HHS awards $65.7M contract to MAPP BIOPHARMACEUTICAL for biotech R&D, facing limited competition

Contract Overview

Contract Amount: $65,758,722 ($65.8M)

Contractor: Mapp Biopharmaceutical, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-30

End Date: 2021-08-31

Contract Duration: 1,431 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

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 $65.8 million to MAPP BIOPHARMACEUTICAL, INC. for work described as: IGF::OT::IGF Key points: 1. Contract value of $65.7M for R&D in Biotechnology. 2. Competition was Full and Open, but specific awardee is MAPP BIOPHARMACEUTICAL, INC. 3. Risk factors include the Cost Plus Fixed Fee pricing structure. 4. Sector is Research and Development in Biotechnology.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open competition, suggesting a broad search for qualified bidders. However, the specific awardee is MAPP BIOPHARMACEUTICAL, INC., indicating they were the selected entity.

Taxpayer Impact: Taxpayer funds are being used for critical R&D in biotechnology, with the potential for significant public health benefits. Oversight is crucial to ensure value for money.

Public Impact

Supports advancements in biotechnology research, potentially leading to new medical treatments or public health solutions. Investment in R&D can foster innovation and economic growth within the biotech sector. Contract duration of 1431 days indicates a long-term commitment to the research project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee pricing can incentivize contractor to increase costs.
  • Long contract duration may increase risk of scope creep or changing requirements.
  • Limited information on specific deliverables and success metrics.

Positive Signals

  • Full and Open competition aims for best value.
  • Focus on R&D in a critical sector like Biotechnology.
  • Contract awarded to a specific company for specialized research.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a high-growth area with significant government investment. Benchmarks for R&D contracts vary widely based on project complexity and duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight of this contract would likely involve monitoring research progress, adherence to the fixed fee, and ensuring compliance with all federal regulations. The agency's ability to manage CPFF contracts effectively is key.

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 pricing.
  • Long contract duration (1431 days).
  • Potential for cost overruns.
  • Limited transparency on specific R&D scope and deliverables.

Tags

research-and-development-in-biotechnolog, department-of-health-and-human-services, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65.8 million to MAPP BIOPHARMACEUTICAL, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MAPP BIOPHARMACEUTICAL, 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 $65.8 million.

What is the period of performance?

Start: 2017-09-30. End: 2021-08-31.

What specific biotechnology research is being conducted under this contract, and what are the expected outcomes?

The contract is for Research and Development in Biotechnology (NAICS 541711). Specific research details are not provided in the data. Expected outcomes would typically involve scientific discoveries, development of new technologies, or potential therapeutic advancements. Further documentation would be required to ascertain the precise nature and anticipated results of the R&D.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs in this R&D project?

The CPFF structure provides the contractor with their actual costs plus a predetermined fixed fee. While the fee is fixed, the government bears the risk of cost overruns if actual costs exceed estimates. Effective oversight and clear contract milestones are crucial to manage costs and ensure the contractor remains efficient and focused on achieving project objectives within the anticipated budget.

What is the government's strategy for ensuring the long-term effectiveness and applicability of the R&D outcomes?

The government's strategy for ensuring long-term effectiveness likely involves rigorous review of research milestones, potential follow-on contracts for development and testing, and collaboration with other research institutions. The contract's duration suggests a phased approach to R&D, allowing for adjustments based on interim findings. Ensuring clear intellectual property rights and pathways for commercialization or public use are also critical.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 17100SOL00014

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6160 LUSK BLVD STE 105, SAN DIEGO, CA, 92121

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

Financial Breakdown

Contract Ceiling: $293,443,870

Exercised Options: $65,758,722

Current Obligation: $65,758,722

Actual Outlays: $669,983

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2017-09-30

Current End Date: 2021-08-31

Potential End Date: 2021-08-31 00:00:00

Last Modified: 2022-01-07

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