DoD's $25.6M contract for COVID-19 antigen detection assay optimization shows R&D investment

Contract Overview

Contract Amount: $25,655,995 ($25.7M)

Contractor: Inbios International Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-15

End Date: 2025-05-31

Contract Duration: 1,811 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COVID-19-FDA EUA ANTIGEN DETECTION- FDA FAST TRACK SEROLOGY ASSAY OPTIMIZATION

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to INBIOS INTERNATIONAL INC for work described as: COVID-19-FDA EUA ANTIGEN DETECTION- FDA FAST TRACK SEROLOGY ASSAY OPTIMIZATION Key points: 1. Contract awarded to InBios International Inc. for research and development. 2. Focus on optimizing COVID-19 antigen detection assays, aligning with public health needs. 3. Long performance period of 1811 days suggests a complex, multi-phase project. 4. Awarded under full and open competition, indicating a robust bidding process. 5. Contract type is Cost Plus Fixed Fee, common for R&D where final costs are uncertain. 6. The contract's value is significant for a single R&D project in this domain.

Value Assessment

Rating: good

The contract value of $25.6 million for R&D in biotechnology is substantial but within the expected range for complex assay optimization projects. Benchmarking against similar contracts for COVID-19 related research and development would provide a clearer picture of value for money. The Cost Plus Fixed Fee structure allows for flexibility in R&D but requires careful monitoring of costs to ensure efficiency. Without specific cost breakdowns or performance metrics, a definitive value assessment is challenging, but the investment aligns with critical public health needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial exclusions might have occurred, the opportunity was ultimately opened to all eligible bidders. This suggests a competitive process was intended and executed. The number of bidders is not specified, but the 'full and open' designation generally implies a healthy level of competition, which can drive better pricing and innovation.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by encouraging multiple companies to offer their best solutions and pricing.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader public through advancements in COVID-19 diagnostic capabilities. The services delivered involve research and development to improve the accuracy, speed, and reliability of antigen detection assays. The geographic impact is national, focusing on R&D activities likely within the United States. Workforce implications include employment for scientists, researchers, and technicians involved in biotechnology R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential risk with Cost Plus Fixed Fee contracts if not managed diligently.
The long performance period could introduce risks related to evolving technology or changing public health priorities.
Dependence on a single contractor for a critical R&D phase could pose a risk if performance falters.

Positive Signals

Awarding to InBios International Inc. leverages existing expertise in diagnostics.
The contract addresses a critical and ongoing need for improved COVID-19 testing.
Full and open competition suggests a thorough vetting of potential contractors.

Sector Analysis

This contract falls within the Biotechnology and Medical Research sector, a rapidly evolving field driven by public health needs and technological advancements. The market for diagnostic assay development is competitive, with significant government and private investment. This specific contract addresses a critical need identified during the COVID-19 pandemic, aiming to enhance existing detection methods. Comparable spending benchmarks would involve looking at other government R&D contracts for infectious disease diagnostics and assay development.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business capabilities. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless InBios International Inc. actively engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of Defense, specifically the Defense Health Agency) through contract officers and technical representatives. Accountability measures are built into the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is facilitated through contract databases, though specific R&D progress reports may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

COVID-19 Research and Development
Biotechnology Research Contracts
Diagnostic Assay Development
Defense Health Agency Contracts
National Institutes of Health (NIH) Grants

Risk Flags

Cost Overrun Potential (CPFF)
Technological Obsolescence Risk
Performance Uncertainty in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to INBIOS INTERNATIONAL INC. COVID-19-FDA EUA ANTIGEN DETECTION- FDA FAST TRACK SEROLOGY ASSAY OPTIMIZATION

Who is the contractor on this award?

The obligated recipient is INBIOS INTERNATIONAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2020-06-15. End: 2025-05-31.

What is the track record of InBios International Inc. in performing similar R&D contracts for the federal government?

InBios International Inc. has a history of developing diagnostic tests, including those for infectious diseases. While specific details on past federal R&D contracts of similar scale and scope are not provided in this data snippet, their core business involves assay development. A deeper dive into their contract history with agencies like the DoD, HHS, or NIH would reveal their performance trends, any past issues, and their success rate in delivering complex R&D projects. Examining past performance evaluations and any awards or penalties associated with their federal contracts would offer further insight into their reliability and capability for this significant project.

How does the $25.6 million contract value compare to other federal investments in COVID-19 diagnostic R&D?

The $25.6 million contract value is a significant investment for a single R&D project focused on assay optimization. However, the total federal spending on COVID-19 related research and development has been in the billions across various agencies like NIH, BARDA, and DoD. This contract represents a targeted investment within that larger ecosystem. When compared to grants or contracts for vaccine development or large-scale therapeutic research, $25.6 million might appear moderate. However, for specialized R&D in optimizing specific types of diagnostic assays, it is a substantial allocation, reflecting the critical need for reliable and efficient testing solutions during the pandemic and beyond.

What are the key performance indicators (KPIs) and milestones for this contract, and how is progress measured?

Specific Key Performance Indicators (KPIs) and milestones for this contract are not detailed in the provided data. However, for an R&D project focused on assay optimization, typical KPIs would likely include metrics related to assay sensitivity, specificity, speed of detection, stability, and ease of use. Milestones would probably involve phased deliverables such as proof-of-concept validation, prototype development, analytical validation, and potentially clinical validation studies. Progress measurement under a Cost Plus Fixed Fee contract usually involves regular technical progress reports, financial expenditure reports, and milestone reviews conducted by the contracting officer's technical representative (COTR) to ensure the contractor is meeting objectives and managing costs effectively.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type, while suitable for R&D where final costs are uncertain, carries inherent risks. For the government, the primary risk is that the contractor may incur higher costs than anticipated, potentially exceeding the initial budget if cost controls are not robustly managed. There's also a risk of scope creep or less incentive for the contractor to control costs aggressively, as their fee is fixed regardless of the final cost. For the contractor, the risk lies in accurately estimating the costs and effort required, as the fixed fee might not adequately compensate them if the project proves more complex or time-consuming than initially projected. Effective oversight and clear definition of work are crucial to mitigate these risks.

How does this contract contribute to the broader federal strategy for pandemic preparedness and response?

This contract directly contributes to the federal strategy for pandemic preparedness and response by investing in the improvement of critical diagnostic tools. Enhancing antigen detection assays can lead to faster, more accessible testing, which is crucial for early detection, containment, and management of infectious disease outbreaks, including future pandemics. By optimizing these assays, the government aims to ensure the availability of reliable diagnostic capabilities that can be rapidly deployed. This R&D effort supports the goal of strengthening the nation's public health infrastructure and its ability to respond effectively to emerging health threats, ensuring that testing remains a cornerstone of disease surveillance and control.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81XWH15R0014

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 562 1ST AVE S STE 600, SEATTLE, WA, 98104

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,655,995

Exercised Options: $25,655,995

Current Obligation: $25,655,995

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH16D0009

IDV Type: IDC

Timeline