HHS awards $992M for Submarine Research & Development to Perlegen Sciences, Inc
Contract Overview
Contract Amount: $9,921,110 ($9.9M)
Contractor: Perlegen Sciences, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2004-09-20
End Date: 2011-12-31
Contract Duration: 2,658 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST SHARING
Sector: R&D
Official Description: SUBMARINES
Place of Performance
Location: MOUNTAIN VIEW, SANTA CLARA County, CALIFORNIA, 94043
Plain-Language Summary
Department of Health and Human Services obligated $9.9 million to PERLEGEN SCIENCES, INC for work described as: SUBMARINES Key points: 1. Significant investment in R&D, potentially driving innovation. 2. Sole awardee, Perlegen Sciences, Inc., raises questions about competition. 3. Long contract duration (2004-2011) suggests a complex, multi-year project. 4. The 'Cost Sharing' (PT) indicates a partnership model, potentially reducing direct taxpayer burden.
Value Assessment
Rating: questionable
The total award of $992,111,000 over approximately 7 years is substantial. Without specific deliverables or milestones, assessing value for money is difficult. The 'Cost Sharing' aspect suggests a potential for shared risk and reward, but the exact nature of this sharing is unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' which is positive for price discovery. However, with only one awardee listed (Perlegen Sciences, Inc.), it's unclear if other entities participated or if this represents a sole-source award disguised as full and open.
Taxpayer Impact: The impact on taxpayers is difficult to ascertain without more detail on the project's outcomes and the cost-sharing agreement. A competitive award process is generally beneficial for taxpayers.
Public Impact
Potential for groundbreaking scientific discoveries in physical, engineering, and life sciences. Investment in advanced research could lead to future technological advancements. The 'Cost Sharing' model may leverage private sector investment, potentially optimizing federal funds. Long-term commitment indicates a strategic focus on a specific research area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition despite 'Full and Open' designation.
- Significant award amount without detailed performance metrics.
- Unclear cost-sharing details and taxpayer benefit.
Positive Signals
- Investment in critical R&D sector.
- Potential for innovation and technological advancement.
- Use of cost-sharing model to leverage private funds.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Federal spending in this sector is crucial for innovation but can be high-risk due to the inherent uncertainty of research outcomes. Benchmarks are difficult without knowing the specific research area.
Small Business Impact
There is no indication that small businesses were involved in this contract. The awardee, Perlegen Sciences, Inc., is likely a large entity given the contract value. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The long duration and substantial value of this contract warrant robust oversight. Key areas for oversight would include tracking project milestones, ensuring adherence to the cost-sharing agreement, and verifying the scientific and technological progress made by Perlegen Sciences, Inc.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential lack of true competition despite 'Full and Open' status.
- Significant financial commitment without clear performance metrics.
- Ambiguity in the cost-sharing agreement and its benefits.
- Long contract duration may indicate potential for cost overruns or scope creep.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ca, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $9.9 million to PERLEGEN SCIENCES, INC. SUBMARINES
Who is the contractor on this award?
The obligated recipient is PERLEGEN SCIENCES, 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 $9.9 million.
What is the period of performance?
Start: 2004-09-20. End: 2011-12-31.
What specific research outcomes were achieved with the $992M award, and how do they align with the initial objectives?
The provided data does not detail the specific research outcomes or their alignment with initial objectives. A comprehensive review would require access to project reports, milestone achievements, and final deliverables. Understanding the return on investment in terms of scientific advancement and potential commercialization is crucial for assessing the value of this substantial federal expenditure.
Given the 'Full and Open Competition' designation, what was the rationale for only one awardee, and were there any challenges to participation?
The data indicates 'Full and Open Competition' but lists only one awardee, Perlegen Sciences, Inc. This discrepancy raises questions about the actual competitive landscape. Possible explanations include a highly specialized requirement, a lack of qualified bidders, or potential issues in the solicitation process. Further investigation into the bidding process and the number of proposals received is necessary to confirm genuine competition.
How did the 'Cost Sharing' model impact the overall cost-effectiveness and risk distribution for this R&D contract?
The 'Cost Sharing' (PT) model suggests a partnership where both the government and Perlegen Sciences, Inc. contributed resources. This can enhance cost-effectiveness by leveraging private investment and distributing risk. However, the precise terms of the cost-sharing agreement, including the ratio of contributions and the definition of shared costs, are critical for a full assessment of its impact on taxpayer burden and overall project success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST SHARING (T)
Contractor Details
Address: 2021 STIERLIN COURT, MOUNTAIN VIEW, CA, 16
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,449,859
Exercised Options: $18,175,940
Current Obligation: $9,921,110
Timeline
Start Date: 2004-09-20
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2011-09-13
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