HHS Spends $12.2M on Live Animals for Research, Not Food, to TACONIC BIOSCIENCES, INC

Contract Overview

Contract Amount: $12,203,478 ($12.2M)

Contractor: Taconic Biosciences, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2000-08-31

End Date: 2000-09-01

Contract Duration: 1 days

Daily Burn Rate: $12.2M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LIVE ANIMALS, NOT RAISED FOR FOOD

Place of Performance

Location: GERMANTOWN, COLUMBIA County, NEW YORK, 12526, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.2 million to TACONIC BIOSCIENCES, INC. for work described as: LIVE ANIMALS, NOT RAISED FOR FOOD Key points: 1. Spending is concentrated on a single vendor, TACONIC BIOSCIENCES, INC. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 3. The sector involves biological research and development, a critical but often expensive area. 4. No small business participation is indicated, potentially limiting broader economic impact.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract structure, while common for R&D, carries inherent risk of cost escalation. Benchmarking against similar research animal supply contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of price discovery and how the fixed fee was determined are not provided.

Taxpayer Impact: Taxpayer funds are allocated to research animals, supporting scientific advancement but requiring scrutiny to ensure cost-effectiveness and necessity.

Public Impact

Supports critical biomedical research potentially leading to health advancements. Funds specialized animal breeding and supply, a niche but essential industry. Raises questions about the long-term cost-effectiveness of research animal procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Lack of small business participation
Concentration on a single vendor for a specific need

Positive Signals

Supports vital scientific research
Awarded through full and open competition

Sector Analysis

This spending falls within the broader scientific research and development sector, specifically focusing on the procurement of specialized research animals. Benchmarks for this niche area are hard to establish, but significant federal investment is typical for NIH-funded research.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the specialized nature of research animal supply may favor larger, established firms, potentially excluding smaller businesses from contributing.

Oversight & Accountability

Oversight would focus on ensuring the NIH adheres to procurement regulations, justifies the need for these specific animals, and monitors the contractor's performance and cost reporting under the Cost Plus Fixed Fee structure.

Related Government Programs

All Other Animal Production
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to CPFF contract type
Lack of transparency on specific research application
No small business involvement
Single vendor reliance for specialized animals

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.2 million to TACONIC BIOSCIENCES, INC.. LIVE ANIMALS, NOT RAISED FOR FOOD

Who is the contractor on this award?

The obligated recipient is TACONIC BIOSCIENCES, 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 $12.2 million.

What is the period of performance?

Start: 2000-08-31. End: 2000-09-01.

What is the specific research purpose for these live animals, and how does it align with NIH's strategic goals?

The specific research purpose is not detailed in the provided data. However, live animals are crucial for various biomedical research areas, including disease modeling, drug testing, and understanding biological processes. Alignment with NIH's strategic goals would depend on the specific research projects funded by this contract, which typically focus on advancing fundamental knowledge and improving human health.

What are the risks associated with a Cost Plus Fixed Fee contract for research animals, and how are they mitigated?

The primary risk of a Cost Plus Fixed Fee contract is that the government may pay more than necessary if the contractor's costs are higher than anticipated, as the fixed fee is added to the actual costs incurred. Mitigation strategies include rigorous cost monitoring, detailed reporting requirements, and clear performance standards to ensure the contractor operates efficiently and ethically.

How does the procurement of these specific live animals contribute to overall research effectiveness and value for taxpayer money?

The effectiveness and value depend on the quality and suitability of the animals for the intended research, as well as the scientific outcomes achieved. If these animals are essential for groundbreaking research that leads to significant health improvements or cost savings in healthcare, the expenditure can be justified. However, continuous evaluation of research progress and cost efficiency is necessary to ensure optimal value.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Animal Production › All Other Animal Production

Product/Service Code: LIVE ANIMALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 273 HOVER AVE, GERMANTOWN, NY, 12526

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

Financial Breakdown

Contract Ceiling: $12,285,797

Exercised Options: $3,063,797

Current Obligation: $12,203,478

Timeline