House Begins Probe of ‘Problematic’ COVID-19 Supply Contracts

Democrats on the House’s coronavirus crisis subcommittee have launched an investigation into federal contracts for producing drugs, drug ingredients and supplies essential in the pandemic that they claim have been awarded to businesses politically tied to the Trump administration “without competition or transparency.”

In a letter to HHS Secretary Alex Azar and other administration officials, leaders of the inquiry have requested documents and information on pandemic contracts awarded by HHS, the Department of Defense and others.

“The select subcommittee is concerned that these contracting practices may have wasted taxpayer dollars and exacerbated shortages of critical supplies,” the letter said.

The subcommittee requested complete documentation on contracts granted to certain companies, including Phlow, a new firm that was handed a $354 million contract from HHS to manufacture active pharmaceutical ingredients (APIs) and finished drugs.

HHS has defended that contract, saying the bidding process was fair and that Phlow was the only company that offered an “end-to-end solution” for continuous manufacturing to address near-term COVID-19 drug shortages as well as API and starting material production in the longer term (DID, May 21).

Read the Democrats’ letter here: www.fdanews.com/07-17-20-Letter.pdf. — James Miessler