DoD Awards $43M for COVID-19 Testing Services to Gothams LLC, Lacking Competition
Contract Overview
Contract Amount: $43,146,657 ($43.1M)
Contractor: Gothams LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-31
End Date: 2021-12-31
Contract Duration: 518 days
Daily Burn Rate: $83.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID-19 TEST KITS, STUDY, LAB OPERATION AND MAINTENANCE, IT INTERFACE, AND TEST SITE STANDUPS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052
Plain-Language Summary
Department of Defense obligated $43.1 million to GOTHAMS LLC for work described as: COVID-19 TEST KITS, STUDY, LAB OPERATION AND MAINTENANCE, IT INTERFACE, AND TEST SITE STANDUPS. Key points: 1. Significant award of $43.1M for essential COVID-19 testing services. 2. Sole-source award to Gothams LLC raises questions about competition and potential cost savings. 3. Contract duration of 518 days covers a critical period of the pandemic. 4. The award falls under the 'Testing Laboratories and Services' category.
Value Assessment
Rating: questionable
The contract's value of $43.1M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar COVID-19 testing and lab operation contracts awarded during the pandemic.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher prices and limiting opportunities for other qualified vendors.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical services.
Public Impact
Ensured availability of COVID-19 testing during a critical public health crisis. Supported Department of the Air Force's operational readiness through testing infrastructure. Provided essential lab services, IT interfaces, and test site setup.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Fulfilled critical need during pandemic
- Supported military health operations
Sector Analysis
The award is within the 'Testing Laboratories and Services' sector. Spending in this area surged during the pandemic, but competitive bidding is crucial for cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were considered or excluded from this sole-source opportunity.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the price paid was reasonable.
Related Government Programs
- Testing Laboratories and Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Sole-source award justification
- Potential for inflated pricing
- Limited transparency in award process
Tags
testing-laboratories-and-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.1 million to GOTHAMS LLC. COVID-19 TEST KITS, STUDY, LAB OPERATION AND MAINTENANCE, IT INTERFACE, AND TEST SITE STANDUPS.
Who is the contractor on this award?
The obligated recipient is GOTHAMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $43.1 million.
What is the period of performance?
Start: 2020-07-31. End: 2021-12-31.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. For COVID-19 related services, this might have included urgent needs, unique capabilities, or specific government-developed technology. However, without detailed documentation, it's difficult to ascertain the precise rationale and whether it was fully justified.
How does the awarded price compare to market rates for similar COVID-19 testing and lab services during the contract period?
Benchmarking the $43.1M award against similar contracts is challenging without access to detailed pricing structures and the specific scope of work. However, given the lack of competition, there's a risk the price may be higher than if multiple vendors had competed. A thorough review of comparable contracts, considering factors like volume, duration, and service complexity, would be necessary for a precise comparison.
What measures were in place to ensure the effectiveness and quality of the testing services provided by Gothams LLC?
Effectiveness and quality assurance for such contracts typically involve performance standards, quality control plans, and regular monitoring by the contracting officer's representative. While the contract value and duration suggest significant services were rendered, the specific oversight mechanisms and performance metrics used to ensure the quality of COVID-19 testing, lab operations, and site standups would need to be examined.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA701420R0046
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 16724 CALLE HERMOSA, SAN DIEGO, CA, 92127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $45,440,581
Exercised Options: $45,440,581
Current Obligation: $43,146,657
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2020-07-31
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2022-02-08
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