HHS awards $10.7M for Filovirus/Lassa Fever Vaccine R&D to Auro Vaccines LLC

Contract Overview

Contract Amount: $10,728,083 ($10.7M)

Contractor: Auro Vaccines LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-07-21

End Date: 2026-12-31

Contract Duration: 2,354 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED DEVELOPMENT OF MULTIVALENT VACCINE CANDIDATES FOR FILOVIRUS AND LASSA FEVER

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.7 million to AURO VACCINES LLC for work described as: ADVANCED DEVELOPMENT OF MULTIVALENT VACCINE CANDIDATES FOR FILOVIRUS AND LASSA FEVER Key points: 1. Focus on critical biodefense threats: Filovirus and Lassa Fever. 2. Auro Vaccines LLC, a small entity, is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, suitable for R&D uncertainty. 4. Significant duration (2354 days) suggests complex, long-term research.

Value Assessment

Rating: fair

The $10.7M award for advanced vaccine development is a substantial investment. Benchmarking R&D costs is difficult due to unique scientific challenges and the early stage of development. The Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring of costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple potential bidders were considered. However, Auro Vaccines LLC is the sole awardee, suggesting they were uniquely qualified or offered the best value for this specific advanced development.

Taxpayer Impact: Taxpayer funds are supporting critical biodefense research, potentially leading to life-saving vaccines. The effectiveness of this investment depends on successful development and future deployment.

Public Impact

Supports development of vaccines against deadly viral hemorrhagic fevers. Enhances national biodefense capabilities against emerging infectious diseases. Investment in biotechnology sector, potentially fostering innovation. Long-term project duration may indicate significant scientific hurdles. Potential for future large-scale production contracts if successful.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost overruns.
R&D success is inherently uncertain.
Sole awardee may limit future competitive pricing.
Potential for scope creep in advanced development.

Positive Signals

Addresses critical public health threats.
Supports a specific, high-need area of research.
Utilizes a contract type appropriate for R&D.
Awarded through full and open competition.

Sector Analysis

This contract falls within the Biotechnology R&D sector, a critical area for national security and public health. Spending in this sector is often characterized by high upfront investment, long development cycles, and significant scientific risk, but also high potential returns in terms of disease prevention and treatment.

Small Business Impact

Auro Vaccines LLC is the sole awardee. While the contract was competed full and open, the specific expertise required for this advanced development led to a single awardee. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract is managed by the National Institutes of Health (NIH), a reputable agency with established oversight mechanisms for R&D grants and contracts. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and fixed fees are justified.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration increases risk of cost escalation.
R&D projects have inherent uncertainty of success.
Sole awardee limits immediate competitive pressure.
Potential for scope creep in advanced development.
Dependence on a single entity for critical vaccine development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.7 million to AURO VACCINES LLC. ADVANCED DEVELOPMENT OF MULTIVALENT VACCINE CANDIDATES FOR FILOVIRUS AND LASSA FEVER

Who is the contractor on this award?

The obligated recipient is AURO VACCINES LLC.

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 $10.7 million.

What is the period of performance?

Start: 2020-07-21. End: 2026-12-31.

What is the projected timeline for achieving key milestones in the vaccine development process?

The contract spans 2354 days (approximately 6.4 years), ending in December 2026. Key milestones would typically include preclinical testing, formulation development, and potentially early-stage human trials. Specific interim targets are likely detailed within the contract's statement of work, requiring review of the full SOW for precise timelines.

How will the government ensure cost control and prevent overruns given the R&D nature and long duration?

The Cost Plus Fixed Fee (CPFF) structure includes a fixed fee component, incentivizing the contractor to manage costs efficiently to maximize profit. Robust government oversight, including regular financial reviews, audits, and milestone tracking, is crucial. The contracting officer's representative (COR) will monitor progress and expenditures closely against the SOW.

What is the potential impact if Auro Vaccines LLC fails to meet the development objectives?

Failure to meet objectives could result in the government not receiving the intended vaccine candidates, representing a loss of invested funds and a delay in addressing critical biodefense needs. The government may terminate the contract for default or convenience, potentially seeking alternative solutions or re-competing the requirement, but significant time and resources would have been expended.

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: BASIC RESEARCH

Solicitation ID: BAANIAIDNIHAI2016064

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 279 PRINCETON HIGHTSTOWN RD, EAST WINDSOR, NJ, 08520

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,420,620

Exercised Options: $10,728,083

Current Obligation: $10,728,083

Actual Outlays: $8,087,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline