HHS Awards $418.7M Task Order for Pandemic Vaccine R&D to Advanced Technology International

Contract Overview

Contract Amount: $418,667,305 ($418.7M)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2024-06-14

End Date: 2035-09-16

Contract Duration: 4,111 days

Daily Burn Rate: $101.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OT TASK ORDER 8-RAPID PANDEMIC INFLUENZA AND EMERGING INFECTIOUS DISEASE VACCINE DEVELOPMENT AND RESPONSE CAPABILITY

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 $418.7 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OT TASK ORDER 8-RAPID PANDEMIC INFLUENZA AND EMERGING INFECTIOUS DISEASE VACCINE DEVELOPMENT AND RESPONSE CAPABILITY Key points: 1. Significant investment in critical pandemic preparedness and response capabilities. 2. Advanced Technology International, a large business, secured the contract. 3. Potential for long-term impact on public health security. 4. Research and Development in Biotechnology is a key sector for national security.

Value Assessment

Rating: good

The contract value of $418.7 million over 11 years suggests a substantial, long-term commitment. Benchmarking against similar large-scale R&D contracts in biotechnology is difficult without more specific cost breakdowns, but the duration implies significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method is generally expected to yield competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: This investment aims to enhance national security and public health resilience, potentially saving significant taxpayer funds in the long run by mitigating the impact of future pandemics.

Public Impact

Strengthens the nation's ability to rapidly develop vaccines for emerging infectious diseases. Enhances preparedness for future public health emergencies and pandemics. Supports critical research and development in biotechnology. Could lead to faster response times and reduced mortality during outbreaks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 11 years) may present challenges in adapting to rapidly evolving scientific needs.
Reliance on a single large business for such a critical capability warrants close monitoring.

Positive Signals

Addresses a critical national security and public health need.
Utilizes a full and open competition, promoting fairness and potential cost savings.
Long-term funding provides stability for crucial R&D efforts.

Sector Analysis

This contract falls under Research and Development in Biotechnology, a sector vital for national security and public health. Spending in this area is often characterized by long-term investments and high potential impact, with significant government funding allocated to advance scientific capabilities.

Small Business Impact

The contract was awarded to a large business (Advanced Technology International) and does not indicate any specific set-asides or participation goals for small businesses. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The long duration of this task order necessitates robust oversight from the Office of Assistant Secretary for Preparedness and Response to ensure milestones are met and funds are used effectively. Regular performance reviews and accountability measures will be crucial.

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 may lead to outdated technology or approaches.
Potential for cost overruns over the 11-year period.
Lack of explicit small business participation could be a missed opportunity.
Dependence on a single large entity for critical R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $418.7 million to ADVANCED TECHNOLOGY INTERNATIONAL. OT TASK ORDER 8-RAPID PANDEMIC INFLUENZA AND EMERGING INFECTIOUS DISEASE VACCINE DEVELOPMENT AND RESPONSE CAPABILITY

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 $418.7 million.

What is the period of performance?

Start: 2024-06-14. End: 2035-09-16.

How will the effectiveness of vaccine development under this contract be measured and ensured, particularly given the long timeline?

Effectiveness will likely be measured through predefined milestones, successful prototype development, and potentially pre-clinical or clinical trial progress, depending on the specific task orders issued. The agency will need to establish clear performance metrics and conduct regular reviews to ensure the contractor is meeting objectives and adapting to scientific advancements throughout the contract's duration.

What are the primary risks associated with relying on a single large contractor for such a critical and long-term R&D effort?

Key risks include potential vendor lock-in, reduced agility in responding to unforeseen scientific challenges or opportunities, and the possibility of cost overruns if not managed tightly. If the contractor faces financial or operational difficulties, it could significantly disrupt critical pandemic preparedness efforts, highlighting the need for strong government oversight and contingency planning.

Beyond immediate pandemic response, what is the anticipated long-term value of this investment in biotechnology R&D capabilities?

The long-term value lies in building a sustained, advanced capability for rapid vaccine development against a range of potential threats, not just influenza. This investment strengthens the U.S. bio-defense infrastructure, fosters innovation, and ensures the nation is better positioned to protect its population from future infectious disease outbreaks, potentially saving lives and economic productivity.

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: $418,667,305

Exercised Options: $418,667,305

Current Obligation: $418,667,305

Actual Outlays: $1,897,742

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