DoD Awards $778M for Quidel Test Kits, Ensuring Critical Supply Chain Resilience
Contract Overview
Contract Amount: $77,817,549 ($77.8M)
Contractor: Quidel Corp
Awarding Agency: Department of Defense
Start Date: 2021-09-22
End Date: 2023-06-09
Contract Duration: 625 days
Daily Burn Rate: $124.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 8508548583!QUIDEL TEST KIT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $77.8 million to QUIDEL CORP for work described as: 8508548583!QUIDEL TEST KIT Key points: 1. Significant contract value highlights the importance of diagnostic testing for national security. 2. Competition method suggests a deliberate effort to secure best value after initial source exclusion. 3. Risk of supply chain disruption is mitigated through this large, multi-year award. 4. Sector focus on Pharmaceutical Preparation Manufacturing underscores defense readiness needs.
Value Assessment
Rating: good
The contract value of $778,175,490 appears reasonable given the duration and the critical nature of diagnostic supplies. Benchmarking against similar large-scale pharmaceutical procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates an initial limited competition that was later broadened. This approach can sometimes lead to higher prices if the initial exclusion was not fully justified, but it may also ensure specialized capabilities are considered.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense logistics, ensuring the health and readiness of military personnel. The value reflects a significant investment in maintaining critical medical supply chains.
Public Impact
Ensures availability of essential diagnostic test kits for Department of Defense personnel. Supports national health security by maintaining a robust supply of critical medical equipment. Contributes to the operational readiness of military forces through reliable health monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation due to limited initial competition.
- Dependence on a single contractor for a critical supply.
Positive Signals
- Secures a vital supply chain for national defense.
- Long-term contract provides stability and predictability.
- Addresses critical health needs within the DoD.
Sector Analysis
This contract falls within the Pharmaceutical Preparation Manufacturing sector, crucial for healthcare and defense readiness. Spending benchmarks in this area are often high due to research, development, and stringent quality control requirements for medical supplies.
Small Business Impact
The contract was awarded to Quidel Corp, a large business. There is no explicit indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles.
Oversight & Accountability
The award was managed by the Defense Logistics Agency, a key component for ensuring the supply chain integrity of defense materials. Oversight would focus on delivery schedules, quality control, and adherence to contract terms.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition after source exclusion.
- Potential for price increases over contract duration.
- Dependence on a single contractor.
- Lack of explicit small business set-aside.
Tags
pharmaceutical-preparation-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.8 million to QUIDEL CORP. 8508548583!QUIDEL TEST KIT
Who is the contractor on this award?
The obligated recipient is QUIDEL CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $77.8 million.
What is the period of performance?
Start: 2021-09-22. End: 2023-06-09.
What was the rationale for excluding sources initially before opening competition?
The rationale for excluding sources initially before opening competition would likely stem from specific technical requirements, unique manufacturing capabilities, or a need to address an urgent requirement that only certain vendors could meet in the short term. Further investigation into the contract's justification documents would clarify the precise reasons and ensure fair market access was considered.
What are the potential risks associated with a long-term contract for diagnostic kits?
Potential risks include price escalation over the contract's duration, technological obsolescence of the kits if newer, more effective diagnostics emerge, and over-reliance on a single supplier which could create vulnerabilities in the supply chain. Mitigation strategies might involve periodic price reviews, incorporating flexibility for technology upgrades, and maintaining contingency plans with alternative suppliers.
How does this contract contribute to the overall effectiveness of DoD's health services?
This contract is vital for the effectiveness of DoD's health services by ensuring a consistent and reliable supply of essential diagnostic test kits. This directly supports timely diagnosis, treatment, and monitoring of health conditions among service members, contributing to force readiness and overall public health within the military community.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9975 SUMMERS RIDGE RD, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,817,549
Exercised Options: $77,817,549
Current Obligation: $77,817,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DE21D0050
IDV Type: IDC
Timeline
Start Date: 2021-09-22
Current End Date: 2023-06-09
Potential End Date: 2023-06-09 00:00:00
Last Modified: 2025-04-26
More Contracts from Quidel Corp
- 8508632124!quickvue At-Home OTC Covid-19 — $521.4M (Department of Defense)
- THE Purpose of This Contract IS to Procure of Over the Counter (OTC) Covid-19 Tests — $97.5M (Department of Health and Human Services)
- THE National Institute of Health (NIH) Launched the Rapid Acceleration of Diagnostics (rads) Initiative to Speed Innovation in the Development, Commercialization, and Implementation of Technologies to Significantly Increase the U.S. Testing Capacit — $92.6M (Department of Health and Human Services)
- 8509606734!quickvue At-Home OTC Covid-19 — $54.0M (Department of Defense)
- Over the Counter (OTC) Covid-19 Tests — $28.6M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)