DoD's $205M COVID-19 antigen test contract awarded to Access Bio, Inc. for in-vitro diagnostic substance manufacturing

Contract Overview

Contract Amount: $205,200,000 ($205.2M)

Contractor: Access BIO, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2023-05-11

Contract Duration: 140 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 8509606737!CARESTART COVID-19 ANTIGEN H

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $205.2 million to ACCESS BIO, INC. for work described as: 8509606737!CARESTART COVID-19 ANTIGEN H Key points: 1. Contract value represents a significant investment in rapid diagnostic capabilities. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance risk is moderate given the nature of diagnostic supply chains. 4. This contract supports the Defense Logistics Agency's broader public health mission. 5. The sector is characterized by high demand and evolving technological standards. 6. Focus on firm-fixed-price terms aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $205 million for COVID-19 antigen tests appears substantial, reflecting the urgent need during the pandemic. Benchmarking against similar large-scale diagnostic procurements would provide further context on value for money. The firm-fixed-price structure suggests an attempt to lock in costs, but the ultimate value depends on the unit price and delivery efficiency compared to market rates for comparable tests.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to prior performance, specialized capabilities, or existing agreements. The number of bidders and the rationale for exclusions are not detailed, making a full assessment of competition level challenging. This limited competition could potentially impact price discovery.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible prices achievable through broader market engagement. Further transparency on the exclusion criteria would be beneficial.

Public Impact

Serves military personnel and potentially broader federal agencies requiring rapid COVID-19 testing. Delivers critical in-vitro diagnostic substances for antigen testing. Geographic impact is national, supporting federal health initiatives. Workforce implications include manufacturing and logistics roles within Access Bio, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single manufacturer could pose risks if production is interrupted.
Ensuring consistent quality control for a large volume of diagnostic tests is critical.

Positive Signals

Addresses a critical public health need with rapid diagnostic solutions.
Firm-fixed-price contract provides cost certainty for the government.
Award to an established manufacturer suggests a degree of reliability.

Sector Analysis

The market for in-vitro diagnostics, particularly for infectious diseases like COVID-19, is substantial and highly dynamic. This contract falls within the broader healthcare and life sciences sector, which is characterized by significant R&D investment, stringent regulatory requirements, and fluctuating demand driven by public health events. Comparable spending benchmarks would involve looking at other large government procurements for medical supplies and diagnostics during the pandemic.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary impact on the small business ecosystem would be indirect, through potential competition with larger firms for raw materials or specialized services, or if Access Bio, Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms, quality standards, and financial accountability. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

COVID-19 Testing Supplies
In-Vitro Diagnostic Devices
Medical Materiel Procurement
Defense Health Agency Contracts

Risk Flags

Limited competition may impact price.
Supply chain vulnerability.
Quality control assurance needed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $205.2 million to ACCESS BIO, INC.. 8509606737!CARESTART COVID-19 ANTIGEN H

Who is the contractor on this award?

The obligated recipient is ACCESS BIO, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $205.2 million.

What is the period of performance?

Start: 2022-12-22. End: 2023-05-11.

What is the track record of Access Bio, Inc. in fulfilling large government contracts, particularly for diagnostic supplies?

Access Bio, Inc. has a history of supplying diagnostic products. While specific details on their track record with large government contracts of this magnitude are not provided in the summary data, their role as a manufacturer of COVID-19 antigen tests suggests experience in scaled production. Further investigation into their past performance ratings, delivery history on similar contracts, and any documented issues or commendations would be necessary for a comprehensive assessment. Government contract databases and performance feedback systems would be the primary sources for this information. The award of a $205 million contract implies a level of confidence from the Department of Defense in their capability to deliver.

How does the unit cost of these antigen tests compare to other government or commercial procurements during the same period?

The provided data does not include the specific unit cost for the antigen tests procured under this contract, nor does it detail the total number of units to be delivered. To benchmark the value, one would need to obtain the contract's delivery orders or line item details to calculate the per-unit price. This price could then be compared against other federal contracts for similar tests awarded by agencies like HHS or FEMA, as well as against commercial market prices reported by industry analyses or available through GSA schedules. Factors such as test sensitivity, specificity, and included components (e.g., swabs, reagents) would need to be considered for a fair comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential supply chain disruptions affecting the availability of raw materials or finished goods, manufacturing quality control issues leading to faulty tests, and delivery delays impacting the government's ability to meet testing demands. Given the firm-fixed-price nature, Access Bio, Inc. bears the primary financial risk for cost overruns, but this could incentivize cutting corners on quality if not properly monitored. Mitigation strategies likely involve robust quality assurance protocols, regular performance reviews with the contractor, contingency planning for supply chain vulnerabilities, and potentially maintaining backup suppliers or alternative testing solutions. The Defense Logistics Agency's oversight would be crucial in monitoring these risks.

How effective has this contract been in meeting the Department of Defense's COVID-19 testing needs?

Assessing the effectiveness requires data beyond the contract award details, such as delivery performance metrics, actual utilization rates of the tests provided, and feedback on the tests' reliability in real-world military settings. The contract's duration (December 2022 to May 2023) suggests it was intended to address immediate or near-term needs. Its effectiveness would be measured by whether the delivered tests met the required quantity, quality, and timeliness, thereby supporting the DoD's public health and operational readiness objectives during the specified period. Post-award performance reports and usage statistics are necessary for a definitive evaluation.

What is the historical spending pattern for in-vitro diagnostic substances by the Department of Defense, and how does this contract compare?

Historical spending on in-vitro diagnostic substances by the DoD can vary significantly year over year, influenced by global health events, military readiness requirements, and technological advancements. Prior to the COVID-19 pandemic, spending might have been more focused on routine diagnostics for military personnel. The $205 million awarded to Access Bio, Inc. represents a substantial, pandemic-driven surge in spending for a specific type of diagnostic (antigen tests). Analyzing DoD's spending trends over the past 5-10 years, particularly for infectious disease diagnostics, would reveal whether this contract is an anomaly driven by extraordinary circumstances or part of a growing investment in rapid testing capabilities.

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: SUITE A, SOMERSET, NJ, 08873

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,200,000

Exercised Options: $205,200,000

Current Obligation: $205,200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2DE23D0011

IDV Type: IDC

Timeline