DoD's $26.3M Contract for Accelerated COVID-19 Vaccine Development Faces Questions on Value and Competition
Contract Overview
Contract Amount: $26,261,466 ($26.3M)
Contractor: International Aids Vaccine Initiative Inc.
Awarding Agency: Department of Defense
Start Date: 2020-10-05
End Date: 2024-12-04
Contract Duration: 1,521 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ACCELERATED DEVELOPMENT OF A SARS-COV-2 VACCINE BASED ON THE LIVE VSVAG CHIMERIC VIRUS PLATFORM
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10004
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $26.3 million to INTERNATIONAL AIDS VACCINE INITIATIVE INC. for work described as: ACCELERATED DEVELOPMENT OF A SARS-COV-2 VACCINE BASED ON THE LIVE VSVAG CHIMERIC VIRUS PLATFORM Key points: 1. The contract awarded to International AIDS Vaccine Initiative Inc. for $26.3M focuses on a novel vaccine platform. 2. Competition was full and open, but the specific pricing strategy and its effectiveness in achieving value are unclear. 3. Potential risks include the inherent uncertainties in vaccine development and the long duration of the contract. 4. The sector is R&D, specifically in life sciences, a critical area for national security and public health.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for R&D makes direct pricing comparisons difficult. Without detailed cost breakdowns or performance metrics, assessing the value for money against similar vaccine development efforts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. However, the impact of this competition on price discovery for this specific, advanced R&D project is not detailed.
Taxpayer Impact: The taxpayer impact is significant, funding advanced research with uncertain outcomes. The fixed fee component provides some cost control, but the overall cost-effectiveness remains to be seen.
Public Impact
Accelerated development of a potential COVID-19 vaccine addresses a critical public health need. The use of a live VSV-G chimeric virus platform represents innovative scientific research. Funding advanced R&D by the Department of Defense highlights the intersection of national security and health preparedness. The long contract duration suggests a complex, multi-stage research and development process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Uncertainty in R&D outcomes
- Long contract duration
- Cost-plus-fixed-fee structure complexity
Positive Signals
- Addresses critical health threat
- Utilizes innovative platform
- Full and open competition
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending in this area is crucial for innovation but carries inherent risks due to the unpredictable nature of scientific discovery. Benchmarks are difficult due to the specialized nature of the research.
Small Business Impact
The data indicates the contract was awarded to International AIDS Vaccine Initiative Inc., a non-profit organization. There is no explicit mention of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract is managed by the Defense Threat Reduction Agency, part of the Department of Defense. Oversight would focus on adherence to research milestones, budget expenditure, and the scientific progress of the vaccine development.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- High R&D risk
- Long contract duration
- Potential for platform failure
- Cost-plus-fixed-fee complexity in value assessment
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.3 million to INTERNATIONAL AIDS VACCINE INITIATIVE INC.. ACCELERATED DEVELOPMENT OF A SARS-COV-2 VACCINE BASED ON THE LIVE VSVAG CHIMERIC VIRUS PLATFORM
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL AIDS VACCINE INITIATIVE 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 $26.3 million.
What is the period of performance?
Start: 2020-10-05. End: 2024-12-04.
What specific milestones and deliverables are tied to the fixed fee, and how are they measured to ensure value for money in this R&D contract?
The contract details should outline specific research phases, preclinical testing, and potential clinical trial preparations as milestones. The fixed fee is likely allocated across these stages, with payments contingent on achieving defined scientific and developmental targets. Robust oversight mechanisms are crucial to verify progress and ensure the allocated funds are yielding tangible advancements towards the vaccine's development.
Given the long contract duration and the inherent risks in vaccine development, what contingency plans are in place if the chosen platform proves ineffective or unsafe?
Contingency planning for R&D contracts of this nature typically involves periodic reviews of scientific progress and platform viability. If the VSV-G chimeric virus platform encounters significant setbacks, the contract may allow for pivot strategies, redirection of funds to alternative approaches, or termination with minimal loss. The agency likely has internal protocols for assessing research risks and adapting funding strategies based on evolving scientific data.
How does the Department of Defense assess the long-term effectiveness and potential public health impact of a vaccine developed under this contract, beyond immediate threat reduction?
The DoD's assessment would likely focus on the vaccine's efficacy against SARS-CoV-2, its safety profile, and its potential for broad application, including military personnel and potentially civilian populations. While the primary driver might be threat reduction, the agency would also consider its contribution to broader public health preparedness and its alignment with national biodefense strategies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 125 BROAD ST FL 9TH, NEW YORK, NY, 10004
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,261,466
Exercised Options: $26,261,466
Current Obligation: $26,261,466
Actual Outlays: $17,069,523
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $8,163,593
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-10-05
Current End Date: 2024-12-04
Potential End Date: 2024-12-04 00:00:00
Last Modified: 2024-09-16
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