HHS Awards $555M IDIQ for COVID-19 Testing Supplies to Abbott

Contract Overview

Contract Amount: $55,520,466 ($55.5M)

Contractor: Abbott Rapid DX North America LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-23

End Date: 2023-09-29

Contract Duration: 371 days

Daily Burn Rate: $149.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AGENCY WIDE IDIQ CONTRACT TO PROVIDE LABORATORY ANALYZERS, TESTING KITS/REAGENTS, ASSOCIATED PERIPHERALS, AND THE ASSOCIATED SUPPORT AND SERVICE AGREEMENTS IN ORDER TO EFFECTIVELY TEST FOR COVID-19 SPECIMENS, AND OTHER SAMPLES AND CULTURES, AS WELL A

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73114

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $55.5 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: AGENCY WIDE IDIQ CONTRACT TO PROVIDE LABORATORY ANALYZERS, TESTING KITS/REAGENTS, ASSOCIATED PERIPHERALS, AND THE ASSOCIATED SUPPORT AND SERVICE AGREEMENTS IN ORDER TO EFFECTIVELY TEST FOR COVID-19 SPECIMENS, AND OTHER SAMPLES AND CULTURES, AS WELL A Key points: 1. The contract aims to provide laboratory analyzers and testing kits for COVID-19 and other samples. 2. Abbott Rapid Dx North America LLC is the sole awardee, raising questions about competition. 3. The contract value is substantial at $555 million, requiring careful oversight. 4. The sector is In-Vitro Diagnostic Substance Manufacturing, crucial for public health.

Value Assessment

Rating: questionable

The contract value is high, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar contracts.

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.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for essential testing supplies.

Public Impact

Ensures continued availability of critical COVID-19 testing resources. Supports the Indian Health Service's mission to provide healthcare to Native Americans. Potential for increased costs due to sole-source nature impacts public health budgets. Reliability of supply chain for diagnostic testing is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Addresses critical public health need
Ensures supply chain continuity

Sector Analysis

The In-Vitro Diagnostic Substance Manufacturing sector is vital for public health, especially during pandemics. Benchmarks for similar IDIQ contracts in this sector are difficult to ascertain without competitive data.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was considered or sought.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight is crucial to ensure fair pricing and effective delivery of services. The 'OK' status for 'st' and 'sn' suggests no immediate performance issues, but continuous monitoring is advised.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
High contract value requires diligent oversight.
Potential for price inflation due to lack of competitive bidding.
Dependence on a single vendor for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $55.5 million to ABBOTT RAPID DX NORTH AMERICA LLC. AGENCY WIDE IDIQ CONTRACT TO PROVIDE LABORATORY ANALYZERS, TESTING KITS/REAGENTS, ASSOCIATED PERIPHERALS, AND THE ASSOCIATED SUPPORT AND SERVICE AGREEMENTS IN ORDER TO EFFECTIVELY TEST FOR COVID-19 SPECIMENS, AND OTHER SAMPLES AND CULTURES, AS WELL A

Who is the contractor on this award?

The obligated recipient is ABBOTT RAPID DX NORTH AMERICA LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $55.5 million.

What is the period of performance?

Start: 2022-09-23. End: 2023-09-29.

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

The justification for a sole-source award typically involves a critical need, lack of qualified sources, or specific circumstances that preclude full and open competition. Without detailed documentation, it's difficult to ascertain the precise reasons, but it likely relates to the urgent and ongoing need for COVID-19 testing supplies.

What is the potential price difference compared to a competitively bid contract?

Estimating the exact price difference is challenging without a competitive benchmark. However, sole-source contracts often carry a price premium ranging from 10% to 30% or more compared to similar items procured through full and open competition, due to the absence of market pressure.

How effective is Abbott Rapid Dx North America LLC in meeting the demand for these critical supplies?

The 'st' and 'sn' fields are marked as 'OK', suggesting current performance is satisfactory. However, the long-term effectiveness in meeting demand, especially under potential surges, should be continuously monitored, particularly given the sole-source nature of the contract.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Abbott Laboratories

Address: 30 S KELLER RD STE 100, ORLANDO, FL, 32810

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

Financial Breakdown

Contract Ceiling: $55,520,466

Exercised Options: $55,520,466

Current Obligation: $55,520,466

Actual Outlays: $55,117,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline