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No Bid Failure

- November 14, 2011

The Obama Administration Awards A $433 Million No-Bid Contract To A Campaign Contributor Whose Company Is Making Triple Digit Profits Off Of Taxpayer Money

PROMISE: In 2008, Obama Promised To End “No-Bid Contracts Once And For All.” OBAMA:  "And I will finally end the abuse of no-bid contracts once and for all - the days of sweetheart deals for Halliburton will be over when I'm in the White House. (Barack Obama, Remarks in La Crosse, Wisconsin, 10/1/08)

Watch Obama Promise To End No-Bid Contracts 

FAILURE:  Politifact Rates Obama’s Promise To End No-Bid Contracts Broken. (Wes Allison, “End No-Bid Contracts Above $25,000,” Politifact1/6/10) 

  • Politifact: “It was the political equivalent of Barack Obama's eyes being too big for his stomach.” (Wes Allison, “End No-Bid Contracts Above $25,000,” Politifact1/6/10)
  • Obama Has Put No Limits On No-Bid Contracts. “Indeed, since Obama took office, none of the instructions from the White House's Office of Management and Budget -- which serves as the administration's controller -- has put any limits on the value of no-bid contracts.” (Wes Allison, “End No-Bid Contracts Above $25,000,”Politifact1/6/10)

“Over The Last Year, The Obama Administration Has Aggressively Pushed A $433-Million Plan To Buy An Experimental Smallpox Drug, Despite Uncertainty Over Whether It Is Needed Or Will Work.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

Siga “Was The Only Company Asked To Submit A Proposal.” “Siga was awarded the final contract in May through a ‘sole-source’ procurement in which it was the only company asked to submit a proposal.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

Obama Officials “Have Taken Unusual Steps” To Give The Contract To “A Longtime Democratic Party Donor.” “Senior officials have taken unusual steps to secure the contract for New York-based Siga Technologies Inc., whose controlling shareholder is billionaire Ronald O. Perelman, one of the world's richest men and a longtime Democratic Party donor.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

  • Andrew Stern, The Former President Of The SEIU - A “Wellspring Of Campaign Money” - Is On Siga’s Board. “In June 2010, Siga further heightened its presence in Washington by naming to its board Andrew Stern, former head of the Service Employees International Union and a frequent visitor to the Obama White House. The union is a wellspring of campaign money and volunteers for Democratic candidates.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

“When Siga Was In Danger Of Losing Its Grip On The Contract A Year Ago, The Officials Blocked Other Firms From Competing.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

The Price Per Dose Charged By Siga Is “Well Above” A Price That Was Considered To Be “Reasonable” By Government Specialists. “The contract calls for Siga to deliver 1.7 million doses of the drug for the nation's biodefense stockpile. The price of approximately $255 per dose is well above what the government's specialists had earlier said was reasonable, according to internal documents and interviews.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

  • “In An Internal Memo In March, Dr. Richard J. Hatchett, Chief Medical Officer For HHS' Biodefense Preparedness Unit, Said Siga's Projected Profit At That Point Was 180%, Which He Called ‘Outrageous.’” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times,11/13/11)

SIGA’S DRUG HAS NOT BEEN APPROVED BY THE FDA

“The Government's Pursuit Of Siga's Product Raises The Question: Should The U.S. Buy An Unproven Drug For Such A Nebulous Threat?” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

Siga’s Drug Can’t Be Tested On Humans “Because Of Ethical Restraints,” So It’s Not Sure To Work. “Siga's drug, an antiviral pill called ST-246, would be used to treat people who were diagnosed with smallpox too late for the vaccine to help. Yet the new drug cannot be tested for effectiveness in people because of ethical constraints — and no one knows whether animal testing could prove it would work in humans.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

The FDA Says There Is “No Clear Regulatory Path” For Approving Drugs Like Siga’s ST-246. “In May of this year, Robert G. Kosko Jr., a manager in the FDA's antiviral-products division, wrote that there was ‘no clear regulatory path’ for approving antiviral drugs for smallpox — again because of the uncertainty surrounding proof of effectiveness.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

  • Gary Disbrow, A Virologist At HHS On The FDA: “My interpretation of their current position is that there is NO foreseeable path to licensure.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times11/13/11)

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