HHS Awards $32.1M Contract to Cerus Corp for Pathogen Reduction Technology to Enhance Blood Safety
Contract Overview
Contract Amount: $32,121,523 ($32.1M)
Contractor: Cerus Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-30
End Date: 2029-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST SHARING
Sector: R&D
Official Description: LICENSE PATHOGEN REDUCTION TECHNOLOGY (PRT) FOR RED BLOOD CELL (RBC) COMPONENTS TO REDUCE THE RISK OF TRANSFUSION-TRANSMITTED INFECTION (TTI) BY RECOGNIZED, EMERGING, EPIDEMIC, AND ENDEMIC PATHOGENS THAT IS CAPABLE OF TREATING OVER 10 MILLION RBC COM
Place of Performance
Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520
Plain-Language Summary
Department of Health and Human Services obligated $32.1 million to CERUS CORPORATION for work described as: LICENSE PATHOGEN REDUCTION TECHNOLOGY (PRT) FOR RED BLOOD CELL (RBC) COMPONENTS TO REDUCE THE RISK OF TRANSFUSION-TRANSMITTED INFECTION (TTI) BY RECOGNIZED, EMERGING, EPIDEMIC, AND ENDEMIC PATHOGENS THAT IS CAPABLE OF TREATING OVER 10 MILLION RBC COM Key points: 1. The contract focuses on pathogen reduction technology for red blood cells, aiming to mitigate transfusion-transmitted infections. 2. Cerus Corporation, a key player in this niche, is the sole awardee. 3. Potential risks include the effectiveness of the technology against emerging pathogens and the long-term cost-benefit. 4. The sector is critical for public health preparedness and blood supply chain integrity.
Value Assessment
Rating: fair
The contract value of $32.1 million over five years appears reasonable for specialized R&D in biotechnology. Benchmarking against similar advanced medical technology development contracts is difficult due to the unique nature of pathogen reduction.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors were considered. However, the specific awardee is Cerus Corporation, implying they were selected based on their unique capabilities in PRT.
Taxpayer Impact: This investment aims to improve public health by reducing transfusion risks, potentially saving costs associated with treating transfusion-transmitted infections in the long run.
Public Impact
Enhances the safety of the nation's blood supply, protecting recipients from infectious diseases. Supports the development of advanced medical technologies crucial for public health emergencies. Addresses the risk of transfusion-transmitted infections from a wide range of known and emerging pathogens.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical technology.
- Uncertainty regarding the efficacy against all potential emerging pathogens.
- Long-term sustainability and cost-effectiveness of the technology.
Positive Signals
- Proactive approach to blood safety.
- Investment in cutting-edge biotechnology.
- Potential to prevent widespread outbreaks from contaminated blood.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, specifically focusing on medical devices and technologies. Spending in this area is often driven by public health needs and national security concerns, with significant investment required for innovation and validation.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. The focus on specialized biotechnology suggests larger, established firms are likely to possess the necessary expertise and infrastructure.
Oversight & Accountability
Oversight will be crucial to ensure Cerus Corporation meets the developmental milestones and efficacy requirements outlined in the contract. The Department of Health and Human Services, through its various agencies, will be responsible for monitoring progress and ensuring accountability.
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
- Technological obsolescence risk.
- Effectiveness against unknown pathogens.
- Long-term cost-benefit uncertainty.
- Dependence on a single supplier.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.1 million to CERUS CORPORATION. LICENSE PATHOGEN REDUCTION TECHNOLOGY (PRT) FOR RED BLOOD CELL (RBC) COMPONENTS TO REDUCE THE RISK OF TRANSFUSION-TRANSMITTED INFECTION (TTI) BY RECOGNIZED, EMERGING, EPIDEMIC, AND ENDEMIC PATHOGENS THAT IS CAPABLE OF TREATING OVER 10 MILLION RBC COM
Who is the contractor on this award?
The obligated recipient is CERUS CORPORATION.
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 $32.1 million.
What is the period of performance?
Start: 2024-09-30. End: 2029-09-30.
What is the projected impact of this technology on the overall cost of blood transfusions?
The initial investment in pathogen reduction technology is substantial. However, the long-term impact on transfusion costs is expected to be positive if it significantly reduces the incidence of transfusion-transmitted infections. Preventing even a few cases of serious infections like HIV or Hepatitis can lead to significant cost savings in treatment and management, outweighing the technology's upfront expense.
How will the effectiveness of the PRT be validated against a wide spectrum of pathogens, including novel or emerging ones?
Validation will likely involve rigorous laboratory testing against a panel of representative pathogens, followed by clinical trials. The contract's scope mentions 'recognized, emerging, epidemic, and endemic pathogens,' suggesting a phased approach to testing. Continuous monitoring and post-market surveillance will be essential to assess real-world effectiveness against unforeseen threats.
What are the contingency plans if Cerus Corporation's technology proves insufficient or faces unexpected development challenges?
Given the critical nature of blood safety, HHS likely has contingency plans. These could include exploring alternative technologies, seeking additional vendors for parallel development, or re-evaluating the procurement strategy. The contract's duration and phased approach may allow for adjustments based on performance and emerging scientific understanding.
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: BAA-23-100-SOL-00004
Offers Received: 1
Pricing Type: COST SHARING (T)
Evaluated Preference: NONE
Contractor Details
Address: 1220 CONCORD AVE STE 600, CONCORD, CA, 94520
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $188,446,002
Exercised Options: $32,121,523
Current Obligation: $32,121,523
Actual Outlays: $6,196,525
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-30
Current End Date: 2029-09-30
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2025-03-24
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