HHS awards $115.7M for Submarine Research & Development to Bavarian Nordic A/S

Contract Overview

Contract Amount: $115,773,474 ($115.8M)

Contractor: Bavarian Nordic A/S

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-30

End Date: 2015-09-30

Contract Duration: 4,017 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUBMARINES

Plain-Language Summary

Department of Health and Human Services obligated $115.8 million to BAVARIAN NORDIC A/S for work described as: SUBMARINES Key points: 1. The contract spans over 11 years, indicating a long-term R&D commitment. 2. Bavarian Nordic A/S is the sole awardee, raising questions about competition. 3. The 'Research and Development' sector suggests potential for innovation but also inherent risks. 4. The large contract value warrants scrutiny regarding cost-effectiveness and value for money.

Value Assessment

Rating: questionable

The contract value of $115.7M over 11 years is substantial. Without comparable contracts for similar submarine R&D, assessing its pricing against benchmarks is difficult. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being listed as 'FULL AND OPEN COMPETITION', only one awardee, Bavarian Nordic A/S, is identified. This suggests either a highly specialized capability or potential issues in the solicitation process that limited broader participation, impacting price discovery.

Taxpayer Impact: The significant taxpayer investment in this long-term R&D contract necessitates rigorous oversight to ensure the funds are used efficiently and effectively towards achieving the stated research objectives.

Public Impact

Long-term investment in potentially cutting-edge submarine technology. Potential for advancements in national security or scientific understanding. Taxpayer funds are committed over an extended period, requiring sustained accountability. The specific nature of 'Submarines' in an HHS context is unclear and warrants further explanation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the specific 'Submarine' R&D focus for HHS.
Extended contract duration increases risk of scope creep or obsolescence.
Sole awardee despite 'full and open' competition raises concerns about market reach.
Cost Plus Fixed Fee contracts can incentivize higher costs if not monitored.

Positive Signals

Potential for significant technological advancement.
Long-term commitment allows for sustained research effort.
Established contract vehicle for a specific R&D area.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high uncertainty and long lead times, with outcomes not always guaranteed. Benchmarks are difficult due to the specialized nature of R&D.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. The focus appears to be on a large, established entity, potentially limiting opportunities for smaller, innovative firms in this specialized R&D area.

Oversight & Accountability

The extended duration of this contract necessitates robust oversight mechanisms from the Department of Health and Human Services and the National Institutes of Health to ensure milestones are met, costs are controlled, and the research remains aligned with its objectives.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Unclear alignment of 'Submarines' R&D with HHS mission.
Potential lack of true competition despite 'full and open' designation.
Long contract duration increases risk of cost escalation and obsolescence.
Cost Plus Fixed Fee structure can incentivize higher spending.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.8 million to BAVARIAN NORDIC A/S. SUBMARINES

Who is the contractor on this award?

The obligated recipient is BAVARIAN NORDIC A/S.

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 $115.8 million.

What is the period of performance?

Start: 2004-09-30. End: 2015-09-30.

What is the specific nature of the 'Submarines' research being conducted under the Department of Health and Human Services, and how does it align with the agency's mission?

The provided data lacks clarity on the specific research objectives related to 'Submarines' within the Department of Health and Human Services. Typically, HHS focuses on health and biomedical research. This contract's subject matter is unusual and requires further investigation to understand its relevance and potential benefits to public health or scientific advancement.

Given the 'full and open competition' designation but a single awardee, what steps were taken to ensure genuine market exploration and competitive pricing?

The designation of 'full and open competition' alongside a sole awardee warrants scrutiny. It suggests that either only one entity possessed the highly specialized capabilities required, or there were limitations in the outreach or evaluation process. Further details on the solicitation, proposal evaluation, and justification for selecting a single vendor are needed to confirm fair competition and optimal price discovery.

How will the effectiveness and value for money of this long-term, Cost Plus Fixed Fee R&D contract be measured and ensured over its 11-year duration?

Measuring the effectiveness and value of long-term R&D contracts, especially Cost Plus Fixed Fee, is challenging. Success will likely be defined by achieving specific research milestones, technological breakthroughs, or scientific publications. Continuous oversight, regular performance reviews, and strict adherence to the fixed fee component are crucial to manage costs and ensure the investment yields tangible results for the taxpayer.

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 ID: NIHNIAIDDMID0449

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: N/A

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $272,547,705

Exercised Options: $231,292,609

Current Obligation: $115,773,474

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline