HHS awards $13.6M for HIV Vaccine R&D to United Biomedical, Inc. under full and open competition

Contract Overview

Contract Amount: $13,635,353 ($13.6M)

Contractor: United Biomedical, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-06-30

End Date: 2010-06-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HIV VACCINE DESIGN AND DEVELOPMENT TEAMS FOR PREVENTION AND TREATMENT

Place of Performance

Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.6 million to UNITED BIOMEDICAL, INC. for work described as: HIV VACCINE DESIGN AND DEVELOPMENT TEAMS FOR PREVENTION AND TREATMENT Key points: 1. Significant investment in critical public health research. 2. Competition method suggests potential for fair pricing. 3. Contract duration of 5 years allows for sustained development. 4. Focus on prevention and treatment indicates broad impact potential.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure can incentivize contractor efficiency. However, without specific cost breakdowns or benchmarks for similar R&D efforts, assessing the value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically promotes competitive pricing and allows the government to select the most capable offeror. This method is generally favorable for price discovery.

Taxpayer Impact: Taxpayer funds are directed towards critical medical research, potentially leading to significant public health benefits and cost savings in the long term.

Public Impact

Advancement in the fight against HIV/AIDS. Potential for new prevention and treatment strategies. Supports scientific innovation and medical breakthroughs.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
R&D projects inherently carry a risk of not achieving desired outcomes.

Positive Signals

Focus on a critical public health issue.
Utilized full and open competition.
Contract awarded to a single entity for focused development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending in this area is crucial for innovation but can be subject to long development cycles and uncertain outcomes.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large R&D effort.

Oversight & Accountability

The Department of Health and Human Services, through the National Institutes of Health, is responsible for overseeing this contract. Robust oversight is essential to ensure progress and responsible use of funds in R&D.

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

Potential for R&D failure.
Cost-plus-fixed-fee contract risks.
Lack of small business participation.
Long development timelines inherent in vaccine research.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.6 million to UNITED BIOMEDICAL, INC.. HIV VACCINE DESIGN AND DEVELOPMENT TEAMS FOR PREVENTION AND TREATMENT

Who is the contractor on this award?

The obligated recipient is UNITED BIOMEDICAL, 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 $13.6 million.

What is the period of performance?

Start: 2005-06-30. End: 2010-06-29.

What specific milestones and deliverables are defined in the contract to measure progress and ensure accountability for the $13.6 million investment?

The contract likely includes defined milestones and deliverables tied to the phases of HIV vaccine design and development. These would typically involve preclinical studies, candidate selection, and potentially early-stage clinical trial planning. Regular progress reports and reviews by NIH would ensure accountability, but specific details are not provided in this summary.

How does the fixed fee component of the contract compare to industry standards for similar R&D projects, and what is the potential risk of cost escalation?

Assessing the fixed fee's competitiveness requires benchmarking against similar R&D contracts in the vaccine development field. Cost-plus-fixed-fee contracts carry a risk of escalation if the scope expands or unforeseen technical challenges arise, necessitating strong government oversight to manage potential cost overruns.

What is the projected timeline for tangible outcomes or breakthroughs from this contract, and how will the effectiveness of the vaccine development be evaluated?

The contract duration is five years, suggesting a medium-term outlook for significant progress. Effectiveness will be evaluated based on achieving predefined scientific and developmental milestones, such as successful candidate identification, safety profiles in preclinical models, and readiness for human trials. The ultimate effectiveness is measured by the development of a viable vaccine.

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

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 25 DAVIDS DR, HAUPPAUGE, NY, 11788

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

Financial Breakdown

Contract Ceiling: $20,654,817

Exercised Options: $20,471,207

Current Obligation: $13,635,353

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline