HHS awards $19.6M for infectious disease therapeutics R&D to Dynport Vaccine Company LLC

Contract Overview

Contract Amount: $19,644,619 ($19.6M)

Contractor: Dynport Vaccine Company LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-05-30

End Date: 2018-09-30

Contract Duration: 3,775 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PHASE 1 CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.6 million to DYNPORT VACCINE COMPANY LLC for work described as: PHASE 1 CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES Key points: 1. The contract supports critical research into new treatments for infectious diseases. 2. Dynport Vaccine Company LLC is the sole awardee, raising questions about competition. 3. The long duration (10+ years) and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. This spending falls within the R&D sector, specifically focusing on life sciences.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs compared to fixed-price contracts, especially over a long duration. Benchmarking CPFF contracts for similar R&D projects is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although advertised as full and open competition, the award went to a single entity. Further investigation is needed to understand if multiple bids were received and why only one was selected.

Taxpayer Impact: Taxpayer funds are supporting critical research, but the long contract duration and CPFF structure necessitate careful oversight to ensure value for money.

Public Impact

Advancement of medical countermeasures against infectious diseases. Potential for new therapeutic development and public health protection. Long-term government investment in a specific company's research capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years)
Cost-plus-fixed-fee contract type
Sole awardee despite full and open competition

Positive Signals

Supports critical R&D in infectious diseases
Potential for significant public health impact

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but requires careful management due to inherent uncertainties and long timelines.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The long duration and CPFF nature of this contract necessitate robust oversight from HHS to ensure milestones are met and costs remain controlled. Regular reviews of progress and expenditures are essential.

Related Government Programs

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

Risk Flags

Long contract duration
Cost-plus-fixed-fee contract type
Potential for cost overruns
Lack of transparency on competition outcome
Limited visibility into specific research targets

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.6 million to DYNPORT VACCINE COMPANY LLC. PHASE 1 CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES

Who is the contractor on this award?

The obligated recipient is DYNPORT VACCINE COMPANY LLC.

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 $19.6 million.

What is the period of performance?

Start: 2008-05-30. End: 2018-09-30.

What specific infectious diseases or therapeutic areas are being targeted by this contract, and what is the expected scientific outcome?

The provided data does not specify the exact infectious diseases or therapeutic targets. The contract's objective is broadly stated as 'PHASE 1 CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES.' Further details would be required from NIH to understand the specific scientific goals and expected outcomes of this long-term research initiative.

Given the 'full and open competition' designation, why was only one award made, and what was the evaluation process for other potential bidders?

While designated as 'full and open competition,' the award to a single entity, DYNPORT VACCINE COMPANY LLC, suggests that either only one proposal met the stringent requirements, or a sole-source justification was applied post-competition. The contracting agency, NIH, would need to provide details on the evaluation criteria and the rationale for selecting only one awardee to ensure transparency and accountability.

How does the Cost Plus Fixed Fee structure ensure cost-effectiveness and prevent potential overruns over the 10-year contract period?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate. Over a 10-year period, robust oversight, clear performance metrics, and regular audits by NIH are crucial to manage costs effectively and mitigate the risk of significant overruns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 64 THOMAS JOHNSON DR, FREDERICK, MD, 21702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,575,623

Exercised Options: $19,644,619

Current Obligation: $19,644,619

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline