Retractable Technologies (NYSE:RVP) announced that it received a government contract worth more than $54.2 million for its syringes.
Little Elm, Texas-based Retractable Technologies’ contract and purchase order was made by the U.S. Health & Human Services Dept. (HHS) with a base price of $54,217,800 for a five-month period between Feb. 15, 2021, and July 14, 2021.
The total for the performance period includes a fixed price for the products — Retractable Technologies’ low dead space safety syringes — and cost reimbursement for freight, according to a news release. The contract terms allow for extensions at the option of the U.S. government for up to seven additional one-month periods.
Should all option periods be exercised by HHS, the value of the contract could increase by an additional $92,772,680, including the price of the products and freight reimbursement. The freight cost is estimated at approximately 25% of the overall price.