HHS Awards $90M for COVID-19 Research to ABT Global LLC under Full and Open Competition
Contract Overview
Contract Amount: $89,948,062 ($89.9M)
Contractor: ABT Global LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2020-05-19
End Date: 2023-09-30
Contract Duration: 1,229 days
Daily Burn Rate: $73.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COVID-19 RESEARCH IN REPONSE TO BAA POSTING
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Department of Health and Human Services obligated $89.9 million to ABT GLOBAL LLC for work described as: COVID-19 RESEARCH IN REPONSE TO BAA POSTING Key points: 1. Contract value of $89.9M awarded for COVID-19 research. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the research and development nature of the contract. 4. The sector is R&D, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. The award amount is substantial for R&D, but without specific benchmarks for similar COVID-19 research projects, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for critical COVID-19 research, with the potential for significant public health benefits. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Funding supports vital research into COVID-19, potentially leading to new treatments or understanding of the virus. The contract duration of over 3 years suggests a long-term commitment to research efforts. Transparency in the award process through full and open competition is a positive for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration may present scope creep risks.
- Specific research outcomes and their impact are not detailed.
Positive Signals
- Awarded under full and open competition.
- Supports critical COVID-19 research.
- Contract awarded by a reputable agency (CDC).
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for scientific advancement and addressing public health crises like COVID-19.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Centers for Disease Control and Prevention (CDC) is responsible for overseeing this contract. Standard government oversight mechanisms for R&D contracts would apply, including progress reports and financial reviews.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 3 years).
- Lack of specific research outcome details.
- Potential for cost overruns in R&D projects.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $89.9 million to ABT GLOBAL LLC. COVID-19 RESEARCH IN REPONSE TO BAA POSTING
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $89.9 million.
What is the period of performance?
Start: 2020-05-19. End: 2023-09-30.
What specific research objectives does this contract aim to achieve, and how will their success be measured?
The contract details do not specify the precise research objectives or key performance indicators for this COVID-19 research. Typically, such contracts would outline specific scientific goals, milestones, and deliverables. Measuring success would likely involve evaluating the quality of research findings, adherence to scientific rigor, and the potential impact on understanding or combating COVID-19.
What are the potential risks associated with a Cost Plus Fixed Fee contract for R&D, and how are they mitigated?
A Cost Plus Fixed Fee (CPFF) contract carries the risk of cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, clear definition of allowable costs, and performance incentives. For R&D, CPFF can be appropriate when the scope is uncertain, but requires diligent management to control spending.
How does the $89.9 million award compare to typical spending for similar COVID-19 research initiatives?
Without specific benchmarks for comparable COVID-19 research projects, it's challenging to definitively assess if $89.9 million is high or low. However, given the urgency and scale of the pandemic, substantial funding for research was allocated across various agencies. This award appears to be a significant investment, suggesting a comprehensive research scope or a multi-year effort.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
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: 75D301-20-R-67987
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6130 EXECUTIVE BLVD, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $89,948,062
Exercised Options: $89,948,062
Current Obligation: $89,948,062
Actual Outlays: $80,947,654
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $52,334,935
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-19
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2024-06-07
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