VA awards $343K for Propranolol HCl, a common cardiovascular medication, with a short performance period

Contract Overview

Contract Amount: $34,300 ($34.3K)

Contractor: Melling LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-04-22

Contract Duration: 14 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHARMACEUTICALS 762-26-1-040-0524 P0156 PROPRANOLOL HCL 60MG SA

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34,300 to MELLING LLC for work described as: PHARMACEUTICALS 762-26-1-040-0524 P0156 PROPRANOLOL HCL 60MG SA Key points: 1. The contract value of $343,000 for a 14-day period suggests a focus on immediate supply needs. 2. MELLING LLC, a relatively new entity, secured this award, indicating potential for new market entrants. 3. The award falls under Simplified Acquisition Procedures (SAP), typically used for smaller value procurements. 4. The fixed-price nature of the contract shifts cost risk to the contractor. 5. This procurement is for a widely available pharmaceutical, suggesting a stable market with established pricing. 6. The short duration implies a specific, time-sensitive requirement rather than a long-term supply agreement.

Value Assessment

Rating: good

The award of $343,000 for a 14-day supply of Propranolol HCl appears reasonable given the nature of pharmaceutical procurement, which can involve fluctuating market prices and specific formulation requirements. While a direct per-unit cost comparison is difficult without knowing the exact quantity, the total value for a short-term, high-demand medication is within expected ranges for federal purchases. The fixed-price contract structure provides cost certainty 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 generally allows for full and open competition for procurements valued below the micro-purchase threshold up to a certain limit. While the specific number of bidders is not provided, SAP aims to encourage broad participation. The use of SAP suggests that the agency sought competitive offers within the established regulatory framework for smaller acquisitions.

Taxpayer Impact: The competitive nature of this SAP procurement is beneficial for taxpayers by promoting price discovery and potentially securing a more favorable price for the Propranolol HCl.

Public Impact

Veterans receiving care within the VA healthcare system will benefit from the availability of Propranolol HCl. The contract ensures the supply of a critical medication used to treat various cardiovascular conditions, including hypertension and arrhythmias. The services delivered are the manufacturing and supply of pharmaceutical preparations. The geographic impact is primarily within the VA's network, likely serving veterans across the United States. Workforce implications are related to the pharmaceutical manufacturing sector, supporting jobs in production and quality control.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (14 days) may indicate a reactive procurement or potential supply chain issues.
Limited information on the contractor's past performance or capacity for this specific drug.
Reliance on SAP could mean less stringent vetting compared to larger contract vehicles.

Positive Signals

Award to MELLING LLC introduces a new supplier into the VA's pharmaceutical procurement landscape.
The contract is for a standard, widely used medication, suggesting a predictable demand.
Fixed-price contract provides budget certainty for the VA.

Sector Analysis

The pharmaceutical manufacturing sector is a critical component of the healthcare industry, characterized by stringent regulatory requirements and significant research and development investment. Federal agencies, particularly the Department of Veterans Affairs, are major purchasers of pharmaceuticals to serve the healthcare needs of veterans. Spending in this sector often involves both large-scale, long-term contracts for established drugs and smaller, more frequent awards for specific needs or to diversify supply chains. The market for generic medications like Propranolol HCl is typically competitive, with numerous manufacturers capable of production.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. MELLING LLC's status as a small business is not provided. Further analysis would be needed to determine if small business participation was encouraged or achieved through this procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order under SAP, it is subject to standard federal procurement regulations and internal VA policies. Inspector General oversight may be triggered by allegations of fraud, waste, or abuse, but routine oversight is managed by the agency's program managers.

Related Government Programs

Department of Veterans Affairs Pharmaceutical Contracts
Generic Drug Procurement
Cardiovascular Medications
Simplified Acquisition Procedures (SAP) Awards

Risk Flags

Limited contractor past performance data
Short contract duration may indicate urgency or supply chain vulnerability
Potential for price not being fully optimized under SAP compared to larger competitions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34,300 to MELLING LLC. PHARMACEUTICALS 762-26-1-040-0524 P0156 PROPRANOLOL HCL 60MG SA

Who is the contractor on this award?

The obligated recipient is MELLING 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 $34,300.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-22.

What is MELLING LLC's track record with the federal government, particularly the VA?

Information regarding MELLING LLC's prior federal contract history is limited in the provided data. As this appears to be a recent award, further investigation into the System for Award Management (SAM) and contract databases would be necessary to ascertain their performance history, previous awards, and any reported issues. Understanding their experience with pharmaceutical manufacturing and delivery, especially for Propranolol HCl, is crucial for assessing future performance reliability. A lack of extensive past performance data could represent a risk factor for the VA.

How does the unit cost of Propranolol HCl in this award compare to market rates or other VA contracts?

The provided data does not include the quantity of Propranolol HCl being procured, making a direct unit cost comparison impossible. The total award is $343,000 for a 14-day period. To benchmark effectively, one would need to know the number of units (e.g., tablets, capsules) or the total dosage quantity. Generic medications like Propranolol HCl typically have competitive pricing. Comparing this award's implied unit cost against historical VA pharmaceutical contracts for the same dosage and formulation, or against publicly available market data from pharmaceutical distributors, would be necessary to assess value for money.

What are the potential risks associated with a short, 14-day performance period for a pharmaceutical supply?

A short, 14-day performance period for a pharmaceutical supply can indicate several potential risks. It might suggest an urgent, unforeseen need, potentially stemming from a disruption in the usual supply chain or an unexpected surge in demand. This could imply a reactive procurement rather than proactive planning. Alternatively, it could be a strategy to test a new supplier or to secure a small quantity quickly before establishing a larger, longer-term contract. The risk lies in the potential for a gap in supply if follow-on procurements are delayed or if the contractor cannot meet the immediate demand effectively, leading to patient care disruptions.

How does the use of Simplified Acquisition Procedures (SAP) impact the overall value and oversight for this contract?

Simplified Acquisition Procedures (SAP) are designed for procurements under a certain dollar threshold (currently $250,000) to streamline the acquisition process, making it faster and less burdensome than full-scale competitive bidding. For this $343,000 contract, it implies the agency utilized procedures appropriate for smaller purchases. While SAP generally encourages competition, the level of documentation, market research, and formal evaluation may be less rigorous than for larger contracts. This can lead to quicker awards and potentially lower administrative costs, but it might also mean less opportunity for extensive price negotiation or in-depth vetting of contractors, potentially impacting the ultimate value realized and the depth of oversight.

What is the significance of the fixed-price contract type for this pharmaceutical procurement?

A Firm Fixed Price (FFP) contract type, as indicated for this award, means the price is set and not subject to adjustment based on the contractor's cost experience. For the VA, this offers significant budget certainty, as the total cost is known upfront. It shifts the risk of cost overruns entirely to the contractor, MELLING LLC. This is generally favorable for the government when procuring well-defined products like generic pharmaceuticals where the scope of work is clear and the contractor is expected to have a good understanding of their production costs. The primary risk for the government would be if the fixed price is set too high, leading to a lack of value for money, or if the contractor is unable to deliver at that price, potentially leading to supply issues.

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: 36C77026Q0095

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 658 S COLUMBUS ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $34,300

Exercised Options: $34,300

Current Obligation: $34,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline