HHS Could Spend Billions to Combat Ventilator Shortages
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The Department of Health and Human Services is seeking companies that can produce 100,000 or more ventilators to help combat Covid-19, according to request for information released on March 21.
According to the RFI, the government is seeking to:
- Identify manufacturers that have the current capability to produce ventilators.
- Identify manufacturers that are able to quickly modify their current capabilities to produce ventilators.
- Use this information to develop strategies that may be used to support COVID-19 emergency response effort.
Responses to the RFI are due today, March 24, at 6 p.m. Eastern time.
Interested contractors should provide information for multiple scenarios of price and quantity, for as few as 5,000 ventilators to a maximum of 100,000. Additional purchases may be necessary. The government may also buy associated consumables. Minimum requirements for the ventilators can be found here.
No estimate for the value of this contract was provided. In September 2019, HHS purchased a ventilator and anesthesia machine for about $43,000 and purchases of portable ventilators have been between $24,000 to $28,000, according to Bloomberg Government data. On GSA Advantage, an online federal purchasing gateway, a ventilator can be found for about $4,000.
Based on the $4,000 cost of a ventilator and the requirement of 100,000, this contract could be worth at least $400 million. If the costs are at higher end of the range — $28,000 or $43,000 — obligations for 100,000 ventilators rise to billions of dollars.
To contact the analyst: Robert Levinson in Washington, D.C. at firstname.lastname@example.org
To contact the editors responsible for this story: Daniel Snyder at email@example.com; Jodie Morris at firstname.lastname@example.org
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