DoD's $56.4M Orasure Test Kit Contract Awarded to Orasure Technologies Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $56,423,400 ($56.4M)
Contractor: Orasure Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-22
End Date: 2022-11-01
Contract Duration: 405 days
Daily Burn Rate: $139.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508548459!ORASURE TEST KIT
Place of Performance
Location: BETHLEHEM, NORTHAMPTON County, PENNSYLVANIA, 18015
Plain-Language Summary
Department of Defense obligated $56.4 million to ORASURE TECHNOLOGIES INC for work described as: 8508548459!ORASURE TEST KIT Key points: 1. Significant contract value of $56.4 million for essential test kits. 2. Orasure Technologies Inc. secured the award, indicating strong market position. 3. Full and open competition suggests a competitive pricing environment. 4. The contract falls within the Pharmaceutical Preparation Manufacturing sector.
Value Assessment
Rating: good
The contract value of $56.4 million appears reasonable given the duration and the nature of the product. Benchmarking against similar large-scale pharmaceutical supply contracts would provide further clarity on its cost-effectiveness.
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 robust process to ensure fair pricing and access to qualified vendors. This method typically drives competitive bids.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, minimizing unnecessary taxpayer expenditure for these critical test kits.
Public Impact
Ensures availability of essential testing supplies for Department of Defense personnel. Supports public health initiatives through widespread testing capabilities. Contributes to the readiness and operational effectiveness of military forces. Impacts the pharmaceutical manufacturing sector through a substantial order.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Clear contract type (Firm Fixed Price).
- Significant value indicates demand and potential for economies of scale.
Sector Analysis
The pharmaceutical preparation manufacturing sector is critical for healthcare and defense readiness. Spending benchmarks in this sector vary widely based on product complexity and scale, but this contract represents a substantial investment.
Small Business Impact
While Orasure Technologies Inc. is the primary awardee, the contract's scale might limit direct participation by small businesses unless they are subcontractors. Further analysis would be needed to determine subcontracting opportunities.
Oversight & Accountability
The award was managed by the Defense Logistics Agency, a key procurement arm for the DoD, suggesting established oversight processes. The firm fixed price contract type provides cost certainty.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain disruptions.
- Dependence on a single manufacturer.
- Ensuring long-term product relevance and efficacy.
Tags
pharmaceutical-preparation-manufacturing, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.4 million to ORASURE TECHNOLOGIES INC. 8508548459!ORASURE TEST KIT
Who is the contractor on this award?
The obligated recipient is ORASURE TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $56.4 million.
What is the period of performance?
Start: 2021-09-22. End: 2022-11-01.
What was the specific type of test kit procured and its intended use?
The data identifies the product as 'ORASURE TEST KIT' (8508548459). While the specific type isn't detailed, Orasure Technologies is known for diagnostic testing products, including infectious disease tests. The intended use is likely for health screening and monitoring within the Department of Defense.
Were there any identified risks associated with the supplier or the product's performance?
The provided data does not explicitly list any risks associated with Orasure Technologies Inc. or the test kit. However, standard procurement risk assessments would typically consider supply chain reliability, product efficacy, and potential for obsolescence, especially for diagnostic tools.
How does the contract duration of 405 days compare to typical procurement cycles for similar items?
A duration of 405 days (approximately 13 months) for a delivery order is not unusual for specialized medical supplies, especially when considering manufacturing lead times, quality assurance, and distribution logistics. It suggests a need for sustained supply rather than an immediate, short-term requirement.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation 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
Address: 220 E 1ST ST, BETHLEHEM, PA, 18015
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,423,400
Exercised Options: $56,423,400
Current Obligation: $56,423,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0049
IDV Type: IDC
Timeline
Start Date: 2021-09-22
Current End Date: 2022-11-01
Potential End Date: 2022-11-01 00:00:00
Last Modified: 2025-04-24
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