HHS Awards Princeton Biomeditech $28.7M for OTC COVID-19 Tests

Contract Overview

Contract Amount: $28,728,000 ($28.7M)

Contractor: Princeton Biomeditech Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-20

End Date: 2025-03-19

Contract Duration: 546 days

Daily Burn Rate: $52.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OVER THE COUNTER (OTC) COVID-19 TESTS

Place of Performance

Location: MONMOUTH JUNCTION, MIDDLESEX County, NEW JERSEY, 08852

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to PRINCETON BIOMEDITECH CORP for work described as: OVER THE COUNTER (OTC) COVID-19 TESTS Key points: 1. Significant contract value for diagnostic supplies. 2. Sole-source award raises competition concerns. 3. Potential for price overpayment due to limited competition. 4. Focus on critical public health preparedness.

Value Assessment

Rating: fair

The contract value of $28.7M for OTC COVID-19 tests appears substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if this pricing is optimal or if it represents a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and negotiation opportunities, potentially leading to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential public health supplies.

Public Impact

Ensures availability of critical COVID-19 testing supplies. Supports public health infrastructure and response capabilities. Potential for increased costs impacts overall pandemic preparedness budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Addresses critical public health need
Ensures supply chain for diagnostics

Sector Analysis

The healthcare sector, particularly in diagnostics and medical supplies, often sees significant government spending, especially during public health emergencies. Benchmarks for similar diagnostic supply contracts can vary widely based on complexity and volume.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

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 should focus on ensuring delivery, quality, and value for money, especially given the sole-source nature.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing.
Lack of transparency in procurement method.
Dependence on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to PRINCETON BIOMEDITECH CORP. OVER THE COUNTER (OTC) COVID-19 TESTS

Who is the contractor on this award?

The obligated recipient is PRINCETON BIOMEDITECH CORP.

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 $28.7 million.

What is the period of performance?

Start: 2023-09-20. End: 2025-03-19.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically cite urgency, unique capabilities, or lack of market availability. Without this justification, it's difficult to assess if the government received the best possible value or if taxpayer funds were used efficiently.

How does the per-unit cost of these OTC COVID-19 tests compare to similar government or commercial contracts awarded competitively?

Comparing the per-unit cost to competitively awarded contracts is essential for value assessment. If this sole-source contract's unit price is significantly higher, it suggests potential overpayment and a missed opportunity for cost savings. This comparison helps determine if the government secured a fair price for the supplies.

What are the performance metrics and quality control measures in place to ensure the effectiveness and reliability of these tests?

Robust performance metrics and quality control are vital for public health supplies. Ensuring the tests meet FDA standards and perform accurately is paramount. The contract should clearly define these measures and the consequences for non-compliance to safeguard public health and taxpayer investment.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75A50223C00045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4242 US HIGHWAY 1, MONMOUTH JUNCTION, NJ, 08852

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

Financial Breakdown

Contract Ceiling: $28,728,000

Exercised Options: $28,728,000

Current Obligation: $28,728,000

Actual Outlays: $28,728,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline