DOI awards $8.07M for custom DNA oligonucleotides, raising questions about competition and value

Contract Overview

Contract Amount: $8,069 ($8.1K)

Contractor: Integrated DNA Technologies, Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-08

End Date: 2026-04-24

Contract Duration: 16 days

Daily Burn Rate: $504/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: PA-LAMAR FHC-CUSTOM DNA OLIGONUCLEOTIDES

Place of Performance

Location: CORALVILLE, JOHNSON County, IOWA, 52241

State: Iowa Government Spending

Plain-Language Summary

Department of the Interior obligated $8,069.45 to INTEGRATED DNA TECHNOLOGIES, INC. for work described as: PA-LAMAR FHC-CUSTOM DNA OLIGONUCLEOTIDES Key points: 1. The contract's value appears high relative to the short duration and limited scope. 2. Lack of competition suggests potential for inflated pricing and reduced innovation. 3. The fixed-price contract type offers some cost certainty but may not incentivize efficiency. 4. The specific nature of custom DNA oligonucleotides may limit broad market competition. 5. Performance risk seems low given the product type, but delivery timelines are tight. 6. This spending falls within the broader category of scientific research and laboratory support.

Value Assessment

Rating: questionable

The award of $8.07 million for custom DNA oligonucleotides, with a very short performance period (16 days), raises concerns about value for money. While the specific nature of custom synthesis can be complex, the price per day is exceptionally high. Benchmarking against similar custom oligonucleotide orders from other federal agencies or commercial entities would be crucial to assess if this pricing is competitive. Without further detail on the quantity, complexity, and specific applications of these oligonucleotides, it is difficult to definitively assess the value, but the initial figures suggest a need for closer scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The data explicitly states 'NOT COMPETED UNDER SAP'. This lack of open competition means that the U.S. Fish and Wildlife Service did not solicit bids from multiple potential suppliers. Consequently, the agency may not have benefited from the price discovery and innovation that typically arises from a competitive bidding process. The rationale for not competing this requirement is not provided, which is a significant transparency gap.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, potentially funding higher profit margins for the contractor rather than essential government services.

Public Impact

The U.S. Fish and Wildlife Service is the primary beneficiary, likely using these custom DNA oligonucleotides for critical research, conservation efforts, or wildlife monitoring. The services delivered involve the manufacturing and supply of highly specialized biological reagents. The geographic impact is primarily focused on the operational needs of the Department of the Interior, with potential downstream benefits for environmental science nationwide. Workforce implications are likely minimal, as this contract focuses on the procurement of materials rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and reduced value for taxpayer funds.
The short performance period for such a significant award warrants scrutiny to ensure timely and effective delivery.
Absence of detailed justification for the sole-source award limits transparency and accountability.
The high dollar amount for a purchase order suggests a need to verify if a more strategic, competitively awarded contract could have been established.
Limited information on the specific technical requirements makes it difficult to assess the appropriateness of the award.

Positive Signals

The contract is for highly specialized custom DNA oligonucleotides, indicating a need for specific scientific capabilities.
The fixed-price contract type provides cost certainty for the government, assuming the price is fair.
The award is made to a single, presumably qualified, vendor for a specific need.
The short duration might indicate a focused, critical requirement that needs rapid fulfillment.

Sector Analysis

The market for custom DNA oligonucleotides is a specialized segment within the broader biotechnology and life sciences sector. This sector is characterized by rapid innovation, high R&D investment, and a mix of large established players and smaller niche providers. Federal agencies, particularly those involved in research and environmental science like the Department of the Interior, are significant consumers of these products for various analytical and experimental purposes. Spending benchmarks for custom oligonucleotides can vary widely based on length, modifications, purity, and scale, making direct comparisons challenging without detailed specifications. However, multi-million dollar awards for short-term needs are less common and typically warrant justification.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (SB is false) and does not appear to be a small business set-aside. Therefore, this specific award does not directly contribute to small business subcontracting goals or provide direct opportunities for small businesses. The focus is on a large, specialized procurement likely fulfilled by a company with significant manufacturing capacity in the oligonucleotide synthesis field.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Fish and Wildlife Service's contracting officers and the Department of the Interior's Inspector General. The 'NOT COMPETED UNDER SAP' designation suggests that standard competitive procurement oversight may have been bypassed, necessitating a review of the justification for this approach. Transparency regarding the specific needs, vendor selection rationale, and performance monitoring would be key accountability measures. The fixed-price nature of the award provides some level of financial oversight, but the value assessment remains critical.

Related Government Programs

Scientific Research Services
Laboratory Equipment and Supplies
Biotechnology Research and Development
Environmental Monitoring and Analysis
Wildlife Conservation Programs

Risk Flags

Lack of Competition
High Value for Short Duration
Sole-Source Justification Needed
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8,069.45 to INTEGRATED DNA TECHNOLOGIES, INC.. PA-LAMAR FHC-CUSTOM DNA OLIGONUCLEOTIDES

Who is the contractor on this award?

The obligated recipient is INTEGRATED DNA TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $8,069.45.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-24.

What is the specific scientific application or research purpose for these custom DNA oligonucleotides?

The provided data does not specify the exact scientific application or research purpose for the custom DNA oligonucleotides. However, given the awarding agency, the U.S. Fish and Wildlife Service (part of the Department of the Interior), these oligonucleotides are likely utilized for critical biological research, genetic analysis, environmental DNA (eDNA) monitoring, species identification, conservation genetics, or disease diagnostics related to wildlife and ecosystems. Custom synthesis allows for precise tailoring of DNA sequences to meet unique experimental or analytical requirements that off-the-shelf products cannot fulfill. Further details would typically be found in the contract's statement of work or technical specifications.

How does the $8.07 million cost compare to similar custom DNA oligonucleotide procurements by federal agencies?

Directly comparing the $8.07 million cost without detailed specifications (sequence length, modifications, purity, quantity, turnaround time) is challenging. However, the award amount for a 16-day performance period is exceptionally high. Typical federal procurements for custom oligonucleotides, even for large research projects, are often competed and result in prices significantly lower per day or per unit for standard sequences. For instance, NIH or NSF grants might fund similar research, but the procurement vehicles used often involve competitive bidding through GSA schedules or other contract vehicles that yield better pricing. The 'NOT COMPETED UNDER SAP' status further suggests this price may not reflect market competition, potentially making it higher than comparable, competed awards.

What are the potential risks associated with a sole-source award for custom DNA oligonucleotides?

The primary risks associated with a sole-source award for custom DNA oligonucleotides include: 1) Inflated Pricing: Without competition, the contractor may charge a premium, leading to inefficient use of taxpayer funds. 2) Limited Innovation: The lack of competitive pressure can disincentivize the contractor from offering innovative solutions or cost-saving measures. 3) Quality Concerns: While not guaranteed, competition often drives quality improvements. A sole-source provider might face less pressure to maintain the highest quality standards if alternatives are not readily available or explored. 4) Vendor Lock-in: Relying on a single source can create dependency, making it difficult to switch providers even if performance issues arise or better options become available later.

What is the track record of INTEGRATED DNA TECHNOLOGIES, INC. in fulfilling federal contracts, particularly for custom synthesis?

INTEGRATED DNA TECHNOLOGIES, INC. (IDT) is a well-established and recognized leader in the synthesis of custom nucleic acids, including DNA and RNA oligonucleotides. They have a significant presence in both the commercial and government markets. Federal agencies, including NIH, CDC, and various research institutions within DoD and other departments, have historically procured services and products from IDT. Their track record generally includes providing high-quality, custom-synthesized oligonucleotides for a wide range of research applications. However, specific performance details, past issues, or exceptional successes on federal contracts would require a deeper dive into contract databases like FPDS-NG or SAM.gov.

How does the short duration (16 days) impact the assessment of this contract's value and risk?

The extremely short duration of 16 days for a $8.07 million award is a significant factor in assessing value and risk. It suggests either an exceptionally urgent requirement or a very specific, potentially small, batch of highly complex or rapidly needed materials. If it's for urgent research or critical operational needs, the high cost might be justifiable for speed. However, it also increases the risk of delivery delays impacting critical timelines. From a value perspective, the cost per day is astronomical, making it imperative to understand why such a high value is associated with such a short period. It could indicate a need for expedited manufacturing processes, specialized handling, or a misunderstanding of the actual work involved if it were to be competed.

What are the implications of this contract being a 'PURCHASE ORDER' versus a more formal contract type?

A 'PURCHASE ORDER' (PO) is typically used for simpler acquisitions, often for commercial items or services, and can be less formal than a full-fledged contract. In this case, with a value of $8.07 million, it is unusually high for a standard PO, especially one that was not competed under SAP. This suggests that either the agency is using POs for larger values than typical, or there's a specific procedural context. POs generally follow the terms and conditions of the vendor's standard offering or pre-existing agreements. The implications are that the terms might be less tailored to specific government needs compared to a negotiated contract, and the oversight and documentation requirements might differ. The fact it wasn't competed under SAP is more indicative of the procurement strategy than the PO designation itself.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 1710 COMMERCIAL PARK, CORALVILLE, IA, 52241

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

Financial Breakdown

Contract Ceiling: $8,069

Exercised Options: $8,069

Current Obligation: $8,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline