DoD's $20.7M biotech R&D contract with Entegrion, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $20,746,630 ($20.7M)

Contractor: Entegrion, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-29

End Date: 2016-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH&DEVELOPMENT

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to ENTEGRION, INC. for work described as: RESEARCH&DEVELOPMENT Key points: 1. Contract awarded for research and development in biotechnology, aligning with a key scientific sector. 2. The contract utilized a Cost Plus Fixed Fee (CPFF) pricing structure, common in R&D where costs are less predictable. 3. A duration of 1825 days (5 years) suggests a significant, long-term research objective. 4. The contract was awarded to Entegrion, Inc., indicating a specific focus on their specialized capabilities. 5. North Carolina is the state of performance, potentially indicating regional economic impact. 6. The North American Industry Classification System (NAICS) code 541711 points to specific R&D activities in biotechnology.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed cost breakdowns and comparable project outcomes. The CPFF structure means the final cost could fluctuate based on actual expenses incurred by Entegrion, Inc. While the total award value is $20.7 million, the 'fixed fee' component represents the contractor's profit and overhead, which would be the primary element for value assessment against industry standards. Without knowing the fee percentage or the specific deliverables achieved, a definitive value-for-money judgment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit proposals. The presence of 3 bidders indicates a moderate level of competition for this specific R&D requirement. While more than one bidder is positive, the exact number (3) doesn't necessarily guarantee the most competitive pricing or innovative solutions, but it does suggest the government sought multiple options.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to better pricing and more innovative approaches, ultimately maximizing the return on investment for federal funds.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. military, through advancements in biotechnology relevant to defense applications. The contract supports research and development activities, aiming to produce new knowledge, technologies, or processes in the field of biotechnology. The geographic impact is centered in North Carolina, where Entegrion, Inc. is located and where the research activities will likely be conducted. The contract supports a specialized workforce within Entegrion, Inc., including scientists, researchers, and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs plus a fixed fee.
The specific deliverables and success metrics for this R&D contract are not detailed, making it difficult to assess the ultimate value and impact of the research.
Limited information on the competitive landscape beyond the number of bidders makes it hard to ascertain if optimal pricing was achieved.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The contract duration of five years suggests a commitment to a significant research endeavor with potential for substantial outcomes.
The focus on biotechnology R&D aligns with critical national security and scientific advancement goals.

Sector Analysis

The biotechnology research and development sector is a high-growth area critical for advancements in medicine, agriculture, and defense. Federal spending in this sector often supports fundamental research that private industry may not undertake due to high risk and long timelines. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but government investment in biotech R&D is substantial, often supporting university research and specialized firms like Entegrion, Inc. This contract represents a specific investment within the broader federal R&D portfolio.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely to have direct subcontracting implications for small businesses unless Entegrion, Inc. voluntarily includes them in its research efforts. The primary focus appears to be on a specific large or specialized entity rather than broad small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The CPFF structure necessitates robust financial oversight to ensure that costs incurred by Entegrion, Inc. are allowable, allocable, and reasonable. Transparency regarding research progress and outcomes would depend on reporting requirements stipulated in the contract. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Biotechnology Research Initiatives
Advanced Medical Technologies
National Security Science and Technology

Risk Flags

Cost Overrun Risk (CPFF Structure)
Unclear Deliverables/Performance Metrics
Limited Competition Data (beyond bidder count)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to ENTEGRION, INC.. RESEARCH&DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is ENTEGRION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2011-09-29. End: 2016-09-27.

What specific biotechnology advancements was Entegrion, Inc. expected to deliver under this contract?

The provided data does not specify the exact deliverables or research objectives for this contract. The NAICS code 541711 indicates 'Research and Development in Biotechnology,' which is a broad category. Entegrion, Inc. is known for its work in areas like blood substitutes and related biomedical technologies. However, without access to the contract statement of work (SOW) or performance reports, the precise scientific or technological advancements sought by the Department of the Army remain undisclosed in this summary data. Further investigation into contract documentation would be required to detail the specific R&D goals.

How does the $20.7 million award compare to other DoD biotechnology R&D contracts?

Comparing this $20.7 million contract requires access to a broader dataset of DoD biotechnology R&D awards. However, R&D contracts can vary significantly in value based on the scope, duration, and complexity of the research. Contracts for fundamental research might be smaller, while those involving advanced development, prototyping, or large-scale clinical trials could be substantially larger. Given the five-year duration (1825 days), $20.7 million represents an average annual funding of approximately $4.14 million. This figure is plausible for a specialized R&D effort within the DoD's extensive research portfolio, but without specific benchmarks for similar projects, it's difficult to definitively label it as high, low, or average.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. While the contractor's fee is fixed, they are reimbursed for all allowable costs. If the research proves more complex or expensive than initially anticipated, the total cost to the government can exceed initial estimates. This necessitates stringent oversight by the government to ensure costs are reasonable and allocable to the contract. Another risk is that the contractor might not be sufficiently incentivized to control costs, as their profit margin is predetermined. Effective management requires clear performance metrics and regular reviews of expenditures.

What is Entegrion, Inc.'s track record with government contracts, particularly DoD?

The provided data indicates Entegrion, Inc. received this specific $20.7 million contract from the Department of the Army. To assess their broader track record, one would need to examine historical contract awards databases (like FPDS or SAM.gov) for other contracts awarded to Entegrion, Inc. by the DoD or other federal agencies. This would reveal the volume, value, types of contracts (e.g., R&D, services, supplies), and performance history (e.g., past performance ratings, any contract disputes or terminations). Without this broader context, it's difficult to evaluate their overall reliability and experience with government work.

How has federal spending in biotechnology R&D evolved over the period of this contract (2011-2016)?

Federal spending in biotechnology R&D generally saw increases during the 2011-2016 period, driven by initiatives like the National Bioeconomy Blueprint and increased focus on areas such as personalized medicine, infectious disease research, and advanced manufacturing. Agencies like the NIH (part of HHS), NSF, USDA, and DoD all contribute significantly. While this specific $20.7 million contract represents a small fraction of the total federal R&D budget, it aligns with the broader trend of investment in the life sciences. Tracking overall federal R&D obligations would provide context on whether this contract's funding level was typical or exceptional for its time 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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 79 T W ALEXANDER STE 200, DURHAM, NC, 27709

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

Financial Breakdown

Contract Ceiling: $43,779,396

Exercised Options: $24,118,027

Current Obligation: $20,746,630

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline