HHS awards $100M Other Transaction Prize Vehicle to Luminary Labs for Biotech R&D
Contract Overview
Contract Amount: $100,000,000 ($100.0M)
Contractor: Luminary Labs LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-09-28
End Date: 2029-09-30
Contract Duration: 2,194 days
Daily Burn Rate: $45.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: BARDA OTHER TRANSACTION PRIZE VEHICLE
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10006
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $100.0 million to LUMINARY LABS LLC for work described as: BARDA OTHER TRANSACTION PRIZE VEHICLE Key points: 1. This award utilizes an Other Transaction (OT) authority, often used for rapid prototyping and research. 2. The contract is for Research and Development in Biotechnology, a critical sector for public health. 3. Luminary Labs LLC, based in New York, is the awardee. 4. The contract has a long duration of 2194 days, ending in September 2029. 5. The total value is $100 million, with a significant portion potentially allocated to research activities.
Value Assessment
Rating: questionable
The use of an Other Transaction (OT) authority for a $100M award makes direct pricing comparison difficult. OT agreements are designed for flexibility and may not follow traditional contract pricing structures, making benchmarks like the provided 'br' value of 45579 less directly comparable to standard FAR-based contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified entities. However, the use of an OT prize vehicle may influence the price discovery process differently than a standard procurement, potentially focusing more on achieving specific milestones or outcomes rather than strict cost control.
Taxpayer Impact: The $100 million allocated to this prize vehicle represents a significant taxpayer investment in advancing biotechnology research, with the potential for substantial public health returns if successful.
Public Impact
Advancement of critical biotechnology research and development. Potential for new solutions to public health challenges. Investment in innovative approaches through prize mechanisms. Support for research entities in the biotechnology sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown due to OT authority.
- Long contract duration may introduce performance risks.
- Effectiveness of prize vehicle for achieving specific R&D goals needs monitoring.
Positive Signals
- Full and open competition ensures broad participation.
- Focus on R&D in a vital public health area.
- Potential for innovative breakthroughs.
Sector Analysis
This award falls under the Research and Development in Biotechnology sector, specifically excluding Nanobiotechnology. The biotechnology sector is characterized by high innovation, significant investment, and long development cycles. A $100 million award is substantial and indicates a major initiative within this field.
Small Business Impact
The data indicates this award was not set aside for small businesses (ss: false, sb: false). While the primary awardee is Luminary Labs LLC, the structure of an OT prize vehicle could potentially involve subcontracts or partnerships with smaller entities, though this is not explicitly stated.
Oversight & Accountability
The use of Other Transaction authority by BARDA (Biomedical Advanced Research and Development Authority) within HHS is a common oversight mechanism for accelerating research. Accountability will likely be tied to achieving defined research milestones and project outcomes rather than traditional contract deliverables.
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
- Potential for cost overruns due to OT flexibility.
- Difficulty in direct cost benchmarking.
- Long contract duration increases performance risk.
- Effectiveness of prize vehicle for specific R&D outcomes needs validation.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $100.0 million to LUMINARY LABS LLC. BARDA OTHER TRANSACTION PRIZE VEHICLE
Who is the contractor on this award?
The obligated recipient is LUMINARY LABS 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 $100.0 million.
What is the period of performance?
Start: 2023-09-28. End: 2029-09-30.
How will the success of the biotechnology research funded by this $100M prize vehicle be measured and what are the key performance indicators?
Success will likely be measured against pre-defined research milestones and project objectives outlined in the Other Transaction agreement. Key performance indicators may include the successful development of prototypes, validation of scientific hypotheses, or achievement of specific technological advancements relevant to public health preparedness. BARDA will monitor progress through regular reporting and technical reviews.
What are the primary risks associated with using an Other Transaction (OT) authority for a $100M biotechnology R&D award, and how are they being mitigated?
Key risks include potential cost overruns due to the flexible nature of OT agreements, challenges in ensuring accountability for research outcomes, and the possibility of research not yielding desired results. Mitigation strategies may involve stringent milestone tracking, clear performance expectations, and robust technical oversight by BARDA to ensure funds are used effectively towards stated R&D goals.
What is the expected impact of this $100M award on the broader biotechnology sector and on the government's ability to respond to health emergencies?
This significant investment is expected to stimulate innovation and potentially accelerate the development of novel medical countermeasures and technologies. By funding cutting-edge research through a flexible OT mechanism, the government aims to enhance its preparedness and response capabilities for future public health emergencies, fostering a more robust and agile biotechnology ecosystem.
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: 23-BARDA-PRIZE-VP
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 61 BROADWAY RM 2800, NEW YORK, NY, 10006
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $100,000,000
Exercised Options: $100,000,000
Current Obligation: $100,000,000
Actual Outlays: $11,091,081
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-28
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-02-19
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