NIH awards TRIUS THERAPEUTICS $25.6M for biotechnology R&D under full and open competition

Contract Overview

Contract Amount: $25,641,873 ($25.6M)

Contractor: Trius Therapeutics, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-01

End Date: 2013-03-31

Contract Duration: 1,672 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW CONTRACT AWARD UNDER BAA NIH-NIAID-DMID-08-20

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.6 million to TRIUS THERAPEUTICS, INC. for work described as: NEW CONTRACT AWARD UNDER BAA NIH-NIAID-DMID-08-20 Key points: 1. Contract value of $25.6 million over 5 years suggests a significant investment in research and development. 2. The award was made under full and open competition, indicating a robust bidding process. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful oversight of costs. 4. The North American Industry Classification System (NAICS) code 541711 points to a focus on biotechnology research. 5. The duration of the contract (1672 days) allows for sustained research efforts. 6. The small business set-aside flag is false, suggesting the contract was not specifically targeted towards small businesses.

Value Assessment

Rating: fair

The contract value of $25.6 million for a 5-year biotechnology research project appears within a reasonable range for complex R&D. However, without specific benchmarks for similar NIAID-funded projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain aligned with the research objectives and that the fixed fee is appropriate for the contractor's risk and effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 23 bidders indicates a highly competitive environment. This level of competition is generally favorable for price discovery and can lead to better value for the government, as contractors are incentivized to offer competitive terms to win the award.

Taxpayer Impact: A competitive award process like this one helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) and the broader scientific community, through advancements in biotechnology. The contract supports research and development in biotechnology, potentially leading to new medical treatments or diagnostic tools. The geographic impact is centered around the contractor's location in California, but the research findings can have national and global implications. The contract supports a specialized workforce in the biotechnology research sector.

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 requires sustained oversight to ensure progress and adherence to objectives.
The specific research outcomes are uncertain, as is typical for R&D contracts.

Positive Signals

Awarded under full and open competition with 23 bidders, indicating strong market interest and potential for competitive pricing.
The contract duration allows for comprehensive research and development activities.
The focus on biotechnology R&D aligns with critical national health priorities.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a rapidly growing area driven by advancements in life sciences and increasing demand for novel therapeutics and diagnostics. The market is characterized by significant investment from both government and private entities. Comparable spending benchmarks would typically involve analyzing other NIH grants and contracts awarded for similar research areas and project scopes, as well as private sector R&D expenditures in biotechnology.

Small Business Impact

The contract was not awarded as a small business set-aside, and the contractor, TRIUS THERAPEUTICS, INC., is likely a larger entity given the contract value. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts can sometimes lead to subcontracting opportunities.

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). As a Cost Plus Fixed Fee contract, rigorous financial and programmatic oversight is crucial to monitor expenditures, ensure progress aligns with research milestones, and verify the appropriateness of the fixed fee. Transparency would be facilitated through regular reporting requirements from the contractor and potential reviews by the NIH.

Related Government Programs

NIH Research Grants
Biotechnology Research and Development Contracts
National Institute of Allergy and Infectious Diseases (NIAID) Funding
Department of Health and Human Services R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained monitoring of progress and performance.
Research and Development inherently carries uncertainty regarding outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.6 million to TRIUS THERAPEUTICS, INC.. NEW CONTRACT AWARD UNDER BAA NIH-NIAID-DMID-08-20

Who is the contractor on this award?

The obligated recipient is TRIUS THERAPEUTICS, 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 $25.6 million.

What is the period of performance?

Start: 2008-09-01. End: 2013-03-31.

What is the track record of TRIUS THERAPEUTICS, INC. with federal contracts, particularly with NIH?

Information on TRIUS THERAPEUTICS, INC.'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-NG) 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, particularly in similar R&D areas, 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 efficiency as a federal contractor.

How does the $25.6 million contract value compare to similar biotechnology R&D contracts awarded by NIH or NIAID?

The $25.6 million contract value over approximately five years for biotechnology R&D is substantial but falls within the expected range for complex, multi-year research initiatives funded by agencies like NIH/NIAID. To benchmark effectively, one would need to compare this award against other definitive contracts or grants awarded by NIAID or other NIH institutes for similar research areas (e.g., infectious diseases, drug development, vaccine research) and with comparable durations. Factors such as the novelty of the research, the stage of development (e.g., basic research vs. clinical trials), and the specific scientific challenges involved would influence the cost. A detailed comparison would involve analyzing the average award size, the distribution of contract values, and the specific research objectives of comparable contracts.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biotechnology R&D revolve around cost control and ensuring value for money. While CPFF provides flexibility for research that may encounter unforeseen challenges or require adjustments in scope, it places the financial risk primarily on the government. The contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. Key risks include potential cost overruns if the contractor does not manage expenses diligently, or if the research proves more complex or expensive than initially anticipated. The fixed fee, while intended to incentivize efficiency, might not always adequately reflect the contractor's effort or risk, potentially leading to either excessive profit or insufficient motivation. Robust government oversight is essential to scrutinize costs, ensure they are reasonable and allocable to the contract, and verify that the fixed fee remains appropriate throughout the contract's lifecycle.

What are the expected outcomes or deliverables for this specific biotechnology R&D contract?

The provided data indicates the contract is for 'Research and Development in Biotechnology' under BAA NIH-NIAID-DMID-08-20. Specific outcomes or deliverables are not detailed. Typically, such contracts would outline milestones related to scientific discovery, data generation, prototype development, preclinical testing, or the creation of intellectual property. The exact deliverables would be defined in the Statement of Work (SOW) or Performance Work Statement (PWS) within the contract. These could range from detailed research reports and scientific publications to the development of novel assays, therapeutic candidates, or diagnostic tools. The success of the contract would be measured against the achievement of these defined objectives within the specified timeline and budget.

How has federal spending in biotechnology R&D evolved, and where does this contract fit within that trend?

Federal spending in biotechnology R&D has generally shown a consistent upward trend over the past decades, driven by national priorities in healthcare, defense, and economic competitiveness. Agencies like NIH, NSF, and DOD are major contributors. This $25.6 million contract awarded by NIAID fits within this trend, representing a specific investment in a critical area of biomedical research. The trend reflects a growing recognition of biotechnology's potential to address complex challenges, from emerging infectious diseases to chronic illnesses and biodefense. Analyzing historical spending patterns within NIAID and NIH for similar research areas would reveal whether this award is consistent with funding priorities and resource allocation strategies, indicating its place within the broader federal R&D landscape.

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

Offers Received: 23

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6310 NANCY RIDGE DR STE 105, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $25,641,873

Exercised Options: $25,641,873

Current Obligation: $25,641,873

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline