Department of Defense awarded $26.7M for small molecules discovery, with Evolva AG as the contractor
Contract Overview
Contract Amount: $26,758,215 ($26.8M)
Contractor: Evolva AG
Awarding Agency: Department of Defense
Start Date: 2006-09-19
End Date: 2011-09-18
Contract Duration: 1,825 days
Daily Burn Rate: $14.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 130
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SMALL MOLECULES DISCOVERY & DEVELOPMENT
Plain-Language Summary
Department of Defense obligated $26.8 million to EVOLVA AG for work described as: SMALL MOLECULES DISCOVERY & DEVELOPMENT Key points: 1. The contract value of $26.7M over 5 years suggests a significant investment in research and development. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize contractors to manage costs effectively while allowing for flexibility in R&D. 4. The North American Industry Classification System (NAICS) code 541710 points to research and development in physical, engineering, and life sciences. 5. The duration of 1825 days (5 years) indicates a long-term commitment to the project's objectives. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted towards small businesses.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the deliverables and the scientific advancements expected. The Cost Plus Fixed Fee structure means the final cost could fluctuate based on actual expenses incurred, making direct price comparisons difficult. However, the total award of $26.7M over five years averages to approximately $5.34M per year, which is a substantial but not necessarily excessive amount for specialized R&D in the life sciences sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies a robust solicitation process.
Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of securing services at a fair market price and encourages innovation among potential contractors.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially the broader scientific community through advancements in small molecules discovery and development. The services delivered involve research and development in physical, engineering, and life sciences, specifically focusing on small molecules. The geographic impact is not specified but is likely concentrated within the research facilities of the contractor and potentially collaborating institutions. Workforce implications may include employment for scientists, researchers, technicians, and support staff involved in the R&D process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The long duration of the contract may present challenges in adapting to rapidly evolving scientific landscapes.
- Lack of specific performance metrics makes it difficult to assess the efficiency of R&D progress.
Positive Signals
- Full and open competition suggests a potentially competitive pricing environment.
- The significant investment indicates a commitment to advancing critical research areas for national security.
- The contractor, Evolva AG, is likely chosen for its specialized expertise in small molecules discovery and development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on life sciences and chemical synthesis. The market for small molecule discovery and development is highly specialized, involving pharmaceutical and biotechnology companies. Spending in this area is driven by the need for new therapeutics, materials, and defense-related chemical applications. Comparable spending benchmarks would typically be found within R&D budgets of large pharmaceutical firms or government agencies funding similar scientific endeavors.
Small Business Impact
There is no indication that this contract included a small business set-aside. The contractor, Evolva AG, is a commercial entity, and the contract value suggests it is likely a larger enterprise. This means that subcontracting opportunities for small businesses would depend on the prime contractor's procurement practices and the specific needs of the R&D project.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring regular reporting on expenditures and progress. Transparency is generally maintained through contract award databases, though detailed R&D progress reports are often sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Biotechnology and Pharmaceutical Research Grants
- Chemical and Biological Defense Programs
- National Institutes of Health (NIH) Research Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns if not managed stringently.
- Long contract duration increases risk of scientific obsolescence or shifting priorities.
- Lack of specific performance metrics in summary data hinders detailed progress evaluation.
Tags
research-and-development, department-of-defense, defense-threat-reduction-agency, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, life-sciences, small-molecules, long-term-contract, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to EVOLVA AG. SMALL MOLECULES DISCOVERY & DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is EVOLVA AG.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $26.8 million.
What is the period of performance?
Start: 2006-09-19. End: 2011-09-18.
What is the specific scientific objective of this 'SMALL MOLECULES DISCOVERY & DEVELOPMENT' contract?
The provided data indicates the contract is for 'SMALL MOLECULES DISCOVERY & DEVELOPMENT' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While the exact scientific objective is not detailed, it implies research aimed at identifying, synthesizing, and potentially characterizing novel small molecules. These could be for various applications, including but not limited to, therapeutic agents, materials science, or defense-related chemical countermeasures, given the awarding agency is the Defense Threat Reduction Agency (DTRA).
How does the $26.7M contract value compare to typical R&D spending in this sector?
The $26.7 million awarded over five years, averaging approximately $5.34 million annually, represents a significant but not extraordinary investment for specialized R&D. In the broader R&D sector, particularly within pharmaceutical and biotechnology, annual R&D budgets can range from tens of millions to billions of dollars. For a specific project focused on discovery and development, this funding level is commensurate with the complexity and long-term nature of scientific research, especially when conducted by a specialized entity like Evolva AG.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
Cost Plus Fixed Fee contracts carry inherent risks, particularly in R&D where outcomes are uncertain. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns if the contractor's actual expenses exceed initial estimates significantly. Conversely, the contractor bears the risk if costs are much lower than anticipated, as their profit margin is capped by the fixed fee. Effective oversight and detailed milestone tracking are crucial to mitigate these risks.
What is Evolva AG's track record in government contracting, particularly with the Department of Defense?
The provided data only shows this specific contract awarded to Evolva AG by the Department of Defense. Without access to a broader federal procurement database, it's difficult to ascertain Evolva AG's complete track record with the DoD or other federal agencies. Further research would be needed to determine if they have a history of successful contract performance, any past performance issues, or if this is a primary engagement in government contracting.
What does the 'FULL AND OPEN COMPETITION' designation imply for the value and innovation of this contract?
The 'FULL AND OPEN COMPETITION' designation signifies that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit a proposal. This broad competition is intended to foster a robust marketplace, driving down prices and encouraging innovative solutions. For taxpayers, it suggests that the government sought the best possible value by allowing a wide range of potential contractors to compete, theoretically leading to more cost-effective outcomes and potentially cutting-edge research approaches.
How does the duration of 1825 days (5 years) impact the assessment of this contract's performance and risk?
A five-year duration for an R&D contract is substantial and reflects the typically lengthy timelines required for scientific discovery and development. This long duration allows for in-depth research and the potential for significant breakthroughs. However, it also introduces risks related to the evolving scientific landscape, potential shifts in government priorities, and the contractor's sustained ability to deliver. Performance assessment over such a long period requires well-defined interim milestones and regular reviews to ensure progress and adapt to any necessary changes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 130
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Evolva Holding SA
Address: HAGMATTSTRASSE 6, ALLSCHWIL
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $26,866,882
Exercised Options: $26,866,882
Current Obligation: $26,758,215
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-19
Current End Date: 2011-09-18
Potential End Date: 2011-09-18 00:00:00
Last Modified: 2025-03-28
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