NIH awards $18.1M R&D contract for biotechnology research to Emergent Product Development

Contract Overview

Contract Amount: $18,105,370 ($18.1M)

Contractor: Emergent Product Development Gaithersburg Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-01

End Date: 2012-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW AWARD UNDER BAA NIH-NIAID-DMID-08-20. THIS IS ONE OF FOUR AWARDS UNDER THIS BAA.

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.1 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC. for work described as: NEW AWARD UNDER BAA NIH-NIAID-DMID-08-20. THIS IS ONE OF FOUR AWARDS UNDER THIS BAA. Key points: 1. Contract awarded under a Broad Agency Announcement (BAA), indicating a focus on novel research areas. 2. This is one of four awards under the BAA, suggesting a competitive selection process for promising projects. 3. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, common in R&D where final costs are uncertain. 4. The duration of 1460 days (4 years) suggests a significant, multi-year research effort. 5. The small business flag is false, indicating the award was not specifically set aside for small businesses. 6. The contract was awarded via Full and Open Competition, suggesting a broad solicitation and multiple potential bidders.

Value Assessment

Rating: fair

The contract value of $18.1 million over four years for R&D in biotechnology is within a typical range for such projects. However, without specific deliverables or milestones, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays for incurred costs plus a negotiated fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar research contracts would require detailed knowledge of the specific research scope and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Broad Agency Announcement (BAA) with Full and Open Competition. This indicates that the solicitation was widely advertised, and all responsible sources were permitted to submit proposals. The fact that this is one of four awards under the BAA suggests that while competition was open, the selection was based on the merit and innovation of the proposed research. The number of bidders is not specified, but the BAA mechanism generally encourages a robust competitive environment for cutting-edge research.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value by allowing a wide range of potential contractors to compete, driving down prices and fostering innovation.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) and the broader scientific community, through advancements in biotechnology research. The services delivered are research and development in biotechnology, contributing to scientific knowledge and potential future medical or industrial applications. The geographic impact is primarily within Maryland, where the contractor is located, but the research findings could have national or global implications. Workforce implications include employment for researchers, scientists, and support staff at Emergent Product Development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict adherence to budget if the fixed fee is the primary profit driver.
The lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
The research and development nature of the contract inherently carries a risk of not achieving desired outcomes, regardless of contractor effort.

Positive Signals

Awarded under a Broad Agency Announcement (BAA) suggests the research is aligned with NIH's strategic priorities and potentially groundbreaking.
Being one of four awards under the BAA indicates a competitive selection process, implying the chosen project demonstrated significant merit.
The contract duration of four years allows for sustained effort and potential for substantial research progress.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on Biotechnology. The Biotechnology market is a rapidly growing segment of the life sciences industry, driven by advancements in genetic engineering, drug discovery, and medical diagnostics. Federal spending in this area supports innovation and the development of new technologies that can have significant public health and economic impacts. Comparable spending benchmarks would depend heavily on the specific sub-field of biotechnology and the scope of the research.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this award. The primary contractor, Emergent Product Development, is not flagged as a small business. The impact on the small business ecosystem would be indirect, through potential competition or collaboration opportunities that may arise from the broader R&D landscape supported by NIH.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), specifically the National Institute of Allergy and Infectious Diseases (NIAID) Division of Microbiology and Infectious Diseases (DMID) which issued the BAA. As a Cost Plus Fixed Fee contract, rigorous financial oversight and review of incurred costs will be crucial. Transparency is typically managed through reporting requirements stipulated in the contract, detailing research progress and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH Research Grants
Biotechnology Research and Development Programs
National Institute of Allergy and Infectious Diseases (NIAID) Funding Opportunities
Broad Agency Announcements (BAA) for Scientific Research

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of expenditures.
Research and Development projects inherently carry a risk of not achieving desired outcomes.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.1 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC.. NEW AWARD UNDER BAA NIH-NIAID-DMID-08-20. THIS IS ONE OF FOUR AWARDS UNDER THIS BAA.

Who is the contractor on this award?

The obligated recipient is EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG 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 $18.1 million.

What is the period of performance?

Start: 2008-09-01. End: 2012-08-31.

What is the track record of Emergent Product Development with federal contracts, particularly with NIH?

Information regarding Emergent Product Development's specific track record with federal contracts, especially with NIH, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications or disputes. Understanding their past performance in R&D, particularly in biotechnology, would provide crucial context for assessing the risk and potential success of this current award. Without this historical data, it's difficult to gauge their reliability and expertise in delivering on similar research objectives.

How does the $18.1 million award compare to other biotechnology R&D contracts funded by NIH or other agencies?

The $18.1 million award over four years for biotechnology R&D is a substantial but not extraordinary sum for federal research funding. NIH, being a leading biomedical research agency, funds numerous projects in this domain, with award sizes varying significantly based on the scope, complexity, and stage of research. Contracts and grants can range from a few hundred thousand dollars for early-stage exploratory research to tens or hundreds of millions for large-scale, multi-year initiatives or development programs. To benchmark this specific award, one would need to compare it against contracts with similar objectives, research areas (e.g., infectious diseases, drug development, diagnostics), and contract types (e.g., CPFF, fixed-price R&D). The fact that it's one of four awards under a BAA suggests it was selected for its potential impact and scientific merit within a competitive pool.

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

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. Contracts awarded under Broad Agency Announcements (BAAs) for research and development often define success through the achievement of specific research objectives, scientific breakthroughs, data generation, or the development of prototypes or methodologies. The Cost Plus Fixed Fee (CPFF) structure implies that progress will be monitored through regular reporting on research activities, expenditures, and the attainment of pre-defined research goals. A detailed review of the contract statement of work (SOW) or performance work statement (PWS) would be necessary to identify the precise KPIs and milestones used to measure the contractor's performance and ensure accountability.

What is the potential impact of this contract on future NIH funding priorities or the broader biotechnology sector?

This contract, awarded under a BAA by NIH-NIAID-DMID, suggests that the research area is a current priority for these institutes. Successful outcomes from this project could influence future funding priorities by demonstrating the viability and importance of the specific biotechnology domain. It could also spur further innovation within the broader biotechnology sector by validating new approaches or technologies. The results may lead to follow-on funding opportunities, collaborations with other research institutions or private companies, and potentially contribute to the development of new diagnostics, therapeutics, or other biotechnological applications. The competitive nature of BAA awards indicates that NIH is actively seeking cutting-edge research, positioning this award as potentially significant.

Are there any identified risks associated with the contractor or the nature of the R&D work?

The primary risks associated with this contract stem from the inherent nature of research and development (R&D) and the Cost Plus Fixed Fee (CPFF) contract type. R&D projects carry the risk of not achieving the desired scientific outcomes, regardless of the contractor's effort or competence. The CPFF structure, while necessary for R&D where costs are uncertain, can pose a risk of cost overruns if not meticulously managed and overseen. Specific risks related to the contractor, Emergent Product Development, would need to be assessed through their past performance history, financial stability, and expertise in the specific biotechnology area. Without access to performance reviews or detailed project plans, it's difficult to pinpoint contractor-specific risks beyond the general challenges of R&D.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HHSN272200800040C

Offers Received: 23

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Emergent Biosolutions Inc. (UEI: 173570271)

Address: 300 PROFESSIONAL DR # 100, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $18,105,370

Exercised Options: $18,105,370

Current Obligation: $18,105,370

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline