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
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 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: 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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