DoD's $24.8M Bio-Mod program awarded to MIT for advanced biologic development, spanning over 10 years

Contract Overview

Contract Amount: $24,850,794 ($24.9M)

Contractor: Massachusetts Institute of Technology

Awarding Agency: Department of Defense

Start Date: 2013-06-25

End Date: 2023-05-31

Contract Duration: 3,627 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST NO FEE

Sector: R&D

Official Description: THE BIO-MOD PROGRAM SEEKS TO DEVELOP DEVICES AND TECHNIQUES TO PRODUCE MULTIPLE PROTEIN BIOLOGICS IN RESPONSE TO SPECIFIC BATTLEFIELD THREATS AND MEDICAL NEEDS.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY for work described as: THE BIO-MOD PROGRAM SEEKS TO DEVELOP DEVICES AND TECHNIQUES TO PRODUCE MULTIPLE PROTEIN BIOLOGICS IN RESPONSE TO SPECIFIC BATTLEFIELD THREATS AND MEDICAL NEEDS. Key points: 1. The contract's long duration suggests a sustained need for advanced biologic research and development. 2. MIT's selection indicates a reliance on established research institutions for complex scientific endeavors. 3. The 'Cost No Fee' contract type implies the government bears the financial risk, with the contractor reimbursed for allowable costs. 4. Research and Development in Biotechnology is a critical but inherently risky sector, with outcomes not guaranteed. 5. The program's focus on battlefield threats highlights its strategic importance to national security. 6. The lack of small business involvement suggests this is a large-scale, specialized research effort.

Value Assessment

Rating: fair

The total award of $24.8 million over more than 10 years averages to approximately $2.48 million per year. This figure needs to be benchmarked against similar large-scale R&D contracts in biotechnology. The 'Cost No Fee' structure means the government is absorbing the financial risk, which can be a concern if not managed tightly. Without specific performance metrics or comparable contract data, a definitive value-for-money assessment is challenging, but the long-term commitment suggests perceived value by the agency.

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 offerors had the opportunity to bid. The presence of 12 bids suggests a healthy level of interest and competition for this specialized research and development requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by driving down costs through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel who would benefit from advanced medical countermeasures. The services delivered include research and development of novel devices and techniques for producing protein biologics. The geographic impact is primarily within Massachusetts, where MIT is located, but the ultimate impact is national security. Workforce implications include highly skilled scientific and research personnel at MIT and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type shifts significant financial risk to the government, requiring robust oversight to manage expenditures.
The long contract duration (over 10 years) increases the risk of cost overruns or scope creep if not meticulously managed.
Research and Development inherently carries a high degree of uncertainty regarding successful outcomes and timelines.

Positive Signals

Award to a reputable institution like MIT suggests a high likelihood of technical expertise and quality research.
Full and open competition indicates a robust selection process, likely resulting in a well-qualified contractor.
The program's focus on critical battlefield threats aligns with essential national security objectives.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, a highly specialized and innovation-driven field. The market is characterized by significant investment in scientific discovery and technological advancement, often involving academic institutions and specialized firms. Comparable spending benchmarks would involve looking at other large-scale, long-term R&D contracts awarded by defense agencies for similar scientific objectives. The total award of $24.8 million over a decade positions this as a substantial, but not exceptionally large, investment within the broader federal R&D landscape.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Given the specialized nature of biotechnology research and the award to a large academic institution, it is unlikely that small businesses are primary awardees. However, there may be opportunities for small businesses to participate as subcontractors, depending on MIT's procurement practices and the specific research needs.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. Given the 'Cost No Fee' structure, rigorous financial oversight and performance monitoring are crucial. Accountability measures would likely involve regular progress reports, milestone reviews, and potentially site visits by government contracting officers and technical representatives. Transparency is generally maintained through contract awards databases, but detailed programmatic data may be limited due to the sensitive nature of defense research.

