HHS awards $75M+ to Bavarian Nordic A/S for advanced biomedical R&D, spanning nearly 8 years
Contract Overview
Contract Amount: $75,033,696 ($75.0M)
Contractor: Bavarian Nordic A/S
Awarding Agency: Department of Health and Human Services
Start Date: 2009-11-16
End Date: 2017-09-30
Contract Duration: 2,875 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIOMEDICAL (ADVANCED)
Plain-Language Summary
Department of Health and Human Services obligated $75.0 million to BAVARIAN NORDIC A/S for work described as: BIOMEDICAL (ADVANCED) Key points: 1. Significant contract value of over $75 million awarded. 2. Bavarian Nordic A/S is the sole contractor identified. 3. Contract duration is substantial, nearly 8 years. 4. Research and Development in Biotechnology sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component is not explicitly detailed, making a precise value assessment difficult without further data on the fee structure relative to the total cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specific nature of R&D may limit the number of viable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are supporting advanced biomedical research. The effectiveness and ultimate benefit of this research will determine the true taxpayer impact.
Public Impact
Supports critical advancements in biotechnology and public health preparedness. Long-term investment in research may yield significant future health benefits. Potential for groundbreaking discoveries in disease prevention or treatment. Contract duration suggests a complex, multi-phase research project.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Sole contractor identified for the award
Positive Signals
- Supports advanced biomedical R&D
- Awarded under full and open competition
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector (NAICS 541711). Spending in this sector is crucial for innovation but can be high-risk due to the inherent uncertainties of scientific discovery. Benchmarks for similar long-term R&D contracts are difficult to establish due to unique project scopes.
Small Business Impact
The data indicates this contract was awarded to Bavarian Nordic A/S, a foreign entity. There is no indication of small business participation in this specific award, which is common for large-scale, specialized R&D contracts.
Oversight & Accountability
The long duration and cost-plus nature of this contract necessitate robust oversight from the Office of Assistant Secretary for Preparedness and Response (ASPR) to ensure funds are used effectively and milestones are met. Regular reporting and performance reviews are critical.
Related Government Programs
- Research and Development in Biotechnology
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (nearly 8 years)
- Potential for cost overruns
- Limited transparency on specific research outcomes
- Sole contractor identified
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $75.0 million to BAVARIAN NORDIC A/S. BIOMEDICAL (ADVANCED)
Who is the contractor on this award?
The obligated recipient is BAVARIAN NORDIC A/S.
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 $75.0 million.
What is the period of performance?
Start: 2009-11-16. End: 2017-09-30.
What specific biomedical advancements or public health outcomes were achieved by this contract?
The contract aimed to support advanced biomedical research and development. Without specific project details or final reports, it's challenging to quantify the exact advancements. However, the significant investment suggests a focus on critical areas within biotechnology, potentially leading to new treatments, diagnostics, or preparedness strategies for health threats.
What were the key risks associated with this Cost Plus Fixed Fee contract, and how were they mitigated?
The primary risk with CPFF contracts is potential cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies would typically involve stringent monitoring of expenditures, clear definition of project milestones, and regular performance reviews by the contracting agency to ensure the contractor remains within budget and scope.
How does the $75M+ investment compare to typical R&D spending in biotechnology for similar project scopes?
Determining a precise benchmark is difficult due to the unique nature of R&D projects. However, $75 million over nearly 8 years for advanced biotechnology R&D is a substantial investment, indicative of a complex, high-potential project. It aligns with significant government funding for critical research areas, especially those related to national security or public health.
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
Solicitation ID: BAABARDA0934
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: HEJRESKOVVEJ 10A, KVISTG?RD
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $95,750,086
Exercised Options: $75,033,696
Current Obligation: $75,033,696
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-11-16
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-09-29
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