DoD Spends $51M on Abbott BinaxNow Test Kits via Full and Open Competition
Contract Overview
Contract Amount: $51,000,000 ($51.0M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2021-07-13
End Date: 2022-09-12
Contract Duration: 426 days
Daily Burn Rate: $119.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508356527!BINAXNOW TEST KIT (EA)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32810
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $51.0 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8508356527!BINAXNOW TEST KIT (EA) Key points: 1. Significant investment in critical diagnostic supplies for the Department of Defense. 2. Abbott Rapid Dx North America LLC secured the contract, indicating a key supplier in the market. 3. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 4. The 'In-Vitro Diagnostic Substance Manufacturing' sector highlights the specialized nature of this procurement.
Value Assessment
Rating: good
The contract value of $51 million for BinaxNow test kits appears reasonable given the scale and urgency of pandemic-related needs. Benchmarking against similar large-volume diagnostic procurements during the pandemic would provide further context.
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 that multiple bidders were considered after an initial exclusion period. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive award process likely resulted in a fair price for taxpayers, ensuring value for money on essential medical supplies.
Public Impact
Ensures availability of critical COVID-19 testing supplies for military personnel and potentially their families. Supports the Department of Defense's public health and readiness mission. Highlights the government's reliance on established manufacturers for rapid diagnostic solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in future procurements due to market dynamics.
- Dependence on a single manufacturer for a critical supply.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical public health need.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The procurement falls within the 'In-Vitro Diagnostic Substance Manufacturing' sector, a critical area for public health and national security. Spending benchmarks in this sector are highly variable, influenced by global demand, supply chain constraints, and the specific nature of the diagnostic technology.
Small Business Impact
The data indicates the prime contractor is ABBOTT RAPID DX NORTH AMERICA LLC, a large business. There is no specific information provided regarding small business participation in this contract, suggesting it may not have been a primary focus or was subcontracted out.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key procurement arm for the DoD. Oversight would involve monitoring delivery schedules, quality control, and adherence to the firm fixed price terms to ensure accountability and taxpayer value.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain disruptions affecting delivery.
- Reliance on a single manufacturer.
- Price volatility in the diagnostic market.
- Ensuring equitable distribution and access within the DoD.
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 $51.0 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8508356527!BINAXNOW TEST KIT (EA)
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 $51.0 million.
What is the period of performance?
Start: 2021-07-13. End: 2022-09-12.
What was the unit price of the BinaxNow test kits, and how does it compare to market rates at the time of award?
The provided data does not include the unit price, only the total contract value of $51 million. To assess value, the total quantity of test kits procured would be needed to calculate a per-unit cost. This would then need to be benchmarked against prevailing market prices for similar rapid diagnostic tests during the 2021-2022 period, considering bulk purchasing discounts and specific contract terms.
What were the specific reasons for excluding other sources initially, and did this exclusion impact the final price?
The data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' without detailing the initial exclusion reasons. Typically, such exclusions might be due to specific technical requirements, existing contracts, or urgent needs. While full and open competition generally drives down prices, the initial exclusion could have limited the pool of bidders, potentially impacting the final price discovery compared to a truly unrestricted competition from the outset.
How effectively did these test kits contribute to the Department of Defense's COVID-19 response and operational readiness?
The effectiveness of the BinaxNow test kits in supporting the DoD's COVID-19 response and operational readiness is not directly quantifiable from this contract data alone. However, the significant investment suggests a perceived need for widespread testing capabilities. The actual impact would depend on deployment strategies, testing frequency, accuracy of results in real-world conditions, and how quickly positive cases could be managed to maintain force health protection and mission capability.
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: $51,000,000
Exercised Options: $51,000,000
Current Obligation: $51,000,000
Actual Outlays: $50,989,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0023
IDV Type: IDC
Timeline
Start Date: 2021-07-13
Current End Date: 2022-09-12
Potential End Date: 2022-09-12 00:00:00
Last Modified: 2025-04-24
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