DoD awards $85.3M for BinaxNow COVID-19 Antigen Self Tests to Abbott Rapid DX
Contract Overview
Contract Amount: $85,325,713 ($85.3M)
Contractor: Abbott Rapid DX North America LLC
Awarding Agency: Department of Defense
Start Date: 2021-10-20
End Date: 2024-02-13
Contract Duration: 846 days
Daily Burn Rate: $100.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508632018!BINAXNOW COVID-19 ANTIGEN SEL
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32810
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $85.3 million to ABBOTT RAPID DX NORTH AMERICA LLC for work described as: 8508632018!BINAXNOW COVID-19 ANTIGEN SEL Key points: 1. Significant award for essential diagnostic supplies. 2. Abbott Rapid DX is a major player in the diagnostics market. 3. Potential for overspending given the fixed-price contract. 4. Sector is critical for public health and national security.
Value Assessment
Rating: fair
The contract value of $85.3M appears substantial for diagnostic tests. Benchmarking against similar large-scale procurements of rapid antigen tests would be necessary to assess if the pricing is competitive, especially considering potential bulk discounts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and leading to a less competitive outcome.
Taxpayer Impact: Taxpayer funds are being used for essential health supplies. The limited competition raises concerns about whether the best possible price was secured for the taxpayer.
Public Impact
Ensures availability of critical COVID-19 testing supplies. Supports public health infrastructure and response capabilities. Impacts individuals needing rapid diagnostic results.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Contract duration is lengthy, increasing price risk.
- Lack of clear per-unit cost benchmark.
Positive Signals
- Secures necessary health supplies.
- Awarded to a known supplier in the field.
Sector Analysis
The procurement falls within the Pharmaceutical Preparation Manufacturing sector, crucial for healthcare and national defense readiness. Spending in this area is often driven by public health emergencies and strategic stockpiling needs.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract award. The focus appears to be on established, larger suppliers within the sector.
Oversight & Accountability
The contract type is a Delivery Order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the justification for limited competition and the pricing of individual orders.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of transparent per-unit cost
- Long contract duration
Tags
pharmaceutical-preparation-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.3 million to ABBOTT RAPID DX NORTH AMERICA LLC. 8508632018!BINAXNOW COVID-19 ANTIGEN SEL
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 $85.3 million.
What is the period of performance?
Start: 2021-10-20. End: 2024-02-13.
What was the justification for excluding other sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding other sources is critical. Typically, such exclusions require a compelling reason, such as unique capabilities, urgent and compelling needs, or specific technical requirements that only one source can meet. Without this justification, the limited competition raises significant concerns about fairness and potential price inflation.
How does the per-unit cost of these BinaxNow tests compare to other government or commercial purchases during the same period?
Benchmarking the per-unit cost is essential for value assessment. If this contract's unit price is significantly higher than comparable purchases, it suggests potential overpayment. Factors like volume, contract duration, and specific testing kit configurations can influence price, but a substantial deviation warrants further investigation into the pricing strategy.
What is the expected impact of this award on the overall availability and accessibility of COVID-19 rapid tests for the public and military personnel?
This award aims to ensure a steady supply of critical diagnostic tools, likely for military personnel and potentially for broader public health initiatives supported by the DoD. The large quantity and duration suggest a strategic effort to maintain readiness and response capabilities, contributing to public health security.
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
Parent Company: Abbott Laboratories Inc.
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: $85,325,713
Exercised Options: $85,325,713
Current Obligation: $85,325,713
Actual Outlays: $44,601,052
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0048
IDV Type: IDC
Timeline
Start Date: 2021-10-20
Current End Date: 2024-02-13
Potential End Date: 2024-02-13 00:00:00
Last Modified: 2025-04-26
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