HHS Awards $464M Contract to Vitalant for SARS-CoV-2 Antibody Seroprevalence Testing

Contract Overview

Contract Amount: $46,437,074 ($46.4M)

Contractor: Vitalant

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-12

End Date: 2024-05-11

Contract Duration: 1,460 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: CHARACTERIZE SEROPREVALENCE OF SARS COV-2 ANTIBODIES IN THE US POPULATION

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.4 million to VITALANT for work described as: CHARACTERIZE SEROPREVALENCE OF SARS COV-2 ANTIBODIES IN THE US POPULATION Key points: 1. Contract value of $464.37M over 4 years. 2. Vitalant, a non-profit, is the sole awardee. 3. Potential risk due to single awardee and lack of competition. 4. Focus on public health surveillance within the Healthcare sector.

Value Assessment

Rating: fair

The contract type is 'Cost No Fee', which can make price assessment challenging as it focuses on reimbursement of costs rather than a fixed price. The award amount of $464.37M over four years suggests significant investment in testing infrastructure and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'Full and Open Competition', the awardee is Vitalant, and it's a Definitive Contract. Further details would be needed to confirm if multiple bids were received and evaluated, or if this was a sole-source award under a broader competitive framework. The 'Cost No Fee' structure implies costs are reimbursed.

Taxpayer Impact: Taxpayer funds are allocated for critical public health monitoring, aiming to understand the prevalence of COVID-19 antibodies across the US population.

Public Impact

Supports national efforts to track and understand the spread of COVID-19. Provides crucial data for public health policy and resource allocation. Ensures continued capacity for large-scale antibody testing. Potential for long-term public health benefits through ongoing surveillance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on competition details
Potential for cost overruns with 'Cost No Fee' contract

Positive Signals

Addresses critical public health need
Supports national COVID-19 response efforts

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on diagnostic testing and public health surveillance. The value is substantial for a single contract in this area, reflecting the scale of the pandemic response.

Small Business Impact

There is no indication of small business involvement in this contract. The awardee, Vitalant, is a large non-profit organization, suggesting that subcontracting opportunities for small businesses may be limited.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) is the awarding agency, indicating a focus on scientific and public health oversight. The 'Cost No Fee' structure requires diligent monitoring of expenditures to ensure efficiency and prevent waste.

Related Government Programs

Testing Laboratories and Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential lack of competition
Cost control challenges with 'Cost No Fee' structure
Reliance on a single entity for critical data
Limited transparency on award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.4 million to VITALANT. CHARACTERIZE SEROPREVALENCE OF SARS COV-2 ANTIBODIES IN THE US POPULATION

Who is the contractor on this award?

The obligated recipient is VITALANT.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $46.4 million.

What is the period of performance?

Start: 2020-05-12. End: 2024-05-11.

What specific metrics are used to evaluate the effectiveness of Vitalant's seroprevalence testing services?

Effectiveness is likely evaluated based on the accuracy and reliability of the testing methodologies employed, the timeliness of data reporting, and the geographic and demographic representativeness of the samples collected. The CDC would establish key performance indicators (KPIs) related to sample volume, turnaround time for results, and adherence to quality control standards to ensure the data generated is scientifically sound and useful for public health decision-making.

What are the primary risks associated with a 'Cost No Fee' contract for large-scale public health testing?

The primary risk with a 'Cost No Fee' contract is the potential for cost overruns and a lack of incentive for the contractor to control expenses, as costs are reimbursed. Without a fixed price or clear cost ceilings, there's a risk that the total expenditure could exceed initial projections. Robust oversight and detailed cost reporting are crucial to mitigate this risk and ensure taxpayer funds are used efficiently.

How does this contract contribute to the long-term public health infrastructure in the US?

This contract contributes by building and maintaining the capacity for large-scale serological surveillance, which is vital for understanding infectious disease trends beyond COVID-19. It strengthens the infrastructure for diagnostic testing and data collection, enabling faster responses to future public health emergencies. The data gathered also informs ongoing research and policy development, enhancing the nation's overall preparedness and public health resilience.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: 75D30120Q71772

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 6210 E OAK ST, SCOTTSDALE, AZ, 85257

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

Financial Breakdown

Contract Ceiling: $46,437,074

Exercised Options: $46,437,074

Current Obligation: $46,437,074

Actual Outlays: $35,894,623

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $6,249,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline