HHS Awards $38.9M Contract to Polynovo Biomaterials for Biotechnology R&D
Contract Overview
Contract Amount: $38,882,504 ($38.9M)
Contractor: Polynovo Biomaterials PTY Ltd
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-28
End Date: 2027-09-30
Contract Duration: 4,385 days
Daily Burn Rate: $8.9K/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
Plain-Language Summary
Department of Health and Human Services obligated $38.9 million to POLYNOVO BIOMATERIALS PTY LTD for work described as: IGF::OT::IGF Key points: 1. Significant investment in biotechnology research and development. 2. Contract awarded through full and open competition, suggesting market availability. 3. Potential for innovation in health preparedness and response. 4. Long contract duration (12 years) may indicate complex or long-term research needs.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific deliverables and comparable R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors could have bid. This method generally promotes competitive pricing and fair market value discovery.
Taxpayer Impact: Taxpayer funds are being invested in potentially groundbreaking biotechnology research, with the expectation of future public health benefits.
Public Impact
Supports advancements in biotechnology with potential applications for public health emergencies. Long-term funding commitment allows for sustained research and development efforts. Contracting through open competition aims to ensure fair pricing and access to the best available solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration may present risks if research objectives shift or become unachievable.
- Lack of specific performance metrics makes it hard to assess value for money upfront.
Positive Signals
- Investment in critical R&D for national preparedness.
- Open competition suggests a healthy market for these services.
- Potential for significant breakthroughs in biotechnology.
Sector Analysis
This contract falls under Research and Development in Biotechnology, a sector critical for advancing medical countermeasures and public health solutions. Spending in this area is often characterized by high risk but also high reward.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine their participation.
Oversight & Accountability
Oversight will be crucial to ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs and that the research objectives are met effectively within the defined scope.
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 (12 years).
- Potential for scope creep in R&D projects.
- Difficulty in benchmarking R&D contracts.
- Lack of specific performance metrics in summary data.
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 $38.9 million to POLYNOVO BIOMATERIALS PTY LTD. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is POLYNOVO BIOMATERIALS PTY 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 $38.9 million.
What is the period of performance?
Start: 2015-09-28. End: 2027-09-30.
What are the specific research objectives and expected outcomes for this contract?
The contract aims to support research and development in biotechnology. Specific objectives and expected outcomes are not detailed in the provided data. A thorough review of the contract statement of work would be necessary to understand the precise deliverables and milestones, which are essential for evaluating the potential value and effectiveness of this significant investment.
How will the effectiveness of the research be measured given the long-term nature of the contract?
Effectiveness will likely be measured through a series of milestones and deliverables outlined in the contract's statement of work. Regular reviews by the Department of Health and Human Services will be critical to track progress against these benchmarks. Given the R&D nature, success may also be defined by scientific advancements and the potential for future applications, not just immediate product delivery.
What is the rationale for a Cost Plus Fixed Fee structure in this R&D context?
A Cost Plus Fixed Fee (CPFF) contract is often used in R&D when the scope of work is not precisely defined at the outset, allowing flexibility for exploration and adaptation. The fixed fee provides the contractor with a profit incentive, while the cost reimbursement covers incurred expenses. This structure aims to balance the need for innovation with cost control, though it requires diligent oversight to prevent cost overruns.
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: CBRNBAA12100SOL00011
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: U 2 320 LORIMER ST, PORT MELBOURNE
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $38,882,504
Exercised Options: $38,882,504
Current Obligation: $38,882,504
Actual Outlays: $19,945,196
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-28
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-07-10
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