HHS Awards $30.9M to T2 Biosystems for Biothreat Detection R&D

Contract Overview

Contract Amount: $30,867,850 ($30.9M)

Contractor: T2 Biosystems, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-30

End Date: 2023-09-14

Contract Duration: 1,445 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: ADVANCE THE DEVT. OF RAPID, HIGH-THROUGHPUT, MULTIPLEXEDDETECTION OF BIOTHREAT SPECIES ID AND RESISTANCE GENES USING T2MR AS A RAPID TYPE OF COUNTERMEASURE TO DIAGNOSE BACTERIAL BIOTHREAT PATHOGENS AND BACTERIALANTIBIOTIC RESISTANCE THREATS

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.9 million to T2 BIOSYSTEMS, INC for work described as: ADVANCE THE DEVT. OF RAPID, HIGH-THROUGHPUT, MULTIPLEXEDDETECTION OF BIOTHREAT SPECIES ID AND RESISTANCE GENES USING T2MR AS A RAPID TYPE OF COUNTERMEASURE TO DIAGNOSE BACTERIAL BIOTHREAT PATHOGENS AND BACTERIALANTIBIOTIC RESISTANCE THREATS Key points: 1. Focuses on rapid detection of biothreats and antibiotic resistance genes. 2. Contract awarded to T2 Biosystems, Inc., a single entity. 3. Research and Development in Biotechnology (except Nanobiotechnology) sector. 4. Potential for significant public health impact in biodefense. 5. Contract duration spans nearly 5 years.

Value Assessment

Rating: good

The contract value of $30.9M over nearly 5 years appears reasonable for advanced R&D in a specialized biotechnology field. Benchmarking against similar complex R&D contracts is difficult without more specific details on deliverables and technological maturity.

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 data does not specify the number of bids received or the evaluation criteria, making it hard to fully assess price discovery.

Taxpayer Impact: This investment aims to enhance national security and public health by developing advanced diagnostic tools for biothreats, potentially saving lives and reducing economic impact from outbreaks.

Public Impact

Enhances national biodefense capabilities by developing rapid diagnostic tools. Addresses critical need for faster identification of dangerous pathogens and antibiotic resistance. Supports innovation in biotechnology for public health emergencies. Could lead to quicker medical interventions during biothreat events. Aims to improve preparedness against potential bioterrorism or pandemics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on specific performance metrics and milestones.
Potential for long development timelines in R&D.
Dependence on a single contractor for critical technology development.

Positive Signals

Addresses a high-priority national security and public health need.
Utilizes advanced T2MR technology for rapid detection.
Awarded through full and open competition.
Significant investment in a critical R&D area.

Sector Analysis

This contract falls within the Biotechnology R&D sector, a critical area for national security and public health. Spending in this sector often involves high upfront investment due to the complex and lengthy nature of scientific discovery and development.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). The focus on specialized biotechnology R&D may inherently favor larger, established firms with specific expertise and infrastructure.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR), indicating a focus on emergency preparedness. Oversight would involve monitoring R&D progress and adherence to contract terms.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Lack of specific technical performance metrics.
Potential for R&D delays and cost overruns.
Dependence on a single vendor for critical technology.
Limited information on competitive landscape beyond initial award.
Unclear path to commercialization or widespread deployment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.9 million to T2 BIOSYSTEMS, INC. ADVANCE THE DEVT. OF RAPID, HIGH-THROUGHPUT, MULTIPLEXEDDETECTION OF BIOTHREAT SPECIES ID AND RESISTANCE GENES USING T2MR AS A RAPID TYPE OF COUNTERMEASURE TO DIAGNOSE BACTERIAL BIOTHREAT PATHOGENS AND BACTERIALANTIBIOTIC RESISTANCE THREATS

Who is the contractor on this award?

The obligated recipient is T2 BIOSYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2019-09-30. End: 2023-09-14.

What are the key performance indicators (KPIs) and expected technological milestones for T2 Biosystems to achieve under this contract?

Key performance indicators would likely include the speed and accuracy of pathogen and resistance gene detection, the multiplexing capability of the system, and its reliability in various conditions. Milestones might involve prototype development, validation studies, and potentially regulatory submissions, demonstrating progress towards a deployable diagnostic solution for biothreat agents.

How does the government ensure continued innovation and cost-effectiveness if T2 Biosystems faces unforeseen technical challenges or market shifts during the contract period?

The government can ensure innovation and cost-effectiveness through contract clauses that allow for modifications based on performance and evolving needs, potentially incorporating new technologies or approaches. Regular progress reviews and milestone assessments provide opportunities to address challenges, renegotiate terms if necessary, or even consider alternative solutions if the current path proves unviable or excessively costly.

What is the long-term strategy for integrating and deploying the developed biothreat detection technology into national response systems?

The long-term strategy likely involves transitioning the technology from R&D to a production-ready state, followed by procurement and integration into existing public health and defense infrastructure. This could include deployment in clinical laboratories, border control points, and military facilities, supported by training programs and ongoing maintenance to ensure sustained operational readiness against biothreats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA18100SOL00003

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 101 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,986,068

Exercised Options: $30,867,850

Current Obligation: $30,867,850

Actual Outlays: $15,613,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline