DHS awards $24.5M for nucleic acid detection system to New Venture Strategies, LLC

Contract Overview

Contract Amount: $24,553,741 ($24.6M)

Contractor: NVS Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-04-21

End Date: 2017-05-17

Contract Duration: 2,583 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS COST PLUS FIXED FEE CONTRACT VIA LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) 09-05 IS TO PROVIDE FUNDING TO NEW VENTURE STRATEGIES, LLC FOR HIGHLY MULTIPLEXED, FULLY INTEGRATED QUANTITATIVE NUCLEIC ACID DETECTION SYSTEM, IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK, TERMS AND CONDITIONS, AND FAR/DHS CLAUSES. OPTION PERIODS CAN BE AWARDED AT THE DISCRETION OF THE GOVERNMENT AND SUBJECT TO THE AVAILABILITY OF FUNDS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.6 million to NVS TECHNOLOGIES, INC. for work described as: THE PURPOSE OF THIS COST PLUS FIXED FEE CONTRACT VIA LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) 09-05 IS TO PROVIDE FUNDING TO NEW VENTURE STRATEGIES, LLC FOR HIGHLY MULTIPLEXED, FULLY INTEGRATED QUANTITATIVE NUCLEIC ACID DETECTION SYSTEM, IN ACCORDANCE WITH THE ATTACHED STATEMEN… Key points: 1. Contract awarded via Broad Agency Announcement (BAA) for R&D in Biotechnology. 2. Utilizes a Cost Plus Fixed Fee (CPFF) contract type. 3. Potential for option periods at government discretion. 4. No small business participation noted.

Value Assessment

Rating: questionable

The CPFF contract type can lead to cost overruns if not managed carefully. The fixed fee provides some incentive for the contractor, but the overall value depends heavily on the government's oversight and the actual costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a Broad Agency Announcement (BAA). This method allows for a wide range of potential offerors, but the specific nature of the R&D may have limited the pool of highly qualified candidates.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development, with the potential for significant technological advancements. However, the CPFF structure necessitates careful monitoring to ensure cost-effectiveness.

Public Impact

Advancement in biotechnology for national security or public health applications. Potential for new detection systems impacting various sectors. Government investment in cutting-edge research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
No small business participation
Long contract duration

Positive Signals

Full and open competition
Focus on R&D in a critical sector

Sector Analysis

This contract falls under Research and Development in Biotechnology, a sector focused on scientific innovation. Spending in this area is often characterized by high upfront costs and uncertain outcomes, but can lead to significant breakthroughs.

Small Business Impact

The contract explicitly states that it was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The use of a Cost Plus Fixed Fee contract requires robust government oversight to ensure costs are reasonable and the project stays within scope. The long duration of the contract also necessitates continuous monitoring and performance evaluation.

Related Government Programs

Research and Development in Biotechnology
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Lack of small business participation.
Long contract duration (over 7 years including options).
Reliance on Broad Agency Announcement (BAA) for competition may limit specialized expertise.
Potential for scope creep given the R&D nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.6 million to NVS TECHNOLOGIES, INC.. THE PURPOSE OF THIS COST PLUS FIXED FEE CONTRACT VIA LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) 09-05 IS TO PROVIDE FUNDING TO NEW VENTURE STRATEGIES, LLC FOR HIGHLY MULTIPLEXED, FULLY INTEGRATED QUANTITATIVE NUCLEIC ACID DETECTION SYSTEM, IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK, TERMS AND CONDITIONS, AND FAR/DHS CLAUSES. OPTION PERIODS CAN BE AWARDED AT THE DISCRETION OF THE GOVERNMENT AND SUBJECT TO THE AVAILABILITY OF FUNDS.

Who is the contractor on this award?

The obligated recipient is NVS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2010-04-21. End: 2017-05-17.

What specific technological advancements are expected from this nucleic acid detection system, and how will they be measured?

The statement of work would detail the specific technological advancements sought, such as increased sensitivity, speed, or multiplexing capabilities. Success metrics would likely involve performance benchmarks, validation studies, and successful integration into existing systems. Without the SOW, the precise expected outcomes and their measurement criteria remain unclear.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this type of R&D, and how are they mitigated?

CPFF contracts carry risks of cost overruns if the contractor's actual costs exceed estimates, even with a fixed fee. Mitigation strategies include strong government oversight, detailed cost tracking, regular audits, and clear performance milestones. The BAA process itself aims to mitigate risk by selecting promising research areas and capable contractors.

How does the government ensure the long-term effectiveness and applicability of the developed nucleic acid detection system beyond the contract period?

The government typically ensures long-term effectiveness through intellectual property rights clauses, requiring the contractor to transfer relevant knowledge and technology. Furthermore, the system's design should align with future operational needs, and post-award transition plans may be established to ensure its continued use and maintenance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › Community and Regional Development 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: 325 UNIVERSITY DR, MENLO PARK, CA, 94025

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,341,513

Exercised Options: $31,341,513

Current Obligation: $24,553,741

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline