Army Awards $151.7M Contract for Biological Defense Products to Bioport Corporation
Contract Overview
Contract Amount: $151,769,561 ($151.8M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Defense
Start Date: 1998-09-17
End Date: 2011-10-21
Contract Duration: 4,782 days
Daily Burn Rate: $31.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199812!2100!1915!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8052 !A!*!* !19980917!19981031!026489018!026489018!026489018!N!* !BIOPORT CORPORATION !3500 N MARTIN LUTHER BL 1 !LANSING !MI!48906!46020!065!26!LANSING !INGHAM !MICHIGAN !0001!+000006254000!N!N!000000000000!6505!DRUGS & BIOLOGICALS !C9B!MEDICAL & DENTAL SUPPLIES & EQ!1000!NOT DISCERNABLE OR CLASSIFIED !2836!3!*!*!*!B!A!*!D !U!J!1!001!N!1A!A!N!F!* !* !N!B!*!Z!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $151.8 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: 199812!2100!1915!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8052 !A!*!* !19980917!19981031!026489018!026489018!026489018!N!* !BIOPORT CORPORATION !3500 N MARTIN LUTHER BL 1 !LANSING !MI!48906!46020!065!26!LANSING !INGHAM… Key points: 1. The contract, awarded in 1998, focuses on drugs and biologicals, a critical area for defense. 2. Bioport Corporation, based in Lansing, MI, secured this significant award. 3. The contract's long duration (over 13 years) suggests a sustained need for these biological products. 4. The procurement method indicates potential limitations in competition for these specialized items.
Value Assessment
Rating: questionable
The contract value of $151.7 million over its extended period is substantial. Without specific unit cost data or benchmarks for similar biological defense products, a precise value assessment is difficult. However, the long duration and sole-source nature raise questions about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded using a sole-source method, indicating that only one vendor was considered capable of fulfilling the requirement. This significantly limits price discovery and competition, potentially leading to higher costs for the government.
Taxpayer Impact: The sole-source nature of this large contract means taxpayers may have paid a premium due to the lack of competitive bidding.
Public Impact
Ensures availability of critical biological defense materials for the U.S. Army. Supports a specific company in Michigan, potentially creating or sustaining jobs. Long-term commitment suggests a strategic national security interest in the products supplied.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Extended contract duration may not reflect current market prices.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Addresses a critical need for biological defense.
- Provides a stable supplier for essential medical products.
Sector Analysis
This contract falls within the broader defense sector, specifically concerning biological and medical supplies. Spending in this area is often driven by national security needs, which can sometimes lead to less competitive procurement processes.
Small Business Impact
The data does not indicate whether Bioport Corporation is a small or large business. The sole-source nature of the award suggests that if small businesses could have met the requirement, they were not considered.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight details regarding performance reviews, cost audits, and compliance checks are not provided in this data.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source procurement limits competition.
- Long contract duration may lead to outdated pricing.
- Lack of detailed cost data hinders value analysis.
- Potential for reduced price innovation due to lack of competition.
Tags
department-of-defense, mi, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $151.8 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. 199812!2100!1915!MD17 !US ARMY MEDICAL RESEARCH ACQ ACT!DAMD1798C8052 !A!*!* !19980917!19981031!026489018!026489018!026489018!N!* !BIOPORT CORPORATION !3500 N MARTIN LUTHER BL 1 !LANSING !MI!48906!46020!065!26!LANSING !INGHAM !MICHIGAN !0001!+000006254000!N!N!000000000000!6505!DRUGS & BIOLOGICALS !C9B!MEDICAL & DENTAL SUPPLIES & EQ!1000!NOT DISCERNABLE OR CLASSIFIED !2836!3!*!*!*!B!A!*!D !U!J!1!0
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $151.8 million.
What is the period of performance?
Start: 1998-09-17. End: 2011-10-21.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions ever explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can meet the requirement. For this contract, the specific rationale for excluding competition needs further investigation. Exploring alternatives, even if ultimately deemed unsuitable, is a standard part of procurement best practices to ensure the government obtains the best value.
How did the government ensure fair and reasonable pricing without competitive bidding over the contract's 13-year lifespan?
Ensuring fair and reasonable pricing on sole-source contracts relies heavily on robust cost analysis, market research for comparable items, and negotiation. The government would likely have used historical pricing, economic price adjustments, and potentially independent cost estimates. However, the extended duration raises concerns about whether pricing remained optimal throughout the period without periodic competitive re-evaluation.
What was the ultimate effectiveness of the biological products procured under this contract in meeting the Army's defense needs?
The effectiveness of the biological products is a crucial measure of contract success. This would be assessed through operational reports, end-user feedback, and the actual performance of the products during relevant defense scenarios or public health crises. Without access to these performance metrics, it's difficult to definitively state how effective the procured items were.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc.
Address: 3500 N MARTIN LUTHER BL 1, LANSING, MI, 48906
Business Categories: Category Business, Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1998-09-17
Current End Date: 2011-10-21
Potential End Date: 2011-10-21 00:00:00
Last Modified: 2023-06-03
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