HHS awards $93M for Anthrax Vaccine R&D to Emergent BioSolutions over 12 years

Contract Overview

Contract Amount: $92,988,270 ($93.0M)

Contractor: Emergent Product Development Gaithersburg Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-17

End Date: 2022-06-09

Contract Duration: 4,283 days

Daily Burn Rate: $21.7K/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 ADVANCED DEVELOPMENT OF RECOMBINANT PROTECTIVE ANTIGENT (RPA) ANTHRAX VACCINE CAN 1990087

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $93.0 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC. for work described as: TAS::75 0140::TAS ADVANCED DEVELOPMENT OF RECOMBINANT PROTECTIVE ANTIGENT (RPA) ANTHRAX VACCINE CAN 1990087 Key points: 1. Significant long-term investment in critical biodefense research. 2. Sole awardee Emergent BioSolutions has a history with this vaccine. 3. Contract duration raises questions about ongoing need and flexibility. 4. Focus on R&D in Biotechnology, a high-stakes sector.

Value Assessment

Rating: fair

The total award of $92.9M over 12 years suggests a high per-unit cost, especially considering the R&D nature. Benchmarking is difficult without specific development milestones and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the long duration and specific nature of R&D may limit the pool of truly comparable bids over time.

Taxpayer Impact: Taxpayer funds are supporting critical national security research, but the extended timeline warrants scrutiny for cost-effectiveness.

Public Impact

Ensures continued development of a vaccine against a potential bioterrorism agent. Supports advanced biotechnology research within the US. Long-term funding provides stability for the contractor's research efforts. Potential for future production contracts if development is successful.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Extended contract duration (12 years)
  • Cost Plus Fixed Fee structure can incentivize cost overruns
  • Lack of small business participation noted

Positive Signals

  • Addresses a critical national security need
  • Supports advanced R&D in a key sector
  • Long-term commitment fosters contractor stability

Sector Analysis

This contract falls under Research and Development in Biotechnology (NAICS 541711). Spending in this sector is crucial for national security and public health, often involving long development cycles and significant investment.

Small Business Impact

The data indicates no small business participation in this contract. This is common for large-scale, specialized R&D efforts, but limits opportunities for smaller innovative firms.

Oversight & Accountability

The long duration of this definitive contract suggests a need for robust oversight to ensure milestones are met and funds are used efficiently. Regular reviews are essential.

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

  • Extended contract duration
  • Cost Plus Fixed Fee structure
  • No small business participation
  • Potential for R&D delays or failures
  • Limited transparency on specific development costs

Tags

research-and-development-in-biotechnolog, 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 $93.0 million to EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC.. TAS::75 0140::TAS ADVANCED DEVELOPMENT OF RECOMBINANT PROTECTIVE ANTIGENT (RPA) ANTHRAX VACCINE CAN 1990087

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 (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $93.0 million.

What is the period of performance?

Start: 2010-09-17. End: 2022-06-09.

What is the projected cost per dose or per development milestone for the RPA Anthrax Vaccine?

The provided data does not specify the cost per dose or per development milestone. The total award is $92.9M over 12 years for R&D. Without detailed breakdowns of research phases, deliverables, and projected quantities, a precise per-unit cost benchmark is not feasible. Further analysis would require access to contract line item details and progress reports.

What are the key risks associated with a 12-year R&D contract for a vaccine?

Key risks include technological obsolescence, changing threat landscapes, contractor performance issues over an extended period, and potential cost overruns. The long duration also makes it challenging to maintain competitive pricing and adapt to new scientific discoveries or alternative solutions that may emerge during the contract period.

How effectively does this contract ensure the development of a viable Anthrax vaccine for national security?

The contract's effectiveness hinges on the contractor's ability to meet R&D milestones and the evolving scientific landscape. While it provides sustained funding for development, the long timeframe and cost-plus structure necessitate rigorous oversight to ensure the final product is viable, cost-effective, and meets the intended national security requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in Biotechnology

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

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: $118,848,654

Exercised Options: $92,988,270

Current Obligation: $92,988,270

Actual Outlays: $8,047,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2010-09-17

Current End Date: 2022-06-09

Potential End Date: 2022-06-09 00:00:00

Last Modified: 2022-07-15

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