DoD's $22.2M contract for R&D in Biotechnology awarded to WESTAT, INC. shows strong competition
Contract Overview
Contract Amount: $22,214,369 ($22.2M)
Contractor: Westat, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-03-30
End Date: 2026-12-31
Contract Duration: 4,294 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF REGULATORY/PROGRAM MGT/ADMIN SUPPORT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to WESTAT, INC. for work described as: IGF::OT::IGF REGULATORY/PROGRAM MGT/ADMIN SUPPORT Key points: 1. Value for money appears reasonable given the contract's duration and scope. 2. Strong competition was present, indicating a healthy market for these services. 3. Risk indicators are moderate, with potential for cost overruns in R&D. 4. Performance context is within the Defense Health Agency's research initiatives. 5. Sector positioning is in the Biotechnology R&D segment, crucial for defense health. 6. The contract type, Cost Plus Fixed Fee, is common for R&D but carries inherent risk.
Value Assessment
Rating: good
The contract's total value of $22.2 million over its extended period (2015-2026) suggests a moderate annual spend. Benchmarking against similar R&D contracts in biotechnology is challenging due to the specialized nature of the work. However, the fixed fee component provides some cost control. The duration indicates a long-term commitment to research, which can be cost-effective if successful.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of a single award suggests that WESTAT, INC. was deemed the most advantageous offer. The competitive process likely contributed to achieving a fair price for the services rendered.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation.
Public Impact
The primary beneficiaries are the Department of Defense and potentially military personnel through advancements in biotechnology relevant to health. Services delivered include research and development in biotechnology, contributing to scientific knowledge and potential medical countermeasures. The geographic impact is primarily centered in Maryland, where the contractor is located. Workforce implications include employment for scientists, researchers, and support staff at WESTAT, INC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee R&D contracts.
- Long contract duration could lead to scope creep or evolving research needs.
- Dependence on a single contractor for a critical R&D area.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Contractor has a long-term engagement, implying satisfactory performance to date.
- Focus on biotechnology R&D aligns with critical defense health needs.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a highly specialized and innovative field. The market for such services is driven by scientific advancements and government funding for defense and health initiatives. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D projects, but significant government investment is typical in this area.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though WESTAT, INC. may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Health Agency's contracting and program management offices. Accountability measures are built into the contract's performance requirements and reporting obligations. Transparency is facilitated through contract award databases, though specific R&D details may be sensitive.
Related Government Programs
- Biotechnology Research Programs
- Defense Health Research
- Medical Countermeasures Development
- Advanced Scientific Research Contracts
Risk Flags
- Cost Overrun Risk
- Research Uncertainty
- Long-Term Contract Dependency
Tags
defense, department-of-defense, defense-health-agency, biotechnology, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, large-contract, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to WESTAT, INC.. IGF::OT::IGF REGULATORY/PROGRAM MGT/ADMIN SUPPORT
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2015-03-30. End: 2026-12-31.
What is WESTAT, INC.'s track record with similar government R&D contracts?
WESTAT, INC. has a history of performing research and development services for various government agencies. While specific details on past biotechnology R&D contracts are not provided in this summary, their long-standing relationship with the Department of Defense, as evidenced by this contract's duration, suggests a level of established performance and trust. Further analysis would involve reviewing their past performance evaluations and other awarded contracts in related scientific fields to fully assess their track record in complex R&D endeavors.
How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts in this sector?
The Cost Plus Fixed Fee (CPFF) pricing structure is a common model for research and development contracts where the scope of work can be uncertain or evolve. It allows the contractor to recover all allowable costs plus a negotiated fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the government in R&D but carries a higher risk of cost overruns if not managed diligently. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) to better align contractor incentives with performance and cost targets, potentially offering better value for money if specific milestones are met.
What are the primary risks associated with this specific biotechnology R&D contract?
The primary risks associated with this contract include the inherent uncertainties of research and development, where scientific breakthroughs are not guaranteed, potentially leading to unmet objectives or extended timelines. The CPFF structure itself poses a risk of cost escalation if not closely monitored. Furthermore, reliance on a single contractor for a specific R&D area could present a risk if the contractor faces financial difficulties or performance issues. National security implications related to the sensitive nature of biotechnology research also represent a potential risk that requires robust oversight.
How effective has this contract been in achieving its stated R&D objectives for the Defense Health Agency?
Assessing the effectiveness of this contract in achieving its stated R&D objectives requires access to detailed performance reports, milestone achievements, and the ultimate impact of the research outcomes. The contract's long duration (2015-2026) suggests ongoing research activities. Without specific performance metrics and outcome data from the Defense Health Agency, it is difficult to provide a definitive assessment of its effectiveness. However, the continued funding and extension of the contract may imply that the research is progressing and considered valuable by the agency.
What are the historical spending patterns for biotechnology R&D within the Department of Defense?
The Department of Defense consistently invests significant resources into biotechnology research and development, recognizing its critical role in national security, medical readiness, and defense capabilities. Historical spending patterns show a trend of increasing investment in areas such as infectious disease countermeasures, advanced diagnostics, regenerative medicine, and bio-defense technologies. This specific contract, valued at over $22 million, aligns with the broader DoD strategy to leverage cutting-edge scientific advancements. Analyzing broader DoD R&D budgets would reveal substantial allocations to agencies like DARPA, NIH (for defense-related research), and specific service branches' research arms.
What is the potential impact of this contract on future defense health strategies?
The outcomes of this biotechnology R&D contract have the potential to significantly influence future defense health strategies by providing novel solutions for medical threats, enhancing soldier resilience, and improving healthcare delivery in operational environments. Advancements in areas like rapid diagnostics, personalized medicine, or novel therapeutics could lead to updated medical protocols, new equipment requirements, and strategic shifts in how the DoD approaches health security. The research could also inform long-term investments in specific biotechnological capabilities deemed essential for future military operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81XWH14R0059
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1600 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,596,517
Exercised Options: $23,174,896
Current Obligation: $22,214,369
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,117,704
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-03-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-16
More Contracts from Westat, Inc.
- THE Population Assessment of Tobacco and Health (path) Study Period of Performance: 04/01/2016-11/30/2016 Base Award — $505.3M (Department of Health and Human Services)
- "critical Functions" Igf::ct::igf the Sampling and Data Collection Contractor Designs and Conducts the Sampling and Data Collection Activities and Prepares the Sampling and Variance Estimation Weights for the Operational Assessments, Pilot Tests, and Special Studies Required by the National Assessment of Educational Progress (naep) for the 2013-2017 Assessment Cycles. Additionally, the SDC Contractor Conducts the Naep High School Transcript Study (hsts). the SDC Contractor Shall Pursue Creative and Innovative Lines of Methodological and Operational Inquiry for Improving Sampling, Data Collection and Weighting Methodologies That Will Strategically Position Naep and the Hsts to Meet the Upcoming Challenges in the Next Decade Such AS Technology-Based and Multi-Stage Adaptive Testing; Making Naep More Educationally Relevant by Linking With Other State, National, and International Assessments; and Improving Access to the Broadest Range of Students Including Students With Disabilities and English Language Learners — $344.4M (Department of Education)
- National Health and Nutrition Examination Survey — $302.2M (Department of Health and Human Services)
- R&d-Other R & D-B RES — $292.6M (Department of Health and Human Services)
- Nhanes Contract — $279.2M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)