Award

Reimbursement of manufacturing costs with option to purchase goods

DEPARTMENT OF HEALTH AND SOCIAL CARE

This public procurement record has 1 release in its history.

Award

07 Jan 2021 at 16:40

Summary of the contracting process

The Department of Health and Social Care is conducting a tender for the "Reimbursement of manufacturing costs with option to purchase goods," specifically aimed at the manufacture of Lateral Flow Antigen tests for Sars-Covid-2. This procurement, classified under the industry category of diagnostic kits, is currently active and was initiated under a limited procurement method due to the extreme urgency of the COVID-19 pandemic situation. The contract, valued at £3,160,000, was signed on 8 December 2020, with relevant deliveries required in the UK.

This tender presents significant opportunities for businesses specialising in diagnostics and medical manufacturing, particularly those involved in the innovative development of rapid testing solutions. Given the ongoing demand for Lateral Flow Tests and the competitive nature of the global market, businesses capable of providing high-quality, scalable manufacturing solutions will be well-suited to participate. Suppliers looking to engage in critical public health projects, especially in fast-paced and emergency contexts, should consider this procurement as an avenue for growth and expansion.

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Notice Title

Reimbursement of manufacturing costs with option to purchase goods

Notice Description

Manufacture of Lateral Flow Antigen tests for Sars-Covid-2

Lot Information

Lot 1

Manufacture of Lateral Flow Antigen tests for Sars-Covid-2

Procurement Information

1. The COVID-19 outbreak is a Public Health Emergency of International Concern as declared by the World Health Organisation on 30 January 2020. The WHO Director General characterised COVID-19 as a pandemic on 11 March 2020.2. A key element of ensuring an effective response to the pandemic is ensuring that there is adequate testing. Therefore, ensuring surge LFT capacity, including sufficient availability of Lateral Flow Tests, is critical. 3. Mass testing of the UK Population is a key step in bringing the Pandemic under control. (Lateral Flow Tests produce quicker results than the current PCR (Polymerase Chain Reaction) test, and do not require a lab processing step.) LFT tests have only recently become viable as a means of testing, with multiple tests being progressed through to certification and approval. This was unforeseen by the DHSC and outside its control.4. DHSC's market analysis data demonstrates that the global market for LFT is volatile and highly competitive. Global manufacturing capability is limited to circa 120m units per day. Demand often outstrips supply. DHSC's requirement is driven by the progress of the pandemic (including emerging variants), the changing efficacy of available LTF products and the severity of the second wave/national R-number. That requirement, combined with high global freight and insurance costs, mean that DHSC must make substantial purchases of tests during a short manufacturing window. 5. DHSC has been tasked with ensuring security of supply of a critical consumable asset (Lateral Flow Antigen tests) in a volatile and competitive global market place. This initial volume manufacturing contract pursues that mandate by guaranteeing that DHSC is able to receive a stable supply of completed lateral flow test devices manufactured by a diagnostics tests manufacturing specialist, within the urgent timeframes required by the project and VFM cost.6. A market engagement exercise for DHSC was carried out at pace due to the urgent requirement. Worldwide manufacturers with tests validated for use in the UK were invited to make manufacturing proposals including licencing production and were considered on the basis of a range of criteria including (but not limited to) cost, performance and ability to provide security of supply. GAD were identified via this process. 7. DHSC is satisfied the tests permitting use of the Negotiated procedure without prior publication (Regulation 32(2)(c)) are met:A. As far as is strictly necessary: The surge LFT capacity was identified as strictly necessary to meet the demand to scale up the testing programme in the UK.B. There are genuine reasons for extreme urgency: It is responding to COVID-19 immediately because of public health risks presenting a genuine emergency.C. The events that have led to the need for extreme urgency were unforeseeable: The Commission itself confirmed: "The current coronavirus crisis presents an extreme and unforeseeable urgency - precisely for such a situation our European rules enable public buyers to buy within a matter of days, even hours, if necessary." (Commissioner Breton, Internal Market, 01.04.2020).D. It is impossible to comply with the usual timescales in the PCR: It is not possible to comply with the timescales of another procedure due to the urgent requirement to ensure effective surge capacity.E. The situation is not attributable to the contracting authority - DHSC has not done anything to cause or contribute to the need for extreme urgency

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-028874
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/000302-2021
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

33 - Medical equipments, pharmaceuticals and personal care products


CPV Codes

33141625 - Diagnostic kits

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£3,160,000 £1M-£10M

Notice Dates

Publication Date
7 Jan 20215 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
8 Dec 20205 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT OF HEALTH AND SOCIAL CARE
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
SW1H 0EU
Post Town
South West London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified

Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

GLOBAL ACCESS DIAGNOSTICS

Open Contracting Data Standard (OCDS)

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