HHS Awards $88.9M Contract for Biological Sample Storage and Distribution to ATCC

Contract Overview

Contract Amount: $88,943,568 ($88.9M)

Contractor: American Type Culture Collection

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-30

End Date: 2028-09-26

Contract Duration: 2,553 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOLOGICAL SAMPLE STORAGE AND DISTRIBUTION FOR MCM EVALUATION

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $88.9 million to AMERICAN TYPE CULTURE COLLECTION for work described as: BIOLOGICAL SAMPLE STORAGE AND DISTRIBUTION FOR MCM EVALUATION Key points: 1. Contract awarded to American Type Culture Collection (ATCC) for biological sample management. 2. The contract supports the evaluation of Medical Countermeasures (MCM). 3. ATCC is a well-established organization in biological resource management. 4. The contract falls under R&D in Life Sciences, specifically sample storage and distribution. 5. Potential risks include supply chain disruptions and the need for specialized storage conditions.

Value Assessment

Rating: good

The contract value of $88.9M over approximately 7 years suggests a significant investment. Benchmarking against similar contracts for biological sample management and distribution is difficult without more specific details on the scope of services, but the value appears reasonable for specialized R&D support.

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 generally promotes competitive pricing and ensures the government receives the best value. The specific pricing structure is Cost Plus Fixed Fee.

Taxpayer Impact: Taxpayer funds are being used to ensure the availability and integrity of biological samples critical for evaluating medical countermeasures, potentially leading to improved public health preparedness.

Public Impact

Ensures critical biological samples are available for evaluating new medical countermeasures. Supports national preparedness for public health emergencies. Funds research and development in life sciences, potentially leading to new treatments or vaccines. The contract's duration suggests a long-term commitment to maintaining these vital resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single contractor for critical sample management.
Potential for cost overruns with Cost Plus Fixed Fee contract type.
Need for robust quality control and security measures for biological samples.

Positive Signals

Awarded through full and open competition.
Supports a critical national security and public health mission.
Contractor has established expertise in biological resource management.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. Spending in this area is crucial for innovation and national security, supporting advancements in areas like biotechnology and medical countermeasures.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. Therefore, small businesses were eligible to compete, but the awardee is likely a larger entity given the contract's scope and value.

Oversight & Accountability

Oversight will be crucial to ensure ATCC meets all contractual obligations regarding sample integrity, security, and timely distribution. The Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS is responsible for this contract's administration.

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

Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored.
Dependence on a single contractor for critical biological samples.
Potential for supply chain disruptions affecting sample availability.
Need for stringent security and quality control for sensitive biological materials.
Long contract duration requires sustained oversight and potential for scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $88.9 million to AMERICAN TYPE CULTURE COLLECTION. BIOLOGICAL SAMPLE STORAGE AND DISTRIBUTION FOR MCM EVALUATION

Who is the contractor on this award?

The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.

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 $88.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2028-09-26.

What specific metrics will be used to evaluate ATCC's performance in sample storage and distribution to ensure the integrity and usability of the biological samples?

Performance evaluation will likely involve key performance indicators (KPIs) such as sample viability rates, turnaround times for distribution requests, adherence to chain of custody protocols, and compliance with all relevant biosafety and biosecurity regulations. Regular audits and reporting by ATCC will be essential components of oversight to ensure these metrics are met and the samples remain fit for their intended purpose in MCM evaluation.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns while ensuring the quality of services provided?

The 'Fixed Fee' component of the CPFF contract provides a ceiling for the contractor's profit, incentivizing efficiency. Robust oversight by the government contracting officer and technical representatives is critical to monitor costs, review expenditures, and ensure that only allowable costs are reimbursed. Clear performance standards and deliverables tied to the fee will also help manage costs and ensure quality.

How will the government ensure the long-term availability and accessibility of these critical biological samples, especially in the event of unforeseen circumstances affecting ATCC's operations?

Contingency planning and robust contract terms are essential. This includes requiring ATCC to maintain detailed inventory records, implement redundant storage and security systems, and potentially establish backup facilities or alternative distribution plans. The contract may also include clauses for data and sample transfer to another entity if ATCC is unable to fulfill its obligations, ensuring continuity of critical research.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $88,943,568

Exercised Options: $88,943,568

Current Obligation: $88,943,568

Actual Outlays: $4,903,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50120D00013

IDV Type: IDC

Timeline