DoD's $9.9M Biotechnology R&D Contract Awarded to Goldbelt Frontier, LLC Raises Value Questions

Contract Overview

Contract Amount: $9,888,719 ($9.9M)

Contractor: Goldbelt Frontier, LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-19

End Date: 2026-05-18

Contract Duration: 1,460 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to GOLDBELT FRONTIER, LLC for work described as: ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract structure may incentivize cost overruns if not carefully managed. 3. Limited competition raises concerns about whether the government secured the best possible value. 4. The contract's duration of 4 years suggests a long-term commitment to this specific contractor. 5. Biotechnology R&D is a high-risk, high-reward sector where performance can be difficult to benchmark. 6. The contract's value of nearly $10 million warrants close scrutiny of deliverables and outcomes.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. The firm-fixed-price structure provides some cost certainty, but without comparison to other offers, it's difficult to ascertain if the $9.9 million represents a fair market price for the specified biotechnology research and development services. The award amount is substantial for a single definitive contract in this niche, suggesting a significant scope of work or high anticipated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. However, the lack of competition means there was no opportunity for multiple bidders to offer proposals, which could have driven down prices and potentially led to a more innovative solution. The absence of a competitive process limits transparency in price negotiation.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding, as the government did not benefit from the price pressures that typically arise in an open market.

Public Impact

The primary beneficiaries are likely the research teams at Goldbelt Frontier, LLC, who will conduct the biotechnology R&D. The contract aims to advance specific research objectives within the Department of Defense's biotechnology initiatives. The geographic impact is primarily concentrated in Maryland, where the contractor is located. Workforce implications include employment opportunities for scientists, researchers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Difficulty in assessing true value-for-money without market benchmarks.
Potential for scope creep in R&D contracts if not tightly managed.
Long contract duration could lock in potentially suboptimal pricing if market conditions change.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract is for research and development, a critical area for national security.
Contractor is awarded a significant sum, indicating confidence in their capabilities.
Contract duration suggests a sustained effort towards achieving R&D goals.

Sector Analysis

The biotechnology research and development sector is characterized by high innovation, significant investment, and often long development cycles. This contract falls under NAICS code 541714, 'Research and Development in Biotechnology (except Nanobiotechnology)'. Spending in this area is crucial for advancing medical countermeasures, defense capabilities, and other scientific applications. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of R&D, but significant government investment is typical for cutting-edge research.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no specific mention of subcontracting goals for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited unless Goldbelt Frontier, LLC voluntarily engages them. The absence of set-aside provisions means the primary focus is on the prime contractor's capabilities, potentially bypassing the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. As a definitive contract, it is subject to standard oversight mechanisms, including performance reviews and financial audits. The Defense Contract Audit Agency (DCAA) may conduct audits to ensure cost reasonableness and compliance. Transparency is limited by the sole-source nature, but contract performance data should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Biotechnology Research Initiatives
Medical Countermeasures Development
Advanced Scientific Research Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed performance metrics in summary data makes outcome assessment difficult.
Biotechnology R&D is inherently high-risk; success is not guaranteed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to GOLDBELT FRONTIER, LLC. ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GOLDBELT FRONTIER, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2022-05-19. End: 2026-05-18.

What is the specific research and development objective of this contract?

The provided data indicates the contract is for 'Research and Development in Biotechnology (except Nanobiotechnology)' under NAICS code 541714. However, the specific objective, such as developing a particular vaccine, diagnostic tool, or therapeutic agent, is not detailed in the summary data. Further investigation into the contract's statement of work (SOW) would be required to understand the precise scientific goals, expected outcomes, and the specific area of biotechnology being pursued by the Defense Health Agency through Goldbelt Frontier, LLC.

How does the $9.9 million contract value compare to similar sole-source biotechnology R&D contracts awarded by the DoD?

Direct comparison of sole-source biotechnology R&D contracts is challenging due to the inherent variability in research scope, complexity, and duration. However, a $9.9 million award for a definitive contract over approximately four years is a substantial investment. Without access to a database of comparable sole-source awards for similar R&D efforts, it's difficult to definitively benchmark this value. Generally, sole-source awards are scrutinized more heavily for value, and the absence of competition means the government relies heavily on its own cost and technical assessments to justify the price.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a research and development contract, especially one awarded on a sole-source basis, these would typically be outlined in the contract's Statement of Work (SOW). KPIs might include achieving specific research outcomes, successful completion of experimental phases, delivery of interim reports, or development of prototypes. The firm-fixed-price nature suggests that the contractor is obligated to deliver defined outcomes for the agreed-upon price, making the definition and tracking of these milestones crucial for performance assessment.

What is Goldbelt Frontier, LLC's track record in performing similar biotechnology R&D contracts for the federal government?

Information on Goldbelt Frontier, LLC's specific track record in performing similar biotechnology R&D contracts is not provided in the summary data. To assess their capabilities and past performance, one would need to review their contract history, including past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any prior awards in the biotechnology R&D space, and their success in meeting previous contract requirements. Given this is a sole-source award, the agency likely relied on existing knowledge or specific justifications regarding the contractor's unique qualifications and past success.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract type is 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not provided. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. The Defense Health Agency would have documented the rationale, which might involve unique capabilities, proprietary technology, or specific expertise held exclusively by Goldbelt Frontier, LLC.

How does this contract align with the Department of Defense's broader biotechnology research strategy?

The contract's alignment with the Department of Defense's (DoD) broader biotechnology research strategy is not explicitly detailed in the provided data. However, the award to the Defense Health Agency (DHA) suggests it supports military health research, potentially focusing on areas like infectious disease countermeasures, medical readiness, or advanced medical technologies for service members. The DoD invests in biotechnology to maintain a technological edge, protect personnel, and address emerging health threats. This contract likely contributes to one or more of these strategic objectives within the DoD's R&D portfolio.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81XWH22R0051

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5500 CHEROKEE AVE STE 100, ALEXANDRIA, VA, 22312

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,507,863

Exercised Options: $11,261,615

Current Obligation: $9,888,719

Actual Outlays: $954,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline