DoD's $803M biomedical research contract with DynPort Vaccine Company shows long-term engagement and significant cost implications

Contract Overview

Contract Amount: $803,304,538 ($803.3M)

Contractor: Dynport Vaccine Company LLC

Awarding Agency: Department of Defense

Start Date: 1997-11-06

End Date: 2023-07-23

Contract Duration: 9,390 days

Daily Burn Rate: $85.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 199802!2100!1273!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8024 !A!*!* !19971106!19971130!958462681!927921627!003242013!N!03543!DYNTEL CORP !2000 EDMUND HALLEY DR !RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !0001!+000019021453!N!N!000000000000!AN13!RDTE/BIOMEDICAL - ADV TECH DEV !C9B!MEDICAL & DENTAL SUPPLIES & EQ!1000!NOT DISCERNABLE OR CLASSIFIED !2836!3!*!*!*!B!B!*!A !U!R!2!004!C!* !C!N!Z!* !* !N!C!*!A!Z!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $803.3 million to DYNPORT VACCINE COMPANY LLC for work described as: 199802!2100!1273!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8024 !A!*!* !19971106!19971130!958462681!927921627!003242013!N!03543!DYNTEL CORP !2000 EDMUND HALLEY DR !RESTON !VA!20191!66672!059!51!RESTON !FAIRFA… Key points: 1. Contract duration of over 25 years suggests a sustained need for specialized biomedical research and development. 2. The Cost Plus Award Fee (CPAF) structure incentivizes performance but can lead to higher overall costs compared to fixed-price contracts. 3. The significant total award amount indicates a substantial investment in advanced medical technologies and countermeasures. 4. The contract's focus on biomedical research and development positions it within a critical sector for national security and public health. 5. The extensive period of performance raises questions about the initial scope and potential for scope creep over time. 6. The contract's evolution over more than two decades warrants an examination of its adaptability to changing scientific landscapes.

Value Assessment

Rating: fair

The total award of over $803 million across more than 25 years is substantial, reflecting a long-term commitment to a specific area of biomedical research. Comparing this to similar long-duration R&D contracts is challenging due to the unique nature of advanced biomedical development. The Cost Plus Award Fee (CPAF) pricing structure, while allowing flexibility, can lead to costs exceeding initial estimates if award fees are consistently met. Without detailed breakdowns of cost components and award fee payouts, a precise value-for-money assessment is difficult, but the extended duration and significant funding suggest a perceived critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of multiple bidders is generally positive for price discovery and ensuring competitive pricing. However, the long duration and specialized nature of biomedical R&D may limit the pool of truly qualified bidders, potentially impacting the intensity of competition over the contract's lifecycle.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically drives down costs through market forces. It ensures that the government explores a range of solutions and pricing, maximizing the potential for cost savings.

Public Impact

The primary beneficiaries are likely the U.S. Army and potentially other Department of Defense entities requiring advanced medical countermeasures and research. Services delivered include research and development in biomedical and advanced technology areas, likely focusing on disease prevention, treatment, or protection against biological threats. The geographic impact is primarily within the United States, where the contractor (DynPort Vaccine Company LLC) is based and where research activities are conducted. Workforce implications include the creation and sustainment of highly skilled jobs in scientific research, development, and project management within the biotechnology and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration raises concerns about potential cost overruns and the need for continuous justification of funding.
The CPAF structure, while performance-incentivized, can lead to less predictable final costs compared to fixed-price arrangements.
The specialized nature of biomedical R&D means that market competition might be constrained to a few highly qualified entities.
Lack of specific details on deliverables and milestones makes it difficult to assess performance objectively over such a long period.

Positive Signals

The contract's longevity suggests a consistent and successful delivery of critical research and development services.
Awarding under full and open competition indicates a commitment to seeking the best value through market mechanisms.
The significant funding reflects the perceived importance and strategic value of the research being conducted.
The CPAF structure allows for flexibility and incentivizes contractor performance to meet evolving research objectives.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on biomedical and advanced technology development. This is a critical area for national security, particularly for developing medical countermeasures against biological threats. The market for such specialized R&D is often characterized by a limited number of highly qualified firms, government funding cycles, and long development timelines. Comparable spending benchmarks would typically be found within other large-scale, long-term biomedical research initiatives funded by agencies like the NIH or BARDA.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. Given the specialized and advanced nature of biomedical R&D, large prime contractors often handle the core research, potentially limiting direct opportunities for small businesses unless they are specialized subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) within the Army Medical Research Acquisition Activity. Accountability measures are embedded within the Cost Plus Award Fee structure, which links contractor compensation to performance against defined objectives. Transparency is generally facilitated through contract awards databases, but detailed performance reports and cost breakdowns may be less publicly accessible due to the sensitive nature of defense research.

