DoD awards $53.6M for COVID-19 rapid tests to Orasure Technologies under full and open competition
Contract Overview
Contract Amount: $53,640,000 ($53.6M)
Contractor: Orasure Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-22
End Date: 2023-05-11
Contract Duration: 140 days
Daily Burn Rate: $383.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8509606733!INTELISWAB COVID-19 RAPID TE
Place of Performance
Location: BETHLEHEM, NORTHAMPTON County, PENNSYLVANIA, 18015
Plain-Language Summary
Department of Defense obligated $53.6 million to ORASURE TECHNOLOGIES INC for work described as: 8509606733!INTELISWAB COVID-19 RAPID TE Key points: 1. Significant award for critical medical supplies during a public health event. 2. Competition method suggests a potentially competitive market for these diagnostics. 3. Fixed-price contract aims to control costs, but delivery timeline is tight. 4. Sector focus on In-Vitro Diagnostic Substance Manufacturing highlights a key area of defense readiness.
Value Assessment
Rating: good
The award amount of $53.6M for rapid COVID-19 tests appears reasonable given the scale and urgency. Benchmarking against similar large-scale procurements for diagnostic kits 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 that while initial sources may have been limited, the final award was made through a competitive process. This method generally promotes price discovery and value.
Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers by leveraging market forces.
Public Impact
Ensures availability of critical COVID-19 testing supplies for military personnel and potentially other government entities. Supports the ongoing public health response by providing necessary diagnostic tools. Demonstrates government's commitment to procuring essential medical equipment through established procurement channels.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timeline.
- Ensuring test efficacy and reliability over the contract period.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Addresses a critical need for rapid diagnostics.
Sector Analysis
The procurement falls within the Healthcare sector, specifically In-Vitro Diagnostic Substance Manufacturing. Spending in this area is crucial for national health security and readiness, with benchmarks varying based on technology and scale.
Small Business Impact
The data does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.
Oversight & Accountability
The award was made by the Defense Logistics Agency, a key component of the Department of Defense responsible for logistics. Oversight would involve monitoring contract performance, delivery schedules, and adherence to quality standards.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for delivery delays due to complex supply chains.
- Ensuring consistent quality and performance of diagnostic tests.
- Dependence on a single awardee for a critical supply.
- Uncertainty regarding the specific technology and its long-term efficacy.
Tags
in-vitro-diagnostic-substance-manufactur, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.6 million to ORASURE TECHNOLOGIES INC. 8509606733!INTELISWAB COVID-19 RAPID TE
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 $53.6 million.
What is the period of performance?
Start: 2022-12-22. End: 2023-05-11.
What is the specific type of rapid COVID-19 test procured and its intended use case within the DoD?
The specific type of rapid COVID-19 test is not detailed in the provided data. However, given the awardee's expertise in diagnostics and the context of a large DoD procurement, it is likely a point-of-care or self-administered test designed for rapid screening of military personnel. Its intended use would be for maintaining force health protection, enabling timely medical decisions, and supporting operational readiness by quickly identifying potential infections.
How does the per-unit cost of these rapid tests compare to commercially available options or other government contracts?
Without specific unit cost data or detailed product specifications, a direct comparison is challenging. However, the total award of $53.6 million over a 140-day period suggests a significant volume. The 'full and open competition' aspect implies that pricing was vetted against market rates. A detailed cost analysis would require comparing the negotiated price per test against similar large-volume government procurements or bulk commercial pricing for comparable diagnostic technologies.
What are the key performance indicators (KPIs) for ensuring the effectiveness and timely delivery of these diagnostic tests?
Key performance indicators would likely include test sensitivity and specificity rates to ensure diagnostic accuracy, as well as turnaround time for results. For delivery, KPIs would focus on on-time delivery percentages, order fulfillment accuracy, and adherence to the specified delivery schedule (2022-12-22 to 2023-05-11). Contractual clauses would outline remedies for failure to meet these KPIs, ensuring both product quality and logistical efficiency.
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
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: $53,640,000
Exercised Options: $53,640,000
Current Obligation: $53,640,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE23D0010
IDV Type: IDC
Timeline
Start Date: 2022-12-22
Current End Date: 2023-05-11
Potential End Date: 2023-05-11 00:00:00
Last Modified: 2023-07-08
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