HHS awards $68M contract for burn/trauma and COVID-19 detection system

Contract Overview

Contract Amount: $68,167,100 ($68.2M)

Contractor: Philips North America LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-08

End Date: 2026-12-31

Contract Duration: 2,428 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS SYSTEM WOULD BE USED AND INTEGRATED WITHIN ROUTINE CARE FOR BURNS AND TRAUMATIC INJURIES, BUT WOULD ALSO HAVE THE POTENTIAL TO BE OF USE IN DETECTION VIRAL PNEUMONIA OF COVID 19 CASES.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02141

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $68.2 million to PHILIPS NORTH AMERICA LLC for work described as: THIS SYSTEM WOULD BE USED AND INTEGRATED WITHIN ROUTINE CARE FOR BURNS AND TRAUMATIC INJURIES, BUT WOULD ALSO HAVE THE POTENTIAL TO BE OF USE IN DETECTION VIRAL PNEUMONIA OF COVID 19 CASES. Key points: 1. Contract aims to support burn/trauma care and detect viral pneumonia like COVID-19. 2. Philips North America LLC is the sole awardee. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. This award represents a significant investment in advanced medical diagnostic technology.

Value Assessment

Rating: good

The contract value of $68.17 million over approximately 6.7 years suggests a substantial investment in R&D. Benchmarking against similar large-scale R&D contracts in medical technology is difficult without more specific details on the system's capabilities and development phases.

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. This method is generally expected to yield competitive pricing and innovative solutions.

Taxpayer Impact: Taxpayer funds are being invested in developing critical medical technologies that could have broad public health benefits, potentially improving patient outcomes and response to future pandemics.

Public Impact

Potential to improve treatment for burn and traumatic injury patients. Could aid in the early detection of viral pneumonia, including COVID-19. Supports advanced research and development in medical diagnostics. Enhances national preparedness for public health emergencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D contracts can be subject to cost overruns and scope creep.
Effectiveness of the technology for both burn/trauma and viral pneumonia detection needs to be validated.
Long contract duration may require ongoing monitoring for relevance and progress.

Positive Signals

Addresses critical healthcare needs.
Leverages advanced scientific research.
Potential for significant public health impact.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security, with significant government investment aimed at fostering innovation.

Small Business Impact

The data indicates this contract was awarded to Philips North America LLC and does not provide information on small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Health and Human Services, through the Office of Assistant Secretary for Preparedness and Response, is responsible for this award. Oversight will be critical to ensure the R&D progresses as planned and meets the stated objectives within budget.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Potential for R&D cost overruns.
Uncertainty in achieving dual-purpose diagnostic capabilities.
Long-term relevance of technology needs monitoring.
Dependence on a single awardee for critical technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $68.2 million to PHILIPS NORTH AMERICA LLC. THIS SYSTEM WOULD BE USED AND INTEGRATED WITHIN ROUTINE CARE FOR BURNS AND TRAUMATIC INJURIES, BUT WOULD ALSO HAVE THE POTENTIAL TO BE OF USE IN DETECTION VIRAL PNEUMONIA OF COVID 19 CASES.

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA LLC.

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 $68.2 million.

What is the period of performance?

Start: 2020-05-08. End: 2026-12-31.

What specific technological advancements does this system offer over existing diagnostic methods for burns, trauma, and viral pneumonia?

The provided data does not detail the specific technological advancements. However, the contract's focus on R&D suggests the system aims to integrate novel approaches for faster, more accurate, or less invasive diagnostics. Further documentation would be required to understand the unique capabilities compared to current standards of care and detection methods.

What are the key performance indicators and milestones for this R&D contract to ensure successful development and validation?

Key performance indicators and milestones are not detailed in the provided data. For an R&D contract of this magnitude and duration, typical milestones would include stages of prototype development, laboratory testing, clinical validation, and regulatory submissions. Effective oversight by HHS would involve tracking progress against these defined stages.

How will the effectiveness and cost-efficiency of this new system be evaluated post-development compared to existing solutions?

The evaluation plan for effectiveness and cost-efficiency post-development is not specified. Typically, such evaluations would involve comparative studies against current diagnostic tools, assessing diagnostic accuracy, speed, patient outcomes, and overall healthcare system costs. The contract's 'COST PLUS FIXED FEE' structure implies that cost management and value realization will be ongoing considerations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2 CANAL PARK 3RD FL, CAMBRIDGE, MA, 02141

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $68,167,100

Exercised Options: $68,167,100

Current Obligation: $68,167,100

Actual Outlays: $49,307,180

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline