NIH awards $17.86M for Biomedical R&D to Starpharma Pty Ltd under full and open competition

Contract Overview

Contract Amount: $17,860,077 ($17.9M)

Contractor: Starpharma PTY Ltd

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-28

End Date: 2010-09-29

Contract Duration: 1,827 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Plain-Language Summary

Department of Health and Human Services obligated $17.9 million to STARPHARMA PTY LTD for work described as: BIOMEDICAL (BASIC) Key points: 1. Spending focuses on R&D in physical, engineering, and life sciences. 2. The contract was awarded through full and open competition. 3. Potential risks include the long duration of the contract (5 years). 4. The sector is Biomedical Research and Development.

Value Assessment

Rating: fair

The contract value of $17.86M over 5 years suggests a moderate annual spend. Benchmarking against similar R&D contracts is difficult without more specific project details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for critical biomedical research, with the expectation of future advancements and potential public health benefits.

Public Impact

Supports advancements in biomedical research, potentially leading to new treatments or technologies. The long-term nature of the contract allows for sustained research efforts. Funding is directed towards a specific company, Starpharma Pty Ltd.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) may indicate potential for cost overruns or scope creep.
Specific company awarded contract could limit broader innovation if not managed well.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on R&D aligns with strategic government investment in science and technology.

Sector Analysis

This contract falls within the Biomedical R&D sector, specifically under NAICS code 541710. Spending benchmarks for this category can vary widely based on the specific research area and project scope.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award was made to Starpharma Pty Ltd, a specific entity.

Oversight & Accountability

Oversight would typically be managed by the National Institutes of Health (NIH) through contract milestones and performance reviews. Accountability rests on the successful completion of research 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

Long contract duration
Potential for scientific obsolescence
Uncertainty of R&D outcomes
Reliance on a single entity (Starpharma Pty Ltd)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.9 million to STARPHARMA PTY LTD. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is STARPHARMA PTY LTD.

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 $17.9 million.

What is the period of performance?

Start: 2005-09-28. End: 2010-09-29.

What is the expected return on investment for this $17.86M biomedical R&D contract?

The return on investment for biomedical R&D is inherently long-term and uncertain. Success could manifest as groundbreaking discoveries, new therapies, or improved public health outcomes, which are difficult to quantify financially in the short term. The value is in advancing scientific knowledge and potentially addressing unmet medical needs.

What are the primary risks associated with a 5-year biomedical R&D contract?

Key risks include scientific obsolescence, where research becomes outdated before completion; funding instability if future appropriations are cut; personnel turnover within the performing organization; and the possibility that the research objectives prove unattainable or yield negative results. Managing these requires adaptive planning and continuous monitoring by the agency.

How effective is full and open competition in ensuring value for biomedical R&D spending?

Full and open competition is generally effective in driving down costs and ensuring a wide pool of talent is considered. For R&D, however, the most innovative solutions may come from specialized firms. While competition is good, the agency must also ensure the chosen approach is scientifically sound and aligned with strategic research goals, not just the lowest price.

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 Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Starpharma Holdings Limited (UEI: 890964489)

Address: MELBOURNE VIC 3004

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

Financial Breakdown

Contract Ceiling: $28,331,744

Exercised Options: $20,860,077

Current Obligation: $17,860,077

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline