RE: Updated DHSC Desktop Review - update this week19 Aug 2021 16:50
Yes, the contract basically says that in the worse case scenario, ODX can recoup their reasonable outlay thus far, but there are no penalties, and no minimum payment. In that scenario ODX are left with staffing levels for 2M a week capacity, when at least 1M a week of what was thought to be guaranteed capacity has just disappeared. I say at least 1M, because the infamous certainty of 2M per week in April, leads me to conclude that likely the assumption was uk gov was going to use all of their 2M per week capacity. And in that worse case scenario, what of that £17M worth of equipment. Do they hand it back (so now ODX capacity is 1M a week). Do they get billed for it ? It seemed reasonable to me (way back in feb/march), that after sustained use, the gov would probably right it off, or charge a pretty nominal fee for it. But if it's never used ?
It is a worse case scenario, it still looks more likely than not that ODX will get a gov contract at sometime However other than the fact that outside influences are changing in their favour (i.e. the determination is going to be desktop review etc), there is no news that has come from the company or the gov that gives us any better handle on the timeline to actually supply tests to uk gov, than were we were 2-3 months ago. In some ways in a worst position. Whereas the expectation 4 months+ ago was that we had a gold standard test just waiting for the gov to give the go ahead, the case is now that both the Gov timeline AND the timeline to progress the new visitect test thru usability to the point that it's fully ready to be selected has to be considered.