HHS awards $77.7M to Chimerix Inc. for biotechnology R&D under full and open competition
Contract Overview
Contract Amount: $77,690,842 ($77.7M)
Contractor: Chimerix, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2011-02-16
End Date: 2021-09-01
Contract Duration: 3,850 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CHIMERIX INC BASE YEAR FUNDING CAN 1992002
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713
Plain-Language Summary
Department of Health and Human Services obligated $77.7 million to CHIMERIX, INC. for work described as: CHIMERIX INC BASE YEAR FUNDING CAN 1992002 Key points: 1. The contract, awarded to Chimerix, Inc., focuses on biotechnology research and development. 2. It was secured through full and open competition, suggesting a competitive bidding process. 3. The contract's duration and cost structure warrant further examination for value. 4. The sector is R&D, specifically in biotechnology, a critical area for public health.
Value Assessment
Rating: fair
The contract's total award value is $77.7 million over a significant period. Without specific deliverables or milestones, assessing value for money is difficult. Benchmarking against similar R&D contracts in biotechnology is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the research and development services provided.
Public Impact
Funding supports critical biotechnology research and development, potentially leading to advancements in public health. The contract's long duration (over 10 years) implies a sustained investment in a specific research area. Transparency in R&D spending is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration without clear performance metrics.
- Cost-plus fixed fee structure can incentivize cost overruns.
- Lack of specific details on deliverables.
Positive Signals
- Awarded through full and open competition.
- Focus on critical R&D in biotechnology.
- Significant investment in a specific area.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector (NAICS 541711). Spending in this area is vital for innovation but requires careful oversight due to the inherent uncertainties in research outcomes and long development cycles.
Small Business Impact
The data indicates the awardee is Chimerix, Inc., a specific company. There is no information provided regarding subcontracting opportunities for small businesses within this contract. Further investigation would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response. Oversight would focus on ensuring research milestones are met and funds are used appropriately, especially given the long-term nature of the award.
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
- Long contract duration without clear performance metrics.
- Cost-plus fixed fee structure potential for cost overruns.
- Lack of specific deliverables in summary data.
- No indication of small business participation.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $77.7 million to CHIMERIX, INC.. CHIMERIX INC BASE YEAR FUNDING CAN 1992002
Who is the contractor on this award?
The obligated recipient is CHIMERIX, 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 $77.7 million.
What is the period of performance?
Start: 2011-02-16. End: 2021-09-01.
What specific research objectives and expected outcomes were defined for this contract to ensure value for money?
The provided data lacks specific details on the research objectives and expected outcomes. A thorough review of the contract's statement of work and any associated performance metrics would be necessary to assess if the $77.7 million investment is aligned with clear, achievable goals and represents good value for taxpayer funds.
How was the 'cost plus fixed fee' structure managed to mitigate potential cost overruns and ensure efficient use of funds?
The cost-plus fixed fee (CPFF) contract type allows for reimbursement of allowable costs plus a fixed fee representing profit. Oversight mechanisms, such as regular audits, detailed cost reporting, and strict adherence to the contract's ceiling, are crucial to manage this structure effectively and prevent excessive spending.
What is the long-term impact of this R&D investment on public health preparedness and response capabilities?
The long-term impact hinges on the success of Chimerix, Inc.'s research in biotechnology. If the research yields significant advancements in disease countermeasures or treatment, it could substantially enhance the nation's public health preparedness and response capabilities, justifying the sustained investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-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
Address: 2505 MERIDIAN PKWY STE 340, DURHAM, NC, 27713
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,690,842
Exercised Options: $77,690,842
Current Obligation: $77,690,842
Actual Outlays: $52,775
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-16
Current End Date: 2021-09-01
Potential End Date: 2021-09-01 00:00:00
Last Modified: 2021-09-20
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