DLA Orders Abbott COVID-19 Test Kits for HHS Through $255M Contract Award

An Abbott Laboratories (NYSE: ABT) business segment has secured an approximately $255 million indefinite-delivery/indefinite-quantity contract from the Defense Logistics Agency for 50 million units of a rapid point-of-care antigen test for COVID-19.

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Abbott Rapid DX North America will produce and supply its BinaxNOW COVID-19 Ag Card in support of the Department of Health and Human Services’ initial requirement for SARS-CoV-2 antigen test kits, the Department of Defense said Wednesday.

The company will conduct work in Florida and Maine, and is expected to complete deliveries under the eight-month contract by the end of October.

The contract has no option periods but has a ceiling value of $766.4 million. It will be funded by HHS’ Office of Assistant Secretary of Health.

BinaxNOW is developed to provide results within 15 minutes. Tens of millions of portable rapid tests are shipped monthly to meet requirements, according to the company.

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