Related Government Programs

Army Medical Research and Development Command (USAMRDC) programs
Biomedical Advanced Research and Development Authority (BARDA) contracts
National Institutes of Health (NIH) research grants
Department of Defense research and development initiatives
Advanced technology development contracts

Risk Flags

Extended contract duration may indicate potential for cost creep or evolving requirements.
CPAF structure requires diligent oversight to ensure value for money.
Specialized R&D field may limit competitive landscape.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $803.3 million to DYNPORT VACCINE COMPANY LLC. 199802!2100!1273!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8024 !A!*!* !19971106!19971130!958462681!927921627!003242013!N!03543!DYNTEL CORP !2000 EDMUND HALLEY DR !RESTON !VA!20191!66672!059!51!RESTON !FAIRFAX !VIRGINIA !0001!+000019021453!N!N!000000000000!AN13!RDTE/BIOMEDICAL - ADV TECH DEV !C9B!MEDICAL & DENTAL SUPPLIES & EQ!1000!NOT DISCERNABLE OR CLASSIFIED !2836!3!*!*!*!B!B!*!A !U!R!2!0

Who is the contractor on this award?

The obligated recipient is DYNPORT VACCINE COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $803.3 million.

What is the period of performance?

Start: 1997-11-06. End: 2023-07-23.

What specific biomedical research areas has DynPort Vaccine Company LLC focused on under this contract?

The provided data indicates the contract's purpose is 'RDTE/BIOMEDICAL - ADV TECH DEV' and the Product Service Code (PSC) is '2836' (Medical and Dental Supplies and Equipment). While the specific research areas are not detailed, this suggests a focus on developing advanced medical technologies, potentially including vaccines, therapeutics, diagnostics, or protective equipment relevant to military health and biodefense. Given the contractor's name, vaccine development is a highly probable area of focus. Further analysis of contract modifications, technical reports, and awarded task orders would be necessary to delineate the precise scientific domains and projects undertaken.

How does the Cost Plus Award Fee (CPAF) structure impact the overall cost and contractor incentive for this contract?

The Cost Plus Award Fee (CPAF) structure means the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount. The award fee is determined by the government based on the contractor's performance against pre-defined criteria and objectives. This structure incentivizes the contractor to perform well and meet or exceed expectations to maximize their fee. However, it also means the final cost is not fixed and can be higher than anticipated if high performance is consistently achieved and rewarded. For taxpayers, this structure requires careful oversight to ensure that award fees are justified and that the overall cost remains reasonable relative to the value delivered. It offers flexibility for complex R&D where outcomes can be uncertain, but demands robust performance evaluation by the government.

What is the historical spending pattern for this contract over its more than 25-year duration?

The provided data indicates a total award amount of $803,304,537.54, with a period of performance from November 6, 1997, to July 23, 2023. This extensive duration suggests a consistent and significant level of funding allocated annually, though the exact year-over-year spending is not detailed. The initial award date implies that funding has been sustained through multiple budget cycles and evolving defense priorities. Without access to annual obligation data or contract modifications, it's impossible to detail specific spending fluctuations. However, the sheer scale of the total award suggests substantial and relatively stable investment over the contract's lifespan, reflecting ongoing requirements in biomedical R&D.

Are there any known performance issues or contractor track record concerns associated with DynPort Vaccine Company LLC on this contract?

The provided data does not contain specific information regarding performance issues or contractor track record concerns for DynPort Vaccine Company LLC on this particular contract. The contract has a long duration and a substantial award amount, which typically implies a level of satisfactory performance to warrant continued funding and extensions. However, the absence of explicit negative flags does not guarantee flawless execution. A comprehensive assessment would require reviewing contract performance reports, any issued cure notices or show cause letters, and potentially Inspector General reports related to this contract. The 'fair' rating for value assessment suggests that while the contract is functional, there may be areas for improvement or scrutiny regarding cost-effectiveness over its long life.

How does this contract compare to other large-scale biomedical R&D contracts within the Department of Defense or other federal agencies?

This contract, with its total award exceeding $800 million and a performance period spanning over 25 years, is significant within the federal R&D landscape. It is comparable in scale and duration to major long-term research initiatives funded by agencies like the National Institutes of Health (NIH) or the Biomedical Advanced Research and Development Authority (BARDA), which also focus on critical health and biodefense research. Within the DoD, it represents a substantial investment in a specific area of advanced medical technology development, likely supporting strategic biodefense or soldier health requirements. The CPAF structure is common in such high-risk, long-term R&D efforts where performance is difficult to define rigidly upfront. Its longevity underscores the persistent need for such specialized research capabilities.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 64 THOMAS JOHNSON DR, FREDERICK, MD, 21702

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,159,290,241

Exercised Options: $13,643,905

Current Obligation: $803,304,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline