not possible. Benchmarking would require obtaining unit pricing data and comparing it against historical VA procurements of the same or similar drugs, or against pricing from other federal agencies like the General Services Administration (GSA) schedules or Department of Defense contracts, adjusted for volume and specific product characteristics.

What is the track record of Pharmacy Buying Association, Inc. with the Department of Veterans Affairs and other federal agencies regarding pharmaceutical supply?

The provided data identifies 'PHARMACY BUYING ASSOCIATION, INC.' as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, particularly with the VA. This would involve reviewing contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A strong track record with the VA would indicate reliability and quality, while a history of issues might raise concerns about performance on this new $36.4 million award.

Given the short performance period of 71 days, does this contract represent a one-time need, a bridge contract, or is it indicative of a recurring requirement?

The contract has a short performance period of 71 days (approximately 2.5 months) and an award value of $36,432,000. This duration is relatively brief for such a significant dollar amount, especially in the context of pharmaceutical supply. It could indicate a one-time urgent need, a temporary measure to bridge a gap until a longer-term contract is established, or it might be part of a larger, phased procurement strategy. Without additional context from the agency's acquisition plan or the contract's statement of work, it is difficult to definitively determine the nature of the requirement. The VA's intent for future procurements would be a key factor.

What are the potential risks associated with relying on a single supplier for these pharmaceutical preparations, even with multiple bids received?

While 15 offers were received, the contract is awarded to a single entity, Pharmacy Buying Association, Inc. Potential risks include supply chain disruptions if the contractor faces unforeseen issues (e.g., manufacturing problems, raw material shortages, labor disputes, natural disasters). Dependence on one supplier can also reduce leverage for the government if price adjustments or contract modifications are needed later. Furthermore, if the contractor's performance falters, the VA would need to quickly find and onboard an alternative supplier, potentially leading to delays in medication availability. Monitoring the contractor's inventory levels, production capacity, and contingency plans is essential to mitigate these risks.

How does the Simplified Acquisition Procedure (SAP) used for this contract potentially impact the level of due diligence and oversight compared to full and open competition?

Simplified Acquisition Procedures (SAP) are designed for purchases up to $250,000 (or higher thresholds for certain types of acquisitions). However, the data shows this contract is valued at $36,432,000, which significantly exceeds the standard SAP threshold. This suggests either the data provided is incomplete regarding the contracting vehicle, or the 'CT: COMPETED UNDER SAP' designation might be a misinterpretation or refers to a specific part of a larger process. If indeed SAP was inappropriately applied to a contract of this magnitude, it could imply reduced documentation, less formal evaluation criteria, and potentially less robust market research compared to full and open competition, which could impact the thoroughness of due diligence and oversight. Standard procedures for contracts over the SAP threshold would typically involve more extensive documentation and justification.

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

Solicitation ID: 36C77026Q0077

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6300 ENTERPRISE RD, KANSAS CITY, MO, 64120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,432

Exercised Options: $36,432

Current Obligation: $36,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline