NIH awards $15.6M for 'All Other Animal Production' to Taconic Biosciences, Inc

Contract Overview

Contract Amount: $15,582,770 ($15.6M)

Contractor: Taconic Biosciences, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-07-01

End Date: 2013-06-30

Contract Duration: 3,286 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: SUBMARINES

Place of Performance

Location: GERMANTOWN, COLUMBIA County, NEW YORK, 12526

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.6 million to TACONIC BIOSCIENCES, INC. for work described as: SUBMARINES Key points: 1. Significant contract value of $15.6M awarded over 9 years. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Contract type 'Cost Plus Fixed Fee' can lead to cost overruns if not managed. 4. Sector is 'Healthcare' (via HHS/NIH), focusing on animal production for research.

Value Assessment

Rating: fair

The contract value of $15.6M over nearly 10 years for animal production services appears substantial. Benchmarking against similar NIH contracts for specialized animal models would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of 'Full and Open Competition' is positive for price discovery. However, the 'Cost Plus Fixed Fee' structure requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations.

Taxpayer Impact: Taxpayer funds are utilized for critical research support. The effectiveness of the competition and contract management will determine the ultimate value for money.

Public Impact

Supports vital biomedical research by providing necessary animal models. Long-term contract indicates a sustained need for these specialized services. Potential for innovation in animal production techniques driven by research demands.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may not reflect current market pricing.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Full and open competition utilized.
Contract supports critical NIH research objectives.
Established vendor with a long-term relationship.

Sector Analysis

This contract falls within the healthcare sector, specifically supporting the National Institutes of Health's research initiatives. Spending on animal models and related production services is a significant component of biomedical research funding.

Small Business Impact

The data does not indicate if small businesses were involved in this contract. The primary awardee, Taconic Biosciences, Inc., is a well-established entity in the animal research field.

Oversight & Accountability

The long duration and cost-plus nature of this contract warrant robust oversight from HHS/NIH to ensure cost control and adherence to research objectives. Regular performance reviews and audits are crucial.

Related Government Programs

All Other Animal Production
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (9 years).
Broad 'All Other Animal Production' category.
Potential for cost escalation without strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.6 million to TACONIC BIOSCIENCES, INC.. SUBMARINES

Who is the contractor on this award?

The obligated recipient is TACONIC BIOSCIENCES, INC..

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 $15.6 million.

What is the period of performance?

Start: 2004-07-01. End: 2013-06-30.

What specific animal models or services are covered under 'All Other Animal Production' and how do they align with current NIH research priorities?

The 'All Other Animal Production' category likely encompasses specialized or genetically modified animal models not falling into standard classifications. These are crucial for studying complex diseases and testing potential therapies. Alignment with NIH priorities would involve ensuring the models support areas like cancer, infectious diseases, neuroscience, or rare genetic disorders, reflecting the agency's strategic research goals.

How effectively was the 'Full and Open Competition' process managed to ensure competitive pricing for a Cost Plus Fixed Fee contract?

While 'Full and Open Competition' is a positive indicator, its effectiveness in ensuring competitive pricing for a Cost Plus Fixed Fee (CPFF) contract depends on the clarity of the solicitation, the evaluation criteria, and the government's negotiation strategy. CPFF contracts inherently have less direct price competition, so robust cost analysis and negotiation are paramount to achieving value for taxpayer money.

What mechanisms are in place to assess the long-term value and effectiveness of the animal models provided under this contract, beyond initial cost?

Assessing long-term value requires tracking the impact of research utilizing these models. This includes monitoring publication rates, successful drug development milestones, and the overall contribution to scientific advancement. The NIH likely has internal review processes and relies on external scientific peer review to evaluate the utility and effectiveness of the research enabled by these animal models.

Industry Classification

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

Product/Service Code: LIVE ANIMALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 273HOVER AVE, GERMANTOWN, NY, 12526

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,862,297

Exercised Options: $25,873,651

Current Obligation: $15,582,770

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline