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<blockquote data-quote="Babagounj" data-source="post: 900275" data-attributes="member: 12952"><p>[h=1]Cost, need questioned in $433-million smallpox drug deal[/h] [h=2]A company controlled by a longtime political donor gets a no-bid contract to supply an experimental remedy for a threat that may not exist.[/h] By David Willman, Los Angeles Times November 13, 2011</p><p> </p><p> Reporting from Washington— </p><p> 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.</p><p></p><p>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 <a href="http://www.latimes.com/topic/politics/parties-movements/democratic-party-ORGOV0000005.topic" target="_blank">Democratic Party</a> donor.</p><p></p><p> When Siga complained that contracting specialists at the Department of Health and Human Services were resisting the company's financial demands, senior officials replaced the government's lead negotiator for the deal, interviews and documents show.</p><p></p><p>When Siga was in danger of losing its grip on the contract a year ago, the officials blocked other firms from competing.</p><p></p><p>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. 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.</p><p></p><p>Once feared for its grotesque pustules and 30% death rate, smallpox was eradicated worldwide as of 1978 and is known to exist only in the locked freezers of a Russian scientific institute and the U.S. government. There is no credible evidence that any other country or a terrorist group possesses smallpox.</p></blockquote><p></p>
[QUOTE="Babagounj, post: 900275, member: 12952"] [h=1]Cost, need questioned in $433-million smallpox drug deal[/h] [h=2]A company controlled by a longtime political donor gets a no-bid contract to supply an experimental remedy for a threat that may not exist.[/h] By David Willman, Los Angeles Times November 13, 2011 Reporting from Washington— 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. 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 [URL="http://www.latimes.com/topic/politics/parties-movements/democratic-party-ORGOV0000005.topic"]Democratic Party[/URL] donor. When Siga complained that contracting specialists at the Department of Health and Human Services were resisting the company's financial demands, senior officials replaced the government's lead negotiator for the deal, interviews and documents show. When Siga was in danger of losing its grip on the contract a year ago, the officials blocked other firms from competing. 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. 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. Once feared for its grotesque pustules and 30% death rate, smallpox was eradicated worldwide as of 1978 and is known to exist only in the locked freezers of a Russian scientific institute and the U.S. government. There is no credible evidence that any other country or a terrorist group possesses smallpox. [/QUOTE]
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