HHS Awards $270M Other Transaction Agreement to Global Health Investment Corp for R&D
Contract Overview
Contract Amount: $269,952,453 ($270.0M)
Contractor: Global Health Investment Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2021-06-01
End Date: 2031-06-01
Contract Duration: 3,652 days
Daily Burn Rate: $73.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: OTHER TRANSACTION AGREEMENT: BARDA VENTURES
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10017
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $270.0 million to GLOBAL HEALTH INVESTMENT CORPORATION for work described as: OTHER TRANSACTION AGREEMENT: BARDA VENTURES Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. Awarded via full and open competition, suggesting broad market engagement. 3. Long-term agreement (10 years) indicates a strategic, ongoing research need. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The Other Transaction Agreement (OTA) structure is often used for R&D and can be more flexible than traditional contracts. Benchmarking is difficult due to the unique nature of OTAs and the specific R&D focus, making direct cost comparisons challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple entities had the opportunity to bid. This method is generally expected to yield competitive pricing, though the specific R&D outcomes and the OTA structure can influence the final price discovery.
Taxpayer Impact: Taxpayer funds are being invested in potentially high-impact R&D. The success of this research will ultimately determine the value for money.
Public Impact
Supports advanced research and development in critical scientific fields. Potential for breakthroughs in physical, engineering, and life sciences. Long-term funding commitment provides stability for research initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of small business participation.
- OTA structure makes direct cost comparison difficult.
Positive Signals
- Full and open competition awarded.
- Long-term funding for strategic R&D.
Sector Analysis
This agreement falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be highly variable in terms of outcomes and cost-effectiveness. Benchmarking is challenging due to the specialized nature of R&D.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific Other Transaction Agreement. While OTAs can be complex, exploring avenues for small business subcontracting or participation could broaden the economic impact and foster innovation within the small business sector.
Oversight & Accountability
The use of an Other Transaction Agreement (OTA) by the Office of the Assistant Secretary for Preparedness and Response (ASPR) suggests a focus on agile acquisition for R&D. Oversight would typically involve monitoring research progress, milestones, and financial expenditures against the agreement's objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Lack of small business participation.
- Difficulty in benchmarking R&D costs.
- Long-term commitment introduces execution risk.
- OTA structure may obscure cost transparency.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $270.0 million to GLOBAL HEALTH INVESTMENT CORPORATION. OTHER TRANSACTION AGREEMENT: BARDA VENTURES
Who is the contractor on this award?
The obligated recipient is GLOBAL HEALTH INVESTMENT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $270.0 million.
What is the period of performance?
Start: 2021-06-01. End: 2031-06-01.
What is the expected return on investment for this $270 million R&D agreement, considering the inherent risks in scientific research?
Quantifying ROI for R&D is challenging due to its speculative nature. The value will be realized through potential breakthroughs, new technologies, or improved public health countermeasures. Success metrics should focus on research milestones, scientific validation, and eventual applicability rather than immediate financial returns. The long-term nature of the agreement allows for sustained effort towards impactful outcomes.
What are the specific risks associated with Global Health Investment Corporation's ability to deliver on this broad R&D scope?
Risks include the inherent uncertainty of R&D, potential for project delays or failures, and the need for effective management of a diverse research portfolio. The company's track record in managing large-scale, multi-disciplinary R&D projects and its financial stability are key factors. Ensuring robust oversight and clear communication channels will be crucial to mitigate these risks.
How will the effectiveness of the research funded by this OTA be measured and validated?
Effectiveness will be measured through predefined research milestones, peer-reviewed publications, patent applications, and the development of tangible prototypes or technologies. The agency will likely conduct regular reviews of progress reports and may engage independent scientific advisors to assess the quality and impact of the research. Successful translation of research findings into practical applications will be the ultimate measure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: BARDA VENTURES
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 501 5TH AVE RM 1404, NEW YORK, NY, 10017
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $269,952,453
Exercised Options: $269,952,453
Current Obligation: $269,952,453
Actual Outlays: $241,937,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-06-01
Current End Date: 2031-06-01
Potential End Date: 2031-06-01 00:00:00
Last Modified: 2024-02-14
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