DoD's $38.4M Antiviral Contract with Sarepta Therapeutics Faces Scrutiny for Research and Development Spending
Contract Overview
Contract Amount: $38,418,638 ($38.4M)
Contractor: Sarepta Therapeutics, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-11-29
End Date: 2011-02-28
Contract Duration: 1,552 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 130
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: A NEW ANTIVIRAL (ANTISENSE)
Place of Performance
Location: CORVALLIS, BENTON County, OREGON, 97333
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $38.4 million to SAREPTA THERAPEUTICS, INC. for work described as: A NEW ANTIVIRAL (ANTISENSE) Key points: 1. The Department of Defense awarded a significant contract for antiviral research, highlighting investment in biodefense capabilities. 2. Sarepta Therapeutics, a known player in genetic medicine, secured this contract, indicating potential for specialized expertise. 3. The contract's R&D focus suggests inherent risks associated with early-stage scientific development and uncertain outcomes. 4. Spending in the R&D sector, particularly for novel therapeutics, can be volatile and subject to technological breakthroughs or setbacks.
Value Assessment
Rating: questionable
The $38.4 million awarded for research and development is substantial for a single contract. Benchmarking against similar R&D contracts in the biopharmaceutical sector is difficult due to the unique nature of antisense antivirals and the specific threat reduction focus.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of the research may have limited the number of truly qualified bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being invested in potentially groundbreaking antiviral research, which could yield significant public health benefits if successful, but also carries the risk of research failure.
Public Impact
Investment in advanced biodefense capabilities to counter emerging viral threats. Potential for a novel antiviral treatment to address critical national security concerns. Support for scientific innovation and the development of cutting-edge medical countermeasures. Risk of taxpayer funds being expended on research that may not yield a viable product.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High R&D risk
- Long development timeline
- Uncertain market viability post-research
Positive Signals
- Investment in critical biodefense
- Potential for novel therapeutic development
- Full and open competition
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is characterized by high uncertainty and the potential for transformative breakthroughs, making direct cost comparisons challenging.
Small Business Impact
The data indicates this contract was awarded to Sarepta Therapeutics, Inc., a publicly traded company. There is no explicit indication of small business involvement in this specific award, suggesting larger, established firms likely dominated the competitive landscape.
Oversight & Accountability
The Department of Defense, through the Defense Threat Reduction Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts would apply, focusing on progress reports, milestone achievement, and financial accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- High R&D uncertainty
- Potential for cost overruns
- Long development cycle
- Limited visibility into specific research progress
- Dependence on contractor's specialized expertise
Tags
research-and-development-in-the-physical, department-of-defense, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to SAREPTA THERAPEUTICS, INC.. A NEW ANTIVIRAL (ANTISENSE)
Who is the contractor on this award?
The obligated recipient is SAREPTA THERAPEUTICS, 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 $38.4 million.
What is the period of performance?
Start: 2006-11-29. End: 2011-02-28.
What is the likelihood of this antiviral research yielding a deployable countermeasure within the contract's timeframe?
The likelihood is difficult to ascertain without more detailed information on the specific stage of research and the scientific challenges involved. Antisense technology is promising but complex, and R&D projects often face unforeseen hurdles. The 1552-day duration suggests a significant research effort, but success is not guaranteed within this period.
How does the cost-plus-fixed-fee structure impact the government's risk and the contractor's incentive for cost control?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover allowable costs plus a fixed fee representing profit. This structure shifts much of the cost risk to the government, as it covers all approved expenses. While the fixed fee provides an incentive for the contractor to complete the work, it may offer less incentive for aggressive cost control compared to fixed-price contracts.
What are the potential long-term implications if this antiviral research proves unsuccessful?
If the research is unsuccessful, the primary implication is the loss of the $38.4 million investment without a tangible product. However, even unsuccessful research can yield valuable scientific knowledge and insights that may inform future endeavors. The DoD would need to reassess its strategy for addressing the specific threat this antiviral was intended to counter.
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 › AGRICULTURE R&D SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 130
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4575 SW RESEARCH WAY STE, CORVALLIS, OR, 97333
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,359,554
Exercised Options: $45,359,554
Current Obligation: $38,418,638
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-11-29
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2025-03-28
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