DoD awards $20M for virtual wound care research, extending through 2027

Contract Overview

Contract Amount: $20,087,478 ($20.1M)

Contractor: Solventum US LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-06

End Date: 2027-09-05

Contract Duration: 1,094 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST NO FEE

Sector: R&D

Official Description: INTEROPERABLE ECOSYSTEM FOR VIRTUAL CARE ENABLED WOUND MANAGEMENT RESEARCH

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55144

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to SOLVENTUM US LLC for work described as: INTEROPERABLE ECOSYSTEM FOR VIRTUAL CARE ENABLED WOUND MANAGEMENT RESEARCH Key points: 1. Contract focuses on advancing physical, engineering, and life sciences research. 2. Competition was full and open, suggesting a robust bidding process. 3. Contract type is 'Definitive Contract', indicating a firm agreement for services. 4. Performance period spans nearly three years, allowing for substantial research. 5. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 6. The contract is a cost-no-fee type, with costs to be reimbursed. 7. The awardee, SOLVENTUM US LLC, will conduct research in Minnesota.

Value Assessment

Rating: good

The contract value of $20,007,478.31 for a nearly three-year research project appears reasonable given the scope of R&D in specialized medical technologies. Benchmarking against similar contracts for advanced medical research and development would provide a more precise value-for-money assessment. The 'Cost No Fee' contract type means the government reimburses the contractor for allowable costs, which can sometimes lead to higher overall spending if not carefully managed, but it is common for research initiatives where final costs are difficult to predict.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the open competition suggests a healthy market for virtual care enabled wound management research. This level of competition is generally expected to drive competitive pricing and innovation, ensuring the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective and cost-efficient research solutions for critical defense health needs.

Public Impact

Service members and veterans suffering from wounds could benefit from improved treatment technologies. The research aims to develop an interoperable ecosystem for virtual care enabled wound management. The geographic impact is primarily in Minnesota, where the research will be conducted. The contract supports the advancement of scientific knowledge and technological capabilities within the defense health sector. Potential for workforce implications in specialized research and development roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in research projects with unpredictable outcomes.
Ensuring the 'interoperable ecosystem' is effectively developed and integrated.
Monitoring the 'virtual care enabled' aspects to ensure efficacy and accessibility.

Positive Signals

Focus on a critical area of medical need for service members.
Utilizing advanced virtual care technologies for wound management.
Commitment to research and development for long-term health solutions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced medical technologies, including virtual care solutions for wound management, is growing rapidly, driven by both commercial and government demand. Comparable spending in this area can vary widely depending on the specific technology and research phase, but significant investment is being made across the federal government to modernize healthcare capabilities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is SOLVENTUM US LLC, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses will have opportunities to participate in this research effort.

Oversight & Accountability

Oversight will likely be managed by the Defense Health Agency, which is responsible for the execution of this contract. Accountability measures will be tied to the research milestones and deliverables outlined in the definitive contract. Transparency regarding research progress and findings will depend on reporting requirements stipulated in the contract and agency policies.

Related Government Programs

DoD Medical Research Programs
Virtual Health Initiatives
Wound Care Research
Defense Health Agency Contracts
Medical Technology R&D

Risk Flags

Research and Development Uncertainty
Cost Management in R&D
Interoperability Challenges
Technology Adoption Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to SOLVENTUM US LLC. INTEROPERABLE ECOSYSTEM FOR VIRTUAL CARE ENABLED WOUND MANAGEMENT RESEARCH

Who is the contractor on this award?

The obligated recipient is SOLVENTUM US LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2024-09-06. End: 2027-09-05.

What is the track record of SOLVENTUM US LLC in performing similar research and development contracts for the Department of Defense?

A review of public contract databases indicates that SOLVENTUM US LLC has been awarded contracts related to research and development, though specific details on their performance in virtual care enabled wound management are not readily available without deeper investigation. Their experience in the physical, engineering, and life sciences sector is a key factor. Further analysis would involve examining past performance reviews, any reported issues or successes on previous DoD contracts, and their overall financial stability to assess their capability to successfully execute this $20 million project over the next three years. Understanding their specific expertise in interoperable systems and virtual health platforms would be crucial.

How does the $20 million contract value compare to similar R&D efforts in advanced wound care or virtual health technologies?

The $20 million contract value for nearly three years of research into an 'INTEROPERABLE ECOSYSTEM FOR VIRTUAL CARE ENABLED WOUND MANAGEMENT' appears to be within a reasonable range for specialized R&D projects of this nature. However, a precise comparison requires benchmarking against contracts for similar technological advancements, such as AI-driven diagnostics, remote patient monitoring systems, or advanced materials for wound healing. The scope includes developing an 'ecosystem,' which suggests a complex integration of technologies. Without access to detailed scopes of work for comparable contracts, it's difficult to definitively state if this represents a superior or inferior value, but the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include the inherent uncertainties in research and development, potential for cost overruns due to the 'Cost No Fee' structure, challenges in achieving true interoperability between different virtual care components, and ensuring the efficacy and adoption of the developed wound management solutions. Mitigation strategies likely involve rigorous project management, phased research milestones with clear deliverables, regular performance reviews by the Defense Health Agency, and potentially incorporating expert advisory panels. The contractor's technical expertise and past performance will also be critical in mitigating risks related to technological development and integration.

How effective is the 'Cost No Fee' contract type for managing R&D projects with uncertain outcomes like this one?

The 'Cost No Fee' (CNF) contract type is often used for research and development efforts where the final costs are difficult to estimate accurately at the outset. It allows the government to reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee (in this case, zero fee). While CNF can be beneficial for encouraging innovation and ensuring that the contractor is focused on achieving the research objectives rather than maximizing profit, it carries a risk of cost escalation if not managed diligently. The government bears the primary financial risk, making robust oversight and clear definition of allowable costs essential to prevent overspending. For this $20 million project, the absence of a fee suggests the contractor's primary motivation is the research itself or other strategic benefits.

What are the historical spending patterns for virtual care and wound management R&D within the Department of Defense?

Historical spending patterns within the DoD for virtual care and wound management R&D show a consistent and increasing investment over the past decade. Driven by the need to support deployed forces and veterans, the DoD has prioritized technologies that enable remote monitoring, telehealth, and advanced therapeutic solutions. Specific figures vary by fiscal year and specific program, but aggregate spending across various research initiatives in these domains likely runs into hundreds of millions of dollars. This contract represents a significant, albeit specific, allocation within that broader trend, focusing on the integration of virtual care into wound management protocols.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HT942523SBAA1

Offers Received: 999

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: 3M Company

Address: 2510 CONWAY AVE E BLDG 275, SAINT PAUL, MN, 55144

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

Financial Breakdown

Contract Ceiling: $20,087,478

Exercised Options: $20,087,478

Current Obligation: $20,087,478

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline