HHS awards $62.5M for airport genomic testing to Ginkgo Bioworks, Inc

Contract Overview

Contract Amount: $62,551,726 ($62.6M)

Contractor: Ginkgo Bioworks, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-08-16

End Date: 2025-03-21

Contract Duration: 948 days

Daily Burn Rate: $66.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AIRPORT GENOMIC TESTING

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62.6 million to GINKGO BIOWORKS, INC. for work described as: AIRPORT GENOMIC TESTING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 948 days indicates a medium-term project. 3. The firm fixed-price structure aims to control costs for the government. 4. The award represents a significant investment in public health infrastructure. 5. The use of a definitive contract suggests a well-defined scope of work. 6. The contract is for testing laboratories and services, a critical area for disease surveillance.

Value Assessment

Rating: good

The contract value of $62.5 million for airport genomic testing over approximately 2.5 years appears reasonable given the scope of services. Benchmarking against similar large-scale public health surveillance contracts is challenging due to the specialized nature of genomic testing at airports. However, the firm fixed-price nature of the contract provides cost certainty. The award amount should be assessed against the specific deliverables and the complexity of the genomic sequencing and analysis required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the competitive nature of the award process is expected to drive fair pricing and encourage innovation. A robust competition generally leads to better value for the government by selecting the most capable and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and performance for essential public health services, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the traveling public and public health agencies, who will receive enhanced disease surveillance capabilities at airports. The services delivered include genomic testing, which is crucial for identifying and tracking infectious diseases. The geographic impact is likely focused on major international airports within the United States, serving as key entry points for disease transmission. This contract supports the public health workforce by potentially creating demand for specialized laboratory and data analysis personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'genomic testing' is broad and not tightly managed.
Reliance on a single contractor for a critical public health function could pose a risk if performance issues arise.
The effectiveness of genomic testing in preventing disease spread at airports requires ongoing validation and adaptation to new threats.

Positive Signals

The use of a firm fixed-price contract incentivizes the contractor to manage costs efficiently.
Awarding through full and open competition suggests a thorough vetting of potential contractors' capabilities.
The contract's focus on genomic testing aligns with modern public health strategies for disease surveillance and response.

Sector Analysis

The contract falls within the broader 'Testing Laboratories and Services' sector, specifically applied to public health and biosecurity. This sector is critical for national security and public health preparedness, especially in the wake of global health crises. Spending in this area has seen increased focus and investment. Comparable spending benchmarks would typically involve contracts for disease surveillance, laboratory analysis, and public health informatics, often awarded by agencies like the CDC, NIH, and DHS.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is unclear. However, large contracts like this can sometimes create opportunities for small businesses to participate as subcontractors if the prime contractor chooses to engage them for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through federal contract databases. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Public Health Surveillance Programs
Disease Detection and Control
National Biodefense Strategy
Airport Health Screening Initiatives
Genomic Sequencing Services

Risk Flags

Potential for performance issues given the scale and novelty of the application.
Dependence on a single contractor for a critical surveillance function.
Need for robust data security and privacy protocols for genomic data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62.6 million to GINKGO BIOWORKS, INC.. AIRPORT GENOMIC TESTING

Who is the contractor on this award?

The obligated recipient is GINKGO BIOWORKS, INC..

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 $62.6 million.

What is the period of performance?

Start: 2022-08-16. End: 2025-03-21.

What is Ginkgo Bioworks, Inc.'s track record with government contracts, particularly in public health or genomic services?

Ginkgo Bioworks, Inc. has a growing presence in government contracting, particularly in areas related to biotechnology and public health. While specific details on their past government contract performance are not fully detailed in this summary, their selection for a significant contract by the CDC suggests they possess the necessary technical capabilities and have met the government's vetting criteria. Their expertise in synthetic biology and large-scale biological data analysis positions them well for genomic surveillance contracts. Further investigation into their contract history, including past performance reviews and any prior awards from HHS or related agencies, would provide a more comprehensive understanding of their reliability and experience in serving federal needs.

How does the $62.5 million contract value compare to similar airport genomic testing initiatives or public health surveillance contracts?

Direct comparisons for 'airport genomic testing' contracts are scarce due to the novelty and specificity of this application. However, the $62.5 million award over approximately 2.5 years (948 days) can be contextualized within broader public health surveillance and laboratory service contracts. For instance, large-scale disease surveillance programs or contracts for national laboratory networks can range from tens to hundreds of millions of dollars annually. The value here appears to be a significant, but potentially focused, investment in enhancing biosecurity at entry points. The firm fixed-price nature suggests a defined scope, making it less prone to cost overruns than cost-plus contracts, which is a positive indicator for value if deliverables are met.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential technical challenges in achieving the required sensitivity and specificity of genomic testing in a high-throughput airport environment, delays in data analysis and reporting, and the possibility of contractor underperformance. There's also a risk related to the evolving nature of infectious diseases, requiring adaptability in testing methodologies. Mitigation strategies likely include rigorous performance monitoring by the CDC, clearly defined deliverables and milestones within the contract, and potentially contingency plans for addressing performance gaps. The firm fixed-price structure also incentivizes the contractor to manage risks related to cost and schedule effectively.

How effective is genomic testing at airports likely to be in preventing the spread of infectious diseases, and what is the expected return on investment for taxpayers?

Genomic testing at airports can be a highly effective tool for early detection and rapid response to emerging infectious disease threats, acting as a crucial 'front-line' defense. By identifying pathogens and their genetic makeup, public health officials can quickly understand transmission patterns, implement targeted containment measures, and inform vaccine or treatment development. The return on investment for taxpayers is potentially substantial, as early detection and containment can prevent widespread outbreaks, thereby avoiding immense economic and social costs associated with large-scale epidemics or pandemics. While the upfront investment is significant, the cost of inaction or delayed response is often far greater.

What is the historical spending pattern for airport-based public health surveillance or genomic testing by the U.S. government?

Historically, U.S. government spending on airport-based public health surveillance has been more focused on traditional methods like symptom screening, quarantine enforcement, and basic laboratory testing for known pathogens. Dedicated, large-scale genomic sequencing programs specifically at airports are a more recent development, gaining significant traction and funding following events like the COVID-19 pandemic. Prior to this, investments were likely smaller, project-based, or integrated into broader international health security initiatives. The $62.5 million award to Ginkgo Bioworks represents a substantial increase and a strategic shift towards leveraging advanced genomic technologies for real-time disease monitoring at critical international gateways.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72357

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ginkgo Bioworks Holdings, Inc.

Address: 27 DRYDOCK AVE FLOOR 8, BOSTON, MA, 02210

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,575,638

Exercised Options: $73,377,638

Current Obligation: $62,551,726

Actual Outlays: $62,541,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline