HHS awards $40.5M to Fulgent Therapeutics for SARS-COV-2 Genomic Sequencing

Contract Overview

Contract Amount: $40,517,395 ($40.5M)

Contractor: Fulgent Therapeutics LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-11

End Date: 2022-03-10

Contract Duration: 364 days

Daily Burn Rate: $111.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SARS-COV-2 GENOMIC SEQUENCING

Place of Performance

Location: TEMPLE CITY, LOS ANGELES County, CALIFORNIA, 91780

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40.5 million to FULGENT THERAPEUTICS LLC for work described as: SARS-COV-2 GENOMIC SEQUENCING Key points: 1. Significant award for critical public health infrastructure. 2. Sole-source award raises questions about competition and price discovery. 3. Contract duration of one year with a fixed-price structure. 4. Focus on medical laboratories (NAICS 621511) for genomic sequencing.

Value Assessment

Rating: questionable

The award amount of $40.5M for a one-year contract for genomic sequencing is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar services.

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 may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award could lead to suboptimal use of taxpayer funds.

Public Impact

Supports critical COVID-19 response efforts through genomic sequencing. Ensures access to vital diagnostic and surveillance capabilities. Potential for long-term impact on public health preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of price benchmark for comparison.
Potential for cost overruns due to non-competitive nature.

Positive Signals

Addresses a critical public health need.
Supports ongoing SARS-COV-2 surveillance.
Fixed-price contract provides cost certainty.

Sector Analysis

The healthcare sector, particularly medical laboratories, plays a crucial role in public health surveillance and diagnostics. Spending in this area surged during the pandemic for services like genomic sequencing.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded sole-source to Fulgent Therapeutics LLC.

Oversight & Accountability

The sole-source nature of this award warrants careful oversight to ensure the government is receiving fair value and that the services are being delivered effectively.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency in award process
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40.5 million to FULGENT THERAPEUTICS LLC. SARS-COV-2 GENOMIC SEQUENCING

Who is the contractor on this award?

The obligated recipient is FULGENT THERAPEUTICS LLC.

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 $40.5 million.

What is the period of performance?

Start: 2021-03-11. End: 2022-03-10.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Further documentation from the agency would be needed to confirm the specific rationale.

How does the cost compare to similar genomic sequencing contracts awarded competitively?

Without access to a competitive bidding process for this specific contract, a direct cost comparison is challenging. Benchmarking against other government or private sector contracts for similar genomic sequencing services, adjusted for scope and duration, would be necessary to assess value for money.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators for a genomic sequencing contract would likely include turnaround time for sequencing results, accuracy and quality of the genomic data produced, and the ability to meet specified reporting requirements. The contract details should outline these metrics and the associated remedies for non-performance.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-21-R-71817

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fulgent Genetics, Inc.

Address: 4978 SANTA ANITA AVE STE 205, TEMPLE CITY, CA, 91780

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,517,395

Exercised Options: $40,517,395

Current Obligation: $40,517,395

Actual Outlays: $40,517,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline