HHS Awards $74.7M for Traveler-Based Genomic Surveillance to Ginkgo Bioworks

Contract Overview

Contract Amount: $74,725,667 ($74.7M)

Contractor: Ginkgo Bioworks, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-28

End Date: 2028-03-21

Contract Duration: 1,117 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRAVELER-BASED GENOMIC SURVEILLANCE PROGRAM

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $74.7 million to GINKGO BIOWORKS, INC. for work described as: TRAVELER-BASED GENOMIC SURVEILLANCE PROGRAM Key points: 1. Contract awarded to Ginkgo Bioworks, Inc. for a significant sum of $74.7 million. 2. The program focuses on traveler-based genomic surveillance, a critical area for public health. 3. Full and open competition was utilized, suggesting a potentially competitive bidding process. 4. The contract is a definitive contract with a firm fixed price, indicating cost certainty.

Value Assessment

Rating: good

The contract value of $74.7 million for a definitive contract with a firm fixed price appears reasonable for a multi-year program of this nature. Benchmarking against similar large-scale public health surveillance contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery and potentially achieving a fair market price. This method allows all eligible vendors to compete, fostering a more competitive environment.

Taxpayer Impact: The firm fixed price structure provides cost certainty for taxpayers, limiting the risk of cost overruns. The competitive nature of the award aims to ensure value for money.

Public Impact

Enhances national public health infrastructure by improving disease detection capabilities. Supports early identification and response to emerging infectious disease threats. Leverages advanced genomic sequencing technology for public health surveillance. Aims to protect the traveling public and domestic populations from health risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Small business participation not explicitly mentioned.
Contract duration is substantial (over 3 years).

Positive Signals

Firm fixed price contract provides cost certainty.
Full and open competition utilized.
Focus on critical public health surveillance.

Sector Analysis

This contract falls within the scientific and technical services sector, specifically testing laboratories and services. Spending in this area is crucial for maintaining public health infrastructure and responding to health emergencies.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the work necessitates larger prime contractors.

Oversight & Accountability

The use of a definitive contract with a firm fixed price suggests a degree of defined scope and cost control. Oversight by the Centers for Disease Control and Prevention will be crucial to ensure program effectiveness and adherence to contract terms.

Related Government Programs

Testing Laboratories and Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of small business participation.
Long contract duration may limit flexibility.
Potential for vendor lock-in.
Dependence on a single contractor for critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $74.7 million to GINKGO BIOWORKS, INC.. TRAVELER-BASED GENOMIC SURVEILLANCE PROGRAM

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 $74.7 million.

What is the period of performance?

Start: 2025-02-28. End: 2028-03-21.

What specific genomic surveillance capabilities will this program deliver, and how do they compare to previous or alternative methods?

This program aims to establish and enhance traveler-based genomic surveillance, likely involving the sequencing of pathogen genomes from travelers to detect and track infectious diseases. The specific capabilities will depend on the technology and methodologies employed by Ginkgo Bioworks, potentially including rapid identification of variants, outbreak source tracking, and real-time public health intelligence. A comparison to previous methods would highlight advancements in speed, accuracy, and scope.

What are the potential risks associated with relying on a single contractor for such a critical public health function over a multi-year period?

Risks include potential vendor lock-in, reduced incentive for innovation if competition is limited in future phases, and dependence on the contractor's financial stability and operational capacity. A single point of failure could also arise if the contractor faces unforeseen challenges. Mitigation strategies might involve performance metrics, clear exit clauses, and contingency planning for service continuity.

How will the effectiveness of the traveler-based genomic surveillance program be measured and reported to ensure taxpayer value?

Effectiveness will likely be measured through key performance indicators (KPIs) such as the number of samples processed, turnaround time for genomic sequencing and analysis, identification of novel or concerning pathogens/variants, and the timeliness of data reporting to public health agencies. Regular performance reviews and independent evaluations will be essential to assess the program's impact on public health outcomes and ensure accountability for taxpayer funds.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-25-R-73237

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ginkgo Bioworks Holdings, Inc.

Address: 27 DRYDOCK AVE FL 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: $85,741,216

Exercised Options: $74,725,667

Current Obligation: $74,725,667

Actual Outlays: $14,070,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline