HHS awards $37.6M contract for critical BARDA scientific expertise supporting COVID-19 and MCM programs

Contract Overview

Contract Amount: $37,573,159 ($37.6M)

Contractor: Tunnell Consulting Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-05-22

End Date: 2022-07-12

Contract Duration: 416 days

Daily Burn Rate: $90.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: R&D

Official Description: T.O. ALLOWS FOR CONTINUATION OF CRITICAL BARDA SCIENTIFIC SME AND PART-TIME CONSULTING PROFESSIONAL SERVICES IN SUPPORT OF ONGOING COVID-19 AND GENERAL MCM PROGRAMS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20515

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $37.6 million to TUNNELL CONSULTING INC for work described as: T.O. ALLOWS FOR CONTINUATION OF CRITICAL BARDA SCIENTIFIC SME AND PART-TIME CONSULTING PROFESSIONAL SERVICES IN SUPPORT OF ONGOING COVID-19 AND GENERAL MCM PROGRAMS. Key points: 1. Contract provides essential scientific subject matter expertise and consulting services for ongoing biodefense and public health emergency preparedness programs. 2. The award supports critical research and development in biotechnology, aligning with national priorities for health security. 3. Services are crucial for the continuity of BARDA's mission in developing medical countermeasures. 4. The contract duration of 416 days indicates a focused effort on specific program needs. 5. The use of labor hours suggests a flexible approach to acquiring specialized scientific skills. 6. The award was made under full and open competition after exclusion of sources, indicating a competitive process with specific justifications.

Value Assessment

Rating: good

The contract value of approximately $37.6 million over a period of 416 days appears reasonable for specialized scientific consulting services supporting critical national security programs. Benchmarking against similar contracts for scientific expertise in R&D and biodefense is challenging due to the unique nature of BARDA's mission. However, the pricing structure, likely based on labor hours, should be scrutinized to ensure it reflects fair market value for the highly specialized skills required. The value proposition lies in ensuring the continuity of essential scientific support for ongoing and future public health emergencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be broad, there were particular circumstances or justifications that led to excluding certain sources from the initial consideration. The number of bidders is not specified, but the 'full and open' aspect implies that multiple qualified offerors had the opportunity to compete, which generally promotes price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award, despite the exclusion of sources, suggests that taxpayers likely benefited from a range of proposals and pricing, leading to a more cost-effective outcome than a sole-source procurement.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its Biomedical Advanced Research and Development Authority (BARDA), ensuring continued access to critical scientific expertise. Services delivered include scientific subject matter expertise and part-time consulting, vital for the advancement of COVID-19 and general medical countermeasures (MCM) programs. The geographic impact is national, as BARDA's work supports U.S. public health security and preparedness against biological threats. Workforce implications include the engagement of highly specialized scientific professionals, potentially including academics and industry experts, who contribute to critical research and development efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the full and open competition requires careful review to ensure it was fully justified and did not unduly limit competition.
The reliance on labor hours for payment necessitates robust oversight to manage costs and ensure efficient service delivery.
The specific nature of 'scientific SME' can be subjective, requiring clear performance metrics to assess value.
The contract's focus on ongoing programs means potential for scope creep if not managed tightly.

Positive Signals

The award under 'full and open competition' indicates a commitment to leveraging a broad base of qualified contractors.
The contract supports critical national priorities related to public health emergencies and biodefense.
The selection of Tunnell Consulting Inc. suggests they possess the specialized expertise required by BARDA.
The continuity of services is vital for ongoing research and development efforts, preventing delays in critical programs.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, specifically focusing on services supporting medical countermeasures. The biotechnology R&D market is characterized by high specialization, significant investment, and long development cycles. BARDA operates within this complex ecosystem, aiming to accelerate the development and availability of medical countermeasures against public health threats. Comparable spending benchmarks are difficult to establish precisely due to the unique mission-driven nature of BARDA's work, but significant government investment in biodefense and pandemic preparedness is common.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, Tunnell Consulting Inc., is likely a small business itself based on typical industry profiles, but the contract was not specifically awarded to meet small business goals. There is no explicit mention of subcontracting requirements for small businesses within the provided data, suggesting that the focus was on acquiring specialized expertise directly from the prime. The impact on the broader small business ecosystem is therefore minimal unless the prime contractor voluntarily engages small businesses for support.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Preparedness and Response (ASPR) and BARDA. Accountability measures would be tied to the delivery of scientific subject matter expertise and consulting services as defined in the contract's Statement of Work. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

BARDA COVID-19 Response
Medical Countermeasures (MCM) Development
Biotechnology Research and Development
Public Health Emergency Preparedness
National Biodefense Strategy

Risk Flags

Competition Justification
Cost Control for Labor Hours
Performance Metrics Clarity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $37.6 million to TUNNELL CONSULTING INC. T.O. ALLOWS FOR CONTINUATION OF CRITICAL BARDA SCIENTIFIC SME AND PART-TIME CONSULTING PROFESSIONAL SERVICES IN SUPPORT OF ONGOING COVID-19 AND GENERAL MCM PROGRAMS.

Who is the contractor on this award?

The obligated recipient is TUNNELL CONSULTING INC.

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 $37.6 million.

What is the period of performance?

Start: 2021-05-22. End: 2022-07-12.

What is the specific expertise Tunnell Consulting Inc. provides under this contract, and how is it measured?

The contract specifies 'critical BARDA scientific SME and part-time consulting professional services.' This likely encompasses a range of highly specialized scientific knowledge related to infectious diseases, vaccine development, therapeutics, diagnostics, and other medical countermeasures relevant to COVID-19 and broader public health threats. Performance metrics would typically be defined in the contract's Statement of Work (SOW) and could include deliverables such as scientific reports, technical assessments, strategic advice, participation in review panels, and contributions to program planning. The effectiveness of the expertise is measured by its contribution to the advancement and success of BARDA's programs, ensuring that critical research and development milestones are met efficiently and effectively.

How does the $37.6 million award compare to typical spending for similar scientific consulting services in the biotech R&D sector?

Direct comparison of the $37.6 million award for 416 days (approximately 1.1 years) is challenging due to the unique mission and specialized nature of BARDA's work. Government contracts for scientific expertise, particularly in areas like biodefense and pandemic preparedness, often command premium pricing due to the high level of specialized knowledge, security clearances, and the critical impact of the work. While $37.6 million is a substantial sum, it reflects the complexity and urgency of supporting national biodefense programs. Benchmarking would ideally involve comparing the per-diem or hourly rates for similar senior scientific consultants engaged in government R&D contracts, adjusted for the specific domain expertise required by BARDA. Without access to detailed rate structures and specific comparable contracts, a precise value-for-money assessment is difficult, but the amount is not inherently outside the expected range for such critical, specialized support.

What are the key risks associated with this contract, and how are they being mitigated?

Key risks include the potential for cost overruns if labor hours are not managed efficiently, the risk of the contractor's expertise becoming outdated if not continuously updated, and the risk that the services provided may not fully align with evolving program needs. Mitigation strategies would involve robust contract oversight by HHS/BARDA, including regular performance reviews, detailed tracking of labor hours, and clear communication channels to ensure alignment with program objectives. The 'full and open competition after exclusion of sources' also presents a risk if the exclusion was not fully justified, potentially limiting the best value. Ensuring clear deliverables and performance standards within the SOW helps mitigate misalignment risks.

What is the historical spending pattern for scientific consulting services by BARDA or similar agencies?

Historical spending patterns for scientific consulting services by BARDA and similar agencies like the Defense Advanced Research Projects Agency (DARPA) or the National Institutes of Health (NIH) often show significant investment in specialized expertise. BARDA, in particular, has seen increased funding and contract awards related to pandemic preparedness and response, especially following events like the COVID-19 pandemic. Spending can fluctuate based on emerging threats and national priorities. Contracts for scientific SMEs can range from a few million dollars for specific project support to tens or even hundreds of millions for broader, long-term program support, depending on the scope, duration, and criticality. This $37.6 million award aligns with the substantial investments required for advanced R&D and preparedness initiatives.

How does the 'full and open competition after exclusion of sources' impact the overall value and taxpayer benefit?

The 'full and open competition after exclusion of sources' is a nuanced procurement approach. 'Full and open competition' is generally beneficial for taxpayers as it aims to solicit offers from the widest possible range of qualified sources, fostering price competition and innovation. However, the 'exclusion of sources' indicates that certain potential offerors were deliberately not considered. The justification for this exclusion is critical; if it was based on specific technical requirements or unique capabilities that only a limited number of firms possessed, then the competition, though narrowed, might still yield good value. If the exclusion was arbitrary or poorly justified, it could limit competition, potentially leading to higher prices or less optimal solutions for taxpayers. The ultimate impact on taxpayer benefit depends heavily on the validity of the exclusion and the competitiveness among the remaining eligible bidders.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 18100SOL00001

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6701 DEMOCRACY BLVD STE 405, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $37,573,159

Exercised Options: $37,573,159

Current Obligation: $37,573,159

Actual Outlays: $37,573,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSO100201800001I

IDV Type: IDC

Timeline