CDC awards $5.8M for Tuberculosis Trials and Consortium Services, focusing on R&D in Biotechnology

Contract Overview

Contract Amount: $5,791,545 ($5.8M)

Contractor: King County

Awarding Agency: Department of Health and Human Services

Start Date: 2021-01-01

End Date: 2026-12-31

Contract Duration: 2,190 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TUBERCULOSIS TRIALS AND CONSORTIUM SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98104

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.8 million to KING COUNTY for work described as: TUBERCULOSIS TRIALS AND CONSORTIUM SERVICES Key points: 1. Contract value of $5.8M over 5 years suggests a significant investment in ongoing research. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Research and Development in Biotechnology is a critical sector for public health advancements. 4. The contract duration of 2190 days (6 years) allows for long-term project development and data collection. 5. The 'Cost No Fee' contract type implies reimbursement of allowable costs, with profit determined separately. 6. The award to a contractor in King County, Washington, highlights regional distribution of federal R&D funding.

Value Assessment

Rating: good

The contract value of $5.8M over approximately six years averages to about $967,000 annually. Benchmarking this against similar R&D contracts in biotechnology requires access to proprietary databases. However, the 'Cost No Fee' structure, while common for R&D, necessitates careful monitoring of expenditures to ensure cost-effectiveness. The absence of a fixed price or incentive fee suggests the primary focus is on enabling research rather than strict cost control, which is typical for early-stage scientific endeavors.

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 a bid. The presence of 22 bids suggests a robust competitive environment for this research and development opportunity. A high number of bidders generally supports price discovery and can lead to more favorable terms for the government, as contractors vie for the award.

Taxpayer Impact: A competitive bidding process for R&D contracts like this one helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among potential awardees.

Public Impact

The primary beneficiaries are public health initiatives aimed at combating tuberculosis through advanced research. Services delivered include critical research and development in biotechnology, potentially leading to new diagnostic tools, treatments, or prevention strategies. The geographic impact is national, as findings from tuberculosis research have broad public health implications. Workforce implications include support for scientists, researchers, and technical staff involved in biotechnology R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects due to the inherent uncertainties of scientific discovery.
Ensuring the 'Cost No Fee' structure does not lead to inefficient resource allocation without adequate oversight.
The long contract duration could pose challenges if research priorities shift significantly over the six-year period.

Positive Signals

The 'full and open competition' process suggests a wide pool of qualified bidders, promoting innovation.
The significant investment indicates a commitment to addressing a critical public health issue (tuberculosis).
The contract's focus on R&D in biotechnology aligns with national priorities for scientific advancement.

Sector Analysis

This contract falls within the Biotechnology R&D sector, a rapidly evolving field focused on leveraging biological systems for innovation. The market for such services is driven by government funding for public health, pharmaceutical development, and scientific discovery. Comparable spending benchmarks would typically be found in analyses of NIH or CDC research grants and contracts, which often involve multi-year commitments for complex scientific projects.

Small Business Impact

The provided data does not indicate whether small businesses were specifically targeted or subcontracted. However, with 22 bidders in a full and open competition, there is a possibility that small businesses participated. Further analysis would be needed to determine the extent of small business involvement and subcontracting opportunities within this contract.

Oversight & Accountability

Oversight for this contract would likely be managed by the Centers for Disease Control and Prevention (CDC), a component of HHS. The 'Cost No Fee' structure necessitates rigorous financial oversight to ensure that all reimbursed costs are allowable, reasonable, and allocable to the contract's objectives. Transparency would be maintained through regular reporting requirements from the contractor and potentially through public dissemination of research findings, subject to any necessary confidentiality or intellectual property considerations.

Related Government Programs

Tuberculosis Research Grants
Biotechnology Research and Development Contracts
Public Health Surveillance and Research
National Institutes of Health (NIH) R&D Contracts

Risk Flags

Cost Control Risk (Cost No Fee)
Research Uncertainty Risk
Long-term Project Management Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.8 million to KING COUNTY. TUBERCULOSIS TRIALS AND CONSORTIUM SERVICES

Who is the contractor on this award?

The obligated recipient is KING COUNTY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-12-31.

What is the track record of the contractor in similar biotechnology R&D projects?

To assess the contractor's track record, a review of their past performance on similar federal contracts, particularly those involving biotechnology research and development, would be necessary. This would involve examining past performance evaluations, any documented issues or successes, and their history of meeting project milestones and budget requirements. Without specific contractor identification, a detailed analysis is not possible. However, the fact that they were awarded this contract after a full and open competition suggests they met the government's minimum qualifications and demonstrated capability in the relevant scientific domain.

How does the annual spending on this contract compare to other federal R&D investments in tuberculosis?

The annual spending for this contract averages approximately $967,000 ($5.8M / 6 years). To compare this to other federal R&D investments in tuberculosis, one would need to aggregate spending data across agencies like the CDC and NIH specifically allocated to tuberculosis research over similar periods. This would involve querying federal spending databases and research grant award information. Generally, federal investment in critical public health areas like tuberculosis can fluctuate based on disease prevalence, scientific breakthroughs, and strategic priorities. This contract represents a portion of the overall federal commitment to combating tuberculosis through scientific advancement.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

While the specific KPIs are not detailed in the provided data, contracts for R&D in biotechnology typically measure success based on scientific milestones, research output, and the potential for translation into practical applications. This could include the number of research papers published, successful completion of experimental phases, development of new methodologies or technologies, and progress towards understanding or treating tuberculosis. The 'Cost No Fee' structure implies that the government is primarily concerned with the contractor's diligent effort and progress towards defined research objectives, rather than strict adherence to a fixed budget, though cost reasonableness is still assessed.

What is the potential risk associated with the 'Cost No Fee' contract type for this R&D project?

The 'Cost No Fee' contract type, while common for R&D where outcomes are uncertain, carries a risk of cost escalation if not properly managed. The government agrees to reimburse the contractor for all allowable costs incurred, but without a fixed fee or profit margin tied to performance, there's less direct financial incentive for the contractor to control costs aggressively. The primary risk mitigation lies in robust government oversight, including detailed auditing of expenses, regular progress reviews, and clear definitions of allowable costs. The government must ensure that the contractor exercises due diligence in managing expenditures to achieve the research objectives efficiently.

How does the geographic location of the awardee (King County, WA) impact the distribution of federal R&D funding?

Awarding contracts to entities in various geographic locations, such as King County, Washington, contributes to a broader distribution of federal R&D funding across the nation. This can foster regional scientific ecosystems, support local economies through job creation and investment, and tap into diverse talent pools. While the specific scientific expertise in King County may have been a factor, the distribution of federal funds aims to support research infrastructure and innovation nationwide, rather than concentrating it solely in traditional hubs. This contract signifies federal investment in the biotechnology sector within the Pacific Northwest.

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: 75D301-20-R-67869

Offers Received: 22

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 401 5TH AVE, SEATTLE, WA, 98104

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,667,136

Exercised Options: $5,791,545

Current Obligation: $5,791,545

Actual Outlays: $3,047,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline