HHS awards $5.7M R&D contract to BioFire Defense LLC for biotechnology research

Contract Overview

Contract Amount: $5,720,150 ($5.7M)

Contractor: Biofire Defense LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-19

End Date: 2027-09-22

Contract Duration: 1,829 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, QUALIFIED PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT UNDER THE TERMS OF THIS CONTRACT, AS NEEDED TO ADD THE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84107

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.7 million to BIOFIRE DEFENSE LLC for work described as: THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, QUALIFIED PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT UNDER THE TERMS OF THIS CONTRACT, AS NEEDED TO ADD THE Key points: 1. Contract value of $5.7 million over approximately five years suggests a moderate investment in specialized R&D. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Research and Development in Biotechnology (except Nanobiotechnology) is a critical sector for public health preparedness. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. The contractor, BioFire Defense LLC, is positioned within a specialized niche of the biotechnology sector. 6. The duration of the contract (1829 days) allows for sustained research efforts.

Value Assessment

Rating: good

The contract value of $5.7 million over nearly five years for R&D in biotechnology appears reasonable given the specialized nature of the work. Benchmarking against similar contracts in biotechnology R&D is challenging without more specific details on the scope of services. However, the fixed fee component suggests a defined profit margin, which can be a positive indicator of value if the costs are managed effectively. The cost-plus-fixed-fee structure, while allowing for research flexibility, necessitates diligent oversight to ensure costs remain within reasonable bounds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the open competition mechanism is generally favorable for price discovery and ensuring the government receives competitive offers. This approach aims to leverage the broadest possible range of capabilities and potentially secure more cost-effective solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and access to a wider array of innovative solutions, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services and potentially the broader public through advancements in biotechnology relevant to health preparedness. The services delivered are focused on research and development within the biotechnology sector, aiming to advance scientific knowledge and capabilities. The geographic impact is primarily centered in Utah, where BioFire Defense LLC is located, but the research outcomes could have national or global implications. Workforce implications include the potential for highly skilled jobs in biotechnology research and development within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed rigorously.
The specific R&D objectives and deliverables need clear definition to ensure alignment with government goals.
Reliance on a single contractor for specialized R&D may limit alternative approaches or future flexibility.

Positive Signals

Full and open competition suggests a robust selection process, potentially identifying the most capable offeror.
The contract duration allows for sustained focus and development of complex research projects.
The contractor's specialization in biotechnology R&D indicates relevant expertise for the contract's objectives.

Sector Analysis

The biotechnology R&D sector is characterized by high innovation, significant investment, and long development cycles. This contract fits within the broader landscape of federal investment in life sciences, which aims to foster scientific discovery, develop new medical countermeasures, and enhance public health. Comparable spending benchmarks in this specific niche are difficult to ascertain without more granular data, but federal R&D spending in health and life sciences is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to BioFire Defense LLC, a single entity, does not explicitly detail subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the subcontracting ecosystem related to this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures will be tied to the achievement of research milestones and adherence to the cost-plus-fixed-fee structure. Transparency will depend on the reporting requirements stipulated in the contract and HHS's public disclosure policies regarding R&D activities.

Related Government Programs

Biotechnology Research and Development
Public Health Preparedness
Medical Countermeasures
Life Sciences Research

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Specific research deliverables and success metrics need clear definition and monitoring.
Contractor's past performance in similar R&D projects should be reviewed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.7 million to BIOFIRE DEFENSE LLC. THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, QUALIFIED PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT UNDER THE TERMS OF THIS CONTRACT, AS NEEDED TO ADD THE

Who is the contractor on this award?

The obligated recipient is BIOFIRE DEFENSE LLC.

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 $5.7 million.

What is the period of performance?

Start: 2022-09-19. End: 2027-09-22.

What is the specific research focus of this contract and how does it align with HHS's strategic goals?

The contract specifies 'Research and Development in Biotechnology (except Nanobiotechnology)' with the contractor being BIOFIRE DEFENSE LLC. While the data provided does not detail the specific research focus, it is awarded under the Office of Assistant Secretary for Preparedness and Response (ASPR). ASPR's mission includes preparing the nation for health emergencies, which often involves developing new diagnostics, therapeutics, and vaccines. Therefore, this R&D contract likely supports ASPR's strategic goals by advancing biotechnological capabilities relevant to biodefense, emerging infectious diseases, or other public health threats. The exact alignment would require reviewing the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the $5.7 million contract value compare to typical R&D investments in biotechnology by federal agencies?

The $5.7 million contract value over approximately five years represents a moderate investment for a specific R&D project within the biotechnology sector. Federal agencies, particularly those like the National Institutes of Health (NIH) and Biomedical Advanced Research and Development Authority (BARDA, part of ASPR), often award contracts and grants ranging from hundreds of thousands to tens or even hundreds of millions of dollars for biotechnology research, depending on the project's scope, phase (e.g., basic research vs. advanced development), and duration. This particular contract's value suggests a focused effort on a particular area of biotechnology R&D, rather than a broad program initiative. Without knowing the specific deliverables, it's difficult to definitively benchmark, but it falls within a common range for targeted research efforts.

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

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where costs can be uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as their fee is fixed regardless of the final cost incurred (within the ceiling). This can lead to potential cost overruns if the initial cost estimates are inaccurate or if unforeseen challenges arise during research. For the contractor, there's a risk if the actual costs significantly exceed the estimated costs, as their profit is capped by the fixed fee. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What is BioFire Defense LLC's track record in government contracting, particularly in R&D?

Information on BioFire Defense LLC's specific track record with government contracts, especially in R&D, is not detailed in the provided data snippet. However, the company name suggests a focus on defense or security applications within the biotechnology space. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance reviews, and any history of contract modifications or disputes. Understanding their past performance, especially in similar R&D endeavors, is crucial for evaluating the risk and potential success of this current award.

How does the 'Research and Development in Biotechnology (except Nanobiotechnology)' classification (NAICS 541714) typically involve federal spending?

The NAICS code 541714, 'Research and Development in Biotechnology (except Nanobiotechnology),' covers establishments primarily engaged in conducting research and experimental development in biotechnology. Federal spending under this classification is substantial and spans across multiple agencies, including the Department of Health and Human Services (HHS), Department of Defense (DoD), National Science Foundation (NSF), and Department of Agriculture (USDA). This spending supports a wide range of activities, from basic scientific inquiry into biological processes to the development of novel diagnostics, therapeutics, vaccines, agricultural technologies, and industrial biotechnologies. Federal funding is critical for advancing the frontiers of biotechnology, often supporting high-risk, high-reward research that the private sector may not undertake alone.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA-18-100-SOL-00003

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Merieux Alliance

Address: 79 W 4500 S, SALT LAKE CITY, UT, 84107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,720,150

Exercised Options: $5,720,150

Current Obligation: $5,720,150

Actual Outlays: $4,548,282

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $349,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline