USAID Awards $486M for HIV Rapid Test Kits to Remote Medicine Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $486,003,213 ($486.0M)

Contractor: Remote Medicine Inc.

Awarding Agency: Agency for International Development

Start Date: 2015-02-27

End Date: 2026-11-28

Contract Duration: 4,292 days

Daily Burn Rate: $113.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::CL::IGF THIS TASK ORDER IS FOR THE PROCUREMENT AND SUPPLY OF HIV RAPID TEST KITS (RTKS).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $486.0 million to REMOTE MEDICINE INC. for work described as: IGF::CL::IGF THIS TASK ORDER IS FOR THE PROCUREMENT AND SUPPLY OF HIV RAPID TEST KITS (RTKS). Key points: 1. Significant contract value of $486 million for essential medical supplies. 2. Remote Medicine Inc. is the sole awardee, raising questions about broader market engagement. 3. The contract spans nearly 12 years, indicating a long-term need for these kits. 4. Procurement falls under the 'Medical, Dental, and Hospital Equipment' sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not carefully managed. Benchmarking against similar long-term procurements of medical supplies is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests initial limitations or specific justifications for excluding other potential bidders. This approach may impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: The substantial value of this contract means taxpayers are funding a significant portion of the HIV rapid test kit supply chain over an extended period.

Public Impact

Ensures continued availability of critical HIV rapid test kits for public health programs. Supports global health initiatives by providing essential diagnostic tools. Potential for supply chain disruptions if the sole awardee faces issues. Long-term commitment may impact flexibility to adopt newer, potentially more cost-effective technologies.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Limited competition after exclusion of sources
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Addresses a critical public health need
Ensures supply continuity for essential medical equipment

Sector Analysis

This contract falls within the Medical, Dental, and Hospital Equipment and Supplies sector, a critical area for government spending, especially for health agencies like USAID. Benchmarks for similar long-term supply contracts can vary widely based on product type and volume.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were solicited or had the capacity to fulfill this large-scale requirement.

Oversight & Accountability

The contract is managed by the Agency for International Development (USAID), which has established oversight mechanisms for its procurements. However, the long duration and cost-plus nature warrant continuous monitoring to ensure cost-effectiveness and performance.

Related Government Programs

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition may reduce price competitiveness
Long contract duration could stifle innovation
Dependence on a single supplier for critical supplies

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $486.0 million to REMOTE MEDICINE INC.. IGF::CL::IGF THIS TASK ORDER IS FOR THE PROCUREMENT AND SUPPLY OF HIV RAPID TEST KITS (RTKS).

Who is the contractor on this award?

The obligated recipient is REMOTE MEDICINE INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $486.0 million.

What is the period of performance?

Start: 2015-02-27. End: 2026-11-28.

What specific factors led to the exclusion of other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how were these justified?

The exclusion of sources typically occurs when there's a specific justification, such as a need for compatibility with existing systems, unique capabilities, or urgent requirements that limit the pool of eligible vendors. A thorough review of the contract's justification documentation would be necessary to understand the precise reasons and ensure they were valid and adequately documented to prevent potential protests or challenges.

How does the Cost Plus Fixed Fee (CPFF) structure incentivize Remote Medicine Inc. to control costs over the nearly 12-year contract period?

CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for efficiency, it doesn't directly tie profit to cost savings. USAID's oversight must focus on rigorous cost monitoring, auditing, and performance metrics to ensure the contractor remains efficient and avoids cost overruns.

What is the projected impact of this long-term contract on the availability and adoption of next-generation HIV rapid test kit technologies?

A nearly 12-year contract commitment for current HIV rapid test kits could potentially slow the adoption of newer, more advanced technologies if the contract doesn't include provisions for upgrades or re-competition. USAID should consider mechanisms within the contract or future solicitations to encourage innovation and ensure access to the most effective diagnostic tools.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4259 23RD AVE W STE 200, SEATTLE, WA, 98199

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

Financial Breakdown

Contract Ceiling: $560,770,291

Exercised Options: $560,770,291

Current Obligation: $486,003,213

Actual Outlays: $255,544,965

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1500002

IDV Type: IDC

Timeline