Related Government Programs

Biotechnology Research Programs
Advanced Medical Countermeasures
Department of Defense Research and Development
National Institutes of Health (NIH) Grants
DARPA Research Initiatives

Risk Flags

Cost Overruns Risk (due to Cost-Reimbursement structure)
Research Outcome Uncertainty
Long Contract Duration Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to MASSACHUSETTS INSTITUTE OF TECHNOLOGY. THE BIO-MOD PROGRAM SEEKS TO DEVELOP DEVICES AND TECHNIQUES TO PRODUCE MULTIPLE PROTEIN BIOLOGICS IN RESPONSE TO SPECIFIC BATTLEFIELD THREATS AND MEDICAL NEEDS.

Who is the contractor on this award?

The obligated recipient is MASSACHUSETTS INSTITUTE OF TECHNOLOGY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2013-06-25. End: 2023-05-31.

What is the historical spending pattern for the Bio-Mod program?

The provided data indicates a total award of $24,850,794 for the Bio-Mod program, with a start date of June 25, 2013, and an end date of May 31, 2023. This spans a period of approximately 10 years. The annual spending would have varied significantly over this period, likely increasing as research progressed through different phases and potentially decreasing towards the end of the contract. Without detailed disbursement data, it's impossible to provide a precise year-over-year spending breakdown. However, the total award suggests an average annual expenditure of roughly $2.48 million. This long-term commitment indicates consistent funding allocation for this specific research objective over the contract's lifecycle.

How does the cost of this contract compare to similar R&D efforts in biotechnology?

Benchmarking the $24.8 million award for the Bio-Mod program against similar biotechnology R&D contracts is challenging without access to a comprehensive database of comparable projects. However, R&D in specialized fields like advanced biologics can be extremely costly due to the need for highly skilled personnel, specialized equipment, and the inherent risks associated with scientific discovery. Contracts of this magnitude, spanning over a decade, are not uncommon for foundational research initiatives funded by agencies like the Department of Defense. The 'Cost No Fee' structure, while common in certain R&D contexts, means the government bears the financial risk, making direct cost comparisons with fixed-price contracts less meaningful without a thorough analysis of the scope and deliverables.

What are the key performance indicators (KPIs) for the Bio-Mod program?

Specific Key Performance Indicators (KPIs) for the Bio-Mod program are not detailed in the provided data. However, for a research and development contract focused on developing devices and techniques for producing protein biologics, typical KPIs would likely include: successful development and validation of prototype devices, achievement of specific production yields and purity levels for target biologics, demonstration of efficacy in preclinical or simulated battlefield scenarios, adherence to safety and regulatory standards, and timely completion of research milestones. The 'Cost No Fee' contract type suggests that performance is primarily measured against technical objectives and adherence to research plans, rather than strict cost controls, although efficient use of funds would still be expected.

What is MIT's track record with similar government contracts?

Massachusetts Institute of Technology (MIT) has a long and distinguished history of securing and successfully executing large-scale research and development contracts with various U.S. government agencies, including the Department of Defense. As a leading research institution, MIT frequently collaborates with federal entities on cutting-edge scientific and technological projects. While specific details of MIT's past performance on contracts identical in scope to the Bio-Mod program are not provided here, their consistent ability to win competitive awards and their reputation for scientific excellence suggest a strong track record. Government contract databases would likely show numerous awards to MIT across diverse scientific disciplines, indicating their capacity to manage complex, multi-year research efforts and deliver on government requirements.

What are the potential risks associated with the 'Cost No Fee' contract type for this program?

The 'Cost No Fee' (Cost-Reimbursement No Fee) contract type, while suitable for research and development where the final costs are uncertain, presents specific risks for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, regardless of the success or efficiency of the research. This shifts the financial risk entirely to the government. Without robust oversight, there is a potential for cost overruns, inefficient resource allocation, or a lack of contractor incentive to control expenses. For the Bio-Mod program, this means the Department of the Navy must implement stringent monitoring of expenditures, regular reviews of progress against milestones, and clear definitions of allowable costs to mitigate the risk of the $24.8 million award escalating beyond expectations or failing to yield the desired technological advancements.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 12

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 77 MASSACHUSETTS AVE, CAMBRIDGE, MA, 02139

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,851,563

Exercised Options: $24,851,563

Current Obligation: $24,850,794

Actual Outlays: $54,300

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $3,895,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline