Over $21.9 million awarded to Battelle Memorial Institute for Anthrax Vaccine Research Program

Contract Overview

Contract Amount: $21,967,557 ($22.0M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2000-09-29

End Date: 2010-09-30

Contract Duration: 3,653 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANTHRAX VACCINE RES. PROGRAM

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.0 million to BATTELLE MEMORIAL INSTITUTE for work described as: ANTHRAX VACCINE RES. PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of over 10 years indicates a long-term research need. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 4. The award was made by the Centers for Disease Control and Prevention, a key health agency. 5. The contract's focus on vaccine research aligns with critical public health initiatives. 6. The absence of small business set-asides suggests the prime contractor is a large entity.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and market rates for anthrax vaccine research. The Cost Plus Fixed Fee structure, while common for R&D, carries inherent risks of cost escalation. Comparing it to similar long-term, specialized research programs would be necessary for a more precise value assessment. The total award amount over a decade suggests significant investment, but the efficiency and effectiveness of that spending require deeper analysis of research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple potential bidders were allowed to submit proposals. The presence of 5 bids suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the competition, such as the evaluation criteria and the number of technically acceptable proposals, would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are likely public health organizations and potentially the military, requiring advanced vaccine solutions. The services delivered involve critical research and development for vaccines, specifically targeting anthrax. The geographic impact is national, focusing on research facilities, with potential global implications for biodefense. Workforce implications include highly skilled scientists, researchers, and technicians in the biotechnology and pharmaceutical sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not managed diligently.
Long contract duration may reduce flexibility to adapt to new research findings or technologies.
Lack of specific performance metrics makes it difficult to assess research progress and value.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract supports critical public health and biodefense research.
Long-term commitment suggests sustained focus on a vital area of national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biodefense and pharmaceutical development. The market for specialized vaccine research is often characterized by high barriers to entry due to scientific expertise, regulatory hurdles, and significant capital investment. Comparable spending benchmarks would involve other government contracts for vaccine development, particularly those related to biological threats. The total award of over $21.9 million over a decade reflects a substantial investment in a niche but critical area of scientific inquiry.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no information suggesting subcontracting opportunities for small businesses. This suggests that the prime contractor, Battelle Memorial Institute, is likely a large research organization capable of handling the scope of work independently. The absence of small business participation may limit opportunities for smaller, innovative firms to contribute to this specific research effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring Battelle to justify costs and demonstrate progress towards research milestones. Transparency would depend on the public availability of research reports and program updates, which may be limited due to the sensitive nature of biodefense research.

Related Government Programs

Biodefense Research Programs
Vaccine Development Contracts
Public Health Emergency Preparedness
Department of Health and Human Services R&D Spending
Centers for Disease Control and Prevention Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may lead to technological obsolescence or shifting priorities.
Lack of specific performance metrics makes assessing research progress difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.0 million to BATTELLE MEMORIAL INSTITUTE. ANTHRAX VACCINE RES. PROGRAM

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2000-09-29. End: 2010-09-30.

What was the specific research objective of the Anthrax Vaccine Research Program funded by this contract?

The specific research objective of the Anthrax Vaccine Research Program (AVRP) funded by this contract was to advance the development and understanding of anthrax vaccines. While the provided data does not detail the precise research goals, such programs typically aim to improve vaccine efficacy, safety, manufacturing processes, and potentially explore new vaccine candidates or delivery methods. Given the context of anthrax as a biological threat, the research likely focused on enhancing national biodefense capabilities and ensuring the availability of effective countermeasures against potential bioterrorism events or natural outbreaks.

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

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor (Battelle Memorial Institute) to recover all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. For R&D programs like the Anthrax Vaccine Research Program, CPFF is often used because the scope of work and associated costs can be uncertain at the outset. However, this structure can incentivize contractors to incur higher costs, as their fee remains fixed regardless of the total cost. Effective oversight by the government is crucial to manage costs, ensure efficiency, and prevent unnecessary expenditures. The government bears the primary cost risk, while the contractor is incentivized to complete the work within the estimated cost range to maximize their return on investment.

What is Battelle Memorial Institute's track record in government R&D contracts, particularly in vaccine development?

Battelle Memorial Institute is a well-established research and development organization with a significant history of performing government contracts across various scientific and technical domains. They have a recognized presence in areas such as national security, health, and environmental science. While specific details on their entire portfolio are not provided here, their involvement in a long-term, high-value contract like the Anthrax Vaccine Research Program suggests a strong track record and the necessary expertise in complex R&D, including areas related to biodefense and potentially vaccine development. Their ability to secure and execute such contracts indicates a history of meeting government requirements and delivering on research objectives.

How does the $21.9 million total award compare to other federal investments in vaccine research and development?

The total award of approximately $21.9 million over a period of roughly 10 years for the Anthrax Vaccine Research Program places it as a significant, but not exceptionally large, investment within the broader federal landscape of vaccine R&D. Federal spending on health and biodefense research, particularly through agencies like the National Institutes of Health (NIH), Department of Defense (DoD), and Department of Health and Human Services (HHS), often runs into hundreds of millions or even billions of dollars annually for various research initiatives, including vaccine development for infectious diseases and biothreats. This contract represents a focused investment in a specific area (anthrax) rather than a broad-spectrum vaccine initiative.

What are the potential risks associated with the long duration (over 10 years) of this contract?

The long duration of this contract, spanning over 10 years, presents several potential risks. Firstly, scientific and technological advancements in vaccine development could render the initial research approaches or targets obsolete before the contract concludes, necessitating costly pivots or potentially reducing the overall impact of the research. Secondly, changes in public health priorities, threat assessments, or government funding landscapes could lead to shifts in the program's strategic importance or available resources. Thirdly, maintaining consistent oversight and program management over such an extended period can be challenging, potentially leading to a decline in focus or effectiveness if not actively managed. Finally, the long-term commitment might limit the government's flexibility to pursue alternative or more promising research avenues that emerge during the contract's lifecycle.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2000N00065

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $570,192,977

Exercised Options: $570,192,977

Current Obligation: $21,967,557

Timeline