VA awards $140K for hydrocortisone acetate supplies, with 19 offers received

Contract Overview

Contract Amount: $139,996 ($140.0K)

Contractor: Regimed Medical

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-14

End Date: 2026-07-28

Contract Duration: 105 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 12 LINE ITEM HYDROCORTISONE ACETATE 25MG RTL SUPP 12CT AND 24CT

Place of Performance

Location: SAINT PETERS, SAINT CHARLES County, MISSOURI, 63376

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $139,996.32 to REGIMED MEDICAL for work described as: 12 LINE ITEM HYDROCORTISONE ACETATE 25MG RTL SUPP 12CT AND 24CT Key points: 1. Contract value appears reasonable given the quantity and type of pharmaceutical supplies. 2. Strong competition with 19 offers suggests a healthy market for this product. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Short performance period indicates a need for immediate or near-term supply. 5. Contract falls within the pharmaceutical manufacturing sector, serving healthcare needs. 6. Awarded by the Department of Veterans Affairs, directly supporting veteran healthcare.

Value Assessment

Rating: good

The contract value of approximately $140,000 for hydrocortisone acetate supplies seems aligned with market expectations for pharmaceutical preparations. While specific per-unit costs are not detailed here, the competitive nature of the award suggests that the pricing achieved is likely favorable. Benchmarking against similar VA or DoD contracts for comparable pharmaceutical items would provide further validation, but the presence of 19 offers indicates a competitive environment that typically drives reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broad range of competition for smaller dollar value procurements. The solicitation received 19 offers, indicating robust interest and a competitive marketplace for these pharmaceutical supplies. This high level of competition is a positive sign for price discovery and ensures the government is likely receiving a fair market price.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are being used efficiently, as multiple vendors vied to provide the best price and value for these essential medical supplies.

Public Impact

Veterans will benefit from the reliable supply of hydrocortisone acetate, a critical medication for various medical conditions. The contract ensures the availability of pharmaceutical preparations manufactured by companies specializing in this sector. The supplies will likely be distributed to VA medical facilities, primarily serving veterans. The contract supports jobs within the pharmaceutical manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the awarded contractor faces production or distribution issues.
Dependence on a single supplier for a critical medication could pose a risk if not managed proactively.

Positive Signals

High number of offers received indicates a competitive market and multiple viable suppliers.
Firm Fixed Price contract type locks in costs, protecting against unexpected price increases.
Awarded by the Department of Veterans Affairs, demonstrating a commitment to serving the veteran population.

Sector Analysis

This contract operates within the pharmaceutical preparation manufacturing sector, a critical component of the broader healthcare industry. This sector is characterized by stringent regulatory requirements, significant research and development investment, and a focus on quality control. The market size for pharmaceuticals is substantial globally, with government agencies like the VA being significant purchasers to meet the healthcare needs of service members and veterans. This specific award for hydrocortisone acetate fits within the category of essential medications, ensuring continuity of care.

Small Business Impact

While this contract was competed under SAP and received a high number of offers, there is no explicit indication of a small business set-aside. The nature of pharmaceutical manufacturing often involves larger, established companies. However, the prime contractor could potentially utilize small businesses for subcontracting opportunities related to distribution, logistics, or specialized components, though this is not detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs is responsible for monitoring contract performance and ensuring compliance with terms and conditions. As a purchase order under SAP, it likely falls under the purview of the VA's internal contracting and quality assurance offices. Transparency is maintained through contract databases like FPDS.gov, where award details are publicly accessible.

Related Government Programs

VA Pharmaceutical Contracts
Medical Supplies Procurement
Hydrocortisone Acetate Supply Chain
Federal Drug Administration Regulated Products

Risk Flags

Short contract duration may require frequent re-procurement.
Reliance on a single supplier for a critical medication.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $139,996.32 to REGIMED MEDICAL. 12 LINE ITEM HYDROCORTISONE ACETATE 25MG RTL SUPP 12CT AND 24CT

Who is the contractor on this award?

The obligated recipient is REGIMED MEDICAL.

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 $139,996.32.

What is the period of performance?

Start: 2026-04-14. End: 2026-07-28.

What is the historical spending by the VA on hydrocortisone acetate or similar corticosteroids?

Analyzing historical spending data for hydrocortisone acetate and comparable corticosteroid medications by the Department of Veterans Affairs (VA) is crucial for understanding spending trends and value. While specific figures for this exact product are not immediately available without a deeper dive into procurement databases, the VA consistently procures a wide range of pharmaceuticals. Past awards for similar corticosteroids, such as prednisone or dexamethasone, could serve as benchmarks. For instance, if the VA has previously awarded contracts for similar quantities or formulations of corticosteroids in the range of $100,000-$200,000 annually, this current award of $139,996.32 appears to be within a typical spending pattern. Fluctuations in historical spending could be attributed to changes in patient needs, formulary adjustments, or shifts in market pricing. A comprehensive review would involve examining contract awards over the last 3-5 fiscal years to identify patterns and potential anomalies.

How does the per-unit cost of this hydrocortisone acetate compare to commercial market rates?

Determining the precise per-unit cost requires access to the specific line-item details of the contract, which are not provided in the summary data. However, we can infer potential value by considering the total award amount ($139,996.32) and the quantities (12-count and 24-count retailSupp). If, for example, the contract covers a significant number of these units, the per-unit price should be competitive. Commercial market rates for hydrocortisone acetate, depending on the brand, formulation, and quantity, can vary widely. Online pharmaceutical retailers and wholesale distributors offer price points that can be used for comparison. Given that this is a government contract, and especially with 19 offers received, the expectation is that the per-unit cost would be at or below typical commercial wholesale prices, reflecting bulk purchasing power and competitive bidding. Without the exact unit counts, a definitive comparison is challenging, but the competitive award process suggests a favorable unit price.

What are the specific risks associated with the contractor, REGIMED MEDICAL, based on past performance?

Information regarding the past performance of REGIMED MEDICAL is not detailed in the provided summary data. To assess risks associated with the contractor, a review of their performance history on previous federal contracts, particularly with the Department of Veterans Affairs or other healthcare agencies, would be necessary. This would involve examining metrics such as on-time delivery, product quality, responsiveness to issues, and any history of contract disputes or terminations. Databases like the Contractor Performance Assessment Reporting System (CPARS) are typically used for this purpose. A lack of readily available negative performance indicators suggests a potentially lower risk profile, but a thorough due diligence would require accessing these performance records. If REGIMED MEDICAL is a relatively new entrant or has limited federal contracting history, this could introduce a different type of risk related to unfamiliarity with government processes.

What is the expected impact of this contract on the availability of hydrocortisone acetate for veterans?

This contract is expected to ensure a consistent and reliable supply of hydrocortisone acetate for veterans receiving care through the Department of Veterans Affairs (VA) healthcare system. Hydrocortisone acetate is a commonly prescribed corticosteroid used to treat a variety of inflammatory and allergic conditions, as well as adrenal insufficiency. By awarding this contract, the VA is proactively securing the necessary quantities of this medication to meet the anticipated demand from its patient population. This helps prevent stock-outs and ensures that healthcare providers can prescribe and administer this essential drug without interruption, thereby supporting the continuity of care and improving health outcomes for veterans.

How does the contract duration (105 days) influence the overall value and risk?

The relatively short contract duration of 105 days (approximately 3.5 months) suggests that this is likely an urgent or immediate need for hydrocortisone acetate supplies, or it could be part of a larger, multi-award indefinite-delivery/indefinite-quantity (IDIQ) contract where individual purchase orders have short durations. For a standalone contract, a short duration minimizes long-term financial commitment and allows the VA to re-evaluate market conditions and pricing more frequently. It also reduces the risk associated with potential obsolescence of the product or changes in medical needs. However, it necessitates more frequent procurement actions, which can increase administrative overhead. From a risk perspective, a short duration can be beneficial as it limits exposure to potential contractor performance issues or market price volatility over an extended period.

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: 36C77026Q0087

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 106 ARABIAN PATH, SAINT PETERS, MO, 63376

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $139,996

Exercised Options: $139,996

Current Obligation: $139,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline