Department of Veterans Affairs Awarded a Contract to ADVANCED ACCELERATOR APPLICATIONS USA INC for $4,300,000.00

Summary of Award

The contract awarded by the US federal government, specifically by the Department of Veterans Affairs (VA), is an agreement with Advanced Accelerator Applications USA Inc. (AAA), a company falling under the major pharmaceutical umbrella of Novartis Pharmaceuticals Corporation. This contract, identified by the unique ID "CONT_IDV_36F79719D0169_3600" and PIID "36F79719D0169," serves as an Indefinite Delivery Vehicle (IDV) with a categorization under Federal Supply Schedule (FSS). The primary purpose of this contract is to supply drugs, pharmaceuticals, and hematology-related products.

**Contract Overview:**

The contract was signed on June 4, 2019, with an effective start date of June 15, 2019. Its period of performance extends to January 31, 2025, with potential modifications extending up to March 3, 2025. The ceiling value of this contract is set at $4.3 million, although the total obligation is currently recorded as zero, reflecting an agreement structured around demands and deliveries rather than fixed allocations. **Category and Competition:** Categorized under FSS, the procurement process demonstrated a robust level of competition, as indicated by the contract receiving 999 offers. The solicitation process employed a "Negotiated Proposal/Quote," suggesting a detailed and competitive bid evaluation was conducted. Furthermore, the solicitation adhered to "Full and Open Competition," ensuring transparency and allowing a wide array of industry participants to vie for the contract. The absence of any set-aside classifications—such as small business set-asides—indicates a competitive field open to large-scale suppliers as well. **Product and Industry Classification:** The products under this contract fall within the Pharmaceutical Preparation Manufacturing sector, corresponding to the NAICS code 325412. This aligns with the broader category of Pharmaceutical and Medicine Manufacturing (NAICS 3254) and the Manufacturing sector in general (NAICS 32). The Product and Service Code (PSC) associated with this contract is 6505, which is designated for drugs and biologicals, positioning the contract firmly within the medical supply sphere. **Recipient Details:** Advanced Accelerator Applications USA Inc., headquartered in New York, is listed as a foreign-owned business incorporated within the U.S. As a subsidiary of Novartis Pharmaceuticals Corporation, AAA operates with expertise in manufacturing key pharmaceutical products, specifically those within the medical and biological domains. The company’s profile highlights critical designations, including its status as a "Corporate Entity Not Tax Exempt" and "Manufacturer of Goods," offering them a strong foothold within the high-stakes pharmaceutical industry. Their business categories reflect a niche specialization alongside broader corporate capabilities. **Contract Pricing and Conditions:** The contract is structured as a "Fixed Price with Economic Price Adjustment," allowing for adjustments in pricing based on economic factors—common in long-term government contracts to mitigate risks associated with inflation and cost fluctuations. This strategic choice underlines the contract’s adaptability to market conditions over its multi-year span. **Agency Involvement:** Both the funding and awarding bodies for this contract are the Department of Veterans Affairs, specifically the NAC Federal Supply Schedule office. This highlights the VA’s commitment to reliable sourcing of pharmaceuticals, ensuring a stable supply chain for the needs of veterans under their care. **Transactions and Financial Details:** Despite the lack of detailed financial transactions listed in this data set, the comprehensive structuring of this contract suggests a flexible approach to obligations and expenditures. The total account outlay and obligation data reflect a deferred execution, hinting at a potential on-call model for procurement as needs arise. **Conclusion:** In summary, this awarded contract represents a strategic investment by the VA in securing high-quality pharmaceutical products through a reputable supplier with international ties and significant manufacturing capabilities. The full and open competitive nature of the solicitation process, alongside the economic price adjustment framework, signifies a well-crafted opportunity to deliver cost-effective solutions over the contract's lifecycle. The relationship with AAA not only addresses immediate pharmaceutical needs but also reinforces the broader objective of maintaining and improving the healthcare services provided to U.S. veterans. The structure and terms of this agreement ensure a dynamic and responsive approach to the evolving demands of healthcare provisions within veteran services, while aligning with the VA’s mission of effective resource allocation and exemplary care delivery.