DoD's $89.8M BinaxNow COVID-19 Test Purchase: Defense Logistics Agency Procures In-Vitro Diagnostic Substance
Contract Overview
Contract Amount: $89,832,659 ($89.8M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2020-12-30
End Date: 2021-05-12
Contract Duration: 133 days
Daily Burn Rate: $675.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8507891494!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 $89.8 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8507891494!BINAXNOW COVID-19 AG CARD 40C Key points: 1. High value contract for critical COVID-19 testing supplies. 2. Sole-source procurement raises questions about price discovery and competition. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Sector: Healthcare/Medical Supplies, with significant defense logistics involvement.
Value Assessment
Rating: questionable
The contract value of $89.8M for BinaxNow COVID-19 Ag Cards appears high given the lack of competitive bidding. Without market comparisons or multiple bids, it's difficult to ascertain if the price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may have resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer funds.
Public Impact
Ensured availability of critical COVID-19 testing supplies for military personnel and potentially other government entities. Rapid procurement during a public health crisis, prioritizing immediate need over competitive processes. Potential for taxpayer funds to be used inefficiently due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Urgent need procurement
Positive Signals
- Ensured supply chain for critical medical item
- Rapid deployment of testing capability
Sector Analysis
This procurement falls within the Healthcare and Medical Supplies sector, specifically In-Vitro Diagnostic Substance Manufacturing. Spending in this area surged during the pandemic, with significant government investment in testing and treatment solutions.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Sole-source contracts often bypass opportunities for small business participation.
Oversight & Accountability
The award was made by the Defense Logistics Agency, a major procurement arm for the DoD. Oversight would typically involve internal DoD review processes and potentially congressional scrutiny, especially for large sole-source awards.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- Urgent need may have led to suboptimal pricing
- No clear indication of small business participation
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 $89.8 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8507891494!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 $89.8 million.
What is the period of performance?
Start: 2020-12-30. End: 2021-05-12.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Factors like urgent need, unique capabilities, or lack of market availability might be cited. Without this justification, it's difficult to assess if the government adequately explored competitive options or if the sole-source decision was truly necessary and in the best interest of the taxpayer.
How does the per-unit cost compare to similar COVID-19 test procurements by other government agencies or the private sector during the same period?
Benchmarking the per-unit cost against comparable contracts is essential for evaluating value. If this contract's unit price is significantly higher than market rates or other government purchases of the same or similar products, it suggests potential overpayment and inefficient use of taxpayer funds. This comparison helps identify if the lack of competition led to inflated pricing.
What was the process for determining the necessity and quantity of BinaxNow tests procured under this contract?
Understanding the needs assessment and quantity determination process is key to evaluating effectiveness. Was the quantity based on a clear demand forecast or an urgent, albeit potentially overestimated, need? Ensuring that the procured items directly align with validated requirements prevents waste and ensures that taxpayer money is spent on essential goods.
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
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: $89,832,659
Exercised Options: $89,832,659
Current Obligation: $89,832,659
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE20D0027
IDV Type: IDC
Timeline
Start Date: 2020-12-30
Current End Date: 2021-05-12
Potential End Date: 2021-05-12 00:00:00
Last Modified: 2025-04-24
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