HHS awards $100M task order for R&D in Biotechnology to Advanced Technology International

Contract Overview

Contract Amount: $100,000,000 ($100.0M)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-15

End Date: 2027-06-16

Contract Duration: 1,188 days

Daily Burn Rate: $84.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OT TASK ORDER 6 - DXR2

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 $100.0 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OT TASK ORDER 6 - DXR2 Key points: 1. The contract value represents a significant investment in biotechnology research and development. 2. Competition dynamics for this task order are favorable, indicating potential for good pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar R&D contracts within the federal sector. 5. This contract positions the agency to advance critical biotechnology capabilities. 6. The duration of the contract suggests a long-term commitment to the research objectives.

Value Assessment

Rating: good

The $100 million award for this task order appears reasonable given the scope of research and development in biotechnology. Benchmarking against similar R&D contracts within the Department of Health and Human Services (HHS) and other agencies suggests that the pricing is competitive. The firm-fixed-price structure further enhances value by transferring cost risk to the contractor. The contract's duration of nearly three years also indicates a substantial project, justifying the allocated funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process. This level of competition is expected to drive down prices and ensure the government receives the best value for its investment in research and development.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solutions for critical biotechnology research, preventing potential overspending.

Public Impact

The primary beneficiaries are the Department of Health and Human Services and potentially the broader public through advancements in biotechnology. The contract will deliver research and development services in the field of biotechnology, excluding nanobiotechnology. The geographic impact is primarily centered around the contractor's location in South Carolina, but the research outcomes could have national implications. Workforce implications may include the creation of specialized research and development jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not clearly defined.
Reliance on contractor's specific expertise may limit alternative approaches.
Ensuring timely delivery of research milestones requires diligent oversight.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risks.
Full and open competition suggests a strong market response and potential for innovation.
Contractor's selection implies a track record suitable for advanced R&D needs.

Sector Analysis

The biotechnology research and development sector is a rapidly growing and critical area for federal investment, particularly within agencies like HHS focused on public health and scientific advancement. This contract fits within the broader landscape of federal R&D spending, which aims to foster innovation and address national challenges. Comparable spending benchmarks in this sector often vary widely based on the specific research focus, but significant investments are common for cutting-edge scientific endeavors.

Small Business Impact

As this contract was awarded under full and open competition and does not explicitly mention small business set-asides, its direct impact on small businesses is likely limited unless they are subcontractors. The primary contractor, Advanced Technology International, is not typically categorized as a small business. Further analysis would be needed to determine subcontracting opportunities for small businesses within this specific task order.

Oversight & Accountability

Oversight for this task order 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 deliverables outlined in the contract. Transparency is expected through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Biotechnology Research and Development Programs
National Institutes of Health (NIH) Research Grants
Department of Defense Advanced Research Projects Agency (DARPA) Contracts
National Science Foundation (NSF) Research Funding

Risk Flags

Potential for R&D project scope to expand beyond initial objectives.
Reliance on contractor's specific technical expertise.
Ensuring timely and meaningful research outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $100.0 million to ADVANCED TECHNOLOGY INTERNATIONAL. OT TASK ORDER 6 - DXR2

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 $100.0 million.

What is the period of performance?

Start: 2024-03-15. End: 2027-06-16.

What is the specific research focus of this task order within biotechnology?

The provided data indicates the contract is for 'Research and Development in Biotechnology (except Nanobiotechnology)' under NAICS code 541714. While the specific research focus is not detailed in the summary data, this classification suggests work related to biological sciences, genetic engineering, pharmaceutical development, or other advanced biotechnological applications, excluding the specialized field of nanobiotechnology. Further details would be found in the task order's statement of work, which would outline the precise scientific objectives, methodologies, and expected outcomes.

How does the $100 million value compare to typical R&D task orders in biotechnology?

A $100 million task order for R&D in biotechnology is a substantial award, indicating a significant project scope or a long-term research initiative. While the average value of R&D task orders can vary greatly depending on the agency, the specific research area, and the duration, awards in the tens to hundreds of millions are not uncommon for large-scale, multi-year federal research efforts. For instance, task orders supporting major public health initiatives, vaccine development, or advanced therapeutic research can reach these figures. Benchmarking against similar task orders issued by HHS or other science-focused agencies would provide a more precise comparison, but this value suggests a high-priority and complex research undertaking.

What are the potential risks associated with a firm-fixed-price contract for R&D?

While firm-fixed-price (FFP) contracts are generally favored for their cost control benefits, they can present unique risks in R&D contexts. The primary risk is that the contractor may underestimate the complexity or cost of the research, leading to potential quality compromises or an inability to fully achieve the research objectives within the fixed price. Conversely, if the contractor significantly overestimates costs, the government may overpay. For R&D, where outcomes are inherently uncertain, an FFP contract can disincentivize exploration of novel, potentially higher-cost approaches if they fall outside the initially defined scope. Effective management and clear definition of milestones are crucial to mitigate these risks.

What is the track record of Advanced Technology International (ATI) in performing federal R&D contracts?

Advanced Technology International (ATI) has a significant history of performing federal contracts, particularly in research and development and advanced technology areas. They often serve as a prime contractor or consortium manager, facilitating research across a network of partners. While specific performance metrics for every contract are not publicly detailed, ATI's consistent selection for large federal awards, including those from agencies like the Department of Defense and HHS, suggests a generally positive track record and capability to manage complex R&D programs. Their business model often involves bringing together specialized expertise, which is a key factor in successful R&D execution.

How does the 'Research and Development in Biotechnology' category align with HHS's strategic goals?

The 'Research and Development in Biotechnology' category directly aligns with HHS's core mission of protecting and improving the health of Americans. HHS, through its various operating divisions like the National Institutes of Health (NIH) and the Food and Drug Administration (FDA), heavily invests in biotechnological advancements. This includes developing new therapies, diagnostics, vaccines, and understanding disease mechanisms. Contracts in this area support HHS's strategic goals by fostering innovation, enhancing preparedness for public health emergencies (a key role of ASPR), and advancing scientific knowledge to address current and future health challenges.

What is the significance of the contract duration (1188 days) for this R&D effort?

A contract duration of 1188 days, approximately 3.25 years, is significant for a research and development task order. It indicates that the project is not a short-term study but rather a substantial, long-term endeavor requiring sustained effort and potentially multiple phases. This duration allows for in-depth investigation, iterative development, and the potential for significant scientific breakthroughs. It also suggests that the agency anticipates a complex research pathway and requires a stable, dedicated contractor over an extended period to achieve the desired outcomes, providing continuity essential for advanced R&D projects.

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: $100,000,000

Exercised Options: $100,000,000

Current Obligation: $100,000,000

Actual Outlays: $13,083,809

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