- Feb 23, 2005
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I have to be honest. On the campaign trail, he really sounded good 3 years ago. Here's yet the latest campaign promise broken.
First, the context.
His promise (From his campaign website)
OK, fair enough. It does say "nearly"
And now the promise turned into action:
In this memo released on March 4, 2009, Obama says:
OK.
So, what about Siga?
Oh well. So much for promises and executive memos.
First, the context.
His promise (From his campaign website)
End Abuse of No-Bid Contracts: Barack Obama and Joe Biden will end abuse of no-bid contracts by requiring that nearly all contract orders over $25,000 be competitively awarded.
OK, fair enough. It does say "nearly"
And now the promise turned into action:
In this memo released on March 4, 2009, Obama says:
When awarding Government contracts, the Federal Government must strive for an open and competitive process.
It is the policy of the Federal Government that executive agencies shall not engage in noncompetitive contracts except in those circumstances where their use can be fully justified and where appropriate safeguards have been put in place...
OK.
So, what about Siga?
But theres more. The U.S. biodefense stockpile contains 300 million doses of smallpox vaccine, enough for every eligible man, woman and child. An anti-viral drug would be needed only for people who were exposed to the smallpox virus but couldnt get the vaccine within four days of exposure.
- Siga was given the contract for 1.7 million doses of the drug, called ST-246, for about $255 per dose, well above the $170 that government contract specialists had considered fair and reasonable. (By contrast, the vaccine costs about $3 a dose.)
- Siga was offered the contract on a sole source procurement basis meaning that no other company was asked to bid.
- When government contracting specialists balked at both the huge markup permitted to the company and the sole-source arrangement, a political appointee, Assistant Secretary of Health and Human Services Nicole Lurie, replaced the lead negotiator.
Theres also a problem with testing such a drug: For ethical reasons, it cant be tested for efficacy you cant expose people to a lethal virus purposely in a clinical trial so theres no guarantee that the drug will work. And that creates yet another wrinkle: In the absence of a verified imminent threat, the FDA is unlikely to approve such a product without proof of its efficacy. An FDA official admitted there is no clear regulatory path to the approval of such drugs. DHHS officials were well aware of this glitch.
What could have spurred the Obama administration not only to make but to insist on this deal with Siga? Well, as Deep Throat said to Bob Woodward in All The Presidents Men, Follow the money. Always follow the money. According to David Willman, writing in the Los Angeles Times, the companys controlling stockholder David Perelman and others at Sigas affiliate, MacAndrews & Forbes, have long been major political donors. They gave a total of $607,550 to federal campaigns for the 2008 and 2010 elections, according to records compiled by the Center for Responsive Politics. About 65% of that money went to Democrats. Perelman donated an additional $50,000 to President Obamas inauguration.
Oh well. So much for promises and executive memos.