Business & Investment

Government is ready for £ 8bn immunochromatography jackpot

The government has recently established a new dynamic purchasing system to meet the ongoing supply of additional COVID-19 cross-flow testing and has allocated £ 8 billion for cross-flow testing throughout the year.

In a bid announcement released Friday, the government revealed that the total contract award could be worth £ 8 billion. From April 7, 2021 to April 6, 2022.

This bid notice essentially reads that DHSC has something like a blank check. Please note that different lots are offered based on different characteristics.

He added that even if a potential company misses the April 7, 2021 deadline, it may be eligible to receive £ 8 billion of shares as long as it meets the required criteria in the future.

The criteria have not yet been materialized, but are roughly expected to be based on the following areas:

“For these procurements in DPS, DHSC envisions using the following criteria: these criteria, where appropriate, are more accurately formulated in the bids for those procurements, lots and procurement (A) Cost. (B) Selected elements of the specification; (C) Performance requirements; (D) Contract terms; and (E) Social value. “

Lateral Flow – Dynamic Purchasing System (DPS)

Our view

This is promising news for investors in so-called “COVID” stocks. The £ 8 billion budget is clearly a significant number.

However, it is also important to be careful. As we saw in previous bid notices, these sums often make little sense in practice and do not guarantee that £ 8 billion will be spent!

Government is ready for £ 8bn immunochromatography jackpot Government is ready for £ 8bn immunochromatography jackpot

Back to top button