NIH awards $12.8M contract to Myriad Genetics for proteomics-based therapeutic target identification

Contract Overview

Contract Amount: $12,816,306 ($12.8M)

Contractor: Myriad Genetics Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2004-06-30

End Date: 2009-06-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IDENTIFYING TARGETS FOR THERAPEUTICS USING PROTEOMICS TECHNOLOGY

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.8 million to MYRIAD GENETICS INC for work described as: IDENTIFYING TARGETS FOR THERAPEUTICS USING PROTEOMICS TECHNOLOGY Key points: 1. Contract awarded via full and open competition, suggesting a robust market search. 2. The contract duration of 5 years (1825 days) indicates a significant, long-term research effort. 3. Focus on R&D in life sciences aligns with NIH's mission to advance health knowledge. 4. The cost-plus-fixed-fee contract type suggests potential for cost overruns, requiring close monitoring. 5. The award amount of $12.8M over 5 years translates to an average annual value of approximately $2.56M. 6. The contractor, Myriad Genetics Inc., is a specialized life sciences company.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable project data. The cost-plus-fixed-fee structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. However, for complex R&D, it allows for flexibility. The total award of $12.8M over five years averages to roughly $2.56M annually, which appears reasonable for specialized proteomics research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of 31 bids suggests a healthy level of interest and competition within the specialized field of proteomics research.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation from a wider pool of contractors, leading to potentially better value for public funds.

Public Impact

The primary beneficiaries are patients and the broader medical community, through the potential discovery of new therapeutic targets. The services delivered involve advanced proteomic analysis to identify key biological markers for disease. The geographic impact is national, as discoveries can inform drug development and treatment strategies across the U.S. This contract supports high-skilled jobs in the biotechnology and life sciences sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs than necessary to increase their fixed fee, if the fee is a percentage of costs.
The complexity of proteomics research introduces inherent scientific and technical risks that could impact project timelines and outcomes.

Positive Signals

Awarded through full and open competition with a significant number of bids (31), indicating strong market interest and potential for competitive pricing.
The contract is with a specialized company (Myriad Genetics Inc.) with expertise in the relevant scientific domain.
The research focus on identifying therapeutic targets has the potential for significant public health benefits.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on life sciences and biotechnology. The market for proteomics services is specialized and driven by pharmaceutical and biotech companies, as well as government research institutions. Comparable spending benchmarks would typically involve other NIH grants or contracts for similar advanced biological research, often in the multi-million dollar range for multi-year projects.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor is Myriad Genetics Inc., a known entity in the life sciences industry. The contract does not appear to be specifically designed to benefit small businesses directly, though subcontracting opportunities could potentially arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services. The agency would monitor progress, expenditures, and adherence to the research plan. The cost-plus-fixed-fee structure necessitates careful financial oversight to ensure costs are reasonable and allocable. Transparency would be expected through regular reporting from the contractor.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Contracts
Proteomics Research Initiatives
Therapeutic Target Identification Programs

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Complexity of R&D introduces inherent scientific and technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.8 million to MYRIAD GENETICS INC. IDENTIFYING TARGETS FOR THERAPEUTICS USING PROTEOMICS TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is MYRIAD GENETICS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2004-06-30. End: 2009-06-29.

What is the track record of Myriad Genetics Inc. in performing similar government contracts?

Myriad Genetics Inc. is primarily known for its commercial diagnostic tests. While specific details on their government contract performance are not readily available in this summary, their established presence in the life sciences suggests a level of operational capability. For a comprehensive assessment, a review of their past performance evaluations on federal contracts, if any, would be necessary. This would include examining their history of meeting deadlines, staying within budget, and delivering quality work on previous government projects. Their specialization in genetics and proteomics indicates relevant expertise, but government contract performance is a distinct measure of success.

How does the annual value of this contract compare to other NIH R&D contracts in proteomics?

The annual value of this contract, approximately $2.56 million ($12.8 million / 5 years), falls within a common range for significant, multi-year R&D projects funded by the NIH. NIH funds a vast array of research, and contract values can vary widely based on scope, duration, and complexity. Projects involving advanced technologies like proteomics, which require specialized equipment and expertise, often command higher funding levels. Without access to a comprehensive database of all NIH proteomics contracts, a precise benchmark is difficult. However, this award appears consistent with substantial, focused research endeavors aimed at significant scientific discovery.

What are the primary risks associated with this cost-plus-fixed-fee contract structure for the government?

The primary risk for the government with a cost-plus-fixed-fee (CPFF) contract is the potential for the contractor to incur higher costs than anticipated, as the government agrees to reimburse allowable costs. While the fee is fixed, the total contract value can increase if costs escalate significantly. This structure can reduce the contractor's incentive to control costs rigorously, as their profit margin is tied to the fee, not necessarily cost savings. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

What is the expected impact of this research on future healthcare treatments?

The expected impact of this research is the identification of novel targets for therapeutic intervention. By understanding the proteome (the complete set of proteins) in relation to diseases, researchers can pinpoint specific proteins or pathways that, when modulated, could lead to effective treatments. This could pave the way for new drugs or therapies for various conditions. The success of this project could accelerate the drug development pipeline, potentially leading to more personalized medicine approaches and improved patient outcomes in the long term.

How has NIH spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category trended over the past decade?

NIH spending within the NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' has generally shown an upward trend over the past decade, reflecting a sustained commitment to scientific advancement. While specific figures fluctuate annually due to budget appropriations, research priorities, and economic conditions, the overall trajectory indicates consistent investment in life sciences R&D. This category encompasses a broad range of research, including biomedical, pharmaceutical, and biotechnological advancements, all critical to public health. The trend suggests a stable or growing demand for research services within this sector.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: NIHNIAIDDMIDBAA0338

Offers Received: 31

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 320 WAKARA WAY, SALT LAKE CITY, UT, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,207,063

Exercised Options: $12,816,306

Current Obligation: $12,816,306

Contract Characteristics

Multi-Year Contract: Yes

Timeline