HHS awards $20M for biodefense vaccine tech development to Emergent Travel Health

Contract Overview

Contract Amount: $19,973,605 ($20.0M)

Contractor: Emergent Travel Health Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-08-31

End Date: 2017-03-30

Contract Duration: 2,403 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0885::TAS DEVELOPMENT OF TECHNOLOGIES TO FACILITATE THE USE OF AND RESPONSE TO BIODEFENSE VACCINES

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 $20.0 million to EMERGENT TRAVEL HEALTH INC. for work described as: TAS::75 0885::TAS DEVELOPMENT OF TECHNOLOGIES TO FACILITATE THE USE OF AND RESPONSE TO BIODEFENSE VACCINES Key points: 1. The contract focuses on R&D in biotechnology, a critical sector for national security. 2. Emergent Travel Health Inc. is the sole awardee, raising questions about competition. 3. The contract duration of over 2000 days suggests a long-term, complex project. 4. The use of a Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully.

Value Assessment

Rating: questionable

The contract value of $19.97M over approximately 6.7 years results in an average annual spend of $2.98M. Benchmarking this against similar R&D contracts in biotechnology is difficult without more specific data on the scope of work and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite the award being under 'FULL AND OPEN COMPETITION', only one contractor, Emergent Travel Health Inc., received the award. This suggests that while the opportunity was advertised broadly, only one entity was ultimately selected, potentially limiting price discovery and innovation.

Taxpayer Impact: The total award of $19.97M represents taxpayer investment in critical biodefense research. The effectiveness and efficiency of this spending will determine the ultimate value for taxpayers.

Public Impact

Enhances national biodefense capabilities by advancing vaccine technology. Supports critical research and development in the biotechnology sector. Potential for improved public health response to biological threats. Investment in a company specializing in vaccine development and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may indicate scope creep or inefficient execution.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Addresses a critical national security need (biodefense).
Supports R&D in a vital scientific field.
Potential for significant advancements in vaccine technology.

Sector Analysis

This contract falls under the Research and Development in Biotechnology sector (NAICS 541711). Spending in this area is crucial for national security and public health, but often involves high risk and long development cycles. Benchmarks are difficult due to the specialized nature of the R&D.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify any subcontracting goals. Therefore, the direct impact on small businesses is likely minimal, with opportunities potentially arising through subcontracting if pursued by the prime contractor.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (HHS) via the National Institutes of Health (NIH). Oversight would typically involve regular reviews of progress, costs, and adherence to contract terms by NIH contracting officers.

Related Government Programs

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

Risk Flags

Potential for limited competition despite advertised 'full and open'.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
Long contract duration (2403 days) may indicate execution challenges or scope creep.
Lack of specific performance metrics in the provided data.
Sole awardee raises questions about market competitiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.0 million to EMERGENT TRAVEL HEALTH INC.. TAS::75 0885::TAS DEVELOPMENT OF TECHNOLOGIES TO FACILITATE THE USE OF AND RESPONSE TO BIODEFENSE VACCINES

Who is the contractor on this award?

The obligated recipient is EMERGENT TRAVEL HEALTH 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 $20.0 million.

What is the period of performance?

Start: 2010-08-31. End: 2017-03-30.

What specific technological advancements are expected from this contract, and how will their success be measured?

The contract aims to develop technologies facilitating the use of and response to biodefense vaccines. Success metrics would likely involve milestones related to prototype development, efficacy testing, and integration capabilities. Without detailed contract deliverables, it's challenging to assess the specific expected advancements or the rigor of the measurement plan.

Given the 'full and open' competition designation but single award, what factors led to Emergent Travel Health Inc. being the sole selected entity?

Factors could include unique qualifications, proprietary technology, or a highly specialized proposal that best met the government's requirements. However, a single award under full and open competition warrants scrutiny to ensure no viable competitors were overlooked or unfairly excluded, and that the pricing reflects competitive pressures.

How does the Cost Plus Fixed Fee structure align with the R&D objectives to ensure cost-effectiveness and prevent contractor overspending?

CPFF contracts are often used for R&D where the scope is uncertain. The fixed fee provides incentive for the contractor to control costs to maximize profit. However, effective oversight is crucial to ensure costs remain reasonable and the government receives value, as the contractor is reimbursed for all allowable costs.

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: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3985 SORRENTO VALLEY BLVD STE A, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,973,605

Exercised Options: $19,973,605

Current Obligation: $19,973,605

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline