HHS Awards $39.9M to Aegis Sciences for COVID-19 Genome Sequencing

Contract Overview

Contract Amount: $39,923,000 ($39.9M)

Contractor: Aegis Sciences Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-28

End Date: 2022-04-15

Contract Duration: 352 days

Daily Burn Rate: $113.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COVID 19 GENOME SEQUENCING

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37228

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.9 million to AEGIS SCIENCES CORPORATION for work described as: COVID 19 GENOME SEQUENCING Key points: 1. Significant investment in critical public health infrastructure. 2. Sole-source award raises questions about competition and price discovery. 3. Potential for high per-unit costs given lack of competitive bidding. 4. Focus on medical laboratories highlights a key sector for pandemic response.

Value Assessment

Rating: questionable

The award of $39.9 million for genome sequencing services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the price is reasonable compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price for these essential services.

Public Impact

Enhances national capacity for tracking COVID-19 variants. Supports public health agencies in understanding disease spread. Ensures timely data for policy decisions and public health interventions.

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
Supports pandemic response efforts

Sector Analysis

The medical laboratory sector plays a crucial role in public health, particularly during health crises. Spending in this area surged during the pandemic for testing and sequencing services.

Small Business Impact

The contract was awarded to Aegis Sciences Corporation, a private company. There is no indication that small businesses were involved in this specific sole-source award.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny to ensure the government obtained fair value. Further review of the justification for sole-source procurement is recommended.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.9 million to AEGIS SCIENCES CORPORATION. COVID 19 GENOME SEQUENCING

Who is the contractor on this award?

The obligated recipient is AEGIS SCIENCES CORPORATION.

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 $39.9 million.

What is the period of performance?

Start: 2021-04-28. End: 2022-04-15.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further documentation, it's difficult to ascertain the precise reason Aegis Sciences was the only viable option for this critical COVID-19 genome sequencing work.

How does the per-unit cost of sequencing compare to industry benchmarks, given the lack of competition?

Without competitive bids, it is challenging to establish a precise per-unit cost benchmark. The $39.9 million award for an unspecified number of sequencing services makes direct comparison difficult. A thorough analysis would require access to the contract's detailed pricing structure and comparison with publicly available data for similar services.

What is the long-term impact of relying on sole-source contracts for critical public health services?

Sole-source contracts can reduce competition, potentially leading to higher costs and stifling innovation in the long run. For critical services like genome sequencing, over-reliance on non-competitive awards may limit the government's ability to secure the best value and explore diverse technological solutions.

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-71841

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 GREAT CIR RD, NASHVILLE, TN, 37228

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

Financial Breakdown

Contract Ceiling: $39,923,000

Exercised Options: $39,923,000

Current Obligation: $39,923,000

Actual Outlays: $39,923,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline