HHS awards $2.2M contract for Ebola research, with potential for significant future investment

Contract Overview

Contract Amount: $2,232,155 ($2.2M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-21

End Date: 2026-03-12

Contract Duration: 3,094 days

Daily Burn Rate: $721/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF - TASK ORDER AWARD TO BATTELLE MEMORIAL FOR THE CHARACTERIZATION OF THE DISEASE COUSE IN RHESUS MACAQUES INFECTED WITH SUDAN EBOLAVIRUS DISEASE.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.2 million to BATTELLE MEMORIAL INSTITUTE for work described as: IGF::OT::IGF - TASK ORDER AWARD TO BATTELLE MEMORIAL FOR THE CHARACTERIZATION OF THE DISEASE COUSE IN RHESUS MACAQUES INFECTED WITH SUDAN EBOLAVIRUS DISEASE. Key points: 1. Contract focuses on critical research into Sudan ebolavirus disease, a high-priority public health threat. 2. The award to Battelle Memorial Institute leverages specialized research capabilities in biotechnology. 3. Long-duration contract suggests a sustained need for this research over several years. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research scope while managing costs. 5. Geographic concentration in Ohio highlights a key hub for this type of specialized research. 6. The research area aligns with national biodefense and pandemic preparedness strategies.

Value Assessment

Rating: good

The contract value of $2.23 million for a multi-year research effort appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for infectious disease research, particularly for high-consequence pathogens, would provide a more precise assessment. However, the duration and scope suggest a significant investment in understanding a critical threat, implying a focus on value beyond immediate cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bids suggests a competitive environment, which typically drives better pricing and innovation. This approach ensures that the government selects the most capable contractor at a fair price.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a market where contractors strive to offer their best value, leading to more efficient use of public funds for critical research.

Public Impact

The primary beneficiaries are public health agencies and researchers who will gain crucial insights into Sudan ebolavirus disease. Services delivered include characterization of the disease in rhesus macaques, vital for understanding transmission and developing countermeasures. The geographic impact is concentrated in Ohio, where Battelle Memorial Institute is located, but the knowledge gained has global public health implications. Workforce implications include support for specialized scientific and technical roles within Battelle and potentially related research institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if research scope expands significantly.
Long-term nature of the contract requires ongoing monitoring to ensure continued alignment with evolving public health priorities.
Dependence on a single contractor for this specific research may limit alternative approaches if unforeseen issues arise.

Positive Signals

Award to a reputable research institution (Battelle) with a proven track record in complex scientific endeavors.
Full and open competition suggests a robust selection process, likely yielding a highly qualified contractor.
The contract duration indicates a strategic, long-term commitment to addressing a significant public health threat.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, a critical area for national security and public health. The market for specialized infectious disease research is highly concentrated, with a few key institutions possessing the necessary expertise and facilities. This award to Battelle Memorial Institute, a well-known research organization, aligns with typical government sourcing strategies for such complex R&D efforts. Comparable spending benchmarks would likely be found within agencies like NIH, BARDA, and DoD for similar pathogen research.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While Battelle Memorial Institute may engage small businesses as subcontractors, the primary award is to a large research organization. This suggests that the specialized nature of the research required capabilities typically found in larger, established research institutions rather than small businesses focused on broader R&D services.

Oversight & Accountability

Oversight for this contract would likely be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific research findings may be subject to publication review or national security considerations. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Biomedical Advanced Research and Development Authority (BARDA) contracts
National Institutes of Health (NIH) research grants
Department of Defense (DoD) biodefense research
Centers for Disease Control and Prevention (CDC) infectious disease surveillance
National Institute of Allergy and Infectious Diseases (NIAID) research

Risk Flags

Potential for scope creep in CPFF contracts
Reliance on specialized facilities and expertise
Long-term nature of research may outpace immediate needs
Biosafety and biosecurity risks associated with pathogen research

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.2 million to BATTELLE MEMORIAL INSTITUTE. IGF::OT::IGF - TASK ORDER AWARD TO BATTELLE MEMORIAL FOR THE CHARACTERIZATION OF THE DISEASE COUSE IN RHESUS MACAQUES INFECTED WITH SUDAN EBOLAVIRUS DISEASE.

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

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 $2.2 million.

What is the period of performance?

Start: 2017-09-21. End: 2026-03-12.

What is Battelle Memorial Institute's track record in infectious disease research, particularly concerning viral hemorrhagic fevers?

Battelle Memorial Institute has a long-standing reputation and extensive experience in various scientific research domains, including infectious diseases and biodefense. They have been involved in numerous government-funded projects related to pathogen characterization, vaccine development, and medical countermeasures. Their work often involves handling high-containment pathogens and conducting complex preclinical studies. While specific details on their involvement with Sudan ebolavirus in rhesus macaques prior to this award would require deeper investigation, their general expertise in virology, immunology, and animal models makes them a suitable candidate for such critical research. Their history includes significant contributions to national biosecurity and public health initiatives, often collaborating with agencies like HHS, DoD, and DHS.

How does the $2.23 million cost compare to similar contracts for Ebola research or related infectious disease characterization?

The $2.23 million award for a multi-year research effort into Sudan ebolavirus disease characterization in rhesus macaques is within a reasonable range for specialized biomedical research. Contracts for similar high-consequence pathogen research, especially those involving animal models and extensive laboratory work, can range from hundreds of thousands to several million dollars, depending on the scope, duration, and complexity. For instance, contracts awarded by agencies like BARDA or NIAID for preclinical development of therapeutics or vaccines against viral hemorrhagic fevers often fall within this financial bracket. The duration of this contract (ending in 2026) suggests a comprehensive study, justifying the allocated funds. A precise comparison would necessitate identifying contracts with identical objectives, methodologies, and research subjects.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include the inherent scientific uncertainty in research, potential for unforeseen technical challenges, and the possibility of cost growth within the Cost Plus Fixed Fee (CPFF) structure. The highly infectious nature of ebolaviruses also presents safety risks that require stringent containment protocols. Mitigation strategies likely involve robust project management by ASPR, regular progress reviews with Battelle, adherence to strict biosafety and biosecurity protocols (BSL-4 capabilities), and clear definition of research objectives and milestones. The CPFF contract type allows for flexibility but necessitates close financial oversight to manage expenditures effectively. Furthermore, Battelle's established expertise in handling hazardous materials and conducting complex research is a key mitigating factor.

How effective is the chosen contract type (Cost Plus Fixed Fee) for this type of R&D work?

The Cost Plus Fixed Fee (CPFF) contract type is often well-suited for research and development (R&D) efforts where the scope of work may evolve or is not precisely defined at the outset. It provides flexibility for the contractor to adapt to new findings or challenges encountered during the research process, which is common in scientific exploration. The government pays the actual allowable costs incurred by the contractor plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin (as the fee is fixed), while allowing the government to benefit from the contractor's expertise without pre-defining every technical step. For complex biological research like characterizing a disease, CPFF offers a balance between flexibility and cost control, though it requires diligent oversight to prevent scope creep and ensure value.

What does the competition level (3 bidders) indicate about the market for specialized infectious disease research?

Having three bidders for this contract suggests a moderately competitive market for specialized infectious disease research, particularly concerning high-consequence pathogens like Ebola. While the number of organizations capable of undertaking such work at the required biosafety levels (likely BSL-4) is limited, three offers indicate that there are multiple entities with the necessary expertise, facilities, and capacity. This level of competition is generally sufficient to ensure fair pricing and selection of a capable contractor. It implies that the government is not solely reliant on a single source, which is beneficial for price discovery and innovation. However, it also highlights the specialized nature of this field, where the pool of qualified competitors is inherently smaller than in broader R&D sectors.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFP16100SOL00008

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,232,155

Exercised Options: $2,232,155

Current Obligation: $2,232,155

Actual Outlays: $152,303

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,489,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSO100201700011I

IDV Type: IDC

Timeline