NIH awards $23M R&D contract to Alnylam Pharmaceuticals for drug dependency research

Contract Overview

Contract Amount: $23,008,444 ($23.0M)

Contractor: Alnylam Pharmaceuticals, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-29

End Date: 2013-11-21

Contract Duration: 2,610 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-DRUG DEPENDENCY-A RES/EXPL DEV

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.0 million to ALNYLAM PHARMACEUTICALS, INC. for work described as: R&D-DRUG DEPENDENCY-A RES/EXPL DEV Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2610 days (approx. 7 years) indicates a long-term research commitment. 3. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize efficiency. 4. The North American Industry Classification System (NAICS) code 541710 points to research and development in physical, engineering, and life sciences. 5. The award was made by the National Institutes of Health (NIH), a leading biomedical research agency. 6. The contract was awarded to Alnylam Pharmaceuticals, Inc., a known entity in the pharmaceutical sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure means costs can fluctuate, but the fixed fee provides some predictability. Comparing this to similar R&D contracts for drug dependency research would require detailed analysis of scope and outcomes. The total award amount of $23 million over approximately seven years suggests a significant investment in research.

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 leads to a more robust selection process and potentially better pricing due to market forces. The presence of 12 bids suggests a healthy level of interest and competition for this research opportunity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are patients suffering from drug dependency, through the development of new treatments. The services delivered involve advanced research and development in pharmaceutical sciences. The geographic impact is likely national, given NIH's mission, with potential global implications for drug discovery. The contract supports a specialized workforce in scientific research and pharmaceutical development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not managed carefully, as the contractor is reimbursed for expenses.
The long duration of the contract (over 7 years) increases the risk of scope creep or changes in research priorities over time.
Assessing the true 'value for money' is difficult without detailed performance metrics and comparison to similar R&D outcomes.

Positive Signals

Awarded through full and open competition with 12 bids, indicating strong market interest and a competitive process.
The contract is with Alnylam Pharmaceuticals, Inc., a company with expertise in the relevant field.
The research focus on drug dependency addresses a significant public health issue.

Sector Analysis

This contract falls within the Biotechnology and Pharmaceutical Research and Development sector. This sector is characterized by high innovation, significant R&D investment, and long product development cycles. Comparable spending benchmarks would involve looking at other NIH grants and contracts for similar therapeutic areas and research phases. The market size for drug dependency treatments is substantial, driven by public health needs.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the nature of pharmaceutical R&D and the size of the award, it is likely that larger, established firms were the primary bidders. Subcontracting opportunities for small businesses may exist but are not detailed in the provided data.

Oversight & Accountability

Oversight would typically be managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be tied to the achievement of research milestones outlined in the contract. Transparency is generally maintained through public databases of federal contracts, though specific research progress reports may be proprietary.

Related Government Programs

National Institute on Drug Abuse (NIDA) research programs
Substance Abuse and Mental Health Services Administration (SAMHSA) grants
Biomedical Advanced Research and Development Authority (BARDA) contracts

Risk Flags

Long contract duration may increase risk of cost overruns.
CPFF structure requires diligent cost monitoring.
R&D outcomes are inherently uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.0 million to ALNYLAM PHARMACEUTICALS, INC.. R&D-DRUG DEPENDENCY-A RES/EXPL DEV

Who is the contractor on this award?

The obligated recipient is ALNYLAM PHARMACEUTICALS, 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 $23.0 million.

What is the period of performance?

Start: 2006-09-29. End: 2013-11-21.

What is Alnylam Pharmaceuticals' track record with federal contracts, particularly with NIH?

Alnylam Pharmaceuticals, Inc. has a history of receiving federal funding, primarily through grants and contracts from agencies like the National Institutes of Health (NIH) and the Department of Defense. Their track record often involves research into rare genetic diseases and RNA interference (RNAi) therapeutics. Specific details on past performance, including adherence to timelines, budget management, and scientific outcomes for previous federal awards, would require a deeper dive into contract databases and agency performance reports. However, securing a multi-year, multi-million dollar contract like this suggests a level of established capability and trust from the awarding agency.

How does the $23 million award compare to other NIH R&D contracts for drug dependency?

The $23 million award over approximately seven years represents a significant, but not unprecedented, investment for a specific R&D project within the NIH's portfolio. NIH funds a vast array of research, and funding levels can vary widely based on the scope, phase, and complexity of the research. For instance, early-stage discovery research might receive less, while large clinical trials or advanced development projects could command higher figures. To provide a precise comparison, one would need to analyze the average award size for similar NAICS codes (541710) and research areas (drug dependency) funded by NIH over comparable timeframes. This contract appears to be a substantial commitment for a focused research endeavor.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and potential for cost overruns. While the fixed fee provides a predictable profit margin for the contractor, the government bears the risk of reimbursing all allowable costs incurred. If the research proves more complex or expensive than initially anticipated, the total cost to the government could exceed initial projections. Effective oversight by NIH contracting officers and program managers is crucial to monitor expenditures, ensure costs are reasonable and allocable, and prevent scope creep that could inflate costs without commensurate scientific benefit. The long duration also introduces risks related to changing research landscapes or technological obsolescence.

How effective is full and open competition in ensuring value for money in R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including R&D. By allowing all responsible sources to compete, it fosters a dynamic environment where multiple companies propose solutions and pricing. This competition incentivizes bidders to offer their best technical approaches and most competitive prices to win the contract. For R&D, it can also lead to a broader range of innovative ideas being considered. The presence of 12 bids on this contract suggests that the mechanism worked as intended, likely leading to a more favorable outcome for the government than a sole-source or limited competition award.

What are the potential long-term impacts of this contract on drug dependency treatment?

The potential long-term impacts of this contract are significant, hinging on the success of Alnylam Pharmaceuticals' research. If the R&D efforts lead to the development of novel therapeutics or a deeper understanding of the mechanisms underlying drug dependency, the contract could contribute to breakthroughs in treatment. This might involve new drug candidates, improved therapeutic strategies, or enhanced diagnostic tools. The ultimate impact will be measured by the translation of research findings into clinically effective treatments that improve patient outcomes, reduce addiction rates, and alleviate the societal burden of drug dependency.

How does the contract's duration (2610 days) influence risk and oversight?

The extended duration of 2610 days (approximately 7 years) for this R&D contract significantly influences both risk and oversight. From a risk perspective, a longer timeframe increases the potential for unforeseen scientific challenges, shifts in research priorities (both internal to the contractor and external policy changes), and the possibility of cost escalation over time. It also means the government is committed to a specific research path for an extended period. Consequently, oversight becomes even more critical. NIH program managers and contracting officers must maintain consistent engagement, regularly review progress against milestones, manage any necessary contract modifications, and ensure continued alignment with the agency's strategic goals throughout the contract's lifecycle.

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

Solicitation ID: BAANIHNIAIDDMID0635

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 THIRD STREET, 3RD FLOOR, CAMBRIDGE, MA, 02142

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $31,784,195

Exercised Options: $23,008,444

Current Obligation: $23,008,444

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline