HHS CDC Awards $133.9M for R&D Services to American Type Culture Collection
Contract Overview
Contract Amount: $133,905,815 ($133.9M)
Contractor: American Type Culture Collection
Awarding Agency: Department of Health and Human Services
Start Date: 2008-09-30
End Date: 2019-08-30
Contract Duration: 3,986 days
Daily Burn Rate: $33.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IRR
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $133.9 million to AMERICAN TYPE CULTURE COLLECTION for work described as: IRR Key points: 1. Significant contract value awarded to a single entity for specialized R&D. 2. Competition method was 'Full and Open', suggesting a broad search for qualified bidders. 3. Contract type 'Cost Plus Fixed Fee' can lead to cost overruns if not managed closely. 4. The sector is R&D in Physical, Engineering, and Life Sciences, excluding Biotechnology.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while allowing flexibility, carries inherent risk for cost escalation. Benchmarking against similar R&D contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is positive for price discovery. However, the long duration and specific nature of the R&D services may have limited the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are utilized for critical research and development. The effectiveness of the spending hinges on the successful outcomes of the research and the efficiency of the contractor.
Public Impact
Supports critical public health research and development initiatives. Long-term contract (nearly 11 years) indicates ongoing, specialized needs. Funding supports scientific advancement and potentially new discoveries in life sciences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration increases risk of scope creep or evolving needs.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition was employed.
- Contract supports vital R&D for the CDC.
- Awarded to a known entity in the field (ATCC).
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for scientific advancement and public health.
Small Business Impact
The data does not indicate any specific set-asides or participation from small businesses in this contract. The nature of the services may favor larger, specialized organizations.
Oversight & Accountability
Oversight would be critical given the Cost Plus Fixed Fee structure and long duration. The CDC would need robust monitoring to ensure efficient use of funds and achievement of research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (3986 days).
- Potential for limited competition despite 'Full and Open' designation.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $133.9 million to AMERICAN TYPE CULTURE COLLECTION. IRR
Who is the contractor on this award?
The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $133.9 million.
What is the period of performance?
Start: 2008-09-30. End: 2019-08-30.
What specific research outcomes were achieved during the contract's nearly 11-year duration, and how do they align with the initial objectives?
Assessing the value requires a detailed review of the research deliverables and their impact. Without specific outcome reports, it's difficult to definitively state the value beyond the contractual obligation. The long duration suggests a sustained need, but the actual scientific return on investment is key to a full value assessment.
What were the primary risks associated with the Cost Plus Fixed Fee structure for this long-term R&D contract, and how were they mitigated?
The primary risk was potential cost overruns due to the contractor's incentive to incur costs to maximize profit, especially over an 11-year period. Mitigation would involve stringent oversight, clear milestones, and potentially performance-based incentives within the fixed fee structure to control expenditures and ensure efficient research progress.
How effective was the 'Full and Open Competition' in securing the best possible price and technical solution for these specialized R&D services?
While 'Full and Open Competition' is a strong starting point, its effectiveness depends on the number and quality of bids received. For highly specialized R&D, the pool of qualified bidders might be limited. The agency's evaluation process and negotiation strategies would be crucial in determining if the competition truly yielded the most cost-effective and technically superior solution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2008N10242
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $264,096,207
Exercised Options: $187,083,369
Current Obligation: $133,905,815
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2019-08-30
Potential End Date: 2019-08-30 00:00:00
Last Modified: 2025-03-31
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