HHS awards $24.3M for AIDS Research to VGX Pharmaceuticals over 10 years

Contract Overview

Contract Amount: $24,297,434 ($24.3M)

Contractor: VGX Pharmaceuticals, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-30

End Date: 2018-09-30

Contract Duration: 3,652 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: AIDS RESEARCH (BASIC)

Place of Performance

Location: BLUE BELL, MONTGOMERY County, PENNSYLVANIA, 19422

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.3 million to VGX PHARMACEUTICALS, LLC for work described as: AIDS RESEARCH (BASIC) Key points: 1. Spending focuses on R&D in Biotechnology (NAICS 541711). 2. VGX Pharmaceuticals is the sole contractor. 3. Contract duration is 10 years, ending 2018. 4. Contract type is Cost No Fee. 5. Significant taxpayer investment in AIDS research.

Value Assessment

Rating: questionable

The 'Cost No Fee' contract type offers limited incentive for cost control. Without a fixed price or clear performance metrics tied to cost, assessing value is difficult. The long duration further complicates value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the data does not indicate if multiple bids were received or how the price was determined. The long-term nature suggests potential for price escalation over time.

Taxpayer Impact: Taxpayers are funding critical AIDS research. The 'Cost No Fee' structure means the government bears all costs, and the ultimate efficiency of spending is not directly incentivized by the contractor.

Public Impact

Supports vital research into AIDS, a major public health concern. Long-term funding commitment provides stability for research efforts. Potential for breakthroughs in treatment or prevention of AIDS. Contract awarded to a single entity over a decade.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years).
Cost No Fee contract type.
Sole contractor identified.
No small business participation indicated.

Positive Signals

Addresses critical health issue (AIDS research).
Long-term funding for research stability.
Awarded under full and open competition.

Sector Analysis

This contract falls under Research and Development in Biotechnology (NAICS 541711). Spending in this sector is crucial for medical advancements but can be high-risk and long-term, with outcomes not always guaranteed.

Small Business Impact

The provided data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The long duration and 'Cost No Fee' structure warrant close oversight to ensure funds are used efficiently and research objectives are met. Regular reviews of progress and expenditures are essential for accountability.

Related Government Programs

Research and Development in Biotechnology
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration (10 years).
Cost No Fee contract type.
Sole contractor.
No small business participation identified.
Lack of clear performance incentives for cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.3 million to VGX PHARMACEUTICALS, LLC. AIDS RESEARCH (BASIC)

Who is the contractor on this award?

The obligated recipient is VGX PHARMACEUTICALS, 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 $24.3 million.

What is the period of performance?

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

How was the total contract value of $24.3 million determined, and what specific research milestones was it intended to fund over the 10-year period?

The total contract value was likely an estimate based on projected research needs and costs over a decade. Without detailed milestones, it's difficult to assess if the $24.3 million was appropriately allocated. The 'Cost No Fee' structure means the government pays actual costs incurred, making the initial estimate more of a budget ceiling than a fixed price for specific deliverables.

What are the primary risks associated with a 10-year 'Cost No Fee' contract for AIDS research, and how were these mitigated?

Key risks include potential cost overruns without contractor financial risk, lack of incentive for efficiency, and the possibility of research becoming outdated or unfocused over a decade. Mitigation strategies might include rigorous progress reviews, clear performance metrics, and mechanisms for contract modification or termination if objectives aren't met, though these are not explicitly detailed.

Given the 'Cost No Fee' structure and long duration, how can the effectiveness of this $24.3 million investment in AIDS research be measured?

Effectiveness is best measured by the scientific outcomes achieved, such as publications, patents, development of new therapies or diagnostic tools, and ultimately, impact on public health related to AIDS. Regular scientific reviews by NIH experts, independent of the contractor, are crucial to assess progress against research goals and the overall value of the investment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Inovio Pharmaceuticals, Inc. (UEI: 879167674)

Address: 450 SENTRY PKWY E, BLUE BELL, PA, 19422

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

Financial Breakdown

Contract Ceiling: $24,297,434

Exercised Options: $24,297,434

Current Obligation: $24,297,434

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline