Department of Veterans Affairs Awarded a Contract to JUBILANT DRAXIMAGE RADIOPHARMACIES, INC. for $767,145.13

Summary of Award

**Contract Award Summary: Department of Veterans Affairs and Jubilant DraxImage Radiopharmacies, Inc.**

The contract under review, designated by the ID "36C24420P0041," was a purchase order awarded by the Department of Veterans Affairs (VA) on October 1, 2019. The contract is for radiopharmaceutical products—a niche sector within pharmaceutical manufacturing. The total obligated amount is $767,145.13, indicative of a significant investment in radiopharmaceuticals intended for use in veterans' healthcare.

**Recipient Overview** Jubilant DraxImage Radiopharmacies, Inc., based in Orlando, Florida, is the recipient of this federal contract. They specialize in pharmaceutical preparation manufacturing, specifically within radiopharmaceuticals, which are vital for diagnostic tests and treatments in nuclear medicine. The company is categorized as a U.S.-owned, corporate entity that is not tax-exempt and is not designated as a small business. Known for their specialized drug development capabilities, Jubilant DraxImage plays a critical role in the healthcare supply chain, ensuring tailored therapeutic and diagnostic solutions for critical needs. **Awarding and Funding Agency** Both the awarding and funding agencies for this contract were the Department of Veterans Affairs. The specific offices involved were the 244-Network Contract Office 4 and the office at Wilkes Barre, indicating a close alignment within the VA’s organizational structure to streamline procurement processes. The Department of Veterans Affairs, with its comprehensive healthcare system, requires specialized products like those provided by Jubilant DraxImage to efficiently manage and treat conditions prevalent among veterans. **Contract Details** The Procurement Instrument Identifier (PIID) for the contract is "36C24420P0041." The contract was classified as a firm-fixed-price purchase order, suggesting that it involves the procurement of stable and standardized items, specifically "Drugs and Biologicals," under product or service code 6505. The classification under the North American Industry Classification System (NAICS) is 325412, emphasizing the specialized nature of the pharmaceutical products involved. **Period of Performance** The services stipulated in this contract began on October 1, 2019, and are scheduled to complete by September 30, 2024. This period reflects a multi-year engagement, highlighting the ongoing need for specialized products to support the healthcare requirements of the VA. **Transaction Insights** The contract encompasses numerous transactions over the years, reflecting various adjustments, modifications, and continued fulfillment of the contract’s terms: 1. **Initial Transaction (2019-10-01):** An initial transaction amount of $150,662.53 marked the start of the contract. This initial amount set the trajectory for subsequent product deliveries and services. 2. **Annual Activity:** - In 2020 and 2021, similar transaction amounts ($150,662.53 each) were processed, reflecting recurring financial commitment possibly aligned with ongoing product supply schedules. 3. **Modifications and Adjustments:** - Over the years, several adjustments can be observed: - On February 26, 2021, and April 10, 2025, negative transaction amounts of -$28,664.40 and -$38,376.89 were noted. These could indicate refunds, adjustments, or amendments in product orders. - Conversely, significant positive financial activities were recorded, such as $167,664.27 on October 1, 2022, pointing towards an increase in product procurement to meet expanding needs or address prior financial adjustments. 4. **Recent Transactions:** - More recent transactions in 2023 include modest increments (e.g., $2,337.84 on September 12 and $5,758.25 on September 25), which could reflect procurement of additional quantities or specific radiopharmaceutical formulations. **Competitive and Commercial Aspects** This contract award underwent a simplified acquisition process, highlighting the competitive environment, evidenced by three offers received. The contract was competed under SAP (Simplified Acquisition Procedures), demonstrating the VA’s strategic approach to ensuring cost-effectiveness and accessibility to crucial pharmaceutical services. The contract was not set aside for small businesses and involved no evaluated preferences or incentives, focusing purely on the acquisition of commercial products/services—a testimony to the specificity and specialized nature of the pharmaceuticals procured. **Strategic Importance** This agreement underlines the strategic importance of securing specialized suppliers like Jubilant DraxImage that provide critical medical products essential for diagnostic and therapeutic processes within VA healthcare facilities. It reflects broader governmental efforts to maintain robust supply chains for high-priority areas of public health and veterans' care. In summary, this government contract is a significant exemplification of how federal procurement strategies are tailored to acquiring specialized products essential for veteran health services. It demonstrates intricate planning, sustained multi-year financial commitment, and adaptations to meet changing healthcare demands. The interactions between the VA and Jubilant DraxImage underscore a mutually beneficial relationship, fostering stability and reliability in the supply of vital medical products.