HHS awarded $10.3M for R&D, with a 2007 start and 2013 end date

Contract Overview

Contract Amount: $10,320,185 ($10.3M)

Contractor: Valneva USA, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-01-17

End Date: 2013-03-31

Contract Duration: 2,265 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0140::TAS RESEARCH AND DEVELOPMENT

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to VALNEVA USA, INC. for work described as: TAS::75 0140::TAS RESEARCH AND DEVELOPMENT Key points: 1. Contract value appears reasonable given the 6-year duration and R&D focus. 2. Full and open competition suggests a competitive bidding process. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed closely. 4. The contract's long duration indicates a sustained research effort. 5. The NAICS code 541710 points to significant investment in physical, engineering, and life sciences research. 6. The contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR), suggesting a focus on public health preparedness.

Value Assessment

Rating: good

The $10.3 million award over six years averages to approximately $1.7 million per year, which is a moderate annual spend for a research and development contract of this nature. Without specific benchmarks for similar ASPR-funded R&D in vaccine development or infectious disease countermeasures, a direct comparison is difficult. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not rigorously monitored. The fixed fee component provides some cost certainty for the contractor, but the government bears the majority of the cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 10 bids suggests a healthy level of interest and competition for this R&D opportunity. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered. This process helps ensure that government funds are used efficiently by driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are likely the public health sector and potentially the broader population through advancements in medical countermeasures or preparedness strategies. Services delivered include research and development in the physical, engineering, and life sciences, likely focused on areas critical to public health security. The geographic impact is national, as advancements in public health preparedness benefit the entire country. Workforce implications include support for scientists, researchers, and technical staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Long contract duration (6 years) requires sustained oversight to ensure objectives remain relevant and achievable.
The specific R&D focus is not detailed, making it difficult to assess the direct impact or potential for successful outcomes without further information.

Positive Signals

Awarded under full and open competition with 10 bidders, indicating a robust and competitive process.
The contract supports critical research and development in areas relevant to public health preparedness.
The fixed fee component provides a degree of cost certainty for the contractor.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710, which covers R&D in the Physical, Engineering, and Life Sciences. This is a broad category encompassing a wide range of scientific endeavors. Spending in this sector is crucial for innovation and national security. Comparable spending benchmarks would vary significantly based on the specific sub-field of R&D, but government investment in life sciences R&D, particularly related to health preparedness, is substantial and has seen increased focus in recent years.

Small Business Impact

The provided data indicates that small business set-aside (sb) was false and there was no specific indication of subcontracting goals (st: MD, sn: MARYLAND). Therefore, this contract does not appear to have been specifically targeted towards small businesses. The impact on the small business ecosystem would be minimal unless Valneva USA, Inc. voluntarily engaged small businesses as subcontractors, which is not detailed in this summary.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring would be essential to manage costs and ensure research objectives are met. Transparency would depend on HHS's reporting practices for R&D contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Health and Human Services Research and Development
Office of Assistant Secretary for Preparedness and Response Contracts
National Institutes of Health (NIH) Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Funding

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration requires sustained oversight.
Specific R&D outcomes not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to VALNEVA USA, INC.. TAS::75 0140::TAS RESEARCH AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is VALNEVA USA, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2007-01-17. End: 2013-03-31.

What was the specific research and development focus of this contract awarded to Valneva USA, Inc.?

The provided data indicates the contract (TAS 75 0140) was for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, the specific research focus, such as vaccine development, therapeutic research, or diagnostic tools, is not detailed. Given the awarding agency is the Office of Assistant Secretary for Preparedness and Response (ASPR), it is highly probable that the R&D efforts were aligned with public health preparedness and response initiatives, potentially targeting infectious diseases or emerging health threats. Further investigation into the contract's statement of work or associated documentation would be required to ascertain the precise R&D objectives.

How does the $10.3 million contract value compare to similar R&D contracts awarded by HHS or ASPR for preparedness initiatives?

Comparing the $10.3 million contract value requires context regarding the specific R&D area and duration. For a six-year R&D effort (2007-2013), the average annual spend of approximately $1.7 million is moderate. However, R&D costs can fluctuate dramatically. For instance, early-stage vaccine research might cost less than late-stage clinical trials or advanced therapeutic development. ASPR, through its various programs like BARDA, has funded contracts ranging from a few million to hundreds of millions of dollars for medical countermeasures. Without knowing the exact scope (e.g., basic research vs. advanced development), a precise benchmark is challenging. However, the value appears within a plausible range for a sustained R&D project over that timeframe.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The primary risk with a CPFF contract is that the government bears the majority of the cost risk. While the contractor receives a fixed fee for their effort, the total cost of performing the work is reimbursed. If the R&D effort encounters unforeseen challenges, requiring more resources or time than initially estimated, the total cost to the government can increase significantly beyond initial projections. Effective oversight, clear milestones, and robust cost tracking are crucial to mitigate these risks. The fixed fee itself provides an incentive for the contractor to manage costs efficiently to maximize their profit margin, but the overall cost to the government remains variable.

Given the contract ended in 2013, what were the likely outcomes or contributions of this R&D effort to public health preparedness?

The provided data does not specify the outcomes of this contract. However, R&D contracts awarded by ASPR are typically aimed at developing or improving medical countermeasures, diagnostic tools, or other technologies to enhance national health security. Potential contributions could include advancements in understanding disease mechanisms, development of prototype vaccines or treatments, or improved surveillance technologies. The success of such R&D is often measured by the transition of research findings into deployable products or actionable strategies. Without access to final reports or subsequent program developments, the specific impact remains undetermined.

How has federal spending on R&D in the physical, engineering, and life sciences (NAICS 541710) evolved since this contract was awarded?

Federal spending on R&D within NAICS 541710 has generally seen an upward trend since 2013, particularly in the life sciences domain, driven by increased focus on public health, biodefense, and medical innovation. Agencies like HHS (including NIH and ASPR/BARDA), DoD, and NSF consistently invest heavily in this sector. Post-2013, there has been a heightened emphasis on areas like infectious disease research, pandemic preparedness (especially post-Ebola and more recently COVID-19), and advanced biotechnologies. While specific figures fluctuate annually based on appropriations and national priorities, the overall federal commitment to scientific R&D, especially in life sciences, has remained a significant budgetary component.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DHSORDCVB0508

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valneva (UEI: 504476453)

Address: 20 FIRSTFIELD RD, GAITHERSBURG, MD, 20878

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

Financial Breakdown

Contract Ceiling: $124,376,788

Exercised Options: $124,376,788

Current Obligation: $10,320,185

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline