6505--Awarded - SOLE SOURCE Radiopharmaceutical F-18 FDG Tracer Doses to Hot Shots NM LLC

The Department of Veterans Affairs awarded a sole source, firm-fixed-price contract to Hot Shots NM LLC, located in Davenport, Iowa, for the supply of Radiopharmaceutical F-18 FDG (Fludeoxyglucose) radioactive tracer doses used in PET scan imaging at the Iowa City VA Health Care System. The contract includes a base year plus three one-year option periods, totaling a value of $741,888. The award was justified under FAR 13.106-1(b) as only one responsible source is capable of meeting strict delivery, regulatory, and operational requirements. Due to the short 110-minute half-life of the F-18 isotope, the tracer must be produced and delivered within a two-hour radius of Iowa City to maintain efficacy, necessitating multiple daily deliveries, rapid emergency responsiveness, and a comprehensive contingency plan for potential cyclotron or equipment failures. This procurement is governed by rigorous standards including FDA approval, Iowa state radioactive materials licensing, and Board of Pharmacy licensing to ensure compliance with both federal and state regulations. The contract mandates production within Davenport, Iowa, aligning with Buy American requirements. Although no detailed clause list or pricing breakdown is provided, the scope emphasizes timely, secure delivery and adherence to regulatory requirements over competitive pricing due to the sole source nature of the award. The Network Contracting Office 23 administers the contract with Joseph Bennett as the Contracting Officer. Inspection and acceptance occur at the Iowa City VA facility upon delivery, with performance structured as base plus option years, ensuring a steady and reliable supply of critical radiopharmaceutical doses essential to the VA’s PET imaging services.