Award

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

DEPARTMENT OF HEALTH AND SOCIAL CARE

This public procurement record has 2 releases in its history.

TenderUpdate

18 Mar 2021 at 14:08

Award

14 Mar 2021 at 21:08

Summary of the contracting process

The recent procurement process initiated by the Department of Health and Social Care involves the manufacture of Lateral Flow Antigen tests for SARS-CoV-2, classified under diagnostic kits. This tender falls within the goods category and targets the urgent need for enhanced testing capacity in the UK, with an estimated contract value of up to £374 million. The procurement was conducted via a limited method due to extreme urgency, with the contract signed on 12th February 2021. The procurement process is currently at the award stage, following an expedited market engagement exercise aimed at securing supply amidst a volatile global market situation.

This tender presents significant growth opportunities for manufacturers specialising in diagnostic products, particularly those that can meet stringent regulatory requirements and deliver at scale. Businesses with capabilities in rapid testing solutions, especially in diagnostics and health-related products, will find this a strategic competitive arena. Given the urgency reflected in the procurement process, companies ready to respond quickly to demand fluctuations will be particularly well-suited to participate in future tenders of this nature.

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Notice Title

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

Notice Description

Manufacture of Lateral Flow Antigen tests for Sars-Covid-2 to respond to the urgent and growing need for more testing for the UK

Lot Information

Lot 1

Manufacture of Lateral Flow Antigen tests for Sars-Covid-2 to respond to the urgent and growing need for more testing for the UK

Procurement Information

The Value of Contract (inc. any possible extensions, exc. VAT) stated in this Contract Award Notice is not a committed value for the contract. Volumes supplied via this contract are forecast quarterly. The stated Value of Contract (inc. any possible extensions, exc. VAT) is an estimate based on projected volumes in the event that all potential contract extensions are enacted.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. World demand often outstrips supply. DHSC 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. That requirement means that the UK must make substantial purchases of tests.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 demand 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. 6.A market engagement exercise for DHSC was carried out at pace due to the urgent requirement. Omega Diagnostics 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 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-029b7e
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/005515-2021
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender 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
£374,000,000 £100M-£1B

Notice Dates

Publication Date
18 Mar 20214 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
12 Feb 20215 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
Not specified
Contact Email
procurement.operations@dhsc.gov.uk
Contact Phone
Not specified

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

OMEGA DIAGNOSTICS

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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