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Audit of HHS Sole Source Contracts Awarded for COVID-19 Testing

HHS established contracts under the Public Health and Social Services Emergency Fund to prevent, prepare for, and respond to the COVID-­19 pandemic. The contracts cover more than 600 COVID-19 testing sites in 48 states and the District of Columbia. The contracts utilize a Federal bundled payment program paid directly to retailers that receive a flat fee for each test administered, with participating retailers responsible for coordinating the full, end-to-end testing. The Federal Acquisition Regulation (FAR) guides the acquisition process by which executive agencies of the Federal Government acquire goods and services by contract with appropriated funds. The Health and Human Services Acquisition Regulation establishes uniform HHS acquisition policies and procedures that implement and supplement FAR. The contracts that HHS awarded to contractors were sole source contracts totaling approximately $1 billion for COVID-19 testing. We will review the awarding and management of contracts for COVID-19 testing to determine compliance with applicable Federal statutes, regulations, HHS policies and procedures, contract terms and conditions, and the allowability of claimed costs.

Announced or Revised Agency Title Component Report Number(s) Expected Issue Date (FY)
January 2021 ASA Audit of HHS Sole Source Contracts Awarded for COVID-19 Testing Office of Audit Services W-00-21-59453 2021