HHS Awards $265M Contract to Paratek for Biothreat Antibiotic Treatment
Contract Overview
Contract Amount: $265,316,226 ($265.3M)
Contractor: Paratek Pharmaceuticals, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2019-12-18
End Date: 2029-12-17
Contract Duration: 3,652 days
Daily Burn Rate: $72.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: ANTIBIOTIC FOR TREATMENT OF A BIOTHREAT INDICATION
Place of Performance
Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02116
Plain-Language Summary
Department of Health and Human Services obligated $265.3 million to PARATEK PHARMACEUTICALS, INC for work described as: ANTIBIOTIC FOR TREATMENT OF A BIOTHREAT INDICATION Key points: 1. Contract awarded to Paratek Pharmaceuticals for a critical biothreat antibiotic. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans 10 years, indicating a long-term need for the product. 4. Research and Development in Biotechnology is the relevant sector. 5. The firm-fixed-price contract type aims to control costs.
Value Assessment
Rating: good
The contract value of $265.3 million over 10 years appears reasonable for a specialized biodefense pharmaceutical. Benchmarking against similar R&D contracts for novel therapeutics would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a definitive contract suggests a well-defined scope of work.
Taxpayer Impact: The investment supports national biosecurity by ensuring availability of a critical medical countermeasure, a necessary expense for public health protection.
Public Impact
Ensures availability of a critical antibiotic for potential biothreat events. Supports the development and supply chain for a vital public health resource. Invests in pharmaceutical innovation for national security purposes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may require ongoing performance monitoring.
- Dependence on a single supplier for a critical countermeasure.
Positive Signals
- Addresses a critical public health need.
- Utilizes competitive procurement.
- Firm-fixed-price contract helps manage cost uncertainty.
Sector Analysis
This contract falls within the Biotechnology R&D sector, focusing on developing treatments for biothreats. Spending in this area is crucial for national security and public health preparedness, often involving significant investment due to the complexity and risk of drug development.
Small Business Impact
The data indicates this contract was awarded to Paratek Pharmaceuticals, Inc. There is no specific information provided regarding small business participation or subcontracting opportunities within this award.
Oversight & Accountability
The Office of the Assistant Secretary for Preparedness and Response (ASPR) within HHS is responsible for this contract, indicating a focus on public health emergencies and biodefense. Oversight will likely involve monitoring research progress, manufacturing readiness, and supply chain integrity.
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
- Long-term contract duration.
- Sole-source potential if competition is limited in future phases.
- Reliance on a single pharmaceutical company for a critical countermeasure.
- Potential for cost overruns in R&D phases.
- Effectiveness against evolving or novel biothreat agents.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $265.3 million to PARATEK PHARMACEUTICALS, INC. ANTIBIOTIC FOR TREATMENT OF A BIOTHREAT INDICATION
Who is the contractor on this award?
The obligated recipient is PARATEK PHARMACEUTICALS, 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 $265.3 million.
What is the period of performance?
Start: 2019-12-18. End: 2029-12-17.
What is the specific biothreat indication this antibiotic is intended to treat, and what is the current threat level associated with it?
The specific biothreat indication is not detailed in the provided data. However, contracts of this nature typically address threats such as anthrax, plague, or other agents posing significant public health risks. The threat level would be assessed by agencies like the CDC and ASPR based on intelligence and scientific evaluation of potential biological weapon agents.
How does the per-unit cost of this antibiotic, once developed, compare to existing treatments for similar indications or other biodefense countermeasures?
A direct per-unit cost comparison is not possible at this R&D stage, as the contract focuses on development and manufacturing readiness rather than immediate large-scale procurement of finished doses. Once the product is finalized, its cost will be benchmarked against other biodefense drugs and treatments for severe infections, considering factors like efficacy, safety profile, and the cost of developing novel antibiotics.
What are the key performance indicators (KPIs) and milestones for Paratek Pharmaceuticals to ensure successful development and readiness of the antibiotic?
Key performance indicators and milestones would likely include successful completion of preclinical and clinical trials demonstrating safety and efficacy, achievement of manufacturing process validation, establishment of a robust supply chain, and readiness for rapid deployment if a biothreat event occurs. Regular reporting and government review of progress against these milestones would be integral to contract oversight.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19-100-SOL-00011
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 75 PARK PLZ FL 4, BOSTON, MA, 02116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $303,753,726
Exercised Options: $265,316,226
Current Obligation: $265,316,226
Actual Outlays: $128,650,368
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-12-18
Current End Date: 2029-12-17
Potential End Date: 2029-12-17 00:00:00
Last Modified: 2026-03-02
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