HHS Awards $120M R&D Task Order to Advanced Technology International for Biotechnology Research

Contract Overview

Contract Amount: $120,250,000 ($120.3M)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-29

End Date: 2028-12-31

Contract Duration: 1,920 days

Daily Burn Rate: $62.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OT TASK ORDER 2

Place of Performance

Location: SUMMERVILLE, BERKELEY County, SOUTH CAROLINA, 29486

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $120.3 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OT TASK ORDER 2 Key points: 1. Significant investment in biotechnology R&D, focusing on areas like disease preparedness. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk is moderate, given the long duration and R&D nature of the contract. 4. Sector is Research and Development in Biotechnology, a critical area for public health.

Value Assessment

Rating: good

The contract value of $120.25M over approximately 5 years suggests a substantial but potentially reasonable investment for advanced biotechnology research. Benchmarking against similar large-scale R&D contracts would provide further clarity on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for critical biotechnology research, potentially leading to advancements in public health preparedness.

Public Impact

Enhances national capabilities in biotechnology research and development. Supports the Office of the Assistant Secretary for Preparedness and Response (ASPR) in its mission. Potential for breakthroughs in disease prevention, treatment, or response strategies. Long-term investment in scientific advancement and public health security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (approx. 5 years) increases R&D uncertainty.
R&D contracts inherently carry risk of not achieving desired outcomes.
Reliance on a single task order for a large sum.

Positive Signals

Awarded under full and open competition.
Focus on critical public health preparedness.
Contractor has experience in advanced technology.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, a field crucial for national security and public health. Spending in this area is often substantial due to the complex and innovative nature of the work.

Small Business Impact

While the primary awardee is Advanced Technology International, the 'full and open competition' clause suggests that small businesses may have had the opportunity to participate as subcontractors or prime contractors if they met the qualifications.

Oversight & Accountability

The Office of the Assistant Secretary for Preparedness and Response (ASPR) is responsible for this award, indicating a focus on emergency preparedness. Oversight will be critical to ensure research milestones are met and funds are used effectively.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Long contract duration increases R&D uncertainty.
R&D outcomes are inherently unpredictable.
Potential for cost overruns if research proves more complex than anticipated.
Dependence on specific scientific advancements.
Task order value is substantial, requiring close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $120.3 million to ADVANCED TECHNOLOGY INTERNATIONAL. OT TASK ORDER 2

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

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 $120.3 million.

What is the period of performance?

Start: 2023-09-29. End: 2028-12-31.

How does the awarded amount compare to typical R&D investments in biotechnology for preparedness initiatives?

The $120.25 million award is a significant investment, reflecting the complexity and strategic importance of biotechnology R&D for public health preparedness. Benchmarking against similar large-scale, multi-year R&D contracts within government agencies like HHS or DoD would reveal if this amount is within the expected range for such critical research endeavors.

What are the specific risks associated with the R&D nature of this contract and its long duration?

The primary risks stem from the inherent uncertainty of research and development outcomes; the project may not yield the anticipated scientific breakthroughs or technological advancements. The long duration (nearly 5 years) amplifies this risk, as scientific landscapes can shift, and initial assumptions may become outdated. Furthermore, the fixed-price nature could become disadvantageous if unforeseen research challenges significantly increase costs beyond initial estimates.

How effectively will this contract contribute to ASPR's preparedness mission given the R&D focus?

This contract has the potential to significantly contribute to ASPR's preparedness mission by fostering innovation in biotechnology relevant to public health threats. Success hinges on rigorous project management, clear milestone definition, and effective oversight to ensure the R&D aligns with ASPR's strategic goals. The competitive award process increases the likelihood of selecting a capable contractor, but continuous monitoring is essential to translate research into actionable preparedness capabilities.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

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: $120,250,000

Exercised Options: $120,250,000

Current Obligation: $120,250,000

Actual Outlays: $39,856,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50123D00005

IDV Type: IDC

Timeline