HHS awarded $33.8M for biotech R&D to Plus Therapeutics, Inc. over 8 years

Contract Overview

Contract Amount: $33,803,118 ($33.8M)

Contractor: Plus Therapeutics, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-28

End Date: 2020-12-21

Contract Duration: 3,006 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.8 million to PLUS THERAPEUTICS, INC. for work described as: IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (over 8 years) indicates a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541711 points to significant investment in biotechnology research. 5. The contract was awarded to a single entity, Plus Therapeutics, Inc., for specialized R&D services. 6. The contract's value of $33.8M over its term suggests a substantial investment in the specified research area.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The Cost Plus Fixed Fee structure means the government pays the contractor's costs plus a fixed fee, which can be less predictable than fixed-price contracts. While the total award value is $33.8M, the actual cost to the government depends on the incurred costs and the fixed fee, which are not detailed here. Without more information on the specific research outcomes and the fixed fee percentage, a definitive value-for-money assessment is difficult.

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. This typically suggests a robust bidding process where multiple companies had the opportunity to compete for the contract. The number of bidders is not specified, but the open competition is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiaries are likely the researchers and scientists at Plus Therapeutics, Inc., who will conduct the R&D. The services delivered are focused on Research and Development in Biotechnology, potentially leading to advancements in medical treatments or technologies. The geographic impact is primarily in California, where the contractor is located, but the ultimate impact of the R&D could be national or global. Workforce implications include job creation and skill development within the biotechnology sector at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not closely monitored, as the contractor is reimbursed for costs incurred.
The long contract duration (over 8 years) increases the risk of scope creep or shifts in research priorities that may not align with initial objectives.
Lack of specific performance metrics or deliverable details makes it difficult to assess the contractor's progress and the ultimate success of the R&D effort.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive selection process.
The contract supports critical Research and Development in Biotechnology, a sector vital for national health and economic progress.
The long-term nature of the contract allows for sustained focus and investment in complex R&D projects.

Sector Analysis

The biotechnology sector is characterized by high R&D investment, long development cycles, and significant potential for innovation. This contract falls squarely within the 'Research and Development in Biotechnology' category (NAICS 541711). The market for biotech R&D services is competitive, with numerous firms specializing in various aspects of drug discovery, development, and therapeutic innovation. Government contracts in this area often aim to accelerate the development of novel treatments or technologies that may not be pursued by the private sector alone due to high risk or long timelines. Comparable spending benchmarks would typically involve looking at other federal R&D grants and contracts awarded to biotech firms for similar research areas.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. Furthermore, the 'ss' field is also false, meaning it was not a small business set-aside. This suggests the contract was awarded to a large business or that the competition was open to all sizes without specific set-aside provisions. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if Plus Therapeutics, Inc. chooses to engage them for specialized services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). The effectiveness of oversight depends on the agency's ability to monitor the contractor's incurred costs, the progress of the R&D activities, and adherence to the contract terms. Transparency would be enhanced by public reporting of research milestones and outcomes. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Biotechnology Research Grants
National Institutes of Health (NIH) Research Contracts
Department of Defense (DoD) Advanced Research Projects Agency (ARPA) Funding
National Science Foundation (NSF) Research Awards

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of incurred costs.
Long contract duration may increase risks associated with changing research landscapes or priorities.
Lack of specific performance metrics in summary data hinders detailed progress assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.8 million to PLUS THERAPEUTICS, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PLUS THERAPEUTICS, 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 $33.8 million.

What is the period of performance?

Start: 2012-09-28. End: 2020-12-21.

What specific biotechnology research is being conducted under this contract?

The provided data indicates the contract is for 'Research and Development in Biotechnology' under NAICS code 541711. However, the specific research area, such as vaccine development, therapeutic drug discovery, or diagnostic tools, is not detailed. To understand the precise nature of the R&D, one would need to consult the contract's statement of work (SOW) or related documentation. This would outline the objectives, methodologies, and expected outcomes of the research funded by the $33.8 million award over its 8-year duration. Without this granular detail, the assessment remains at a high level of biotechnology R&D.

How does the $33.8 million award compare to typical R&D spending for similar biotechnology projects?

The $33.8 million award over approximately 8 years translates to an average annual funding of about $4.2 million. This figure is within the range for significant biotechnology research and development projects, particularly those involving early-stage discovery or preclinical development. However, the 'typical' spending can vary widely based on the complexity of the research, the stage of development (e.g., basic research vs. clinical trials), and the specific therapeutic area. Larger, more advanced clinical trials or platform technology development could command significantly higher budgets. To provide a more precise comparison, one would need to benchmark against contracts for similar research objectives, therapeutic areas, and development phases within the federal government and the private sector.

What are the key performance indicators (KPIs) or milestones associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee contract, especially in R&D, KPIs often relate to the achievement of specific research objectives, the successful completion of experimental phases, the generation of data, or the development of prototypes. The 'fixed fee' component suggests that the contractor is incentivized to complete the work efficiently to maximize their profit margin. However, without access to the contract's statement of work (SOW) or performance work statement (PWS), it's impossible to detail the exact metrics used to evaluate Plus Therapeutics, Inc.'s performance and progress.

What is the track record of Plus Therapeutics, Inc. in fulfilling government R&D contracts?

Information regarding Plus Therapeutics, Inc.'s specific track record in fulfilling government R&D contracts is not available in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal awards, including factors like on-time delivery, budget adherence, quality of research outcomes, and compliance with contract terms. Agencies typically maintain past performance databases that inform future award decisions. Without access to this specific performance history, it's difficult to definitively assess their reliability and success in executing government-funded R&D initiatives.

What is the potential impact of this contract on the broader biotechnology sector?

This contract has the potential to significantly impact the biotechnology sector by advancing specific R&D efforts. If the research leads to breakthroughs in areas like disease treatment, diagnostics, or novel therapies, it could spur further innovation, attract additional investment, and create new market opportunities. Government funding in R&D often de-risks early-stage research, encouraging private sector follow-on investment. Furthermore, by supporting a specific company like Plus Therapeutics, Inc., the contract contributes to the growth and capabilities within the biotech ecosystem, potentially leading to job creation and the development of specialized expertise.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3020 CALLAN RD, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $33,803,118

Exercised Options: $33,803,118

Current Obligation: $33,803,118

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline