DoD Spends $357M on Abbott BinaxNow COVID-19 Tests via Full and Open Competition
Contract Overview
Contract Amount: $357,000,000 ($357.0M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-02
End Date: 2022-01-31
Contract Duration: 151 days
Daily Burn Rate: $2.4M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508501022!BINAXNOWTEST KIT (EA)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32810
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $357.0 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8508501022!BINAXNOWTEST KIT (EA) Key points: 1. Significant expenditure on a critical public health product. 2. Abbott is a major player in the diagnostics market. 3. Potential for price fluctuations in rapid test procurement. 4. Healthcare sector spending is high due to ongoing pandemic needs.
Value Assessment
Rating: good
The $357 million contract value for BinaxNow test kits appears reasonable given the scale and urgency of pandemic-related procurement. Benchmarking against similar large-scale 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 a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The significant investment in testing supplies directly impacts taxpayer funds but is essential for public health response and economic activity.
Public Impact
Ensures availability of rapid COVID-19 testing for military personnel and potentially wider distribution. Supports the government's pandemic response strategy. Contributes to the supply chain for essential medical diagnostics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for future demand fluctuations impacting unit price.
- Reliance on a single manufacturer for a large quantity.
Positive Signals
- Competitive bidding process likely secured favorable pricing.
- Ensures availability of critical testing supplies.
Sector Analysis
Spending in the healthcare sector, particularly on diagnostics and medical supplies, surged during the COVID-19 pandemic. This contract reflects the significant investment required to manage public health crises.
Small Business Impact
This contract was awarded to a large corporation, Abbott Rapid DX North America LLC, and does not appear to have specific provisions for small business participation based on the provided data.
Oversight & Accountability
The contract was awarded via a delivery order under a larger agreement, suggesting established oversight mechanisms. Further review of the parent contract and delivery order details would be needed for a comprehensive assessment.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of unit price data for detailed cost analysis.
- Potential for price escalation in future orders.
- Dependence on a single supplier for a critical item.
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 $357.0 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8508501022!BINAXNOWTEST 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 $357.0 million.
What is the period of performance?
Start: 2021-09-02. End: 2022-01-31.
What was the unit price for the BinaxNow test kits under this contract, 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 $357 million. To assess value, the number of units procured would be needed to calculate the unit price and compare it against prevailing market rates for similar diagnostic tests during the specified contract period.
What were the key performance indicators and quality control measures for these test kits to ensure effectiveness?
The data does not specify performance indicators or quality control measures. Typically, such contracts would reference FDA approvals, manufacturer quality standards, and potentially require specific performance metrics related to test accuracy and reliability.
Were there any alternative suppliers considered or available during the 'exclusion of sources' period, and what was the justification?
The 'exclusion of sources' clause suggests that while the initial award was full and open, specific circumstances may have led to excluding certain parties from the initial bidding pool. The justification for this exclusion is not detailed in the provided data and would require further investigation.
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: $357,000,000
Exercised Options: $357,000,000
Current Obligation: $357,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0023
IDV Type: IDC
Timeline
Start Date: 2021-09-02
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2022-01-13
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