AEGIS SCIENCES CORPORATION awarded $2.48M for viral variant genotyping, with a 779-day performance period

Contract Overview

Contract Amount: $2,480,927 ($2.5M)

Contractor: Aegis Sciences Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-28

End Date: 2024-11-15

Contract Duration: 779 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NIBIB GENOTYPING SAMPLES FOR TRACKING VIRAL VARIANTS - TASK ORDER 001

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37228

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.5 million to AEGIS SCIENCES CORPORATION for work described as: NIBIB GENOTYPING SAMPLES FOR TRACKING VIRAL VARIANTS - TASK ORDER 001 Key points: 1. Value for money appears fair given the specialized nature of viral variant tracking. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and fixed-price contract type. 4. Performance context is critical for public health surveillance and response to emerging threats. 5. Sector positioning is within the vital public health and scientific research domain.

Value Assessment

Rating: fair

The contract value of $2.48 million over 779 days averages to approximately $3,185 per day. Benchmarking this against similar contracts for specialized laboratory testing and genetic analysis is challenging without more specific data on the volume and complexity of genotyping required. However, the daily rate suggests a moderate cost for dedicated scientific services. The firm fixed-price nature of the contract shifts performance risk to the contractor, which can be a positive indicator of value if the contractor can deliver within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these specialized services. This process is generally expected to yield competitive pricing and encourage innovation as contractors vie for the award. The government likely received proposals from several qualified laboratories.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider selection of qualified service providers, ensuring that public funds are used efficiently for critical public health functions.

Public Impact

The National Institutes of Health (NIH) benefits by securing essential services for tracking viral variants. Services delivered include critical genotyping of samples to identify and monitor emerging viral strains. Geographic impact is national, supporting public health surveillance efforts across the United States. Workforce implications include support for specialized laboratory technicians and scientists involved in genetic analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (779 days) could lead to scope creep or unforeseen cost increases if not managed tightly.
Reliance on a single contractor for a critical public health function introduces potential single-source risk if performance issues arise.
The specific details of the genotyping methodology and data reporting requirements are not fully detailed, posing a potential risk for misinterpretation or incomplete analysis.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
Firm Fixed Price contract type aligns incentives and limits cost overrun risk for the government.
Contractor AEGIS SCIENCES CORPORATION is providing specialized services crucial for national public health surveillance.
The contract supports a vital function for tracking viral variants, contributing to pandemic preparedness and response.

Sector Analysis

This contract falls within the scientific testing and laboratory services sector, specifically focusing on molecular diagnostics and genetic analysis. The market for such services is driven by demand from government agencies, research institutions, and pharmaceutical companies. The size of this specific niche within the broader laboratory services market is difficult to quantify without more granular data, but it is a critical component of public health infrastructure, especially in the context of infectious disease monitoring. Comparable spending benchmarks would typically involve analyzing other contracts for genetic sequencing, pathogen identification, and epidemiological surveillance services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, AEGIS SCIENCES CORPORATION, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the competition was open to all qualified offerors, and the nature of the specialized services may have favored larger, more established laboratories with specific technological capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a division of the Department of Health and Human Services. Accountability measures are typically embedded within the contract's performance work statement, including deliverables, reporting requirements, and quality control standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

National Institute of Allergy and Infectious Diseases (NIAID) research grants
Centers for Disease Control and Prevention (CDC) public health surveillance programs
Food and Drug Administration (FDA) drug and device testing
Department of Veterans Affairs (VA) laboratory services

Risk Flags

Long contract duration
Potential for single-source dependency
Lack of specific methodology details

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.5 million to AEGIS SCIENCES CORPORATION. NIBIB GENOTYPING SAMPLES FOR TRACKING VIRAL VARIANTS - TASK ORDER 001

Who is the contractor on this award?

The obligated recipient is AEGIS SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2022-09-28. End: 2024-11-15.

What is the specific methodology used for viral variant genotyping, and how does it compare to industry standards?

The provided data does not specify the exact methodology for viral variant genotyping. However, common methods include Next-Generation Sequencing (NGS), Polymerase Chain Reaction (PCR)-based assays, and whole-genome sequencing. The effectiveness and cost of these methods vary significantly. NGS offers comprehensive genomic data but can be more expensive and time-consuming. PCR-based methods are faster and cheaper for detecting specific known variants but may miss novel or unexpected mutations. Industry standards emphasize high accuracy, rapid turnaround times, and robust data analysis pipelines. The contract's success will depend on AEGIS SCIENCES CORPORATION employing a method that meets NIBIB's requirements for sensitivity, specificity, and timeliness in identifying and tracking viral mutations relevant to public health.

How does the awarded amount of $2.48 million compare to historical spending on similar viral variant tracking services by the NIH or other federal agencies?

Direct comparison of the $2.48 million award to historical spending is difficult without specific historical data for viral variant genotyping services. However, the average daily cost of approximately $3,185 ($2.48M / 779 days) provides a benchmark. The NIH and CDC have significantly increased spending on infectious disease research and surveillance, particularly since the COVID-19 pandemic. Contracts for genomic sequencing and surveillance have ranged from hundreds of thousands to tens of millions of dollars, depending on the scope, duration, and complexity. This $2.48 million award appears to be a moderate-sized contract for a specific task order focused on genotyping samples over a defined period, suggesting it is within the expected range for specialized public health laboratory services.

What are the key performance indicators (KPIs) and deliverables expected under this contract for AEGIS SCIENCES CORPORATION?

Key performance indicators and deliverables for this contract are not detailed in the provided summary data. Typically, for viral variant genotyping contracts, KPIs would include turnaround time for sample analysis, accuracy rates of variant identification, completeness and timeliness of data reporting, and adherence to specific data submission formats (e.g., GISAID or GenBank). Deliverables would likely include regular reports summarizing the identified variants, their prevalence, and potentially associated metadata. The contract's performance work statement (PWS) would outline these specific requirements, and AEGIS SCIENCES CORPORATION's adherence to them would be monitored by the NIH contracting officer's representative (COR).

What is AEGIS SCIENCES CORPORATION's track record in providing similar genetic analysis or public health surveillance services to the federal government?

Information regarding AEGIS SCIENCES CORPORATION's specific track record in providing viral variant genotyping or similar genetic analysis services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and their demonstrated capabilities in molecular diagnostics and bioinformatics. Federal agencies typically conduct thorough due diligence on potential awardees, including reviewing past performance, to ensure they possess the necessary expertise and capacity to meet contract requirements. Without this specific information, it's difficult to definitively assess their prior experience in this specialized area.

What are the potential risks associated with relying on AEGIS SCIENCES CORPORATION for this critical public health function, and what mitigation strategies are in place?

Potential risks include performance failures (e.g., inaccurate genotyping, delayed reporting), data security breaches, or contractor insolvency. Mitigation strategies typically involve robust contract oversight by the NIH COR, clear performance standards and penalties outlined in the PWS, regular progress meetings, and contingency planning. The firm fixed-price nature of the contract also incentivizes the contractor to perform effectively to maintain profitability. Furthermore, the initial award under full and open competition suggests a pool of qualified vendors, potentially allowing for rapid transition to an alternative provider if severe performance issues arise, although such a transition would likely cause disruption.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aegis Toxicology Sciences Corporation

Address: 501 GREAT CIRCLE RD, NASHVILLE, TN, 37228

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

Financial Breakdown

Contract Ceiling: $16,697,987

Exercised Options: $2,480,927

Current Obligation: $2,480,927

Actual Outlays: $2,480,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N92022D00016

IDV Type: IDC

Timeline