HHS awards $11.2M contract for biotechnology R&D to Greffex Inc

Contract Overview

Contract Amount: $11,247,038 ($11.2M)

Contractor: Greffex Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-09

End Date: 2027-05-31

Contract Duration: 2,821 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO MAKE AN AWARD UNDER HHS-NIH-NIAID-BAA2018

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98102

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.2 million to GREFFEX INC for work described as: TO MAKE AN AWARD UNDER HHS-NIH-NIAID-BAA2018 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract has a long duration of 2821 days, indicating a significant, long-term project. 3. Research and Development in Biotechnology (except Nanobiotechnology) is a critical sector for public health. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The awardee, Greffex Inc., is a single entity, highlighting the need to assess their capacity and track record. 6. The contract is not set aside for small businesses, implying larger firms or established players were likely involved. 7. The contract is located in Washington, D.C., a hub for federal contracting and research institutions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure means the final cost could exceed the initial $11.2 million award amount. Comparing it to similar R&D contracts in biotechnology requires detailed analysis of scope, duration, and complexity. However, the fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 10 bids suggests a healthy level of interest and competition for this R&D opportunity. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the best value proposals.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) and the broader public health sector, through advancements in biotechnology. The contract supports research and development activities, potentially leading to new medical treatments, diagnostic tools, or public health interventions. The geographic impact is centered in Washington, D.C., where the contractor is located, potentially creating local employment opportunities in the biotech sector. Workforce implications may include the need for specialized scientific and research personnel employed by Greffex Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage costs and ensure the fixed fee remains reasonable.
The long contract duration (2821 days) necessitates sustained monitoring to ensure continued relevance and performance.
Assessing the specific R&D outcomes and their impact on public health will be crucial for evaluating overall value.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
The contract supports critical research and development in biotechnology, aligning with national health priorities.
The fixed fee component provides a defined profit margin, which can contribute to contractor stability and focus.

Sector Analysis

The biotechnology R&D sector is a rapidly evolving field crucial for medical advancements and public health. Federal spending in this area supports innovation and the development of new therapies and technologies. This contract fits within the broader NIH mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. Comparable spending benchmarks would involve analyzing other NIH or HHS contracts for similar R&D scopes and durations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This suggests that the primary awardee is likely an established entity capable of undertaking the full scope of work. The absence of small business participation could limit opportunities for smaller, specialized firms in this particular contract's ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the NIH contracting officers and program managers. Accountability measures will focus on the achievement of research milestones and adherence to the contract's terms. Transparency will depend on public reporting of research outcomes and adherence to federal procurement regulations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS Research and Development Contracts
NIH Biomedical Research Grants
Biotechnology Innovation Contracts
Cost-Reimbursement Research Contracts

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee structure necessitates careful cost monitoring.
Specific R&D outcomes and impact are not detailed, making value assessment difficult.
Contractor's specific past performance data is not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.2 million to GREFFEX INC. TO MAKE AN AWARD UNDER HHS-NIH-NIAID-BAA2018

Who is the contractor on this award?

The obligated recipient is GREFFEX INC.

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 $11.2 million.

What is the period of performance?

Start: 2019-09-09. End: 2027-05-31.

What is Greffex Inc.'s track record with federal contracts, particularly in biotechnology R&D?

Information on Greffex Inc.'s specific track record with federal contracts, especially within the biotechnology R&D domain, would require a detailed search of federal procurement databases like SAM.gov or FPDS. While this award indicates they are a recipient, understanding their past performance, prior contract values, types of services rendered, and any performance issues or accolades is crucial for a comprehensive assessment. A history of successful, on-time, and within-budget delivery on similar contracts would be a positive indicator, whereas a pattern of overruns, delays, or quality issues would raise concerns. Without access to their full federal contracting history, it's difficult to definitively assess their reliability for this significant R&D effort.

How does the $11.2 million award compare to similar biotechnology R&D contracts awarded by NIH or other agencies?

Comparing the $11.2 million award requires analyzing the scope, duration, and specific research objectives of similar contracts. NIH and other agencies like the Department of Defense or NSF fund a wide range of biotechnology R&D projects, varying significantly in cost. Contracts for early-stage basic research might be smaller, while those for advanced development or clinical trials could be substantially larger. The duration of this contract (over 7 years) suggests a long-term, potentially complex research program. To benchmark effectively, one would need to identify contracts with comparable scientific aims, project timelines, and the level of innovation expected. A preliminary assessment suggests that $11.2 million over nearly eight years for a specific R&D focus is within a reasonable range for federal funding in this specialized area, but a deeper dive into specific research areas is needed for precise comparison.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how will success be measured?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee R&D contract, success is typically measured against the achievement of defined research objectives, the successful completion of specific project phases, the generation of intellectual property, and the publication of findings in peer-reviewed journals. The contracting officer and technical monitors at NIH/NIAID would be responsible for evaluating progress against these implicit or explicit milestones. The fixed fee is earned upon meeting these performance expectations. Without the detailed statement of work or contract clauses, a precise understanding of how success is measured remains elusive, highlighting a potential transparency gap.

What is the potential impact of this contract on the development of specific biotechnologies or public health solutions?

The potential impact hinges entirely on the specific research objectives outlined in the contract's statement of work, which are not detailed here. NIAID (National Institute of Allergy and Infectious Diseases) focuses on a broad range of infectious and immune-mediated diseases. Therefore, this contract could contribute to advancements in areas such as vaccine development, antiviral therapies, diagnostics for emerging infectious diseases, or treatments for autoimmune disorders. The R&D could lead to novel platforms for drug discovery, gene therapy applications, or improved understanding of disease mechanisms. The ultimate public health impact will be realized if the research translates into tangible health interventions or improved disease prevention strategies.

How does the Cost Plus Fixed Fee (CPFF) contract type influence risk and cost control for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where the scope of work is not precisely defined at the outset, allowing flexibility. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee is fixed regardless of the final cost. However, it places the risk of cost overruns on the government. Effective oversight is critical to ensure that costs are reasonable and allocable, and that the fixed fee is commensurate with the effort and risk involved. For this $11.2 million contract, NIH/NIAID must diligently monitor expenditures and progress to ensure value for money.

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

Solicitation ID: HHSNIHNIAIDBAA2018

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12635 E MONTVIEW BLVD STE 370, AURORA, CO, 80045

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,117,290

Exercised Options: $11,247,038

Current Obligation: $11,247,038

Actual Outlays: $6,693,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline