NIH awards $15.5M R&D contract to IDM Pharma, Inc. for life sciences research

Contract Overview

Contract Amount: $15,528,636 ($15.5M)

Contractor: IDM Pharma, 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

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to IDM PHARMA, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1934 days indicates a long-term commitment to the research area. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to a focus on scientific advancement. 4. The contract type 'COST PLUS FIXED FEE' can sometimes lead to cost overruns if not managed carefully. 5. The award was made by the National Institutes of Health, a leading biomedical research agency. 6. The contract's value of approximately $15.5 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar R&D projects. The 'COST PLUS FIXED FEE' structure necessitates close monitoring to ensure costs remain within reasonable bounds and that the fixed fee is justified by the scope of work. Without specific performance metrics or deliverables, it is difficult to definitively assess the value for money delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this research and development opportunity. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovation among bidders.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in physical, engineering, and life sciences, advancing scientific knowledge. The contract supports research and development activities, potentially leading to new discoveries and technological advancements. The geographic impact is centered in California, where the contractor is located, potentially creating local employment and economic activity. Workforce implications include the potential for highly skilled scientists, engineers, and technicians to be engaged in cutting-edge research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'COST PLUS FIXED FEE' contract type if not rigorously managed.
Limited transparency on specific research milestones and deliverables without further contract details.
The long duration could lead to scope creep or misalignment with evolving research priorities if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports critical R&D in the life sciences, aligning with NIH's mission.
The contractor is IDM Pharma, Inc., suggesting a specialized entity for this research.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment. Comparable spending benchmarks would involve analyzing other NIH R&D contracts and overall federal R&D expenditures in the life sciences to gauge the relative scale and investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The focus appears to be on larger or specialized entities capable of undertaking complex R&D projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would be tied to the contract's performance clauses, deliverables, and financial reporting requirements. Transparency is generally facilitated through contract databases, though specific research progress details may be proprietary.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Performance Monitoring Complexity (R&D)
Long Contract Duration Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to IDM PHARMA, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is IDM PHARMA, 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 historical spending pattern of the National Institutes of Health (NIH) on Research and Development contracts similar to this one?

The National Institutes of Health (NIH) is a major funder of biomedical and health-related research, consistently awarding billions of dollars annually through various contract types and grant mechanisms. Historically, NIH spending on R&D has been robust, reflecting its mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. Contracts for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) are a significant portion of this spending. Analyzing historical data reveals trends in specific research areas, average contract values, and the prevalence of different contract types like 'COST PLUS FIXED FEE'. For instance, over the past decade, NIH has seen increased investment in areas like genomics, personalized medicine, and infectious disease research, which would be reflected in the types and values of R&D contracts awarded.

How does the value of this $15.5 million contract compare to other R&D contracts awarded by NIH in the life sciences sector?

The $15.5 million award to IDM Pharma, Inc. over approximately five years (1934 days) represents a substantial investment, but its relative size needs to be contextualized within the broader NIH R&D portfolio. NIH awards a wide spectrum of R&D contracts, ranging from smaller, targeted research grants to multi-year, multi-million dollar agreements for large-scale projects or clinical trials. Contracts in the life sciences sector can easily reach tens or even hundreds of millions of dollars, especially for complex, long-term endeavors like drug development, vaccine research, or large epidemiological studies. Therefore, while $15.5 million is a significant sum, it is likely within the mid-range for a contract of this nature and duration, especially when compared to major clinical research initiatives or the development of new medical technologies.

What are the key performance indicators (KPIs) or deliverables expected under this 'Research and Development in the Physical, Engineering, and Life Sciences' contract?

Specific Key Performance Indicators (KPIs) and deliverables for R&D contracts are typically detailed within the Statement of Work (SOW) or Performance Work Statement (PWS) of the contract itself. For a contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences,' these could include the successful completion of specific research phases, the development of prototypes or methodologies, the publication of findings in peer-reviewed journals, the presentation of results at scientific conferences, or the achievement of certain scientific benchmarks (e.g., identifying a specific gene sequence, validating a diagnostic marker, or demonstrating the efficacy of a therapeutic approach). The 'COST PLUS FIXED FEE' structure implies that the contractor is reimbursed for allowable costs plus a predetermined fixed fee, making the achievement of defined research objectives crucial for successful contract performance and payment.

What is IDM Pharma, Inc.'s track record with federal R&D contracts, particularly with the NIH?

Assessing IDM Pharma, Inc.'s track record with federal R&D contracts, especially with the NIH, would involve reviewing their past performance on similar awards. This includes examining contract history for on-time delivery, adherence to budget, quality of research outcomes, and any instances of contract disputes or terminations. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) can provide insights into their past performance ratings. A positive history with NIH or other federal agencies in the life sciences R&D would indicate reliability and capability, while a history of issues might raise concerns about future performance. Without specific access to these detailed performance records, a definitive assessment of their track record is limited.

What are the potential risks associated with the 'COST PLUS FIXED FEE' (CPFF) contract type for this R&D project?

The 'COST PLUS FIXED FEE' (CPFF) contract type, while common in R&D, carries inherent risks. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as all allowable costs are reimbursed. While the fee is fixed, the total contract value can increase if costs escalate significantly. This necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable, and that the contractor is making diligent efforts to manage expenses. For the contractor, the risk lies in accurately estimating the costs to achieve the fixed fee, as underestimation can lead to reduced profit margins or even losses if unforeseen challenges arise. Effective management and clear definition of scope are critical to mitigate these risks.

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 9 PARKER, SUITE, IRVINE, CA, 47

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $4,424,433

Exercised Options: $7,912,378

Current Obligation: $15,528,636

Timeline