DoD's $190.8M COVID-19 Test Contract Awarded to IHealth Labs Inc
Contract Overview
Contract Amount: $190,800,000 ($190.8M)
Contractor: Ihealth Labs Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-22
End Date: 2023-05-11
Contract Duration: 140 days
Daily Burn Rate: $1.4M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8509606738!IHEALTH COVID-19 ANTIGEN RAPI
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95131
Plain-Language Summary
Department of Defense obligated $190.8 million to IHEALTH LABS INC. for work described as: 8509606738!IHEALTH COVID-19 ANTIGEN RAPI Key points: 1. Significant investment in critical health supplies for the Defense Logistics Agency. 2. Competition method suggests a deliberate choice for full and open bidding. 3. Potential for price fluctuations given the dynamic nature of pandemic-related supplies. 4. Sector focus on In-Vitro Diagnostic Substance Manufacturing highlights a specialized need.
Value Assessment
Rating: good
The contract value of $190.8 million appears substantial for rapid antigen tests. Benchmarking against similar large-scale procurements during the pandemic would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process was initiated, aiming for the best value. This method generally promotes price discovery and potentially lower costs.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by soliciting bids from multiple qualified vendors.
Public Impact
Ensures availability of critical COVID-19 testing resources for military personnel and potentially other government entities. Supports the ongoing public health response by securing necessary diagnostic tools. The contract award contributes to the supply chain stability for essential medical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if demand surges unexpectedly.
- Supply chain vulnerabilities for rapid test components.
- Ensuring equitable distribution and access to tests.
Positive Signals
- Proactive procurement of essential health supplies.
- Competitive bidding process likely secured favorable pricing.
- Clear contract duration and delivery schedule.
Sector Analysis
The procurement falls within the In-Vitro Diagnostic Substance Manufacturing sector, crucial for healthcare and pandemic response. Spending in this area can fluctuate significantly based on public health needs and technological advancements.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement in the supply chain.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of DoD's procurement infrastructure. Oversight would involve monitoring delivery schedules, quality control, and adherence to contract terms.
Related Government Programs
- In-Vitro Diagnostic Substance Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price volatility in the diagnostic market.
- Dependence on a single manufacturer for a critical supply.
- Ensuring consistent quality and performance of tests over time.
- Logistical challenges in distribution and storage.
Tags
in-vitro-diagnostic-substance-manufactur, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $190.8 million to IHEALTH LABS INC.. 8509606738!IHEALTH COVID-19 ANTIGEN RAPI
Who is the contractor on this award?
The obligated recipient is IHEALTH LABS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $190.8 million.
What is the period of performance?
Start: 2022-12-22. End: 2023-05-11.
What was the basis for excluding other sources initially, and how did the subsequent full and open competition ensure fair market value?
The exclusion of sources likely stemmed from specific technical requirements or urgent needs at the time. The subsequent full and open competition phase was designed to broaden the vendor pool, allowing for price comparisons and ensuring that the final award reflected competitive market conditions and offered the best value to the government.
How does the government plan to mitigate risks associated with potential supply chain disruptions or quality control issues for these rapid tests?
Mitigation strategies typically involve robust quality assurance protocols, supplier vetting, and contingency planning for alternative sourcing. The contract likely includes clauses for performance standards, inspection rights, and remedies for non-compliance to ensure the reliability and efficacy of the delivered diagnostic substances.
What is the projected impact of this procurement on the overall availability and accessibility of COVID-19 testing resources for the intended beneficiaries?
This significant procurement is expected to bolster the availability of COVID-19 antigen tests, ensuring adequate supplies for the Department of Defense's needs. By securing a large quantity, the contract aims to maintain readiness and support health protection measures, contributing to the overall accessibility of testing resources within the military health system.
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: 120 SAN LUCAR CT, SUNNYVALE, CA, 94086
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $190,800,000
Exercised Options: $190,800,000
Current Obligation: $190,800,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE23D0012
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: 2023-01-09
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