HHS Awards $28.6M to Quidel Corp for OTC COVID-19 Tests Amidst Limited Competition

Contract Overview

Contract Amount: $28,620,000 ($28.6M)

Contractor: Quidel 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: $52.4K/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: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.6 million to QUIDEL CORP for work described as: OVER THE COUNTER (OTC) COVID-19 TESTS Key points: 1. Significant award to a single vendor for essential health supplies. 2. Limited competition raises questions about price discovery and potential alternatives. 3. Contract duration of 546 days suggests ongoing need for these tests. 4. Focus on In-Vitro Diagnostic Substance Manufacturing highlights a critical supply chain component.

Value Assessment

Rating: fair

The award amount of $28.6M for OTC COVID-19 tests appears substantial. Without direct comparable contracts or detailed cost breakdowns, assessing the pricing efficiency is challenging. Further analysis of unit costs against market benchmarks would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This approach may expedite procurement but could lead to less favorable pricing compared to a fully competitive process. The impact on price discovery is likely negative.

Taxpayer Impact: Taxpayer funds are being utilized for essential public health supplies. The lack of competition may result in a higher overall cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Ensures availability of critical COVID-19 testing supplies for public health response. Supports domestic manufacturing capabilities within the In-Vitro Diagnostic Substance sector. Potential for increased accessibility of rapid testing for individuals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to limited price discovery

Positive Signals

Addresses a critical public health need
Supports a specific manufacturing sector

Sector Analysis

The procurement falls within the Healthcare sector, specifically for diagnostic substances. Spending benchmarks in this area can vary widely based on product type, volume, and urgency. This award represents a significant investment in a specific diagnostic product.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses were considered or had opportunities to participate in the supply chain.

Oversight & Accountability

The contract is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, suggesting a focus on emergency preparedness. Oversight mechanisms should ensure timely delivery and quality of the tests.

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

Limited competition may lead to higher costs.
Lack of transparency in source selection.
Potential for vendor lock-in.
Dependence on a single supplier for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.6 million to QUIDEL CORP. OVER THE COUNTER (OTC) COVID-19 TESTS

Who is the contractor on this award?

The obligated recipient is QUIDEL 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 $28.6 million.

What is the period of performance?

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

What was the rationale for not competing this contract, and were any sole-source justifications documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file and associated documentation would be necessary to understand the specific justification for this decision. Typically, non-competitive awards are made under specific circumstances, such as urgent and compelling needs or the unavailability of other sources, and require formal justification.

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

Benchmarking the unit cost against similar contracts is crucial for assessing value. Without access to detailed pricing data or a list of comparable contracts, a precise comparison is not possible. However, the 'fair' rating suggests potential concerns regarding cost-effectiveness due to the limited competition.

What is the projected impact of these tests on public health outcomes, and how will their distribution be managed?

The procurement of OTC COVID-19 tests directly supports public health by enabling individuals to monitor their health status and take appropriate actions. Effective distribution strategies managed by ASPR are essential to ensure these tests reach the intended populations, thereby contributing to disease control efforts.

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: 75A50223C00046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ortho-Clinical Diagnostics, Inc.

Address: 9975 SUMMERS RIDGE RD, SAN DIEGO, CA, 92121

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: $28,620,000

Exercised Options: $28,620,000

Current Obligation: $28,620,000

Actual Outlays: $28,620,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline