HHS awards $308K for MHV-1 Plaque Assay Development to Texcell-North America, Inc

Contract Overview

Contract Amount: $30,840 ($30.8K)

Contractor: Texcell-North America, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-04-01

End Date: 2020-06-14

Contract Duration: 74 days

Daily Burn Rate: $417/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MHV-1 PLAQUE ASSAY DEVELOPMENT AND MHV-1 VIRUS PRODUCTION AND GENERATION&CHARACTERIZATION OF MASTER CELL BANK

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30,840 to TEXCELL-NORTH AMERICA, INC for work described as: MHV-1 PLAQUE ASSAY DEVELOPMENT AND MHV-1 VIRUS PRODUCTION AND GENERATION&CHARACTERIZATION OF MASTER CELL BANK Key points: 1. Contract awarded for critical viral research and development. 2. Limited competition raises questions about price discovery. 3. Potential for increased costs due to sole-source award. 4. Sector: Healthcare/Biotechnology.

Value Assessment

Rating: fair

The contract value of $308,400 for a 74-day duration appears reasonable for specialized biological services. However, without competitive bidding, it's difficult to benchmark against similar contracts for plaque assay development and cell bank generation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had submitted bids.

Taxpayer Impact: Taxpayer funds are used for critical research, but the lack of competition may lead to less efficient use of those funds.

Public Impact

Supports development of diagnostic tools for potential public health threats. Ensures availability of critical biological materials for research. Funds advanced biotechnology capabilities within the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Short contract duration may indicate urgent need or limited scope.
Lack of detailed justification for sole-source award.

Positive Signals

Supports critical NIH research mission.
Addresses specific scientific need for MHV-1 assay.
Potential for future follow-on work if successful.

Sector Analysis

This contract falls within the Biotechnology and Medical Laboratories sector, which is characterized by high R&D investment and specialized expertise. Spending in this area is crucial for public health advancements and pandemic preparedness.

Small Business Impact

The awardee, Texcell-North America, Inc., is not identified as a small business. This contract did not appear to involve small business set-asides or subcontracting opportunities.

Oversight & Accountability

The award was made via a Purchase Order by NIH. Oversight would focus on the justification for the sole-source award and the successful completion of the assay development and cell bank generation.

Related Government Programs

Medical Laboratories
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award.
Lack of competitive bidding.
Limited duration.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30,840 to TEXCELL-NORTH AMERICA, INC. MHV-1 PLAQUE ASSAY DEVELOPMENT AND MHV-1 VIRUS PRODUCTION AND GENERATION&CHARACTERIZATION OF MASTER CELL BANK

Who is the contractor on this award?

The obligated recipient is TEXCELL-NORTH AMERICA, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $30,840.

What is the period of performance?

Start: 2020-04-01. End: 2020-06-14.

What is the specific scientific justification for awarding this contract sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or proprietary technology held by a single vendor. For MHV-1 plaque assay development, it's possible Texcell-North America, Inc. possesses specialized expertise or proprietary cell lines essential for this specific virus, making competition impractical or detrimental to the research timeline.

What is the risk associated with a sole-source award for this type of research?

The primary risk of a sole-source award is the potential for overpayment due to a lack of competitive pricing. Additionally, it limits the government's exposure to a wider range of innovative solutions or alternative approaches that other qualified vendors might offer. This can also set a precedent for future sole-source awards if not properly justified.

How effective is this contract in advancing the NIH's mission for infectious disease research?

This contract is likely effective in advancing the NIH's mission by directly funding the development of essential tools (plaque assay) and resources (master cell bank) for studying MHV-1. Such advancements are critical for understanding viral behavior, developing diagnostics, and potentially informing therapeutic or vaccine strategies, thereby contributing to infectious disease preparedness and research.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4991 NEW DESIGN RD SUITE 100, FREDERICK, MD, 21703

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

Financial Breakdown

Contract Ceiling: $30,840

Exercised Options: $30,840

Current Obligation: $30,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline