HHS awards $18.3M for Biotechnology R&D to ATOX BIO LTD under full and open competition
Contract Overview
Contract Amount: $18,318,145 ($18.3M)
Contractor: Atox BIO Ltd
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-30
End Date: 2020-12-31
Contract Duration: 2,284 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF ATOX
Plain-Language Summary
Department of Health and Human Services obligated $18.3 million to ATOX BIO LTD for work described as: IGF::CT::IGF ATOX Key points: 1. Spending focuses on R&D in Biotechnology, a critical sector for public health. 2. ATOX BIO LTD is the sole awardee, raising questions about competition breadth. 3. The contract duration of 2284 days suggests a long-term project. 4. A Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can be less predictable in final cost compared to fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. However, only one award was made, which warrants further investigation into the bidding process and the number of proposals received.
Taxpayer Impact: The $18.3 million awarded represents taxpayer investment in critical biotechnology research. The value to taxpayers depends on the successful outcomes of the research and development.
Public Impact
Investment in biotechnology R&D can lead to advancements in public health and medical treatments. The long contract duration may indicate a significant research undertaking with potential long-term benefits. Transparency in the bidding process is crucial to ensure taxpayer funds are used efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract.
- Sole awardee despite full and open competition needs scrutiny.
- Lack of specific performance metrics makes outcome assessment difficult.
Positive Signals
- Focus on critical R&D in biotechnology.
- Awarded under full and open competition, theoretically maximizing vendor pool.
- Clear contract end date provides a defined project timeline.
Sector Analysis
This contract falls under the Research and Development in Biotechnology sector (NAICS 541711). Spending in this area is vital for innovation but can be high-risk due to the nature of scientific discovery. Benchmarks vary widely based on research scope.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of Health and Human Services' Office of Inspector General (OIG) would typically monitor such contracts for compliance and effectiveness.
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 carries inherent cost overrun risk.
- Sole awardee despite full and open competition raises concerns about competition effectiveness.
- Lack of detailed performance metrics makes assessing R&D success challenging.
- Long contract duration requires sustained oversight to ensure continued alignment with agency goals.
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 $18.3 million to ATOX BIO LTD. IGF::CT::IGF ATOX
Who is the contractor on this award?
The obligated recipient is ATOX BIO LTD.
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 $18.3 million.
What is the period of performance?
Start: 2014-09-30. End: 2020-12-31.
What specific research milestones and deliverables are expected under this contract, and how are they being tracked to ensure value for money?
The contract details do not specify the research milestones or deliverables. Effective oversight would require the agency to establish clear, measurable objectives and regularly assess the contractor's progress against these benchmarks. This ensures the $18.3 million investment is aligned with intended R&D outcomes and taxpayer benefit.
Given the sole award despite full and open competition, what was the rationale for selecting ATOX BIO LTD, and were alternative proposals deemed non-responsive or less suitable?
The rationale for a sole award under full and open competition needs clarification. Agencies must document why other proposals were not selected, ensuring the process was fair and competitive. This transparency is vital to prevent perceptions of favoritism and confirm that the chosen contractor offers the best value.
How does the Cost Plus Fixed Fee structure incentivize ATOX BIO LTD to control costs and achieve efficient research outcomes?
The 'Fixed Fee' portion of the contract provides a defined profit margin, but the 'Cost Plus' element means the government covers allowable costs. This structure can incentivize research exploration but may reduce the contractor's incentive for strict cost control compared to fixed-price contracts. Robust agency oversight is essential to manage potential cost escalations.
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: 3 GOLDA MEIR, NESS ZIONA
Business Categories: Category Business, Foreign Owned, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $36,143,631
Exercised Options: $20,818,139
Current Obligation: $18,318,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-09-30
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2025-09-08
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