DoD awards $53M for Cell-Based Wound Therapeutics R&D to Noveome Biotherapeutics
Contract Overview
Contract Amount: $53,076,259 ($53.1M)
Contractor: Noveome Biotherapeutics Inc
Awarding Agency: Department of Defense
Start Date: 2013-04-19
End Date: 2018-04-30
Contract Duration: 1,837 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF R&D - CELL-BASED WOUND THERAPEUTICS
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15201
Plain-Language Summary
Department of Defense obligated $53.1 million to NOVEOME BIOTHERAPEUTICS INC for work described as: IGF::OT::IGF R&D - CELL-BASED WOUND THERAPEUTICS Key points: 1. Significant investment in advanced medical R&D. 2. Sole-source award raises questions about price discovery. 3. Contract duration of over 5 years suggests long-term development. 4. Focus on a niche therapeutic area with potential high impact.
Value Assessment
Rating: questionable
The contract value of $53M over 5 years is substantial for R&D. Without competitive bidding, it's difficult to assess if this represents fair value compared to potential alternatives or market rates for similar advanced therapeutic development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to achieve the lowest possible price.
Taxpayer Impact: The lack of competition could result in a higher overall cost to taxpayers for this research and development effort.
Public Impact
Advancement in regenerative medicine and wound healing. Potential for improved patient outcomes in military and civilian healthcare. Investment in a specialized biotech sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for R&D
- Long contract duration
Positive Signals
- Supports critical medical research
- Potential for significant health benefits
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The $53M award is significant for a single R&D contract in this specialized area, particularly for cell-based therapeutics.
Small Business Impact
The contract was awarded to Noveome Biotherapeutics Inc., a specific company. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract type is 'COST NO FEE', which requires the contractor to perform without a fee or profit. Oversight would focus on the efficient use of funds and progress towards research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding may inflate costs.
- Long contract duration increases exposure to cost overruns or scope creep.
- High R&D investment carries inherent risk of failure.
- Sole-source nature limits transparency in price negotiation.
Tags
research-and-development-in-the-physical, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.1 million to NOVEOME BIOTHERAPEUTICS INC. IGF::OT::IGF R&D - CELL-BASED WOUND THERAPEUTICS
Who is the contractor on this award?
The obligated recipient is NOVEOME BIOTHERAPEUTICS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $53.1 million.
What is the period of performance?
Start: 2013-04-19. End: 2018-04-30.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without further documentation, it's unclear why this contract wasn't competed. The determination of fair and reasonable pricing in sole-source situations relies heavily on cost analysis and market research by the contracting agency, which is not detailed here.
What are the key performance indicators and milestones for this R&D contract, and how is progress being tracked?
Key performance indicators and milestones for R&D contracts are crucial for tracking progress and ensuring accountability. These would typically be defined in the contract's statement of work. The Department of Defense would monitor these through regular reporting, reviews, and potentially site visits to assess the contractor's adherence to the research plan and achievement of developmental goals.
What is the potential return on investment for taxpayers, considering the high cost and specialized nature of this therapeutic research?
The potential return on investment for taxpayers is multifaceted. It includes the development of novel medical treatments that could improve health outcomes, reduce long-term healthcare costs, and potentially create economic benefits through commercialization. However, R&D inherently carries risk, and success is not guaranteed, making the ROI uncertain until the technology is proven and adopted.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 100 TECHNOLOGY DR STE 200, PITTSBURGH, PA, 15219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,076,259
Exercised Options: $53,076,259
Current Obligation: $53,076,259
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-04-19
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2017-10-15
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