NIH awards $32.7M for R&D in Physical, Engineering, and Life Sciences to Macrogenics, Inc

Contract Overview

Contract Amount: $32,677,074 ($32.7M)

Contractor: Macrogenics, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-29

End Date: 2011-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-OTHER SVC & DEVELOP-ADV DEV

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.7 million to MACROGENICS, INC. for work described as: R&D-OTHER SVC & DEVELOP-ADV DEV Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 1825 days (5 years) indicates a long-term investment in research and development. 4. The awardee, Macrogenics, Inc., is based in Maryland, potentially indicating regional economic impact. 5. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity. 6. The contract value of $32.7 million over five years suggests a substantial commitment to the project.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure means costs can fluctuate, and the fixed fee is negotiated upfront. Comparing this to similar R&D contracts would require detailed analysis of the scope of work and expected outcomes. However, the total award of $32.7 million over five years averages to approximately $6.5 million per year, which is a significant but not necessarily excessive amount for advanced R&D in the life sciences.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bids (no) suggests a healthy level of interest and competition for this R&D opportunity. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in research and development.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in the physical, engineering, and life sciences, advancing scientific knowledge. The services delivered are focused on research and development, potentially leading to new discoveries, technologies, or treatments. The geographic impact is centered in Maryland, where the contractor is located, potentially supporting local jobs and the biotech ecosystem. Workforce implications include the potential for highly skilled jobs in scientific research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract may present challenges in adapting to evolving research landscapes.
Lack of specific performance metrics in the provided data makes it difficult to assess R&D effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The significant investment suggests a high level of confidence in the contractor's capabilities.
The contract supports critical R&D in the physical, engineering, and life sciences.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for innovation and scientific advancement, often characterized by long development cycles and high upfront investment. Comparable spending benchmarks in this sector can vary widely depending on the specific research area, but significant government investment is typical for cutting-edge scientific endeavors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The focus on R&D may involve specialized expertise, which could limit opportunities for broad subcontracting to smaller, less specialized firms.

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 would include regular progress reports, financial reviews, and potentially site visits to ensure adherence to the contract terms and research objectives. Accountability is tied to the successful completion of R&D milestones within the agreed-upon budget and timeline. Transparency would be facilitated through public reporting of research outcomes, though specific contract details might be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Advanced Technology Development Contracts
Life Sciences Research Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Long contract duration (5 years) may pose challenges for adapting to evolving R&D needs.
Lack of specific performance metrics in summary data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.7 million to MACROGENICS, INC.. R&D-OTHER SVC & DEVELOP-ADV DEV

Who is the contractor on this award?

The obligated recipient is MACROGENICS, 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 $32.7 million.

What is the period of performance?

Start: 2006-09-29. End: 2011-09-28.

What is the specific research focus of this contract awarded to Macrogenics, Inc.?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, the specific research focus, such as the particular diseases, biological processes, or technological areas being investigated, is not detailed in the summary data. Further investigation into the contract's statement of work or associated NIH funding announcements would be necessary to ascertain the precise research objectives and scientific disciplines involved.

How does the $32.7 million award compare to other R&D contracts in the life sciences sector awarded by NIH?

Comparing the $32.7 million award requires context on the typical scale of NIH R&D contracts. NIH funds a vast array of research, from small individual investigator grants to large center grants and multi-year development contracts. While $32.7 million over five years ($6.54 million annually) is a substantial sum, it is not uncommon for significant R&D efforts, particularly those involving drug development, advanced biotechnology, or complex biological systems research. Benchmarking would necessitate analyzing the scope, duration, and specific research area of comparable contracts to determine if this award represents a typical, high, or low investment for its category.

What are the key performance indicators (KPIs) or milestones associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) contracts, especially in R&D, performance is often measured against the achievement of defined research objectives, the successful completion of experimental phases, the generation of data, and the timely submission of reports. The fixed fee is earned upon meeting these contractual obligations. A detailed review of the contract's Statement of Work (SOW) and any associated performance work statements would be required to identify the specific deliverables and success criteria.

What is Macrogenics, Inc.'s track record with government R&D contracts, particularly with NIH?

Macrogenics, Inc. is a biotechnology company focused on developing antibody-based therapeutics. While the provided data confirms they received this specific $32.7 million contract from NIH, a comprehensive assessment of their track record would involve reviewing their history of awarded federal contracts, including past performance evaluations, successful project completions, and any history of contract disputes or challenges. Their presence in the biotech sector suggests they are likely experienced in seeking and managing government R&D funding, but specific details of their past performance would require access to broader federal procurement databases and performance records.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. If costs exceed initial estimates, the government still pays the agreed-upon fixed fee. Conversely, the contractor bears the risk if actual allowable costs are significantly higher than anticipated, reducing their profit margin. In R&D, where outcomes are uncertain, CPFF can be appropriate to encourage innovation, but it requires robust oversight to ensure costs remain reasonable and that the fixed fee adequately compensates for the effort and risk involved.

How does the geographic location (Maryland) of the contractor potentially impact the contract's execution or oversight?

The contractor, Macrogenics, Inc., is located in Maryland (st: MD, sn: MARYLAND). This proximity to the Washington D.C. metropolitan area, where many federal agencies, including NIH, are headquartered or have significant operations, can facilitate communication, site visits, and oversight activities. It may also indicate a concentration of biotechnology and life sciences expertise in the region, potentially benefiting the contract through access to a skilled workforce and research infrastructure. However, the geographic location itself does not inherently guarantee contract success; performance is primarily driven by the contractor's capabilities and the contract's management.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAANIHNIAIDDMID0635

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1500 EAST GUDE DR, ROCKVILLE, MD, 20850

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,058,626

Exercised Options: $32,677,074

Current Obligation: $32,677,074

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline