NIH awards SIGA Technologies $29M contract for R&D in physical, engineering, and life sciences
Contract Overview
Contract Amount: $29,001,937 ($29.0M)
Contractor: Siga Technologies, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-26
End Date: 2011-09-28
Contract Duration: 1,828 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D-OTHER SVC & DEVELOP-ADV DEV
Place of Performance
Location: CORVALLIS, BENTON County, OREGON, 97333
State: Oregon Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $29.0 million to SIGA TECHNOLOGIES, INC. for work described as: R&D-OTHER SVC & DEVELOP-ADV DEV Key points: 1. Contract awarded for research and development services, focusing on advanced development. 2. The contract spans over five years, indicating a long-term need for these services. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control by the contractor. 5. The geographic location of the contractor is Oregon. 6. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences NAICS code.
Value Assessment
Rating: fair
The contract value of $29 million over five years averages to approximately $5.8 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Cost Plus Fixed Fee structure means the government pays for allowable costs plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing this to similar R&D contracts would require detailed knowledge of the specific research areas and project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 12 bids received, this suggests a healthy level of interest and competition for this contract. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.
Public Impact
This contract supports advancements in physical, engineering, and life sciences research. The research conducted could lead to new technologies or scientific discoveries. The contract benefits the scientific and research community by funding critical R&D. The workforce implications include employment for researchers, scientists, and support staff at SIGA Technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not closely monitored.
- The long duration of the contract requires ongoing oversight to ensure continued value and performance.
- The specific nature of R&D can make it challenging to define success metrics upfront.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Multiple bids received (12) suggest strong interest and a potentially wide range of solutions.
- The contract supports critical research and development in key scientific fields.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment. The total federal spending on R&D is substantial, with agencies like NIH playing a crucial role in funding scientific exploration. Comparable spending benchmarks would depend heavily on the specific sub-discipline of R&D being pursued.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, SIGA Technologies, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The Cost Plus Fixed Fee structure necessitates careful monitoring of allowable costs and the fixed fee to ensure the government receives fair value. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the NIH Office of Inspector General if specific concerns arise.
Related Government Programs
- Biomedical Research and Development
- Advanced Technology Development
- Scientific Research Services
- Life Sciences Research Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Definition Uncertainty (R&D)
- Performance Monitoring Complexity
Tags
research-and-development, department-of-health-and-human-services, national-institutes-of-health, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-contract, physical-sciences, engineering-sciences, life-sciences, oregon, siga-technologies-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.0 million to SIGA TECHNOLOGIES, INC.. R&D-OTHER SVC & DEVELOP-ADV DEV
Who is the contractor on this award?
The obligated recipient is SIGA TECHNOLOGIES, 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 $29.0 million.
What is the period of performance?
Start: 2006-09-26. End: 2011-09-28.
What is SIGA Technologies' track record with federal contracts, particularly with NIH?
SIGA Technologies, Inc. has a history of federal contracting, notably with the Department of Health and Human Services (HHS), which includes the National Institutes of Health (NIH). Their contract portfolio often involves research and development, particularly in areas related to public health and biodefense. Examining their past performance on similar contracts, including adherence to schedules, budget management, and quality of deliverables, is crucial for assessing their capability to execute this current award. A review of contract databases and agency performance reports would provide further insight into their reliability and success rate with federal agencies.
How does the $29 million award compare to similar R&D contracts in the physical, engineering, and life sciences sector?
The $29 million award over approximately five years represents an average annual value of around $5.8 million. This figure needs to be contextualized within the specific sub-field of R&D. For instance, early-stage basic research might have lower annual values, while advanced development contracts for complex technologies could command higher figures. Benchmarking requires identifying contracts with similar NAICS codes (541710), contract types (Cost Plus Fixed Fee), and agencies (NIH). Without knowing the precise scope of work, it's challenging to definitively state if this is high or low, but it falls within a range typical for significant R&D projects funded by agencies like NIH.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks with a CPFF contract for R&D revolve around cost control and scope definition. While the fixed fee provides some incentive for the contractor to manage costs efficiently, the government bears the risk of cost overruns if actual allowable costs exceed estimates. For R&D, defining the scope precisely can be difficult due to the inherent uncertainties in scientific exploration. This can lead to scope creep or the contractor incurring costs on activities not initially envisioned. Effective oversight, clear communication, and robust change management processes are essential to mitigate these risks and ensure the government obtains value for its investment.
What is the expected impact of this contract on advancing scientific knowledge or technological capabilities?
The expected impact of this contract hinges on the specific research and development objectives outlined in the award. As it falls under 'Research and Development in the Physical, Engineering, and Life Sciences,' the potential impacts are broad. This could range from breakthroughs in medical treatments and diagnostic tools to innovations in materials science, engineering processes, or environmental technologies. The 'Advanced Development' aspect suggests a focus on moving promising research closer to practical application or commercialization. The ultimate impact will be realized through the successful completion of research milestones and the subsequent dissemination or application of the findings.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' sector evolved over the past five years?
Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' sector has generally seen consistent or increasing investment over the past five years, driven by national priorities in areas like healthcare, national security, and technological innovation. Agencies such as NIH, NSF, DoD, and DOE are major contributors. While specific figures fluctuate annually based on appropriations and administration priorities, the overall trend reflects a commitment to scientific advancement. Factors like global health challenges (e.g., pandemics) and the pursuit of technological competitiveness often influence budget allocations within this broad 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 › Community and Regional Development R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: BAANIHNIAIDDMID0635
Offers Received: 12
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 420 LEXINGTON AVE STE 408, NEW YORK, NY, 10170
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,354,916
Exercised Options: $29,001,937
Current Obligation: $29,001,937
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-09-26
Current End Date: 2011-09-28
Potential End Date: 2011-09-28 00:00:00
Last Modified: 2019-01-03
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