| After Considering $1 Billion Price Tag for Ventilators, White House Has Second Thoughts |
| Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=53820"><span class="small">David E. Sanger, Maggie Haberman and Zolan Kanno-Youngs, The New York Times</span></a> |
| Friday, 27 March 2020 08:30 |
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Excerpt: "A deal with General Motors and Ventec Life Systems to produce tens of thousands of the critical lifesaving devices seemed imminent. Then the announcement was pulled back."
ALSO SEE: Louisiana Governor: States Are Competing Against Each Other for Ventilators After Considering $1 Billion Price Tag for Ventilators, White House Has Second Thoughts27 March 20
The decision to cancel the announcement, government officials say, came after the Federal Emergency Management Agency said it needed more time to assess whether the estimated cost was prohibitive. That price tag was more than $1 billion, with several hundred million dollars to be paid upfront to General Motors to retool a car parts plant in Kokomo, Ind., where the ventilators would be made with Ventec’s technology. Government officials said that the deal might still happen but that they are examining at least a dozen other proposals. And they contend that an initial promise that the joint venture could turn out 20,000 ventilators in short order had shrunk to 7,500, with even that number in doubt. Longtime emergency managers at FEMA are working with military officials to sort through the competing offers and federal procurement rules while under pressure to give President Trump something to announce. |
he White House had been preparing to reveal on Wednesday a joint venture between General Motors and Ventec Life Systems that would allow for the production of as many as 80,000 desperately needed ventilators to respond to an escalating pandemic when word suddenly came down that the announcement was off.