DoD Awards $52M Contract for COVID-19 Test Kits to InBios International Inc

Contract Overview

Contract Amount: $52,000,000 ($52.0M)

Contractor: Inbios International Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-17

End Date: 2022-09-09

Contract Duration: 204 days

Daily Burn Rate: $254.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COVID-19 OTC TEST KIT

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to INBIOS INTERNATIONAL INC for work described as: COVID-19 OTC TEST KIT Key points: 1. Significant award of $52 million for essential medical supplies. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 204 days suggests a need for rapid deployment. 4. Focus on In-Vitro Diagnostic Substance Manufacturing highlights critical healthcare infrastructure.

Value Assessment

Rating: questionable

The contract value of $52 million for COVID-19 test kits appears high given the lack of competitive bidding. Without a benchmark from similar, competed contracts, it's difficult to definitively assess if the price is fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition in this $52 million award means taxpayers may have paid a premium for these test kits.

Public Impact

Ensures availability of critical COVID-19 testing supplies. Supports public health efforts during the pandemic. Potential for increased reliance on a single supplier for essential medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Addresses critical need for testing kits
Supports Department of Defense mission

Sector Analysis

The award falls within the healthcare and medical supplies sector, specifically for in-vitro diagnostic substances. Spending in this area surged during the pandemic, with significant government investment in testing and treatment solutions.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, which could limit opportunities for smaller enterprises in the medical supply chain.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny to ensure the price paid was reasonable and that the government explored all competitive options.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to INBIOS INTERNATIONAL INC. COVID-19 OTC TEST KIT

Who is the contractor on this award?

The obligated recipient is INBIOS INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $52.0 million.

What is the period of performance?

Start: 2022-02-17. End: 2022-09-09.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves a critical need or the unavailability of other sources. Without further documentation, it's unclear if the Department of Defense thoroughly explored competitive avenues or if specific circumstances necessitated this approach. This lack of transparency hinders a full assessment of value for money.

How does the per-unit cost of these test kits compare to similar products procured through competitive means?

Benchmarking the per-unit cost is crucial for evaluating value. Given this was a sole-source award, direct comparison data is likely unavailable. However, a post-award analysis comparing the unit price to market rates for comparable diagnostic tests would be beneficial to determine if taxpayers received fair value.

What measures are in place to ensure the quality and efficacy of the test kits provided under this contract?

The contract specifies 'In-Vitro Diagnostic Substance Manufacturing,' implying adherence to quality standards. However, the government should have robust quality assurance protocols, including testing and validation, to ensure the deployed test kits meet required performance standards for accurate COVID-19 detection.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58P0522R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 307 WESTLAKE AVE N STE 300, SEATTLE, WA, 98109

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,000,000

Exercised Options: $52,000,000

Current Obligation: $52,000,000

Actual Outlays: $1,055,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline