NIH awards $26.7M for advanced biomedical R&D to Emergent Product Development, Maryland

Contract Overview

Contract Amount: $26,710,106 ($26.7M)

Contractor: Emergent Product Development Gaithersburg Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-25

End Date: 2021-07-07

Contract Duration: 4,668 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOMEDICAL (ADVANCED)

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.7 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC. for work described as: BIOMEDICAL (ADVANCED) Key points: 1. Contract awarded for advanced biomedical research and development services. 2. Significant duration of over 11 years suggests a long-term research objective. 3. Cost-plus-fixed-fee contract type indicates potential for cost overruns. 4. The contract was awarded through full and open competition. 5. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services. 6. The contract's value is substantial within the advanced biomedical R&D sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The cost-plus-fixed-fee structure, while common for R&D, can lead to higher final costs than fixed-price contracts. The total award amount of $26.7 million over nearly 12 years averages to approximately $2.2 million per year, which may be reasonable for specialized biomedical research depending on the scope and complexity of the work. Further analysis would require understanding the specific research milestones and outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 13 bidders, this suggests a healthy level of interest and competition for this type of advanced biomedical R&D work. A competitive process generally helps in achieving better pricing and selecting the most capable vendor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the government receives the best value for its investment.

Public Impact

The primary beneficiaries are researchers and institutions involved in advanced biomedical development. Services delivered likely contribute to scientific advancements in medicine and health. The contract's geographic impact is centered in Maryland, supporting the local research ecosystem. Workforce implications include employment for scientists, researchers, and support staff in the biomedical field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
Long contract duration may present risks if research objectives shift or become obsolete.
The specific nature of advanced biomedical R&D carries inherent scientific and technical risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The substantial award indicates a recognized need and potential for significant scientific contribution.
The contract supports critical research in the life sciences, aligning with national health priorities.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector, specifically NAICS code 541712. This sector is characterized by high innovation, significant investment, and long development cycles. The market size for biomedical R&D is substantial, driven by advancements in genomics, drug discovery, and medical technologies. This contract represents a portion of federal investment in advancing scientific knowledge and developing new health solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside requirements or reporting on subcontracting, the direct impact on the small business ecosystem for this particular award is likely limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract databases, though specific research progress reports may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Contracts
National Science Foundation (NSF) Research Funding
Department of Defense Medical Research Programs

Risk Flags

Cost-plus-fixed-fee contract type requires careful monitoring of costs.
Long contract duration may increase risk of scope creep or obsolescence.
Advanced R&D inherently carries scientific and technical uncertainties.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.7 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC.. BIOMEDICAL (ADVANCED)

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 $26.7 million.

What is the period of performance?

Start: 2008-09-25. End: 2021-07-07.

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

Emergent Product Development Inc. has received federal contracts, including this significant award from the National Institutes of Health (NIH). Analyzing their broader federal contracting history would involve reviewing databases like SAM.gov or FPDS-NG for past performance, other agency awards, and contract types. A review of past performance would assess their ability to meet technical requirements, manage costs, and adhere to schedules on similar R&D projects. Understanding their history with NIH specifically would provide insight into their established relationship and success rate with the agency's unique research and development needs. Without access to detailed performance reviews or a comprehensive contract history, it's difficult to definitively assess their track record beyond the existence of this award.

How does the $26.7 million award compare to other advanced biomedical R&D contracts awarded by NIH?

The $26.7 million award to Emergent Product Development Inc. is a substantial sum, indicative of a significant research initiative. To benchmark this value, one would compare it against other NIH contracts awarded under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) or similar codes related to advanced biomedical research. NIH funds a vast portfolio of R&D, with individual contract values ranging from small grants to multi-million dollar agreements. A contract of this magnitude suggests a project with a considerable scope, duration, or complexity, potentially involving novel therapeutic development, advanced diagnostics, or complex biological systems research. Comparing it to the average award size and the range of awards within this specific R&D sub-sector would provide context on whether this represents a typical, high-end, or outlier investment for NIH.

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

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Emergent Product Development Inc., present specific risks. For the government, the primary risk is that the final cost may exceed initial estimates, as the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure can incentivize the contractor to incur higher costs if not rigorously monitored, potentially leading to less cost efficiency compared to fixed-price contracts. For advanced biomedical R&D, the inherent uncertainty of research outcomes adds another layer of risk. If research proves more challenging or requires more resources than anticipated, costs can escalate. Effective risk mitigation requires stringent oversight of allowable costs, clear definition of project milestones, and regular performance reviews to ensure the contractor remains focused on achieving objectives efficiently within the negotiated fee structure.

What is the expected impact of this contract on the advancement of biomedical science and potential health outcomes?

This contract is expected to contribute to the advancement of biomedical science by funding critical research and development activities. The specific focus on 'advanced' biomedical R&D suggests work in cutting-edge areas, potentially leading to breakthroughs in disease understanding, novel therapeutic interventions, or innovative diagnostic tools. The ultimate impact on health outcomes depends on the success of the research and the subsequent translation of findings into practical applications, such as new treatments or preventative measures. Given the long duration and substantial funding, the project likely aims to address significant health challenges. The National Institutes of Health (NIH) typically funds research with the goal of improving human health, so the expectation is that this contract will yield valuable scientific knowledge and potentially lead to tangible health benefits in the long term.

How has federal spending in the advanced biomedical R&D sector (NAICS 541712) trended over the past decade?

Federal spending in the advanced biomedical R&D sector, often categorized under NAICS code 541712, has generally shown a consistent upward trend over the past decade, albeit with fluctuations influenced by budget appropriations and national priorities. Agencies like the National Institutes of Health (NIH), the National Science Foundation (NSF), and parts of the Department of Defense are major contributors to this spending. Factors driving this trend include the increasing complexity of biological research, advancements in technology (like genomics and AI), and a sustained focus on addressing public health challenges, including emerging infectious diseases and chronic conditions. While specific figures for NAICS 541712 can vary based on how agencies categorize their spending, the overall federal investment in life sciences R&D has been a priority, reflecting its critical role in economic growth and national well-being.

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: 13

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: $26,710,106

Exercised Options: $26,710,106

Current Obligation: $26,710,106

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline