HHS awards $30M for vaccine formulation R&D to Emergent BioSolutions, focusing on NIAID priority pathogens
Contract Overview
Contract Amount: $30,177,861 ($30.2M)
Contractor: Emergent Product Development Gaithersburg Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-08-28
End Date: 2024-02-29
Contract Duration: 3,472 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF DEVELOPMENT OF VACCINE FORMULATIONS EFFECTIVE AGAINST NIAID PRIORITY PATHOGENS
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.2 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC. for work described as: IGF::OT::IGF DEVELOPMENT OF VACCINE FORMULATIONS EFFECTIVE AGAINST NIAID PRIORITY PATHOGENS Key points: 1. Significant investment in critical vaccine research and development. 2. Competition was full and open, suggesting a robust price discovery process. 3. Contract duration is extensive (10 years), indicating long-term R&D needs. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific cost breakdowns for R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is generally positive for price discovery. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure value for money.
Taxpayer Impact: Taxpayer funds are supporting critical public health research, but the extensive duration and contract type warrant close monitoring for cost efficiency.
Public Impact
Supports development of vaccines against potentially dangerous pathogens. Invests in national biodefense and public health preparedness. Long-term commitment to a single contractor for complex R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (10 years)
- No small business participation
Positive Signals
- Supports critical public health initiative
- Full and open competition utilized
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. The $30M award is substantial for a single R&D contract, reflecting the complexity and importance of vaccine development.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor is a large entity, and opportunities for small businesses in subcontracting roles are not explicitly detailed in this award.
Oversight & Accountability
The extensive duration and Cost Plus Fixed Fee structure necessitate robust oversight from HHS and NIH to ensure milestones are met and costs remain controlled. Regular reviews of progress and expenditures are crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may reduce flexibility
- Lack of small business participation
- Limited transparency on specific pathogens and R&D milestones
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.2 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC.. IGF::OT::IGF DEVELOPMENT OF VACCINE FORMULATIONS EFFECTIVE AGAINST NIAID PRIORITY PATHOGENS
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 $30.2 million.
What is the period of performance?
Start: 2014-08-28. End: 2024-02-29.
What specific NIAID priority pathogens are targeted by this vaccine formulation development, and what is the projected timeline for achieving effective formulations?
The contract aims to develop vaccine formulations effective against NIAID priority pathogens, which typically include agents relevant to biodefense and emerging infectious diseases. Specific pathogens are not detailed in the award notice. The projected timeline for achieving effective formulations is implicitly tied to the contract's end date of February 2024, but specific milestones and deliverables would be outlined in the contract's statement of work.
Given the Cost Plus Fixed Fee structure and the 10-year duration, what mechanisms are in place to mitigate cost overruns and ensure the government receives value for its investment?
The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in R&D, inherently carries risk of cost escalation. Mitigation strategies likely include stringent milestone-based payments, regular performance reviews by the contracting officer's representative (COR), and detailed auditing of incurred costs. The fixed fee component provides some incentive for the contractor to manage costs efficiently to maximize profit.
How does the government plan to ensure the successful transition and potential commercialization of these vaccine formulations developed under this contract?
The contract's focus is on formulation development, not necessarily full commercialization. The government likely intends to leverage the developed formulations for public health stockpiles or further clinical development through subsequent contracts or partnerships. Intellectual property rights, as defined in the contract, will be crucial for determining future use and commercialization pathways.
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: BASIC RESEARCH
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc.
Address: 300 PROFESSIONAL DR # 100, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,177,861
Exercised Options: $30,177,861
Current Obligation: $30,177,861
Actual Outlays: $2,106,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-08-28
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2023-03-22
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