NIH invests $13.1M in proteomics research for therapeutic target identification by Caprion Inc

Contract Overview

Contract Amount: $13,098,764 ($13.1M)

Contractor: Pharmaceutique Caprion Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2004-08-04

End Date: 2012-08-10

Contract Duration: 2,928 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IDENTIFYING TARGETS FOR THERAPEUTIC INTERVENTIONS USING PROTEOMICS TECHNOLOGY

Plain-Language Summary

Department of Health and Human Services obligated $13.1 million to PHARMACEUTIQUE CAPRION INC for work described as: IDENTIFYING TARGETS FOR THERAPEUTIC INTERVENTIONS USING PROTEOMICS TECHNOLOGY Key points: 1. Contract awarded for R&D in life sciences, focusing on advanced proteomics. 2. Long-term contract spanning 8 years, indicating sustained research needs. 3. Full and open competition suggests a robust bidding process. 4. Contract type is Cost Plus Fixed Fee, common for R&D projects. 5. Potential for significant advancements in understanding disease mechanisms. 6. Performance period aligns with typical long-term scientific research cycles.

Value Assessment

Rating: fair

The total award of $13.1 million over 8 years averages to approximately $1.64 million per year. Benchmarking this against similar R&D contracts in proteomics is challenging without more specific details on the scope of work and deliverables. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not carefully managed, as it covers allowable costs plus a negotiated fee. The fixed fee component provides some cost certainty for the government, but the variable cost component requires diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of 31 bids suggests a high level of interest and a competitive marketplace for this type of research service.

Taxpayer Impact: A full and open competition with 31 bidders is generally favorable for taxpayers, as it increases the likelihood of securing the best value through competitive pressure and a wider range of potential solutions.

Public Impact

Benefits researchers and the scientific community by advancing proteomics technology. Services delivered include identifying therapeutic targets for various diseases. Geographic impact is national, supporting advancements in biomedical research. Workforce implications include supporting highly skilled scientific personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Long duration of the contract may require adjustments to research focus over time.
Complexity of proteomics research can make performance assessment difficult.

Positive Signals

Full and open competition with a high number of bidders suggests strong market interest and potential for value.
Focus on R&D aligns with national health priorities.
Long-term commitment allows for sustained progress in a complex scientific field.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and biotechnology. The market for proteomics services is growing, driven by advancements in genomics and the increasing demand for targeted therapies. Comparable spending benchmarks would typically be found within NIH's broader R&D portfolio, particularly in areas related to drug discovery and development. The $13.1 million investment over eight years represents a significant, albeit specific, allocation towards advancing proteomics capabilities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the nature of advanced scientific research and the potential scale of this contract, it's possible that large, specialized firms were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). Performance monitoring would likely involve regular reviews of scientific progress, financial expenditures, and adherence to the contract terms. Transparency is generally maintained through federal contract databases, though specific project details might be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Therapeutic Target Identification Programs
Proteomics Research Initiatives

Risk Flags

Cost Overruns Risk (CPFF)
Scientific Relevance Drift
Technological Obsolescence
Personnel Turnover
Budgetary Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.1 million to PHARMACEUTIQUE CAPRION INC. IDENTIFYING TARGETS FOR THERAPEUTIC INTERVENTIONS USING PROTEOMICS TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is PHARMACEUTIQUE CAPRION 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 $13.1 million.

What is the period of performance?

Start: 2004-08-04. End: 2012-08-10.

What is the specific scientific objective of identifying therapeutic targets using proteomics technology in this contract?

The primary scientific objective of this contract is to leverage proteomics technology to identify and validate novel molecular targets that can be acted upon by therapeutic interventions. Proteomics involves the large-scale study of proteins, their structures, functions, and interactions within a biological system. By analyzing the complete set of proteins expressed by an organism or system under specific conditions, researchers can identify proteins that are abnormally expressed or modified in disease states. These aberrant proteins then become potential targets for drug development, aiming to restore normal cellular function or inhibit disease progression. This approach is crucial for developing more precise and effective treatments across various diseases, including cancer, infectious diseases, and neurological disorders.

How does the Cost Plus Fixed Fee (CPFF) contract structure influence the value for money in this R&D context?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts where the exact scope and costs are difficult to predict upfront. It allows the contractor to recover all allowable costs incurred during the project, plus a predetermined fixed fee representing profit. For value for money, this structure presents a mixed picture. On one hand, it enables flexibility to adapt to research challenges and pursue promising avenues that might not have been foreseen. On the other hand, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allocable. If cost controls are weak, the total project cost could exceed what might have been achieved under a fixed-price contract, potentially diminishing value for money. The fixed fee provides some incentive for the contractor to control costs to protect their profit margin, but the primary driver for cost containment relies heavily on government oversight.

What are the key risks associated with a long-term (8-year) R&D contract like this one?

Long-term R&D contracts carry several inherent risks. Firstly, scientific relevance can diminish over time; breakthroughs by other researchers or shifts in scientific understanding could render the project's initial objectives obsolete or less impactful. Secondly, technological advancements may occur, making the chosen methodologies or equipment outdated, necessitating costly upgrades or pivots. Thirdly, personnel continuity is a risk; key researchers may leave the project, leading to knowledge loss and delays. Fourthly, budget stability can be a concern, as long-term funding commitments might be subject to future appropriations or shifting agency priorities. Finally, the contractor's organizational stability and continued commitment over an extended period can also be a risk factor. Effective risk mitigation requires proactive project management, regular re-evaluation of objectives, and flexible contract modifications.

Given the 'full and open competition' and 31 bidders, what does this suggest about the contractor's track record or the market for these services?

The fact that this contract was awarded under full and open competition with 31 bidders strongly suggests a healthy and competitive market for proteomics research services. It indicates that numerous companies or institutions possess the necessary expertise, technology, and capacity to undertake such complex R&D. For the selected contractor, Pharmaceutique Caprion Inc., this high level of competition implies they were able to present a compelling proposal that met or exceeded the evaluation criteria, potentially including technical merit, past performance, and cost-effectiveness, relative to a large pool of competitors. It doesn't inherently speak to their specific track record beyond winning this bid, but it confirms they operate in a market where they can successfully compete against many others. The large number of bidders also suggests that the government's requirements were well-defined and accessible to a broad range of potential offerors.

How does this $13.1M investment compare to historical federal spending on proteomics research?

Comparing this specific $13.1 million contract to overall federal spending on proteomics research requires broader data analysis. The National Institutes of Health (NIH) is the largest single funder of biomedical research in the world, and proteomics is a critical component of modern biomedical research. NIH's annual budget is in the tens of billions of dollars, with significant portions allocated to various research areas, including those that utilize or advance proteomics. While $13.1 million is a substantial sum for a single contract, it represents a fraction of NIH's total research expenditure. Historical spending patterns show a consistent and increasing investment in life sciences R&D, including proteomics, reflecting its growing importance in understanding disease and developing therapies. This contract is likely one of many funded initiatives supporting proteomics research across different institutes and centers within NIH and other federal agencies like the Department of Defense.

What are the potential implications for pharmaceutical development and public health stemming from this contract?

This contract has significant potential implications for pharmaceutical development and public health. By identifying novel therapeutic targets, it lays the groundwork for the discovery and development of new drugs. Successful identification of validated targets can lead to treatments for diseases that currently have limited or no effective therapies. This could translate into improved patient outcomes, reduced disease burden, and potentially lower healthcare costs in the long run. Furthermore, advancements in proteomics technology itself, driven by this contract, can accelerate the pace of drug discovery across the entire pharmaceutical industry. The knowledge generated could also inform diagnostic development and personalized medicine approaches, ultimately contributing to better public health strategies and interventions.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: NIHNIAIDDMIDBAA0338

Offers Received: 31

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 7150 RUE ALEXANDER-FLEMING, MONTREAL

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,197,604

Exercised Options: $19,359,932

Current Obligation: $13,098,764

Contract Characteristics

Multi-Year Contract: Yes

Timeline