Find a TenderAwarded without competition
Published 14 Mar 2021, 21:08 GMT

Official UK procurement notice

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

Official notice

Authority: Department of Health & Social Care (Central government)

GoodsAward procedure without prior publication of a call for competition
Sectors: Medical Devices & Pharma (33) Delivery: UK
Awarded value£374,000,000published contract · exc. VAT
Awarded 12 Feb 2021no call for competition
Awarded to OMEGA DIAGNOSTICS LIMITED

What is being bought

Published requirement 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

CPV: Diagnostic kits

The lotProcurement structure

single lot · no lot value published
Lot #1Awarded
Delivery: UK

Procedure terms & legal framework

From the official record
Procedure method
Award procedure without prior publication of a call for competition
Legal basis
CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category
Goods
Notice status
Awarded without competition
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Direct award (no call for competition)
GPA / WTO covered
Yes (GPA)
Recurring procurement
Unspecified in notice
First published
14 Mar 2021, 21:08 GMT
Last source update
18 Mar 2021, 14:08 GMT
FTS notice number
2021/S 000-005515
Classification (CPV)
Diagnostic kits
Delivery area
UK
Official registry OCID
ocds-h6vhtk-029b7e Find a Tender
Why no open competition

Extreme urgency brought about by events unforeseeable for the contracting authority/entity and in accordance with the strict conditions stated in the directive

Published justification

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.

Notice history

2 releases on Find a Tender
Published amendments (1)

V.2.4.3/4) was omitted from original notice. It should read : V.2.4.3) Lowest offer (taken into consideration (excluding VAT): £50,000,000 V.2.4.4) Highest offer (taken into consideration (excluding VAT): £374,000,000

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £374,000,0001 contract exc. VAT
Bids received 1
Contracts signed 1latest 12 Feb 2021
Awarded toValueDateStatus
OMEGA DIAGNOSTICS LIMITEDSME£374,000,000 †—Awarded

Contracts

Bid statistics published by the authority

LotBidsSMEVCSEValid bid range
Manufacture of Lateral Flow Antigen tests for Sars-Covid-2 to respond to the urgent…1bids———
Whole notice———£50,000,000 – £374,000,000

Contracting authority & participating public bodies

Department of Health and Social Care

Contracting authorityCentral GovernmentMinistry or any other national or federal authority, including their regional or local subdivisionsHealth 39 Victoria Street, London, London, SW1H 0EUContact email

Dispute resolution & review bodies

  • The High CourtReview body LondonContact email

Bidders & participating suppliers

1 commercial party on the notice
  • OMEGA DIAGNOSTICS LIMITEDAwarded supplierSC107178 Omega House, Hillfoots Business Village, Alva, Clackmannanshire, UK, FK12 5DQ

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.