HHS awards $41.3M for wastewater surveillance, with Verily Life Sciences as prime contractor

Contract Overview

Contract Amount: $41,290,503 ($41.3M)

Contractor: Verily Life Sciences LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-12

End Date: 2026-08-06

Contract Duration: 937 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WASTEWATER SURVEILLANCE TESTING

Place of Performance

Location: SOUTH SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94080

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.3 million to VERILY LIFE SCIENCES LLC for work described as: WASTEWATER SURVEILLANCE TESTING Key points: 1. Contract value represents a significant investment in public health infrastructure. 2. Competition dynamics suggest a robust market for advanced health surveillance technologies. 3. Performance risk appears moderate given the definitive contract type and duration. 4. This contract aligns with national priorities for infectious disease monitoring. 5. The sector is characterized by rapid technological advancement and evolving data needs.

Value Assessment

Rating: good

The contract value of $41.3 million for wastewater surveillance testing appears reasonable when benchmarked against similar public health data analysis contracts. While direct comparisons are challenging due to the specialized nature of wastewater surveillance, the duration of the contract (over two years) and the scope of services suggest a fair price. The firm-fixed-price structure provides cost certainty for the government, indicating good value for money if performance objectives are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with nine bidders participating. This high level of competition is a positive indicator, suggesting that the market has multiple capable vendors. It likely contributed to achieving a competitive price and ensured that the government selected a vendor with strong technical capabilities and a competitive offering.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it drives down costs and encourages innovation among vendors, leading to better service delivery.

Public Impact

Benefits public health agencies by providing critical data for disease outbreak detection and monitoring. Delivers essential services for tracking infectious diseases through wastewater analysis. Geographic impact is national, supporting surveillance efforts across the United States. Workforce implications include potential for specialized data science and public health roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for data integration challenges across different surveillance systems.
Ensuring data privacy and security for sensitive public health information is paramount.
Reliance on a single prime contractor for a critical national surveillance program requires robust oversight.

Positive Signals

Strong competition indicates a healthy market and potential for innovation.
Firm-fixed-price contract provides cost predictability.
Long-term contract duration allows for sustained program development and impact.

Sector Analysis

The contract falls within the broader health IT and public health services sector, a rapidly growing area driven by increased focus on data analytics and disease surveillance. The market for such services is competitive, with a mix of established health data companies and emerging technology firms. Spending in this area has seen significant growth, particularly post-pandemic, as governments recognize the value of proactive health monitoring.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. However, the prime contractor, Verily Life Sciences LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Centers for Disease Control and Prevention (CDC) program officials. Accountability measures are embedded within the contract's performance work statement and deliverables. Transparency is facilitated through contract award databases and public reporting requirements, though specific operational details may remain proprietary.

Related Government Programs

National Wastewater Surveillance System (NWSS)
Public Health Data Modernization Initiative
Infectious Disease Surveillance Programs
Health Information Technology Services

Risk Flags

Contract performance monitoring required.
Data security and privacy protocols critical.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.3 million to VERILY LIFE SCIENCES LLC. WASTEWATER SURVEILLANCE TESTING

Who is the contractor on this award?

The obligated recipient is VERILY LIFE SCIENCES LLC.

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 $41.3 million.

What is the period of performance?

Start: 2024-01-12. End: 2026-08-06.

What is Verily Life Sciences LLC's track record with federal health surveillance contracts?

Verily Life Sciences LLC, an Alphabet subsidiary, has a growing portfolio in health and life sciences. While specific federal wastewater surveillance contracts may be limited, they have experience with large-scale data analysis and health-related projects, including collaborations with government agencies on health data initiatives. Their track record includes work on disease modeling and public health informatics. Assessing their specific performance on this contract will require monitoring deliverables and adherence to timelines. The company's background in technology and data science suggests a strong capability for handling complex analytical tasks required for wastewater surveillance.

How does the $41.3 million contract value compare to historical federal spending on similar surveillance programs?

Direct historical comparisons for wastewater surveillance testing contracts of this specific scope and value are challenging due to the relatively nascent stage of widespread federal investment in this precise area. However, broader federal spending on infectious disease surveillance, public health data analytics, and laboratory testing services runs into billions annually. This $41.3 million award represents a significant, targeted investment in enhancing national wastewater surveillance capabilities, reflecting a strategic prioritization of this public health tool. It is likely higher than previous, more localized or pilot-phase wastewater surveillance efforts but aligns with the increasing recognition of its value for early outbreak detection.

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

Key risks include potential technical challenges in data collection and analysis, ensuring data accuracy and timeliness, and the contractor's ability to meet performance requirements over the contract's duration. Mitigation strategies are likely embedded in the contract's performance work statement, including defined deliverables, quality assurance protocols, and regular progress reviews by the CDC. The firm-fixed-price nature also incentivizes the contractor to manage costs effectively. Furthermore, the full and open competition with multiple bidders suggests a selection process that prioritized technical capability and risk management, reducing the likelihood of contractor underperformance.

How effective is wastewater surveillance as a public health tool, and what is the expected impact of this contract?

Wastewater surveillance is a highly effective, non-invasive tool for monitoring population-level health trends, including the presence and prevalence of infectious diseases (like COVID-19, polio, and influenza), antibiotic resistance, and other health indicators. It provides early warning signals, often before individuals seek clinical care, allowing public health officials to respond more rapidly to outbreaks. This contract is expected to significantly enhance the national capacity for wastewater surveillance by providing robust testing, data analysis, and reporting capabilities. The anticipated impact includes improved disease outbreak detection, better resource allocation for public health interventions, and a more comprehensive understanding of community health.

What is the typical duration and value range for federal contracts supporting public health data analysis and surveillance?

Federal contracts for public health data analysis and surveillance vary widely in duration and value depending on the specific service, scope, and agency. Contracts can range from short-term, project-specific efforts lasting a few months to multi-year Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles or definitive contracts spanning several years. Values can range from tens of thousands to hundreds of millions of dollars. Contracts supporting large-scale national initiatives, like disease surveillance systems or data modernization efforts, often fall into the multi-million dollar range and have durations of 3-5 years or more to ensure continuity and allow for program maturation. This $41.3 million contract for wastewater surveillance aligns with the higher end of typical values for significant, multi-year public health data initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-24-Q-77430

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 269 E GRAND AVE, SOUTH SAN FRANCISCO, CA, 94080

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

Financial Breakdown

Contract Ceiling: $41,290,503

Exercised Options: $41,290,503

Current Obligation: $41,290,503

Actual Outlays: $36,240,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline