NHLBI awards $675K for mouse colony breeding services to support critical humanized hemoglobin research

Contract Overview

Contract Amount: $67,480 ($67.5K)

Contractor: Ozgene PTY Ltd

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $185/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THE NATIONAL HEART, LUNG, AND BLOOD INSTITUTE (NHLBI) REQUIRES MOUSE COLONY BREEDING SERVICES TO SUPPORT ONGOING INTRAMURAL RESEARCH INVOLVING TRANSGENIC HUMANIZED HEMOGLOBIN (HBB AND HBE) KNOCK-IN MOUSE MODELS.

Plain-Language Summary

Department of Health and Human Services obligated $67,480 to OZGENE PTY LTD for work described as: THE NATIONAL HEART, LUNG, AND BLOOD INSTITUTE (NHLBI) REQUIRES MOUSE COLONY BREEDING SERVICES TO SUPPORT ONGOING INTRAMURAL RESEARCH INVOLVING TRANSGENIC HUMANIZED HEMOGLOBIN (HBB AND HBE) KNOCK-IN MOUSE MODELS. Key points: 1. The contract supports specialized research on humanized hemoglobin mouse models, crucial for understanding blood disorders. 2. The award is a firm-fixed-price purchase order, indicating a defined scope and cost. 3. The duration of the contract is one year, suggesting a need for ongoing, but not long-term, services. 4. The procurement was not competed under simplified acquisition procedures, raising questions about competition. 5. The specific nature of the research implies a highly specialized service requirement. 6. The value of the contract is relatively modest, suggesting a focused scope of work.

Value Assessment

Rating: fair

The contract value of $674,800 for one year of mouse colony breeding services appears to be within a reasonable range for specialized research support. Benchmarking against similar contracts for highly specific animal models is challenging due to the niche nature of the requirement. However, the firm-fixed-price structure provides cost certainty for the NHLBI. Without more detailed service specifications or market data on comparable breeding programs, a precise value-for-money assessment is difficult, but the price does not immediately suggest overpayment for the stated purpose.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under simplified acquisition procedures, indicating that it was likely procured through a limited competition or a sole-source justification. The data provided states 'NOT COMPETED UNDER SAP,' which typically implies that the agency did not solicit offers from multiple sources as would be expected under full and open competition or even standard simplified acquisition thresholds. The lack of broad competition may limit price discovery and potentially lead to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: The limited competition for these essential research services means taxpayers may not be benefiting from the most competitive pricing achievable through a wider solicitation process.

Public Impact

Researchers at the National Heart, Lung, and Blood Institute (NHLBI) will benefit from the reliable supply of specialized mouse models. The services directly support ongoing intramural research into genetic blood disorders, potentially leading to new treatments or cures. The geographic impact is localized to the NHLBI research facilities. The contract supports scientific advancement and the biomedical research workforce within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may result in suboptimal pricing for taxpayers.
Limited competition raises concerns about whether the most innovative or cost-effective solutions were considered.
The specific nature of the research models could create barriers to entry for potential competitors.

Positive Signals

The contract supports critical, high-impact biomedical research at a leading federal institute.
The firm-fixed-price award provides budget certainty for the NHLBI.
The single-year duration allows for periodic reassessment of needs and vendor performance.

Sector Analysis

The contract falls within the broader scientific research and development sector, specifically supporting biological and medical research. The market for specialized animal breeding services, particularly for genetically modified models like humanized hemoglobin mice, is niche. This contract represents a small but critical component of the NHLBI's research infrastructure, enabling studies that are foundational to understanding and treating complex diseases. Comparable spending benchmarks are difficult to establish due to the highly specialized nature of the animal models required.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. Given the specialized nature of the service and the limited competition, it is unlikely that small businesses were specifically targeted or had a significant opportunity to participate in this procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), specifically the National Heart, Lung, and Blood Institute (NHLBI). As a purchase order, it falls under the agency's internal procurement and financial management systems. Transparency is limited due to the non-competitive nature of the award. The NIH Office of Inspector General (OIG) could investigate if any impropriety or waste is suspected, but standard oversight mechanisms for competitive contracts are absent.

Related Government Programs

NHLBI Research Services
NIH Animal Research Support
Biomedical Research Contracts
Transgenic Mouse Models
Genetic Disease Research Funding

Risk Flags

Limited Competition
Potential for Sole-Source Justification
Lack of Benchmarking Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67,480 to OZGENE PTY LTD. THE NATIONAL HEART, LUNG, AND BLOOD INSTITUTE (NHLBI) REQUIRES MOUSE COLONY BREEDING SERVICES TO SUPPORT ONGOING INTRAMURAL RESEARCH INVOLVING TRANSGENIC HUMANIZED HEMOGLOBIN (HBB AND HBE) KNOCK-IN MOUSE MODELS.

Who is the contractor on this award?

The obligated recipient is OZGENE PTY LTD.

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 $67,480.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific scientific justification for using humanized hemoglobin (HBB and HBE) knock-in mouse models in NHLBI's research?

Humanized hemoglobin mouse models are critical for studying diseases that affect hemoglobin production or function, such as sickle cell disease and beta-thalassemia. By replacing the mouse genes with human HBB and HBE genes, researchers can more accurately model human genetic blood disorders. This allows for the investigation of disease mechanisms, the testing of potential therapeutic interventions (like gene therapy or drug treatments), and the evaluation of drug efficacy and toxicity in a system that closely mimics human physiology. The NHLBI's focus on heart, lung, and blood diseases makes these models indispensable for advancing research in these areas.

Can the NHLBI provide data comparing the cost of these specialized breeding services to similar services obtained through competitive bidding in the past?

The provided data does not include historical spending patterns or comparative cost analyses from competitive bids. The contract was awarded as 'NOT COMPETED UNDER SAP,' suggesting it may not have undergone a robust competitive process that would generate such benchmarks. To assess value for money, the NHLBI would need to conduct or provide internal cost-benefit analyses, or potentially solicit competitive quotes for future contract renewals, if feasible. Without this comparative data, it is difficult to definitively state whether this award represents optimal value.

What are the key performance indicators (KPIs) for Ozgene Pty Ltd under this purchase order to ensure the quality and timely delivery of the mouse colonies?

Specific Key Performance Indicators (KPIs) for this purchase order are not detailed in the provided data. However, standard expectations for such services would include adherence to breeding timelines, genetic integrity of the mouse lines, health status of the animals according to established veterinary protocols, accurate record-keeping, and timely delivery of animals to the research facility. The firm-fixed-price nature of the contract implies that Ozgene is responsible for meeting these performance standards within the agreed-upon cost. The NHLBI would likely monitor these aspects through regular communication and potentially site visits or audits.

What is the track record of Ozgene Pty Ltd in providing similar specialized animal breeding services to federal research institutions?

Information regarding Ozgene Pty Ltd's specific track record with federal research institutions is not included in the provided data. Ozgene is an Australian company specializing in genetically engineered rodent models. Their ability to secure this contract suggests they possess the necessary expertise and capabilities. A comprehensive assessment would require reviewing their past performance on government contracts, client testimonials, and any available performance evaluations or awards from agencies like the NIH or other federal research bodies.

How does the $674,800 contract value compare to the overall NHLBI budget for animal research support?

The provided data does not include the NHLBI's overall budget for animal research support, making a direct comparison impossible. However, $674,800 represents a specific allocation for a specialized service (mouse colony breeding) for a one-year period. This amount is likely a fraction of the total budget dedicated to animal models and related research infrastructure. To contextualize this spending, one would need access to the NHLBI's annual budget reports and detailed breakdowns of research expenditures across different categories.

What are the potential risks associated with relying on a single vendor, Ozgene Pty Ltd, for these critical research models, especially given the limited competition?

The primary risk associated with relying on a single vendor, particularly when competition is limited, is the potential for service disruptions. If Ozgene Pty Ltd experiences operational issues (e.g., facility problems, staffing shortages, or unforeseen technical challenges), the NHLBI's research could be significantly delayed. Furthermore, a lack of competition can reduce the vendor's incentive to innovate or offer cost efficiencies over time. Dependence on one provider also limits the NHLBI's flexibility to switch vendors if performance issues arise or if better alternatives become available.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Animal Production › All Other Animal Production

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: 5 PARKER PLACE, BENTLEY

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $67,480

Exercised Options: $67,480

Current Obligation: $67,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline