DoD's $15M contract for novel therapeutics to combat Class A pathogens shows R&D focus, but value needs benchmarking

Contract Overview

Contract Amount: $15,071,885 ($15.1M)

Contractor: Achaogen, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-06

End Date: 2010-10-05

Contract Duration: 1,460 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 130

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PRECLINICAL DEVELOPMENT OF NOVEL THERAPEUTICS THAT ATTENUATE VIRULENCE OF, AND INHIBIT RESISTANCE IN, CLASS A BACTERIAL PATHOGENS

Place of Performance

Location: SOUTH SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94080

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to ACHAOGEN, INC. for work described as: PRECLINICAL DEVELOPMENT OF NOVEL THERAPEUTICS THAT ATTENUATE VIRULENCE OF, AND INHIBIT RESISTANCE IN, CLASS A BACTERIAL PATHOGENS Key points: 1. Contract focuses on critical biodefense research, addressing potential threats from highly dangerous bacteria. 2. Full and open competition suggests a broad search for innovative solutions. 3. The contract's duration and cost indicate a significant investment in early-stage research. 4. Performance context is crucial for understanding the scientific progress made under this award. 5. Sector positioning highlights the government's commitment to advanced life sciences and biosecurity. 6. The absence of small business involvement warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this preclinical R&D contract is challenging due to its specialized nature and early stage. The $15 million award over approximately four years for research into novel therapeutics suggests a significant investment. Without comparable contracts for similar biodefense research, assessing the precise value-for-money is difficult. However, the cost-no-fee (CNF) contract type implies that the contractor is reimbursed for allowable costs but does not receive a profit, which can be a cost-saving measure for the government in certain R&D scenarios.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The solicitation attracted 130 offers, demonstrating a robust level of interest and a competitive environment for this specialized research area. A high number of bidders generally suggests that the government's requirements were well-defined and that the market had sufficient capacity to respond, potentially leading to better pricing and innovative solutions.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and encouraged a wider range of innovative approaches to addressing critical biodefense needs.

Public Impact

The primary beneficiaries are national security and public health, through the development of countermeasures against dangerous bacterial pathogens. Services delivered include preclinical research and development of novel therapeutics aimed at attenuating bacterial virulence and inhibiting resistance. The geographic impact is national, focusing on enhancing biodefense capabilities across the United States. Workforce implications include support for specialized scientific and research personnel in the biotechnology and pharmaceutical sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specialized nature of biodefense R&D may limit opportunities for small businesses to participate directly.
Tracking the specific scientific milestones and their alignment with the overall biodefense strategy is essential.

Positive Signals

Full and open competition with a high number of offers suggests a healthy market response.
Focus on critical pathogens addresses a significant national security and public health concern.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and biotechnology. The market for biodefense research is driven by government funding aimed at addressing national security threats from biological agents. Comparable spending benchmarks are difficult to establish due to the highly specialized and often classified nature of biodefense R&D. However, this award reflects a broader trend of increased investment in advanced medical countermeasures and biosecurity initiatives by agencies like the Department of Defense.

Small Business Impact

The contract was not specifically set aside for small businesses, and the data indicates no small business participation. Given the advanced R&D nature of the work, it is possible that larger, specialized firms were better positioned to compete. Further analysis could explore whether subcontracting opportunities were made available to small businesses within the R&D ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Accountability measures would likely involve regular scientific progress reports, milestone reviews, and adherence to research protocols. Transparency in R&D contracts can be limited due to the sensitive nature of the research, but standard contract administration processes would apply.

Related Government Programs

Biodefense Advanced Research Projects Agency (BARDA)
National Institutes of Health (NIH) - National Institute of Allergy and Infectious Diseases (NIAID)
Department of Health and Human Services (HHS) - Biomedical Advanced Research and Development Authority (BARDA)
Department of Homeland Security (DHS) - Science and Technology Directorate

Risk Flags

Research and Development Complexity
Long Development Timelines
Potential for Scientific Failure
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to ACHAOGEN, INC.. PRECLINICAL DEVELOPMENT OF NOVEL THERAPEUTICS THAT ATTENUATE VIRULENCE OF, AND INHIBIT RESISTANCE IN, CLASS A BACTERIAL PATHOGENS

Who is the contractor on this award?

The obligated recipient is ACHAOGEN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2006-10-06. End: 2010-10-05.

What was the specific scientific outcome or deliverable expected from this contract?

This contract aimed at the preclinical development of novel therapeutics designed to combat Class A bacterial pathogens. Class A pathogens are considered high-consequence agents that pose a significant risk to public health and national security. The expected outcomes would include the identification and early-stage development of drug candidates that can either attenuate the virulence (reduce the ability to cause disease) of these bacteria or inhibit their resistance to existing treatments. This preclinical phase typically involves laboratory research, in vitro testing, and potentially animal studies to assess safety and efficacy before moving to human clinical trials.

How does the $15 million cost compare to similar biodefense R&D contracts?

Benchmarking the $15 million cost for this preclinical biodefense R&D contract against similar awards is challenging due to the specialized nature of the work and the proprietary information often involved. However, R&D contracts, especially those involving novel therapeutics for high-consequence pathogens, can be substantial. The duration of approximately four years (1460 days) suggests a phased approach to research. Without access to specific comparable contract data from agencies like DTRA or BARDA, a precise value-for-money assessment is difficult. The cost-no-fee (CNF) structure, however, indicates that the government is primarily covering direct and indirect costs without paying profit, which is a common approach for R&D contracts where the primary goal is scientific advancement rather than commercial product delivery.

What are the key risks associated with this type of R&D contract?

Key risks associated with this type of preclinical biodefense R&D contract include scientific risk (the research may not yield the desired therapeutic effect or may encounter unforeseen biological hurdles), technical risk (challenges in developing and testing the novel therapeutics), and schedule risk (delays in research progress or regulatory approvals). There is also the risk of cost overrun if research proves more complex or expensive than initially anticipated, although the CNF structure mitigates profit-related cost increases. Furthermore, the long lead times inherent in drug development mean that the threat landscape could evolve before a viable countermeasure is ready.

What does the high number of offers (130) indicate about the market for biodefense research?

The high number of 130 offers for this contract indicates a robust and competitive market for biodefense research and development. It suggests that the government's requirements were clearly articulated, and there is significant interest and capability within the scientific and industrial community to pursue research in this critical area. This level of competition is generally favorable for the government, as it increases the likelihood of receiving innovative proposals and potentially more cost-effective solutions. It also signals that multiple entities possess the expertise and resources necessary to address threats from Class A bacterial pathogens.

What is the historical spending pattern for research and development in biodefense by the Department of Defense?

The Department of Defense (DoD) has a consistent and significant historical spending pattern in biodefense research and development, driven by the need to protect military personnel and the civilian population from biological threats. Agencies like the Defense Threat Reduction Agency (DTRA) and the Chemical Biological Defense Program (CBDP) are key recipients of these funds. Spending in this area has often seen increases following major global health events or perceived increases in biological threats. The focus areas typically include threat detection, diagnostics, medical countermeasures (vaccines and therapeutics), and decontamination technologies. This $15 million contract aligns with the DoD's ongoing commitment to maintaining a strong biodefense posture through sustained investment in R&D.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 130

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7000 SHORELINE COURT 3RD FL, SOUTH SAN FRANCISCO, CA, 94080

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,610,645

Exercised Options: $24,610,645

Current Obligation: $15,071,885

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline