HHS Awards $88.7M to Access Bio for OTC COVID-19 Tests

Contract Overview

Contract Amount: $88,704,000 ($88.7M)

Contractor: Access BIO, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-20

End Date: 2025-03-19

Contract Duration: 546 days

Daily Burn Rate: $162.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OVER THE COUNTER (OTC) COVID-19 TESTS

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $88.7 million to ACCESS BIO, INC. for work described as: OVER THE COUNTER (OTC) COVID-19 TESTS Key points: 1. Significant award for essential public health supplies. 2. Sole-source award raises questions about competition. 3. Potential for price overruns due to lack of competition. 4. Manufacturing sector benefits from sustained demand.

Value Assessment

Rating: fair

The contract value of $88.7 million for OTC COVID-19 tests appears substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if this pricing is optimal or if it represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these tests, impacting the efficient use of taxpayer funds.

Public Impact

Ensures continued availability of critical COVID-19 testing resources. Supports domestic manufacturing capabilities for public health emergencies. Potential for increased accessibility of testing for the public.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award process

Positive Signals

Addresses critical public health need
Supports domestic industry
Firm fixed price contract limits cost growth

Sector Analysis

The In-Vitro Diagnostic Substance Manufacturing sector is crucial for public health preparedness. Awards in this sector often fluctuate based on public health needs and government stockpiling strategies.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Future solicitations could explore opportunities for small business participation in the supply chain.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained the best possible value. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of competitive benchmarking
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $88.7 million to ACCESS BIO, INC.. OVER THE COUNTER (OTC) COVID-19 TESTS

Who is the contractor on this award?

The obligated recipient is ACCESS BIO, 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 $88.7 million.

What is the period of performance?

Start: 2023-09-20. End: 2025-03-19.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available alternatives. Without access to the specific justification document, it's impossible to detail the steps taken to ensure fair pricing. However, in sole-source situations, agencies often rely on historical pricing, independent government cost estimates, or price analysis techniques to validate the proposed price.

What is the risk of overpaying for these OTC COVID-19 tests due to the lack of competition?

The primary risk of overpaying stems directly from the absence of a competitive bidding process. When only one vendor is considered, there is less pressure on pricing. The government may end up paying a higher unit cost than if multiple companies had vied for the contract, potentially leading to inefficient use of taxpayer funds.

How effective is this contract in ensuring the long-term availability and affordability of OTC COVID-19 tests for the public?

This contract ensures immediate availability of tests through a firm fixed-price agreement, which provides cost certainty for the government. However, its long-term effectiveness in ensuring affordability is questionable due to the sole-source nature. Without competition, future contracts might continue at higher price points, potentially impacting public access if prices are not managed.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75A50223C00035

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SUITE A, SOMERSET, NJ, 08873

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,704,000

Exercised Options: $88,704,000

Current Obligation: $88,704,000

Actual Outlays: $88,704,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline