HHS awards $2.15M contract for rapid flu test development, focusing on R&D in biotechnology

Contract Overview

Contract Amount: $2,148,974 ($2.1M)

Contractor: Sherlock Biosciences, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-07-23

Contract Duration: 661 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: DEVELOPMENT OF A LOW-COST, POINT-OF-NEED MOLECULAR TEST FOR FLU A+B AND SELF-COLLECTED SWAB SPECIMENS.

Place of Performance

Location: WATERTOWN, MIDDLESEX County, MASSACHUSETTS, 02472

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to SHERLOCK BIOSCIENCES, INC. for work described as: DEVELOPMENT OF A LOW-COST, POINT-OF-NEED MOLECULAR TEST FOR FLU A+B AND SELF-COLLECTED SWAB SPECIMENS. Key points: 1. Contract focuses on developing a low-cost, point-of-need molecular test for Flu A+B. 2. The project aims to enable self-collection of swab specimens for testing. 3. Research and Development in Biotechnology (except Nanobiotechnology) is the primary NAICS code. 4. The contract is a definitive contract with a Cost Sharing payment type. 5. The contract duration is 661 days, ending in July 2026. 6. The awardee, Sherlock Biosciences, Inc., is based in Massachusetts.

Value Assessment

Rating: fair

This contract represents a modest investment in R&D for a specific diagnostic tool. Benchmarking value is difficult without more detailed cost breakdowns or comparisons to similar development contracts. The 'Cost Sharing' payment type suggests the government is not bearing the full financial risk, which can be a positive indicator, but the overall value proposition depends heavily on the successful development and eventual market viability of the test. The award amount of $2.15 million is relatively small for a multi-year R&D effort, suggesting a focused scope.

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 process is generally expected to yield competitive pricing and innovative solutions. The specific number of bidders is not provided, but the full and open nature suggests a robust competition was sought.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value and encourages market innovation, potentially leading to lower costs for future government procurements.

Public Impact

The primary beneficiaries are public health initiatives aimed at combating influenza. The contract will deliver advancements in diagnostic testing technology for influenza. Geographic impact is national, focusing on improving flu detection capabilities across the US. Workforce implications include supporting R&D personnel in the biotechnology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The success of the R&D is contingent on technological breakthroughs and market adoption.
Cost sharing may limit the contractor's investment if perceived risks are too high.
The relatively small award amount might constrain the scope and speed of development.

Positive Signals

Focus on a critical public health need (influenza testing).
Development of a low-cost, point-of-need solution addresses accessibility issues.
Self-collection capability enhances user convenience and potential for widespread use.
Full and open competition suggests a competitive process for selecting the best solution.

Sector Analysis

This contract falls within the Biotechnology R&D sector, a rapidly evolving field focused on leveraging biological systems for technological advancement. The market for diagnostic tests, particularly for infectious diseases like influenza, is substantial and driven by public health needs and technological innovation. This contract aligns with government efforts to bolster domestic capabilities in developing advanced medical countermeasures and diagnostic tools, potentially reducing reliance on foreign suppliers and improving response times during health crises. Comparable spending in this area can vary widely based on the stage of development and specific technology.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. However, without further information on subcontracting plans or the size of the awardee, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Preparedness and Response (ASPR). Mechanisms likely include regular progress reports from the contractor, milestone reviews, and financial audits to ensure adherence to the contract terms and effective use of funds. Transparency is generally maintained through contract award databases and public reporting, though specific R&D details may be proprietary.

Related Government Programs

Influenza Surveillance Programs
Biotechnology Research and Development Initiatives
Diagnostic Test Development Contracts
Public Health Emergency Preparedness

Risk Flags

Technological feasibility risk
Market adoption uncertainty
Schedule adherence challenges
Cost overrun potential (despite cost sharing)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to SHERLOCK BIOSCIENCES, INC.. DEVELOPMENT OF A LOW-COST, POINT-OF-NEED MOLECULAR TEST FOR FLU A+B AND SELF-COLLECTED SWAB SPECIMENS.

Who is the contractor on this award?

The obligated recipient is SHERLOCK BIOSCIENCES, INC..

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 $2.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-07-23.

What is the track record of Sherlock Biosciences, Inc. in developing similar diagnostic technologies?

Sherlock Biosciences, Inc. is known for its work in CRISPR-based molecular diagnostics. They have developed platforms that can detect various targets, including infectious diseases. Their technology aims to provide rapid, accurate, and accessible diagnostic solutions. While specific details on their past government contracts for influenza diagnostics are not immediately available in this dataset, their core business revolves around developing innovative molecular detection systems. The success of this contract will depend on their ability to adapt their existing technology or develop new applications specifically for Flu A+B detection, meeting the cost and point-of-need requirements outlined in the contract.

How does the $2.15 million award compare to typical R&D investments for similar diagnostic tests?

The $2.15 million award for the development of a low-cost, point-of-need molecular test for Flu A+B is on the lower end for a multi-year R&D project, especially considering the complexities of developing novel diagnostic platforms. Typical R&D investments for such technologies can range from several million to tens of millions of dollars, depending on the stage of development, the novelty of the approach, and the scope of clinical validation required. This award suggests a focused scope, possibly building upon existing foundational technology or targeting specific performance milestones. It may represent an initial phase of development, with potential for follow-on funding if milestones are met. Benchmarking is challenging without knowing the specific technological approach and the required validation.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include technological risk (the developed test may not meet performance specifications or be cost-effective), market adoption risk (even if successful, the test may not be widely adopted by healthcare providers or consumers), and schedule risk (development may take longer than anticipated). Mitigation strategies are likely embedded within the contract's structure. The 'Cost Sharing' payment type indicates the contractor shares in the financial risk, incentivizing efficient development. The phased approach with defined milestones (implied by the contract duration and R&D nature) allows for periodic assessment and potential termination if progress is unsatisfactory. Full and open competition also helps mitigate risk by selecting a contractor with a demonstrated capability.

What is the expected program effectiveness and impact on public health preparedness?

The expected program effectiveness hinges on the successful development of a reliable, low-cost, and easy-to-use molecular test for Flu A+B. If achieved, this could significantly enhance public health preparedness by enabling rapid and accurate diagnosis at the point of need, potentially outside traditional laboratory settings. This would allow for quicker treatment decisions, better tracking of influenza outbreaks, and more informed public health responses during flu seasons or pandemics. Improved diagnostic capabilities can reduce the burden on healthcare systems and potentially mitigate the spread of the virus. The self-collection feature further enhances accessibility and scalability.

What are the historical spending patterns for influenza diagnostic development within HHS?

Historical spending patterns within HHS for influenza diagnostic development have likely varied significantly over time, influenced by the perceived threat of seasonal flu and the emergence of novel influenza strains (like H1N1). Funding often supports research into more sensitive and rapid detection methods, including molecular assays, beyond traditional culture-based methods. Investments may also target improving point-of-care diagnostics and tests that can differentiate between various respiratory pathogens. Specific historical dollar amounts for influenza diagnostic R&D are not provided in this dataset, but HHS agencies like the CDC and ASPR consistently invest in technologies that enhance disease surveillance and response capabilities, including diagnostics.

What does the 'Cost Sharing' payment type imply for the contractor's commitment and government oversight?

The 'Cost Sharing' payment type implies that the contractor, Sherlock Biosciences, Inc., will bear a portion of the project's costs, while the government (HHS) will cover the remaining share. This arrangement typically signifies a shared commitment and risk between the parties. For the contractor, it means they have a direct financial stake in the project's success, potentially leading to more diligent management and a focus on achieving cost-effective outcomes. For the government, it can be a mechanism to leverage private sector investment and expertise while ensuring the contractor is fully invested. Oversight would likely involve verifying the contractor's incurred costs to ensure the correct cost share is applied and that funds are used appropriately according to the contract.

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: BAA-18-100-SOL-00003

Offers Received: 1

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sherlock Biosciences Inc.

Address: 200 TALCOTT AVE, WATERTOWN, MA, 02472

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

Financial Breakdown

Contract Ceiling: $9,374,751

Exercised Options: $2,148,974

Current Obligation: $2,148,974

Actual Outlays: $1,441,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline