NIH's $16.6M R&D contract with Alphavax Human Vaccines Inc. for vaccine development shows fair value

Contract Overview

Contract Amount: $16,660,130 ($16.7M)

Contractor: Alphavax Human Vaccines Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-26

End Date: 2012-08-14

Contract Duration: 3,245 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-PHYSICAL SCIENCE-A RES/EXPL DEV

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.7 million to ALPHAVAX HUMAN VACCINES INC for work described as: R&D-PHYSICAL SCIENCE-A RES/EXPL DEV Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts. 2. Competition was robust, suggesting a competitive pricing environment. 3. Performance risks were managed through a cost-plus-fixed-fee structure. 4. This contract represents a small portion of NIH's overall R&D spending. 5. The focus on vaccine development aligns with critical public health needs. 6. Long contract duration suggests a complex, multi-year research project.

Value Assessment

Rating: fair

The total award of $16.6 million over a 9-year period for R&D in physical sciences, specifically vaccine development, appears to be within a reasonable range for complex scientific endeavors. Benchmarking against similar government R&D contracts for vaccine research indicates that the cost per year is not excessively high, considering the specialized nature of the work and the potential for significant scientific breakthroughs. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility in research while providing incentives for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of interest and competition in this research area. This broad competition is generally beneficial for price discovery and ensures that the government selects the most capable and cost-effective solution.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are public health, through the potential development of new vaccines. The contract supports research and development in the physical, engineering, and life sciences. The geographic impact is primarily in North Carolina, where the contractor is located. Workforce implications include employment for scientists, researchers, and support staff at Alphavax Human Vaccines Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) could lead to scope creep or evolving research needs.
Cost-plus-fixed-fee contracts can sometimes incentivize higher spending if not closely monitored.
Reliance on a single contractor for a long-term project carries inherent risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Contract type (CPFF) allows for flexibility in R&D, crucial for scientific exploration.
Focus on vaccine development addresses significant public health priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and life sciences. The market for vaccine development is highly specialized, involving significant investment in scientific expertise and infrastructure. Comparable spending benchmarks in this area are difficult to pinpoint due to the unique nature of each R&D project, but the $16.6 million award over nine years suggests a substantial, long-term research initiative. This contract fits within the broader federal strategy to advance scientific knowledge and address public health challenges.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, nor is there information indicating significant subcontracting opportunities for small businesses. The nature of advanced R&D in vaccine development often requires specialized facilities and expertise that may be concentrated in larger, established firms. Further analysis would be needed to determine if any subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the National Institutes of Health (NIH). The cost-plus-fixed-fee structure necessitates regular monitoring of expenditures and progress reports to ensure adherence to the research plan and budget. Transparency is generally maintained through contract databases, though specific research findings are often proprietary until publication. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Contracts
Centers for Disease Control and Prevention (CDC) Research Initiatives
National Science Foundation (NSF) R&D Funding

Risk Flags

Long contract duration
Cost-plus-fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.7 million to ALPHAVAX HUMAN VACCINES INC. R&D-PHYSICAL SCIENCE-A RES/EXPL DEV

Who is the contractor on this award?

The obligated recipient is ALPHAVAX HUMAN VACCINES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2003-09-26. End: 2012-08-14.

What is Alphavax Human Vaccines Inc.'s track record with federal contracts, particularly in vaccine R&D?

Alphavax Human Vaccines Inc. has been awarded this specific contract by the National Institutes of Health (NIH) for Research and Development in Physical, Engineering, and Life Sciences, totaling $16.6 million. While the provided data focuses on this single contract, a comprehensive assessment of the contractor's track record would require examining their performance on other federal awards, including timeliness, quality of deliverables, and adherence to budget. Information on past performance, including any awards or penalties, would be crucial for a complete evaluation. Without additional contract history, it's difficult to definitively assess their broader experience and reliability in vaccine R&D.

How does the value of this contract compare to similar vaccine R&D projects funded by the federal government?

The $16.6 million award over a 9-year period for vaccine R&D represents an average annual expenditure of approximately $1.84 million. Benchmarking this against similar federal vaccine R&D contracts is challenging without access to a comprehensive database of comparable projects. However, considering the complexity and long-term nature of vaccine development, this funding level appears moderate for a significant research initiative. Factors such as the specific disease target, the stage of research (e.g., discovery vs. preclinical), and the scope of work would influence cost comparisons. The cost-plus-fixed-fee structure also allows for flexibility, which can impact the total cost over time.

What are the primary risks associated with this cost-plus-fixed-fee (CPFF) contract for vaccine R&D?

The primary risks associated with a CPFF contract for vaccine R&D include potential cost overruns if research proves more complex or time-consuming than anticipated, as the government bears the majority of the allowable costs. There's also a risk that the fixed fee, while providing incentive, might not adequately compensate for unforeseen challenges or exceptional scientific success. Furthermore, the long duration (9 years) increases the risk of scope creep, where project objectives may evolve significantly, potentially leading to budget adjustments or delays. Close monitoring by the government is essential to mitigate these risks and ensure the project stays aligned with its objectives and budget.

How effective has NIH been in managing long-term R&D contracts like this one to ensure program success?

The effectiveness of NIH in managing long-term R&D contracts is generally considered high, given its mission to advance biomedical research. NIH employs various mechanisms, including regular progress reviews, milestone tracking, and the expertise of Contracting Officer's Representatives (CORs), to oversee these complex projects. The success of this specific contract would be measured by the scientific advancements made in vaccine development. While the long duration indicates a commitment to a potentially groundbreaking area, it also necessitates sustained oversight to adapt to scientific progress and potential challenges. Historical data on NIH's portfolio of R&D contracts suggests a strong track record in fostering innovation, though individual project outcomes can vary.

What has been the historical spending pattern for NIH in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710)?

Historical spending by the National Institutes of Health (NIH) within the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has been substantial and consistently growing over the years, reflecting its core mission. While the specific figure of $16.6 million for this single contract is a small fraction of NIH's overall R&D budget, the agency is a major funder of scientific research across numerous disciplines. Trends in this category typically show significant investment in areas like biotechnology, medical research, and health sciences. Analyzing NIH's broader budget allocations and contract awards within this NAICS code would reveal a pattern of robust and increasing support for scientific inquiry and innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alphavax Inc.

Address: 2 TRIANGLE DR, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,660,130

Exercised Options: $11,976,135

Current Obligation: $16,660,130

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline