DoD awards $68.4M for BinaxNow COVID-19 Ag Cards, highlighting rapid diagnostic needs during pandemic
Contract Overview
Contract Amount: $68,438,624 ($68.4M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-03
End Date: 2020-12-14
Contract Duration: 11 days
Daily Burn Rate: $6.2M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8507842153!BINAXNOW COVID-19 AG CARD 40C
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32810
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $68.4 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8507842153!BINAXNOW COVID-19 AG CARD 40C Key points: 1. Significant award for essential COVID-19 testing supplies. 2. Sole-source award raises questions about price discovery and competition. 3. High value contract for a critical public health need. 4. Defense Logistics Agency procured for national response efforts.
Value Assessment
Rating: questionable
The contract value of $68.4M for BinaxNow COVID-19 Ag Cards is difficult to assess without comparable contract data. The 'NOT COMPETED' status suggests potential for overpayment if market prices were lower.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no competition was sought. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium for these diagnostic tests, as competitive pressures were absent.
Public Impact
Ensured availability of critical COVID-19 rapid tests for national response. Supported the government's ability to monitor and manage the pandemic. Demonstrates reliance on specific diagnostic tools during public health emergencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of competition may result in inflated unit costs.
- Short contract duration (11 days) suggests urgent need, potentially impacting negotiation leverage.
Positive Signals
- Fulfilled critical need for rapid COVID-19 testing.
- Procurement by Defense Logistics Agency supports national response efforts.
Sector Analysis
The procurement falls under In-Vitro Diagnostic Substance Manufacturing, a sector critical for public health. Spending in this area surged during the pandemic, with government agencies rapidly acquiring testing supplies.
Small Business Impact
No information is available regarding small business participation in this sole-source award. The nature of the award suggests it was likely awarded to a large, established manufacturer.
Oversight & Accountability
The sole-source justification and lack of competition warrant further review to ensure fair pricing and responsible use of taxpayer funds. Oversight should focus on the necessity of the sole-source approach.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
Tags
in-vitro-diagnostic-substance-manufactur, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.4 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8507842153!BINAXNOW COVID-19 AG CARD 40C
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 Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $68.4 million.
What is the period of performance?
Start: 2020-12-03. End: 2020-12-14.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review would be needed to understand the specific justification, such as an urgent and compelling need or the unavailability of the product from other sources. Without this justification, it's difficult to assess if competitive alternatives were adequately explored.
How does the per-unit cost compare to market rates for similar rapid antigen tests during the contract period?
The data does not provide a per-unit cost, only the total award amount. Benchmarking against market rates for BinaxNow or similar tests during December 2020 is crucial. Given the sole-source nature, there's a risk the price was not optimized, and a comparison would reveal potential overpayment or fair pricing under urgent circumstances.
What was the intended use and distribution of these diagnostic tests?
The award was made by the Department of Defense through the Defense Logistics Agency, indicating the tests were likely intended for use within military personnel, their families, or potentially broader national response efforts. Understanding the specific end-users and distribution channels would clarify the strategic importance and necessity of this procurement.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Abbott Laboratories (UEI: 001307602)
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: $68,975,400
Exercised Options: $68,438,624
Current Obligation: $68,438,624
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE20D0027
IDV Type: IDC
Timeline
Start Date: 2020-12-03
Current End Date: 2020-12-14
Potential End Date: 2020-12-14 00:00:00
Last Modified: 2021-11-26
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