HHS awards $1.01B task order for R&D in Biotechnology to Advanced Technology International

Contract Overview

Contract Amount: $1,010,801,807 ($1.0B)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-29

End Date: 2030-12-31

Contract Duration: 2,650 days

Daily Burn Rate: $381.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OT TASK ORDER 4

Place of Performance

Location: SUMMERVILLE, BERKELEY County, SOUTH CAROLINA, 29486

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.01 billion to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OT TASK ORDER 4 Key points: 1. Contract value represents a significant investment in biotechnology research and development. 2. The firm fixed-price contract type suggests a defined scope and predictable costs. 3. A long performance period (over 6 years) indicates a sustained need for these services. 4. The contract is a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 5. The awardee, Advanced Technology International, is a key player in the R&D sector. 6. The specific NAICS code points to a focus on advanced biotechnology research.

Value Assessment

Rating: good

The total value of $1.01 billion over approximately 6.5 years averages to roughly $155 million annually. This figure needs to be benchmarked against similar large-scale R&D contracts within the biotechnology sector. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This competitive process is generally expected to yield fair market prices and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value through a wide range of potential offerors.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its associated agencies, which will receive advanced biotechnology research and development services. The services delivered will contribute to advancements in biotechnology, potentially leading to new treatments, diagnostic tools, or public health solutions. The geographic impact is not specified but is likely national, given the nature of federal R&D funding. Workforce implications could include the creation or sustainment of highly skilled jobs in the biotechnology research and development sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract could lead to vendor lock-in if not managed carefully.
The complexity of biotechnology R&D can introduce unforeseen challenges and cost overruns, despite the firm fixed-price structure.
Reliance on a single task order for a significant portion of R&D funding could concentrate risk.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
Awarding under full and open competition suggests a thorough evaluation process and potential for competitive pricing.
The specific NAICS code indicates a focus on a critical and advanced scientific field.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, a rapidly evolving field critical for public health and scientific advancement. The market for biotechnology R&D is characterized by high innovation, significant investment, and a mix of large established firms and agile startups. Federal spending in this area is crucial for driving breakthroughs that may not be commercially viable in the short term. Comparable spending benchmarks would typically involve analyzing other large federal R&D grants and contracts awarded by agencies like NIH, NSF, and DoD in similar scientific domains.

Small Business Impact

The data indicates that small business participation (ss and sb flags) is not a primary focus of this specific task order, as both are marked as false. This suggests that the contract was not set aside for small businesses. While there is no explicit subcontracting requirement mentioned, the scale of the contract might necessitate the prime contractor engaging with specialized small businesses for specific R&D components, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). The firm fixed-price nature of the contract provides a degree of financial oversight by fixing costs. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by HHS program managers. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Contracts
National Science Foundation (NSF) Research Awards
Department of Defense (DoD) R&D Contracts

Risk Flags

Long contract duration may increase risk of scope misalignment.
Firm fixed-price for complex R&D can create cost pressures for contractor.
Potential for vendor lock-in due to long-term commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.01 billion to ADVANCED TECHNOLOGY INTERNATIONAL. OT TASK ORDER 4

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

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 $1.01 billion.

What is the period of performance?

Start: 2023-09-29. End: 2030-12-31.

What is the track record of Advanced Technology International (ATI) in managing large federal R&D contracts, particularly in biotechnology?

Advanced Technology International (ATI) has a history of managing complex federal research and development projects, often through Other Transaction Authority (OTA) agreements and IDIQ contracts. While specific details on their track record in large-scale biotechnology R&D task orders under firm-fixed-price structures are not immediately available from this data alone, ATI's business model often involves managing consortia of performers. Their success typically hinges on their ability to effectively coordinate multiple entities, manage project timelines, and ensure compliance with federal regulations. A deeper dive into their past performance reports and contract histories with agencies like HHS, DoD, and DHS would provide a more comprehensive understanding of their capabilities and past performance in this specific domain.

How does the annual spending rate of approximately $155 million compare to other major federal biotechnology R&D investments?

An annual spending rate of approximately $155 million for a single biotechnology R&D task order is substantial and places it among significant federal investments in the sector. For context, major federal agencies like the National Institutes of Health (NIH) award billions annually across numerous research grants and contracts. However, individual large-scale R&D contracts or task orders of this magnitude are less common. For instance, Biomedical Advanced Research and Development Authority (BARDA) often awards large contracts for specific medical countermeasures, which can reach hundreds of millions. Comparing this to other specific task orders or IDIQ contract ceilings within HHS or other science-focused agencies would be necessary for a precise benchmark. Generally, this level of funding indicates a high-priority research area for the government.

What are the primary risks associated with a firm-fixed-price contract for complex biotechnology R&D over a 6.5-year period?

The primary risks with a firm-fixed-price (FFP) contract for complex biotechnology R&D over an extended period like 6.5 years revolve around scope definition and unforeseen scientific challenges. For the contractor, the risk is that the fixed price may not adequately cover the costs if R&D proves more difficult or expensive than anticipated, potentially leading to financial losses. For the government, the risk is that the contractor might cut corners to maintain profitability, or that the fixed scope may become misaligned with evolving scientific understanding or national priorities over the long performance period. While FFP provides cost certainty, it can disincentivize innovation if the contractor is overly focused on cost containment rather than exploring novel approaches. Effective oversight and clear communication channels are crucial to mitigate these risks.

What does the specific NAICS code 541714 (Research and Development in Biotechnology (except Nanobiotechnology)) imply about the nature of the work being funded?

The NAICS code 541714 signifies that the contract is focused on research and development activities specifically within the field of biotechnology, excluding nanobiotechnology. This typically includes work in areas such as genetic engineering, molecular biology, bioprocess engineering, and the development of biological products and processes. Examples could range from developing new vaccines and therapeutics to creating genetically modified organisms for industrial or agricultural purposes, or advancing diagnostic tools. The exclusion of nanobiotechnology suggests the funding is directed towards macro-level biological systems and processes rather than research at the nanoscale.

Given this is a task order, what are the potential implications for future spending and the overall IDIQ contract it falls under?

This award is a task order issued under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. This implies that the IDIQ vehicle itself was previously competed and established to allow for multiple task orders to be issued over its lifetime. The significant value of this single task order ($1.01 billion) suggests that the overall IDIQ contract has a substantial ceiling and is a critical mechanism for the agency (HHS/ASPR) to procure biotechnology R&D services efficiently. Future spending under this IDIQ could involve additional task orders, potentially for different R&D projects or to extend current efforts. The existence of this large task order indicates a sustained, high-priority need for the services covered by the IDIQ, and it may influence the competitive landscape for future task orders issued under the same vehicle.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

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

Financial Breakdown

Contract Ceiling: $1,010,801,807

Exercised Options: $1,010,801,807

Current Obligation: $1,010,801,807

Actual Outlays: $289,356,067

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50123D00005

IDV Type: IDC

Timeline