NIH awards $23.9M to Decode Genetics for population genetics analysis, impacting vaccine and infection immunity research

Contract Overview

Contract Amount: $23,879,659 ($23.9M)

Contractor: Decode Genetics, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-30

End Date: 2010-09-30

Contract Duration: 2,191 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST NO FEE

Sector: R&D

Official Description: POPULATION GENETICS ANALYSIS IMMUNITY TO VACCINES/INFECTIONS

Plain-Language Summary

Department of Health and Human Services obligated $23.9 million to DECODE GENETICS, INC for work described as: POPULATION GENETICS ANALYSIS IMMUNITY TO VACCINES/INFECTIONS Key points: 1. Contract value of $23.9M over 6 years suggests a significant investment in understanding genetic influences on immunity. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Research and Development sector focus highlights the contract's role in advancing scientific knowledge. 4. The definitive contract type implies a single award for a defined scope of work. 5. A 13-bidder pool suggests robust interest and a healthy level of competition for this R&D effort. 6. The 'Cost No Fee' contract type means the government reimburses allowable costs but does not pay a profit fee, aligning contractor incentives with cost control.

Value Assessment

Rating: good

The contract's value of $23.9 million over six years averages approximately $4 million annually. Benchmarking this against similar large-scale R&D contracts in genetics and immunology is challenging without more specific data on the scope and deliverables. However, the 'Cost No Fee' structure suggests a focus on cost efficiency, as the contractor is not incentivized by profit. The 13 bids received indicate a competitive environment, which typically aids in achieving fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 13 bidders suggests a strong interest in this research area and a competitive marketplace for such services. A larger number of bidders generally increases the likelihood of receiving competitive pricing and innovative solutions, as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received the best value for its investment in critical population genetics research.

Public Impact

The primary beneficiaries are researchers and public health officials who will gain deeper insights into population genetics and its relation to immunity. The services delivered are crucial for understanding the genetic basis of vaccine efficacy and natural immunity to infections. The geographic impact is broad, potentially influencing public health strategies and research initiatives globally. Workforce implications include support for scientists, geneticists, bioinformaticians, and research support staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term R&D projects if not managed tightly.
Reliance on a single contractor for a significant period could pose risks if performance falters.
The 'Cost No Fee' structure, while promoting cost control, might reduce contractor proactivity in seeking cost-saving innovations compared to profit-incentivized contracts.

Positive Signals

Full and open competition suggests a wide pool of qualified contractors were considered.
The 'Cost No Fee' contract type aligns government and contractor interests on cost management.
A significant number of bidders (13) indicates strong market interest and a competitive landscape.
The contract duration of six years allows for sustained research and development in a complex field.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and biotechnology. The market for population genetics analysis is growing, driven by advancements in genomic sequencing technology and increasing interest in personalized medicine and public health. Comparable spending benchmarks would depend on the specific research scope, but significant government investment in R&D for health-related areas is common, with agencies like NIH frequently funding large-scale projects.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Given the specialized nature and scale of population genetics research, it is likely that larger, established research institutions or companies with significant R&D capabilities were the primary participants in the competition. There is no explicit information on subcontracting plans, but large R&D contracts often involve collaboration with smaller entities or academic institutions.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Mechanisms likely include regular progress reports, scientific reviews, and financial audits to ensure adherence to the research plan and budget. Transparency is generally maintained through public research publications and data sharing, as is common in federally funded R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Centers for Disease Control and Prevention (CDC) Public Health Research
Department of Defense Genomics Research
National Science Foundation Biological Sciences

Risk Flags

Long-term R&D project risks
Potential for scientific findings to be inconclusive or not immediately applicable

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.9 million to DECODE GENETICS, INC. POPULATION GENETICS ANALYSIS IMMUNITY TO VACCINES/INFECTIONS

Who is the contractor on this award?

The obligated recipient is DECODE GENETICS, 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 $23.9 million.

What is the period of performance?

Start: 2004-09-30. End: 2010-09-30.

What is the specific scientific objective of the population genetics analysis funded by this contract?

The contract's description, 'POPULATION GENETICS ANALYSIS IMMUNITY TO VACCINES/INFECTIONS,' indicates a primary objective to study the genetic variations within human populations and how these variations influence an individual's or a group's susceptibility or resistance to diseases, particularly in the context of vaccine responses and natural infections. This research aims to identify genetic markers or patterns that predict immune system performance, potentially leading to more effective vaccine development, personalized treatment strategies, and better understanding of disease epidemiology.

How does the 'Cost No Fee' contract type influence contractor performance and cost management?

The 'Cost No Fee' (CNF) contract type means the contractor is reimbursed for all allowable costs incurred in performing the contract but receives no additional profit. This structure strongly incentivizes the contractor to manage costs diligently, as any savings directly benefit the government without reducing the contractor's reimbursement. However, it can also reduce the contractor's motivation to innovate or exceed basic performance requirements, as there is no profit motive for doing so. Oversight is crucial to ensure the contractor meets all scientific and technical objectives within the approved cost structure.

What are the potential long-term implications of this research for public health policy and vaccine development?

The insights gained from this population genetics analysis could revolutionize public health policy and vaccine development. By understanding the genetic underpinnings of immunity, researchers can identify populations that may respond differently to existing vaccines or be at higher risk for certain infections. This could lead to the development of tailored vaccines, more effective public health interventions, and personalized medicine approaches. For instance, identifying genetic factors that correlate with poor vaccine response could prompt the development of booster strategies or alternative vaccine formulations for specific demographic groups, ultimately improving overall population health and pandemic preparedness.

Given the 6-year duration, what are the key performance indicators (KPIs) likely used to monitor progress?

For a 6-year R&D contract focused on population genetics, Key Performance Indicators (KPIs) would likely include milestones related to data acquisition (e.g., number of samples genotyped), data analysis (e.g., completion of specific genetic association studies), identification of genetic markers, validation of findings, and timely submission of progress reports and scientific publications. Intermediate deliverables might involve interim analyses of genetic data, reports on specific gene-disease associations, and presentations at scientific conferences. The ultimate success would be measured by the scientific validity and impact of the findings, often assessed through peer-reviewed publications and the utility of the results for vaccine and infection immunity research.

How does the R&D classification (NAICS 541710) typically compare in terms of contract value and competition?

NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific endeavors. Contracts under this classification can vary significantly in value, from small grants to multi-billion dollar programs. Competition is often robust, especially for well-defined research areas with broad applicability, as seen with the 13 bidders in this case. However, highly specialized or cutting-edge research might attract fewer, but highly qualified, bidders. The average contract value within this sector is substantial, reflecting the high costs associated with scientific investigation, equipment, and specialized personnel.

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 › Community and Regional Development R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 13

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 1000 WINTER ST STE 3100, WALTHAM, MA, 02451

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,044,463

Exercised Options: $24,341,532

Current Obligation: $23,879,659

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline