HHS Awards $27.1M for COVID-19 Genomic Sequencing to Quest Diagnostics

Contract Overview

Contract Amount: $27,116,881 ($27.1M)

Contractor: Quest Diagnostics Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-16

End Date: 2025-04-22

Contract Duration: 1,072 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COVID 19 GENOMIC SEQUENCING

Place of Performance

Location: SECAUCUS, HUDSON County, NEW JERSEY, 07094

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.1 million to QUEST DIAGNOSTICS INCORPORATED for work described as: COVID 19 GENOMIC SEQUENCING Key points: 1. Significant contract value for essential public health service. 2. Quest Diagnostics is a major player in the diagnostics market. 3. Potential risk related to reliance on a single provider for critical sequencing. 4. Spending aligns with public health infrastructure needs during a pandemic.

Value Assessment

Rating: good

The contract value of $27.1 million over approximately 3 years appears reasonable for specialized genomic sequencing services. Benchmarking against similar large-scale public health surveillance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and ensure the government receives the best value.

Taxpayer Impact: This contract directly supports public health efforts to track and understand the COVID-19 virus, benefiting taxpayers by enabling informed public health responses.

Public Impact

Enhances national capacity for tracking viral mutations and variants. Supports timely public health decision-making and resource allocation. Contributes to understanding disease spread and effectiveness of interventions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Dependence on a single vendor for critical sequencing capacity.
Data security and privacy concerns with sensitive genomic information.

Positive Signals

Supports critical public health infrastructure.
Utilizes a well-established diagnostics provider.
Awarded through full and open competition.

Sector Analysis

This contract falls within the healthcare sector, specifically supporting public health surveillance and diagnostics. Spending on genomic sequencing is crucial for monitoring infectious diseases and emerging health threats.

Small Business Impact

The contract was awarded to Quest Diagnostics, a large commercial entity, and there is no specific indication of small business participation in this award.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) is responsible for overseeing this contract, ensuring that the genomic sequencing services meet established scientific and public health standards.

Related Government Programs

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

Risk Flags

Reliance on a single vendor for critical sequencing.
Potential for price increases in future contract renewals.
Data security and privacy of sensitive genomic information.
Ensuring timely and accurate reporting of sequencing data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.1 million to QUEST DIAGNOSTICS INCORPORATED. COVID 19 GENOMIC SEQUENCING

Who is the contractor on this award?

The obligated recipient is QUEST DIAGNOSTICS INCORPORATED.

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 $27.1 million.

What is the period of performance?

Start: 2022-05-16. End: 2025-04-22.

What is the specific breakdown of services included in the $27.1 million for genomic sequencing?

The contract details likely encompass the full spectrum of services required for COVID-19 genomic sequencing, including sample processing, sequencing, data analysis, and reporting. A detailed statement of work would clarify the exact deliverables, such as the number of samples to be sequenced, turnaround times, and specific analytical outputs required by the CDC.

How will the government ensure continued access to sequencing capacity beyond this contract's end date?

The government will likely initiate a new competitive procurement process well in advance of the current contract's expiration. This ensures that multiple vendors, including potentially Quest Diagnostics and new entrants, can bid on providing these critical services, thereby maintaining capacity and potentially achieving better pricing.

What are the key performance indicators (KPIs) used to measure the success of this genomic sequencing contract?

Key performance indicators would likely include metrics such as the number of samples sequenced per unit of time, the accuracy and reliability of sequencing results, the timeliness of data reporting to the CDC, and adherence to data security protocols. Meeting these KPIs ensures the contract effectively supports public health surveillance objectives.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-Q-74747

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 PLAZA DR, SECAUCUS, NJ, 07094

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

Financial Breakdown

Contract Ceiling: $27,116,881

Exercised Options: $27,116,881

Current Obligation: $27,116,881

Actual Outlays: $27,099,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline