Biomedical research contract awarded to Elusys Therapeutics Inc. for $13.8M over 4 years

Contract Overview

Contract Amount: $13,853,653 ($13.9M)

Contractor: Elusys Therapeutics Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2011-09-29

Contract Duration: 1,462 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: PINE BROOK, MORRIS County, NEW JERSEY, 07058

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.9 million to ELUSYS THERAPEUTICS INC for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract value appears reasonable for a multi-year R&D effort in the biomedical sector. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract type (Cost No Fee) may indicate higher risk for the government in terms of cost control. 4. Performance period of approximately 4 years allows for substantial research progress. 5. The contract falls within the broad category of physical, engineering, and life sciences research. 6. Awardee has a single contract, suggesting limited prior federal contracting history in this specific area.

Value Assessment

Rating: fair

The contract value of $13.8 million over four years for biomedical research is within a typical range for such endeavors. However, the 'Cost No Fee' (Cost) contract type, while common for R&D where costs are uncertain, offers less direct cost control for the government compared to fixed-price contracts. Benchmarking against similar R&D contracts would require more detailed scope and deliverable information, but the overall value seems proportionate to the potential research outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 22 bids suggests a robust competitive environment, which typically leads to better pricing and innovation for the government. This level of competition is a positive sign for price discovery and ensures the government is likely receiving a fair market price.

Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by driving down costs and encouraging the most capable contractor to offer competitive terms.

Public Impact

This contract supports advancements in biomedical research, potentially leading to new health solutions. The primary beneficiary is the scientific community and, ultimately, the public through improved healthcare. Research activities are likely concentrated in New Jersey, where the contractor is located. The contract may indirectly support a specialized scientific workforce in the biomedical field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type can lead to cost overruns if not managed carefully.
Limited federal contracting history for the awardee could present execution risks.
The broad nature of R&D contracts can make performance monitoring challenging.

Positive Signals

Full and open competition with 22 bidders indicates a healthy market and strong potential for value.
The multi-year duration allows for sustained research and development efforts.
The contract supports critical biomedical research, aligning with public health goals.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on biomedical applications. This is a critical area for innovation and public health. The market for biomedical R&D is characterized by high investment, long development cycles, and significant intellectual property considerations. Comparable spending benchmarks would depend on the specific research area, but federal investment in this sector is substantial, supporting academic institutions and private companies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Given the nature of specialized biomedical research, it's possible that larger, more established firms or specific research institutions were the primary focus of competition. Further analysis of subcontracting plans would be needed to assess the impact on 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 No Fee' structure necessitates close monitoring of expenditures to ensure they align with research objectives. Transparency is generally maintained through contract reporting mechanisms. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Contracts
Department of Defense Medical Research Programs
National Science Foundation (NSF) Research Awards

Risk Flags

Cost-reimbursement contract type requires diligent oversight.
Limited contractor history with federal government.
Research and Development inherently carries performance uncertainty.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.9 million to ELUSYS THERAPEUTICS INC. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is ELUSYS THERAPEUTICS 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 $13.9 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-09-29.

What is the track record of Elusys Therapeutics Inc. with federal contracts, particularly in biomedical R&D?

Based on the provided data, Elusys Therapeutics Inc. has been awarded one federal contract, this specific definitive contract with the National Institutes of Health. The data does not indicate any other federal contracts awarded to this entity. This suggests a limited history of federal contracting. Further investigation into their corporate history, previous research grants (if any), and performance on this specific contract would be necessary to fully assess their track record. A single contract award, especially one of this duration and value, does not provide extensive data for performance benchmarking against other federal contractors.

How does the value of this contract compare to similar biomedical R&D efforts funded by the NIH?

The contract value of $13.8 million over approximately four years for biomedical research is a moderate-sized award within the NIH's extensive portfolio. The NIH funds a vast array of research projects, ranging from small, single-investigator grants to large, multi-institutional center grants. Contracts like this, which are awarded competitively for specific R&D objectives, are distinct from typical research grants which often support more fundamental or investigator-initiated research. Benchmarking requires detailed comparison of the specific research scope, deliverables, and the competitive landscape at the time of award. However, for a focused, multi-year R&D effort by a single entity, this value is not unusually high or low.

What are the primary risks associated with a 'Cost No Fee' contract type for biomedical R&D?

The 'Cost No Fee' (Cost) contract type, while suitable for research and development where costs are inherently uncertain, presents specific risks. The primary risk for the government is the lack of direct financial incentive for the contractor to control costs. Unlike fixed-price contracts, the contractor is reimbursed for allowable costs incurred, regardless of whether they exceed initial estimates. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. There is also a risk that the contractor may not achieve the desired outcomes, even if costs are managed, as R&D inherently involves uncertainty. The 'No Fee' aspect means the contractor does not receive a profit, which could potentially reduce motivation for exceptional performance beyond meeting basic requirements.

How effective is 'full and open competition' in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money, even in specialized R&D contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. The presence of 22 bidders in this case strongly suggests that the market was adequately stimulated. However, the effectiveness also depends on the clarity of the solicitation's requirements and evaluation criteria. For R&D, defining clear, measurable outcomes can be challenging, but a well-structured competition allows the government to select the offeror proposing the best technical approach and overall value, balancing cost, technical merit, and risk.

What are the historical spending patterns for biomedical research contracts by the NIH?

The National Institutes of Health (NIH) is a major funder of biomedical research, utilizing both grants and contracts. Historically, NIH spending on biomedical research has been substantial and growing, reflecting its mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. Contract spending, like this award, is typically directed towards specific research objectives, product development, or services that cannot be adequately obtained through the grant mechanism. While specific historical spending figures for contracts of this precise nature require detailed database analysis, the overall trend shows consistent and significant federal investment in biomedical R&D across various agencies, including the NIH.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 22

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 25 RIVERSIDE DR, PINE BROOK, NJ, 07058

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,853,653

Exercised Options: $13,853,653

Current Obligation: $13,853,653

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline