NIH awards $15.5M for biomedical research to Progenics Pharmaceuticals Inc

Contract Overview

Contract Amount: $15,508,913 ($15.5M)

Contractor: Progenics Pharmaceuticals Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2008-12-31

Contract Duration: 1,934 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: TARRYTOWN, WESTCHESTER County, NEW YORK, 10591

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to PROGENICS PHARMACEUTICALS INC for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Definitive contract type with a Cost Plus Fixed Fee payment structure. 4. Contract duration of 1934 days (approximately 5.3 years). 5. Performance located in New York. 6. No small business set-aside indicated.

Value Assessment

Rating: fair

The total award of $15.5 million over approximately 5.3 years averages to about $2.9 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Cost Plus Fixed Fee structure can incentivize cost control but also carries risks of cost overruns if not managed tightly. Comparison to similar basic biomedical research contracts would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 6 bids received, this suggests a competitive environment. A healthy number of bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

Benefits the biomedical research sector by funding critical R&D activities. Services delivered likely involve scientific research and development in life sciences. Geographic impact is concentrated in New York. Workforce implications include employment for researchers and support staff in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not closely monitored.
Lack of specific performance metrics makes value assessment challenging.
Long contract duration may require periodic reviews to ensure continued relevance and efficiency.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Multiple bids received suggest market interest and potential for good pricing.
Focus on biomedical research aligns with public health priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on basic biomedical research. The market for such services is driven by government funding agencies like NIH and private pharmaceutical companies. Benchmarking would involve comparing the annual award value to other NIH grants or contracts for similar R&D activities, considering the specific research area and the contractor's expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is likely a larger entity, and the impact on the small business ecosystem would depend on whether Progenics Pharmaceuticals Inc. engages small businesses as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting on costs and progress. Transparency is generally facilitated through contract databases, though specific research outcomes may be subject to publication policies.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development Contracts
Life Sciences Research Funding

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Long contract duration may present challenges in adapting to evolving research needs.
Lack of specific performance metrics makes objective value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to PROGENICS PHARMACEUTICALS INC. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is PROGENICS PHARMACEUTICALS 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 $15.5 million.

What is the period of performance?

Start: 2003-09-15. End: 2008-12-31.

What is the track record of Progenics Pharmaceuticals Inc. in securing and performing on federal contracts?

Progenics Pharmaceuticals Inc. has a history of receiving federal funding, primarily through agencies like the Department of Health and Human Services (HHS). Analyzing their past performance on similar contracts, including adherence to timelines, budget management, and scientific output, would provide insight into their reliability. Federal contract databases can offer details on previous awards, contract types, and any reported performance issues or successes. Understanding their experience with Cost Plus Fixed Fee contracts specifically is also important, as this payment structure requires robust financial controls and reporting.

How does the $15.5 million award compare to other biomedical research contracts of similar scope?

Benchmarking this $15.5 million award requires identifying comparable contracts for basic biomedical research. Factors such as the specific research area (e.g., oncology, infectious diseases), the duration of the research, the complexity of the work, and the size and reputation of the performing institution are crucial. A preliminary comparison suggests that $15.5 million over approximately 5.3 years (around $2.9 million annually) is within a reasonable range for significant R&D projects funded by NIH. However, a detailed analysis would involve comparing the scope of work, deliverables, and the number of personnel involved in this contract against others in the same scientific domain.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biomedical R&D?

The primary risks with a CPFF contract for biomedical R&D include potential cost overruns and reduced incentive for the contractor to control expenses, as costs are reimbursed. While a fixed fee provides some incentive for efficiency, the government bears the risk of unforeseen research challenges driving up costs. For the government, effective oversight is critical to ensure that costs are reasonable and allocable to the contract. For the contractor, managing the administrative burden of detailed cost reporting and ensuring scientific progress are key challenges. The long duration of this contract (over 5 years) amplifies these risks, necessitating vigilant monitoring by the contracting agency.

What is the expected impact of this contract on advancing biomedical knowledge?

The expected impact of this contract hinges on the specific research objectives outlined in the award. As a basic biomedical research contract, its primary goal is to generate new scientific knowledge and understanding in the physical, engineering, and life sciences. This could lead to breakthroughs in disease understanding, novel therapeutic targets, or foundational insights applicable to future medical advancements. The success will be measured by the scientific publications, patents, and potential translation of findings into clinical applications or further research. The National Institutes of Health (NIH) typically funds research with the expectation of contributing to public health and scientific progress.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code evolved over the past decade?

Federal spending within the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) sector has generally seen consistent growth over the past decade, driven by significant investments from agencies like the Department of Health and Human Services (HHS), Department of Defense (DoD), and the National Science Foundation (NSF). This growth reflects a national priority on innovation, scientific advancement, and addressing complex challenges in areas such as healthcare, technology, and national security. While specific year-over-year fluctuations can occur due to budget cycles and shifting priorities, the overall trend indicates a sustained commitment to R&D funding within this broad category.

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 › N – Health 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

Address: 777 OLD SAW MILL RIVER RD, TARRYTOWN, NY, 10591

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,561,658

Exercised Options: $9,405,525

Current Obligation: $15,508,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline