DoD awards $9.6M contract for canine oxygen carrier manufacturing, highlighting R&D in life sciences

Contract Overview

Contract Amount: $9,559,948 ($9.6M)

Contractor: Hemoglobin Oxygen Therapeutics LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2029-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: CANINE OXYGEN CARRIER MANUFACTURING RESTORATION AND REGULATORY ACTIVITIES

Place of Performance

Location: SOUDERTON, MONTGOMERY County, PENNSYLVANIA, 18964

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $9.6 million to HEMOGLOBIN OXYGEN THERAPEUTICS LLC for work described as: CANINE OXYGEN CARRIER MANUFACTURING RESTORATION AND REGULATORY ACTIVITIES Key points: 1. Contract focuses on research and development for critical life-saving medical technology. 2. Sole-source award raises questions about competition and potential for cost savings. 3. Long-term contract duration suggests a sustained need for this specialized product. 4. Fixed-price contract structure shifts some performance risk to the contractor. 5. The contract falls within the R&D sector, specifically life sciences research. 6. Awardee is a single entity, indicating specialized capabilities or limited market.

Value Assessment

Rating: fair

The contract value of $9.6 million over five years for specialized canine oxygen carriers appears to be within a reasonable range for research and development in a niche life sciences area. However, without direct benchmarks for similar canine medical device R&D contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits the government's ability to leverage market forces for potentially lower pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, HEMOGLOBIN OXYGEN THERAPEUTICS LLC, was solicited. This approach is typically used when a unique product or service is required, or when only one responsible source is available. The lack of competition means the government did not benefit from multiple bids, which could have driven down the price or led to innovative solutions from a wider pool of contractors.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price, as competitive bidding processes are designed to foster price discovery and efficiency.

Public Impact

Military working dogs and other canines used in service will benefit from advanced oxygenation technology. The contract supports the development and potential manufacturing of critical medical equipment for animal health. Geographic impact is primarily national, supporting defense readiness and research initiatives. Workforce implications include specialized R&D roles in biotechnology and life sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential competitors.
Dependence on a single contractor for critical technology poses a supply chain risk.

Positive Signals

Focus on R&D in life sciences addresses a critical need for advanced medical technology.
Fixed-price contract provides cost predictability for the government.
Long-term contract duration indicates a strategic investment in a specialized capability.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This sector is characterized by innovation and the pursuit of scientific knowledge. The market for specialized veterinary medical devices, particularly those with life-support applications, is a niche within the broader life sciences industry. Comparable spending benchmarks are difficult to establish due to the specialized nature of canine oxygen carriers, but R&D contracts in medical technologies often represent significant investments.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The awardee, HEMOGLOBIN OXYGEN THERAPEUTICS LLC, is likely a specialized entity, and the nature of the R&D may not lend itself to broad small business participation beyond potential niche suppliers.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency (DHA) contracting officers and program managers. Accountability measures will be tied to the achievement of research and development milestones outlined in the contract. Transparency is generally maintained through contract databases like FPDS, though detailed R&D progress reports are typically proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterinary Medical Research
Biotechnology Research and Development
Medical Device Manufacturing
Defense Health Programs
Canine Health Initiatives

Risk Flags

Sole-source award limits competitive pricing.
Lack of public detail on specific R&D goals.
Potential for single-source dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.6 million to HEMOGLOBIN OXYGEN THERAPEUTICS LLC. CANINE OXYGEN CARRIER MANUFACTURING RESTORATION AND REGULATORY ACTIVITIES

Who is the contractor on this award?

The obligated recipient is HEMOGLOBIN OXYGEN THERAPEUTICS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2025-06-01. End: 2029-05-31.

What is the specific technological advancement or innovation this contract aims to achieve for canine oxygen carriers?

The provided data does not detail the specific technological advancements sought. However, the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' suggests an aim to improve upon existing oxygen delivery systems for canines. This could involve enhanced oxygen-carrying capacity, improved efficiency in delivery, novel materials for the carrier, or integration with other monitoring systems. The awardee, HEMOGLOBIN OXYGEN THERAPEUTICS LLC, likely possesses proprietary knowledge or technology in hemoglobin-based oxygen carriers, which could be adapted or further developed for canine applications. Further details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the $9.6 million contract value compare to historical spending on similar canine medical R&D projects within the Department of Defense?

Direct historical spending comparisons for 'canine oxygen carrier manufacturing restoration and regulatory activities' are not readily available in public databases due to the highly specialized nature of this niche. The $9.6 million award over five years ($1.92 million annually) represents a significant investment in a specific area of veterinary R&D. While the Department of Defense invests heavily in medical research, including for military working animals, specific figures for comparable canine-focused R&D projects are not easily benchmarked. The sole-source nature of this award further complicates direct comparisons, as competitive processes often yield different cost structures.

What are the key performance indicators (KPIs) or milestones that HEMOGLOBIN OXYGEN THERAPEUTICS LLC must meet under this contract?

The provided summary data does not specify the key performance indicators (KPIs) or milestones for this contract. Typically, for an R&D contract of this nature, KPIs would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include successful laboratory testing of prototypes, demonstration of efficacy in simulated or actual canine subjects, achievement of specific regulatory compliance standards, and successful scaling of manufacturing processes. The 'restoration and regulatory activities' mentioned in the description suggest that meeting specific quality and compliance benchmarks will be critical.

What is the potential impact of this contract on the broader field of veterinary medicine and animal health research?

This contract has the potential to significantly advance the field of veterinary medicine, particularly in critical care for canines. Development of improved oxygen carriers could lead to better outcomes for dogs undergoing surgery, suffering from trauma, or experiencing respiratory distress. Beyond military applications, the research and potential products could be adapted for civilian veterinary practices, improving the standard of care for companion animals and working dogs. Furthermore, advancements in hemoglobin-based oxygen carriers could have broader implications for life support technologies in both veterinary and human medicine, fostering innovation across the life sciences sector.

Given the sole-source award, what mechanisms are in place to ensure the contractor maintains competitive pricing and quality throughout the contract duration?

While a sole-source award bypasses initial competitive bidding, mechanisms for ensuring contractor performance and fair pricing still exist. The government will likely monitor the contractor's cost structure and performance against the contract's requirements. The fixed-price nature of the contract provides some cost control, as the contractor bears the risk of cost overruns. Contract clauses may include provisions for equitable adjustments if unforeseen circumstances arise. Regular performance reviews, milestone tracking, and potential audits by the Defense Contract Audit Agency (DCAA) can help ensure quality and value. If the contractor fails to meet performance standards, the government has remedies available under the contract terms.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT942525R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 674 SOUDER ROAD, SOUDERTON, PA, 18964

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

Financial Breakdown

Contract Ceiling: $12,534,579

Exercised Options: $12,534,579

Current Obligation: $9,559,948

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline