Agriculture Department awards $100K contract for HPAI cattle testing services amid emerging event

Contract Overview

Contract Amount: $100,000 ($100.0K)

Contractor: Agriculture, Ohio Department of

Awarding Agency: Department of Agriculture

Start Date: 2026-04-09

End Date: 2027-04-08

Contract Duration: 364 days

Daily Burn Rate: $275/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES HPAI CATTLE EMERGING EVENT TESTING

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $100,000 to AGRICULTURE, OHIO DEPARTMENT OF for work described as: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES HPAI CATTLE EMERGING EVENT TESTING Key points: 1. Contract addresses urgent need for diagnostic testing related to Highly Pathogenic Avian Influenza in cattle. 2. Sole-source award raises questions about potential for broader competition and price discovery. 3. Short contract duration suggests a response to an immediate, evolving situation. 4. Fixed-price contract type offers cost certainty for the government. 5. Geographic focus on Iowa indicates a targeted response to a specific outbreak area.

Value Assessment

Rating: questionable

The contract value of $100,000 is relatively small, making direct comparison to larger contracts difficult. However, the lack of competition and the specific nature of the emerging event testing make a traditional value-for-money assessment challenging. Without benchmark data for similar emergency diagnostic services, it's hard to definitively assess if the pricing is optimal. The fixed-price nature provides some cost control, but the overall value is contingent on the effectiveness of the testing in managing the HPAI outbreak.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, often in emergency situations or for highly specialized services. The lack of competition means there was no opportunity for multiple vendors to bid, which could limit price negotiation and potentially lead to higher costs than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The justification for a sole-source award needs to be robust to ensure funds are used efficiently.

Public Impact

Livestock producers in Iowa will benefit from timely diagnostic services to manage HPAI. The contract supports critical animal health surveillance and response efforts. Geographic impact is focused on Iowa, addressing a specific emerging event. The services delivered are diagnostic testing for HPAI in cattle, crucial for disease control.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Short duration may indicate a reactive rather than proactive approach.
Lack of detailed performance metrics in the provided data.
Geographic concentration could limit broader application of findings.

Positive Signals

Addresses an urgent public health need related to animal disease.
Fixed-price contract provides cost predictability.
Targeted response to an emerging event in a specific region.

Sector Analysis

This contract falls within the broader animal health and veterinary services sector, a critical component of public health and agricultural economies. The market for diagnostic testing services is specialized, often involving laboratories with specific accreditations and expertise. While the overall market size for such emergency response services is difficult to quantify, it is driven by the need for rapid identification and containment of animal diseases. This contract represents a small, targeted investment within this sector, likely responding to a specific, time-sensitive threat.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Given the sole-source nature and the specialized requirement, it is unlikely that small businesses were specifically targeted or involved in this particular award. Further investigation into the prime contractor's practices would be needed to understand any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's internal review processes and potentially the Animal and Plant Health Inspection Service (APHIS). As a sole-source award, the justification and necessity of the contract would be subject to scrutiny. Transparency regarding the specific reasons for the sole-source designation and the performance outcomes of the testing services would be key to assessing accountability.

Related Government Programs

Animal Disease Surveillance Programs
Veterinary Diagnostic Services
Emergency Animal Health Response
Highly Pathogenic Avian Influenza (HPAI) Response

Risk Flags

Sole-source award may limit price competition.
Urgent need implies potential for rushed processes.
Geographic concentration may not reflect national scope of HPAI.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $100,000 to AGRICULTURE, OHIO DEPARTMENT OF. MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES HPAI CATTLE EMERGING EVENT TESTING

Who is the contractor on this award?

The obligated recipient is AGRICULTURE, OHIO DEPARTMENT OF.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $100,000.

What is the period of performance?

Start: 2026-04-09. End: 2027-04-08.

What is the specific justification for awarding this contract on a sole-source basis?

The contract is noted as 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source award. The context provided, 'MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES HPAI CATTLE EMERGING EVENT TESTING,' strongly suggests the award was made on a sole-source basis due to the urgent and emerging nature of the HPAI outbreak in cattle. In such emergency situations, agencies may invoke exceptions to full and open competition if only one source is deemed capable of meeting the immediate requirement, or if the time constraints preclude a competitive process. A formal justification document would typically outline the specific circumstances, such as unique capabilities of the contractor, critical timelines, or the unavailability of other sources, to support this determination.

How does the $100,000 contract value compare to typical spending on HPAI diagnostic testing?

The $100,000 contract value is relatively modest, especially considering the potential scale of an emerging disease event. Typical spending on HPAI diagnostic testing can vary significantly depending on the scope, duration, and geographic spread of an outbreak. Larger, multi-year contracts for ongoing surveillance or national laboratory support could run into millions of dollars. This specific contract appears to be a targeted, short-term award (364 days) to address an immediate need related to HPAI in cattle in Iowa. Therefore, comparing this $100,000 figure to broader or longer-term contracts might not be directly indicative of its value or appropriateness for the specific, time-sensitive task it aims to address.

What are the potential risks associated with a sole-source award for critical diagnostic services?

Sole-source awards, while sometimes necessary in emergencies, carry inherent risks. The primary risk is the lack of competitive pressure, which can lead to higher prices than might be achieved through a competitive bidding process. This means taxpayers may not be getting the best value for their money. Additionally, relying on a single source can create dependency and limit the government's options if performance issues arise or if the contractor's capacity becomes insufficient. Without competition, there's also less incentive for the contractor to innovate or improve service delivery beyond the basic contractual requirements. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations.

What is the expected performance standard or outcome for this diagnostic testing contract?

The provided data does not explicitly detail the performance standards or expected outcomes for this contract. However, given the nature of diagnostic testing for an emerging disease like HPAI, key performance indicators would likely include accuracy and timeliness of test results, adherence to established laboratory protocols, and reporting of findings to relevant authorities within specified timeframes. The contract's objective is to provide critical data for disease surveillance, containment, and response efforts. Effective performance would mean contributing to the accurate assessment of HPAI prevalence in the targeted cattle population, thereby informing public health and agricultural policy decisions.

How does this contract fit into the broader federal strategy for managing HPAI outbreaks?

This contract appears to be a tactical component of the broader federal strategy for managing HPAI outbreaks, specifically focusing on the cattle population in Iowa. Federal efforts typically involve a multi-pronged approach including surveillance, rapid diagnostics, containment measures, and public communication. This contract directly supports the 'rapid diagnostics' aspect by funding essential testing services. Its sole-source nature and short duration suggest it's an agile response to an immediate, localized threat, complementing potentially larger, ongoing national surveillance and research programs managed by agencies like APHIS. The data generated from this testing would feed into the overall situational awareness and decision-making processes for managing the HPAI emerging event.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Veterinary Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8995 E MAIN ST, REYNOLDSBURG, OH, 43068

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $100,000

Exercised Options: $100,000

Current Obligation: $100,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639521D0088

IDV Type: IDC

Timeline