DoD's $149M R&D Contract for Broad-Spectrum Small Host Oriented Research Awarded to Functional Genetics, Inc

Contract Overview

Contract Amount: $14,949,205 ($14.9M)

Contractor: Functional Genetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-26

End Date: 2010-03-26

Contract Duration: 1,065 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HOST ORIENTED, BROAD-SPECTRUM SMALL

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to FUNCTIONAL GENETICS, INC. for work described as: HOST ORIENTED, BROAD-SPECTRUM SMALL Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract has a duration of 1065 days, indicating a medium-term project. 3. Awarded by the Defense Threat Reduction Agency, suggesting a focus on national security applications. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The North American Industry Classification System (NAICS) code 541710 points to significant R&D investment. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can sometimes lead to higher costs than fixed-price agreements if not managed tightly. The fixed fee component provides some incentive for the contractor to manage costs, but the primary driver is cost reimbursement. Without comparable contracts for similar 'host oriented, broad-spectrum small' research, it's difficult to definitively assess if the $149 million represents excellent value. The duration of over three years suggests a substantial research effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach generally promotes a competitive environment, which can lead to better pricing and innovation. The presence of 30 bids suggests a healthy level of interest and competition for this research and development opportunity within the defense sector.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best possible price and quality for government services through a wide range of potential providers.

Public Impact

The Department of Defense, specifically the Defense Threat Reduction Agency, is the primary beneficiary, seeking advancements in research relevant to national security. The contract supports research and development in the physical, engineering, and life sciences, potentially leading to new technologies or scientific understanding. The geographic impact is likely concentrated around the contractor's facilities and any research sites, with potential broader implications for national defense capabilities. The contract supports specialized scientific and technical workforce within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not rigorously managed.
The specific nature of 'host oriented, broad-spectrum small' research is not detailed, making it difficult to assess the true scope and potential risks.
The duration of the contract (over 3 years) requires sustained oversight to ensure progress and prevent scope creep.

Positive Signals

Awarded under full and open competition with 30 bids, indicating strong market interest and potential for competitive pricing.
The contract is for research and development, which is crucial for technological advancement and national security.
The Defense Threat Reduction Agency's involvement suggests a focus on critical national security objectives.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. This is a significant area of federal spending, particularly within defense agencies, aimed at maintaining technological superiority and addressing emerging threats. Comparable spending in this sector often involves substantial investments in areas like biotechnology, advanced materials, and defense-related scientific exploration. The market size for federal R&D contracts is vast, with agencies like the DoD being major contributors.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the large award amount ($149 million), it is likely that the prime contractor is a larger entity. Further investigation would be needed to determine if small businesses are involved in subcontracting opportunities related to this research effort.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) and potentially the Department of Defense's Inspector General. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the research objectives are being met. Transparency would depend on DTRA's reporting practices regarding research progress and expenditures. The contract's duration necessitates ongoing accountability measures.

Related Government Programs

Department of Defense Research and Development Programs
Defense Threat Reduction Agency Contracts
Life Sciences Research Funding
Physical and Engineering Sciences R&D
National Security Research Initiatives

Risk Flags

Cost Plus Fixed Fee contract structure may lead to higher costs if not managed effectively.
Lack of specific details on research objectives makes risk assessment difficult.
Requires sustained oversight due to the multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to FUNCTIONAL GENETICS, INC.. HOST ORIENTED, BROAD-SPECTRUM SMALL

Who is the contractor on this award?

The obligated recipient is FUNCTIONAL GENETICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2007-04-26. End: 2010-03-26.

What is the specific scientific or technological objective of the 'host oriented, broad-spectrum small' research funded by this contract?

The provided data does not specify the exact scientific or technological objective of the 'host oriented, broad-spectrum small' research. The description is highly generalized. Typically, research under NAICS code 541710 and awarded by the Defense Threat Reduction Agency (DTRA) could pertain to areas such as biological defense, countermeasures against emerging threats, advanced materials science for defense applications, or novel engineering solutions for military challenges. Without further documentation or a detailed statement of work, the precise nature and intended outcomes of this particular research remain undefined in the available data. Further inquiry with DTRA would be necessary to obtain specific details on the research goals and expected deliverables.

How does the $149 million contract value compare to typical R&D spending for similar research areas within the DoD?

The $149 million contract value represents a substantial investment in research and development. While specific benchmarks for 'host oriented, broad-spectrum small' research are not readily available due to the specialized nature of the description, R&D contracts of this magnitude are not uncommon within the Department of Defense, especially for projects with significant national security implications. Agencies like DTRA often fund multi-year, high-cost research initiatives. To provide a precise comparison, one would need to identify comparable research programs funded by DoD or other federal agencies in related fields (e.g., life sciences, defense technologies) and analyze their contract values and durations. However, $149 million for a three-year R&D effort is indicative of a project deemed critical and complex.

What are the key performance indicators (KPIs) or milestones used to measure the success of this research contract?

The provided data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee (CPFF) research and development contract, success is typically measured against a defined Statement of Work (SOW) and specific research objectives. Milestones might include the completion of certain experimental phases, the development of prototypes, the publication of research findings, or the successful demonstration of a technology. Performance would likely be assessed through regular technical reviews, progress reports submitted by Functional Genetics, Inc., and potentially independent scientific evaluations. The contracting officer and technical monitors at the Defense Threat Reduction Agency would be responsible for overseeing adherence to the SOW and evaluating the contractor's progress against agreed-upon benchmarks.

What is Functional Genetics, Inc.'s track record in performing similar R&D contracts for the federal government?

Information regarding Functional Genetics, Inc.'s specific track record on similar R&D contracts for the federal government is not detailed in the provided data. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Given that this is a significant award ($149 million) from the Department of Defense, it suggests that the agency has confidence in the contractor's capabilities, either based on past performance or a thorough evaluation of their proposed approach and qualifications. A deeper dive into federal procurement databases and performance records would be necessary for a comprehensive assessment.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of research?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for research where the final costs are uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not have a strong incentive to control costs beyond what is necessary to achieve the fixed fee, potentially leading to higher overall expenditures than anticipated. If the contractor incurs costs significantly lower than estimated, the government still pays the estimated cost plus the fixed fee. Conversely, if costs exceed estimates, the government still pays the actual costs incurred plus the fixed fee. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure value for money. The fixed fee itself is intended to provide some incentive for efficiency, but the cost-reimbursement aspect remains a key consideration.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 30

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 708 QUINCE ORCHARD RD, GAITHERSBURG, MD, 20878

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,949,206

Exercised Options: $14,949,206

Current Obligation: $14,949,205

Contract Characteristics

Cost or Pricing Data: NO

Timeline