HHS Awards $30.8M for COVID-19 Test Expansion to Orasure Technologies
Contract Overview
Contract Amount: $30,875,951 ($30.9M)
Contractor: Orasure Technologies Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2023-03-08
End Date: 2024-03-31
Contract Duration: 389 days
Daily Burn Rate: $79.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: COVID-19 DIB FOR ORASURE TECHNOLOGIES COVID-19 HOME TEST INDUSTRIAL BASED EXPANSION TRANSITIONING FROM THE DOD/AF TO HHS/ASPR. DOD/AF CONTRACT NO. FA8730-21-S-C001.
Place of Performance
Location: BETHLEHEM, NORTHAMPTON County, PENNSYLVANIA, 18015
Plain-Language Summary
Department of Health and Human Services obligated $30.9 million to ORASURE TECHNOLOGIES INC for work described as: COVID-19 DIB FOR ORASURE TECHNOLOGIES COVID-19 HOME TEST INDUSTRIAL BASED EXPANSION TRANSITIONING FROM THE DOD/AF TO HHS/ASPR. DOD/AF CONTRACT NO. FA8730-21-S-C001. Key points: 1. This contract supports the transition of COVID-19 home test production from DOD/AF to HHS/ASPR. 2. Orasure Technologies Inc. is the sole awardee, indicating a specific capability or existing relationship. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. A firm fixed price contract was used, aiming for cost certainty.
Value Assessment
Rating: fair
The award amount of $30.8M for a 389-day period seems reasonable for R&D in this sector. Benchmarking against similar R&D contracts for diagnostic test expansion would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors could have bid. However, the specific nature of the transition might have favored Orasure Technologies.
Taxpayer Impact: Taxpayer funds are being used to expand domestic production of critical COVID-19 testing supplies, potentially improving public health preparedness.
Public Impact
Ensures continued availability of COVID-19 home tests. Supports domestic manufacturing capabilities for public health emergencies. Facilitates the transition of production from one government agency to another.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns if R&D challenges arise.
- Dependence on a single vendor for a critical supply.
Positive Signals
- Addresses a critical public health need.
- Supports domestic industrial base expansion.
- Utilizes a firm fixed price contract to control costs.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation and preparedness, but requires careful oversight to ensure effective use of funds.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and Orasure Technologies Inc. is a large business. There is no indication of subcontracting opportunities for small businesses in the provided information.
Oversight & Accountability
Oversight will be crucial to ensure Orasure Technologies meets the R&D objectives and production transition timelines. The transition from DOD/AF to HHS/ASPR suggests a need for coordinated oversight between agencies.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Transition complexity
- R&D uncertainty
- Single source reliance
- Supply chain risks
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.9 million to ORASURE TECHNOLOGIES INC. COVID-19 DIB FOR ORASURE TECHNOLOGIES COVID-19 HOME TEST INDUSTRIAL BASED EXPANSION TRANSITIONING FROM THE DOD/AF TO HHS/ASPR. DOD/AF CONTRACT NO. FA8730-21-S-C001.
Who is the contractor on this award?
The obligated recipient is ORASURE TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2023-03-08. End: 2024-03-31.
What specific R&D milestones must Orasure Technologies achieve to justify the $30.8M award?
The contract likely outlines specific research and development objectives related to optimizing the manufacturing process, ensuring quality control, and potentially scaling production for the COVID-19 home test. These milestones would be detailed in the contract's statement of work, defining deliverables and acceptance criteria to ensure the funds are used effectively for technological advancement and transition.
What are the primary risks associated with transitioning production from DOD/AF to HHS/ASPR for this specific test?
Key risks include potential delays in the transition process, loss of institutional knowledge, integration challenges with new HHS/ASPR requirements, and ensuring consistent quality and supply chain management. Inadequate planning or communication between the agencies could lead to production disruptions or increased costs, impacting the availability of essential testing resources.
How will the effectiveness of this R&D investment be measured in terms of public health impact?
Effectiveness will be measured by the successful transition of production, sustained availability of reliable COVID-19 home tests, and potentially the cost-effectiveness of the scaled-up manufacturing process. Public health impact can be gauged by increased testing rates, reduced disease transmission, and the nation's preparedness for future public health threats requiring rapid diagnostic deployment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 220 E 1ST ST, BETHLEHEM, PA, 18015
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,875,951
Exercised Options: $30,875,951
Current Obligation: $30,875,951
Actual Outlays: $30,875,951
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-08
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2023-09-06
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