HHS awards $17.25M to Talis Biomedical for rapid COVID-19 RNA detection technology
Contract Overview
Contract Amount: $17,250,000 ($17.3M)
Contractor: Talis Biomedical Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-30
End Date: 2022-01-30
Contract Duration: 549 days
Daily Burn Rate: $31.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: RADX TECH - TALIS BIOMEDICAL HIGHLY SCALABLE SARS-COV-2 RNA DETECTION IN MINUTES
Place of Performance
Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025
Plain-Language Summary
Department of Health and Human Services obligated $17.3 million to TALIS BIOMEDICAL CORPORATION for work described as: RADX TECH - TALIS BIOMEDICAL HIGHLY SCALABLE SARS-COV-2 RNA DETECTION IN MINUTES Key points: 1. The contract supports the development of a highly scalable SARS-CoV-2 RNA detection system. 2. Taliz Biomedical Corporation is the sole awardee, indicating a lack of initial competition. 3. The fixed-price contract aims to mitigate cost risks for the government. 4. This falls within the Analytical Laboratory Instrument Manufacturing sector.
Value Assessment
Rating: fair
The award amount of $17.25M for a definitive contract is substantial. Without comparable contract data for similar rapid diagnostic technologies, a precise pricing assessment is difficult. However, the firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This approach may have been chosen due to the urgency of the pandemic and the specific capabilities of Talis Biomedical. However, the lack of competition limits price discovery and potentially higher costs.
Taxpayer Impact: Taxpayers are funding the development of critical pandemic response technology. The effectiveness of this investment depends on the successful deployment and accuracy of the detection system.
Public Impact
Accelerates development of rapid COVID-19 testing capabilities. Enhances national preparedness for future public health emergencies. Supports innovation in diagnostic technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost overruns if development challenges arise.
- Dependence on a single vendor for critical technology.
Positive Signals
- Addresses urgent need for rapid diagnostic testing.
- Potential for significant public health impact.
- Firm fixed-price contract provides cost control.
Sector Analysis
The contract falls under Analytical Laboratory Instrument Manufacturing, a sector crucial for public health and research. Spending in this area often increases during health crises to procure necessary diagnostic and analytical tools.
Small Business Impact
The awardee is Talis Biomedical Corporation, a single entity. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The Department of Health and Human Services, specifically the National Institutes of Health, is responsible for oversight. The definitive contract structure with a defined end date allows for monitoring of progress and expenditures.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award
- Technology development risk
- Vendor lock-in potential
- Scalability challenges
Tags
analytical-laboratory-instrument-manufac, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.3 million to TALIS BIOMEDICAL CORPORATION. RADX TECH - TALIS BIOMEDICAL HIGHLY SCALABLE SARS-COV-2 RNA DETECTION IN MINUTES
Who is the contractor on this award?
The obligated recipient is TALIS BIOMEDICAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2020-07-30. End: 2022-01-30.
What is the projected timeline for the development and deployment of the SARS-CoV-2 RNA detection system?
The contract period is from July 30, 2020, to January 30, 2022, spanning approximately 18 months. This timeframe suggests an expectation for significant progress or completion of development within this period. Further details on specific milestones and deployment plans would be necessary for a comprehensive assessment.
How will the government ensure the accuracy and reliability of the detection technology developed by Talis Biomedical?
The government, through NIH, will likely implement rigorous testing and validation protocols throughout the development process. This would include performance evaluations against established benchmarks and potentially independent verification. The firm fixed-price contract incentivizes the contractor to deliver a functional and accurate product to avoid financial penalties.
What is the long-term strategy for utilizing this technology beyond the initial SARS-CoV-2 detection need?
The contract emphasizes a 'highly scalable' system, suggesting potential for broader applications. The government may intend to leverage this platform for detecting other pathogens or for future pandemic preparedness. However, the current award focuses specifically on SARS-CoV-2, and future use cases would require separate evaluations and potentially new contracts.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Talis Biomedical Corp
Address: 230 CONSTITUTION DR, MENLO PARK, CA, 94025
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,250,000
Exercised Options: $17,250,000
Current Obligation: $17,250,000
Actual Outlays: $17,250,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-30
Current End Date: 2022-01-30
Potential End Date: 2022-01-30 00:00:00
Last Modified: 2025-05-19
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