HHS Awards $27.9M to Labcorp for SARS-COV-2 Genomic Sequencing

Contract Overview

Contract Amount: $27,940,000 ($27.9M)

Contractor: Laboratory Corporation of America

Awarding Agency: Department of Health and Human Services

Start Date: 2020-12-29

End Date: 2021-12-26

Contract Duration: 362 days

Daily Burn Rate: $77.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SARS-COV-2 SPHERES BASELINE GENOMIC SEQUENCING

Place of Performance

Location: BURLINGTON, ALAMANCE County, NORTH CAROLINA, 27215

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.9 million to LABORATORY CORPORATION OF AMERICA for work described as: SARS-COV-2 SPHERES BASELINE GENOMIC SEQUENCING Key points: 1. Significant investment in critical public health infrastructure. 2. Sole-source award to Labcorp raises questions about competition. 3. Potential for cost savings through competitive bidding. 4. Focus on IT and Healthcare sectors.

Value Assessment

Rating: fair

The award of $27.9M for genomic sequencing appears to be a significant investment. Without comparable contracts or detailed cost breakdowns, assessing its value against similar services is challenging. The fixed-price nature suggests some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award to Laboratory Corporation of America. This lack of competition limits price discovery and may result in a higher cost to taxpayers than a competitively awarded contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive bidding.

Public Impact

Ensures continued capacity for tracking COVID-19 variants. Supports public health surveillance and response efforts. Potential impact on the availability of sequencing services for other research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Critical public health service
Established provider
Fixed-price contract

Sector Analysis

This contract falls within the Healthcare and IT sectors, specifically focusing on medical laboratory services for genomic sequencing. Spending benchmarks for such specialized services can vary widely based on complexity and scale.

Small Business Impact

The data indicates this contract was awarded to Laboratory Corporation of America, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The award was made by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would typically involve contract management and performance monitoring by the CDC contracting officer.

Related Government Programs

Medical Laboratories
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in award justification.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.9 million to LABORATORY CORPORATION OF AMERICA. SARS-COV-2 SPHERES BASELINE GENOMIC SEQUENCING

Who is the contractor on this award?

The obligated recipient is LABORATORY CORPORATION OF AMERICA.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2020-12-29. End: 2021-12-26.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves specific circumstances such as the urgency of the requirement, the unique capabilities of the contractor, or the lack of other responsible sources. Without further documentation, the specific rationale for this award remains unclear, but it is crucial for ensuring fair and efficient use of taxpayer funds.

What is the benchmark cost for similar genomic sequencing services?

Determining a precise benchmark for genomic sequencing is complex due to variations in technology, scope, and specific pathogen targets. However, the absence of competition for this $27.9M contract suggests that a thorough market analysis to establish a fair and reasonable price may have been bypassed, potentially leading to a higher cost than if multiple bids were solicited.

How will the effectiveness of Labcorp's genomic sequencing be measured?

The effectiveness of Labcorp's genomic sequencing will likely be measured against predefined performance standards outlined in the contract. This could include metrics such as turnaround time for sequencing results, accuracy rates, data integrity, and the ability to identify specific SARS-COV-2 variants. Regular reporting and quality assurance reviews by the CDC would be essential.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 231 MAPLE AVE, BURLINGTON, NC, 27215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,940,000

Exercised Options: $27,940,000

Current Obligation: $27,940,000

Actual Outlays: $27,940,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline