DoD Spends $152M on Abbott BinaxNow Test Kits via Full and Open Competition
Contract Overview
Contract Amount: $152,309,832 ($152.3M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2021-03-19
End Date: 2022-02-11
Contract Duration: 329 days
Daily Burn Rate: $462.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508074017!BINAXNOW TEST KIT (EA) - HSS1
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32810
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $152.3 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8508074017!BINAXNOW TEST KIT (EA) - HSS1 Key points: 1. Significant expenditure on essential diagnostic supplies. 2. Competition method suggests potential for price discovery. 3. Risk of supply chain disruption for critical medical items. 4. Sector focus on healthcare diagnostics within Defense.
Value Assessment
Rating: good
The $152.3M awarded for BinaxNow test kits appears reasonable given the scale and urgency of pandemic-related procurements. Benchmarking against similar large-volume diagnostic supply contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated after an initial exclusion. This method aims to ensure fair pricing and access to a broad range of suppliers.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting that the government sought the best value and price through a structured process.
Public Impact
Ensures availability of critical COVID-19 testing supplies for military personnel and potentially wider distribution. Supports public health initiatives by providing rapid diagnostic tools. Highlights the government's reliance on private sector manufacturing for essential medical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in future procurements.
- Dependence on a single manufacturer for a critical item.
Positive Signals
- Competitive award process.
- Adequate contract duration for supply.
Sector Analysis
This procurement falls within the healthcare sector, specifically in the manufacturing of in-vitro diagnostic substances. Spending benchmarks for medical supplies can vary widely based on demand, type of product, and global supply chain conditions.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular contract award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award was managed by the Defense Logistics Agency, a key entity for procuring and distributing supplies for the DoD. Oversight would involve monitoring contract performance, delivery schedules, and adherence to pricing agreements.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Supply chain vulnerability for critical medical items.
- Potential for price escalation in future procurements.
- Dependence on a single manufacturer.
- Urgency-driven procurement risks.
Tags
in-vitro-diagnostic-substance-manufactur, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.3 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8508074017!BINAXNOW TEST KIT (EA) - HSS1
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 $152.3 million.
What is the period of performance?
Start: 2021-03-19. End: 2022-02-11.
What was the rationale for excluding sources initially before opening to full competition?
The exclusion of sources prior to full and open competition often stems from specific technical requirements, urgent needs, or existing relationships that necessitate a limited initial search. However, the subsequent opening to full competition suggests a desire to broaden the supplier base and ensure competitive pricing once initial needs were addressed or requirements were better defined.
How does the per-unit cost compare to similar diagnostic test kits procured by other federal agencies or state governments during the same period?
Without specific per-unit cost data or access to comparable contract databases, a direct benchmark is difficult. However, given the large volume and the urgency during the pandemic, prices could have been subject to market pressures. Comparing this contract's unit price to other large-scale procurements of similar diagnostic kits would reveal if the $152.3M award represented a fair market value.
What measures are in place to ensure the continued availability and quality of these test kits beyond the current contract period?
The current contract covers delivery through February 2022. Ensuring continued availability and quality would likely involve proactive market research for alternative suppliers, potential long-term agreements with Abbott, or strategic stockpiling. Quality assurance protocols during manufacturing and delivery are standard but require ongoing monitoring by the Defense Logistics Agency.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $152,309,832
Exercised Options: $152,309,832
Current Obligation: $152,309,832
Actual Outlays: $152,286,372
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0023
IDV Type: IDC
Timeline
Start Date: 2021-03-19
Current End Date: 2022-02-11
Potential End Date: 2022-02-11 00:00:00
Last Modified: 2025-04-24
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