HHS awards Becton Dickinson $33.8M for multiplexed respiratory panel tests

Contract Overview

Contract Amount: $33,792,367 ($33.8M)

Contractor: Becton, Dickinson and Company

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-30

End Date: 2027-06-30

Contract Duration: 2,099 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BECTON DICKENSON: MULTIPLEXED RESPIRATORY PANEL TESTS FOR THE BD VERITOR, THE BD MAX, AND THE BD COR SYSTEMS

Place of Performance

Location: SPARKS GLENCOE, BALTIMORE County, MARYLAND, 21152

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.8 million to BECTON, DICKINSON AND COMPANY for work described as: BECTON DICKENSON: MULTIPLEXED RESPIRATORY PANEL TESTS FOR THE BD VERITOR, THE BD MAX, AND THE BD COR SYSTEMS Key points: 1. Contract awarded for BD Veritor, BD MAX, and BD COR systems. 2. Research and Development in Biotechnology sector. 3. Firm Fixed Price contract type. 4. Long duration of 2099 days. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $33.8M over approximately 5.7 years suggests a moderate annual spend. Benchmarking against similar R&D contracts in biotechnology is difficult without more specific details on the scope of work and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The $33.8M award represents taxpayer investment in critical public health infrastructure, specifically in diagnostic testing capabilities.

Public Impact

Enhances national capacity for detecting respiratory illnesses. Supports preparedness for future public health emergencies. Provides advanced diagnostic tools for healthcare providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to price escalation.
Lack of small business involvement.

Positive Signals

Awarded via full and open competition.
Supports critical public health infrastructure.

Sector Analysis

This contract falls within the Biotechnology R&D sector, which is crucial for developing advanced medical countermeasures. Spending in this area is often high due to the complex and lengthy nature of research and development.

Small Business Impact

The contract explicitly states no small business participation. This is a missed opportunity to leverage the innovation and agility of small businesses in the biotechnology sector.

Oversight & Accountability

The contract is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR), a key agency for public health emergencies. Oversight will be critical to ensure timely delivery and adherence to R&D milestones.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Long contract duration.
No small business participation.
Potential for price escalation over time.
R&D risks (e.g., project failure, delays).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.8 million to BECTON, DICKINSON AND COMPANY. BECTON DICKENSON: MULTIPLEXED RESPIRATORY PANEL TESTS FOR THE BD VERITOR, THE BD MAX, AND THE BD COR SYSTEMS

Who is the contractor on this award?

The obligated recipient is BECTON, DICKINSON AND COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $33.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2027-06-30.

What specific deliverables are expected under this R&D contract, and how will their successful completion be measured to ensure value for money?

The contract details should outline specific research milestones, prototype development, and validation studies for the multiplexed respiratory panel tests. Success metrics would likely include test sensitivity, specificity, speed, and compatibility with the specified BD systems. Regular technical reviews and performance reports will be crucial for monitoring progress and ensuring the government receives the intended value from the R&D investment.

Given the long contract duration, what mechanisms are in place to mitigate potential risks associated with technological obsolescence or changes in public health needs?

The long duration necessitates built-in flexibility and regular review points. Contract clauses may allow for modifications based on evolving technological landscapes or shifts in public health priorities. Periodic assessments by ASPR will be vital to ensure the ongoing relevance and effectiveness of the developed diagnostic capabilities, potentially leading to contract adjustments or early termination if necessary.

How does the pricing structure for these specialized diagnostic tests compare to similar offerings in the market, and what assurance is there that the $33.8M represents a competitive price?

While awarded under full and open competition, the specific pricing details and benchmarks against market alternatives are not provided. The firm fixed price nature suggests the price was determined upfront. Further analysis would require access to the bid data and a comparison with other commercially available multiplexed respiratory panels to fully assess competitive pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA-18-100-SOL-00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 7 LOVETON CIR, SPARKS, MD, 21152

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,792,367

Exercised Options: $33,792,367

Current Obligation: $33,792,367

Actual Outlays: $30,205,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline