DoD Awards $35M to MBIO Diagnostics for COVID-19 Test Manufacturing Capacity

Contract Overview

Contract Amount: $35,089,000 ($35.1M)

Contractor: Mbio Diagnostics Inc

Awarding Agency: Department of Defense

Start Date: 2021-07-06

End Date: 2023-03-31

Contract Duration: 633 days

Daily Burn Rate: $55.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIGHTDECK SCALE-UP OF ULTRA-RAPID POINT-OF-CARE TEST MANUFACTURING CAPACITY FOR PREVENTION AND CONTROL OF CORONAVIRUS

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80303

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to MBIO DIAGNOSTICS INC for work described as: LIGHTDECK SCALE-UP OF ULTRA-RAPID POINT-OF-CARE TEST MANUFACTURING CAPACITY FOR PREVENTION AND CONTROL OF CORONAVIRUS Key points: 1. Significant investment in critical public health infrastructure. 2. Sole-source award raises questions about competition and price. 3. Focus on rapid point-of-care testing addresses urgent pandemic needs. 4. Contract duration of over 20 months suggests substantial scale.

Value Assessment

Rating: fair

The $35.09 million award is substantial for scaling manufacturing. Without competitive bids, it's difficult to assess if this price represents optimal value compared to potential market rates for similar capacity expansion.

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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Enhances national capacity for rapid COVID-19 testing. Supports point-of-care diagnostics, crucial for timely public health response. Aims to prevent and control coronavirus spread through increased testing availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Addresses critical public health need
Supports domestic manufacturing capacity

Sector Analysis

The contract falls under Analytical Laboratory Instrument Manufacturing, a sector vital for healthcare and research. Spending in this area can fluctuate based on public health emergencies and technological advancements.

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 subcontracting opportunities were provided.

Oversight & Accountability

The Department of the Air Force awarded this contract. Standard oversight mechanisms for federal contracts would apply, but the sole-source nature warrants closer scrutiny of justification and pricing.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits price competition.
Lack of transparency on cost justification.
Potential for inefficient use of taxpayer funds.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to MBIO DIAGNOSTICS INC. LIGHTDECK SCALE-UP OF ULTRA-RAPID POINT-OF-CARE TEST MANUFACTURING CAPACITY FOR PREVENTION AND CONTROL OF CORONAVIRUS

Who is the contractor on this award?

The obligated recipient is MBIO DIAGNOSTICS INC.

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 $35.1 million.

What is the period of performance?

Start: 2021-07-06. End: 2023-03-31.

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 where competition is impractical, or specific government requirements that only one vendor can meet. For this contract, the urgency of scaling COVID-19 test manufacturing during the pandemic likely played a significant role in the decision to bypass full and open competition.

How does the per-unit cost of the tests produced under this contract compare to market benchmarks?

Without specific details on the per-unit cost of the tests or access to competitive bids from similar manufacturing scale-up contracts, it is challenging to establish a precise benchmark. The total award amount and contract duration provide scale, but not necessarily cost-efficiency without comparative data.

What is the long-term strategy for the manufacturing capacity built with this funding?

The long-term strategy for the capacity built under this contract is not detailed in the provided data. It's important to understand if this capacity will be maintained for future public health needs, repurposed, or if the government has options to extend or modify the contract post-pandemic.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

Address: 5603 ARAPAHOE AVE STE 1, BOULDER, CO, 80303

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

Financial Breakdown

Contract Ceiling: $35,089,000

Exercised Options: $35,089,000

Current Obligation: $35,089,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline