HHS awards $24.4M for infectious disease therapeutics R&D to ICON Government and Public Health Solutions
Contract Overview
Contract Amount: $24,405,059 ($24.4M)
Contractor: Icon Government and Public Health Solutions, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-05-30
End Date: 2018-08-31
Contract Duration: 3,745 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PHASE I CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.4 million to ICON GOVERNMENT AND PUBLIC HEALTH SOLUTIONS, INC. for work described as: PHASE I CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES Key points: 1. The contract focuses on R&D in physical, engineering, and life sciences, excluding biotechnology. 2. ICON Government and Public Health Solutions, Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The duration of the contract is over 10 years, suggesting a long-term research effort.
Value Assessment
Rating: fair
The contract value of $24.4 million over 10 years for a Phase I clinical trial unit is difficult to benchmark without more specific details on the scope of research. The Cost Plus Fixed Fee structure can lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and specific nature of the research may have limited the number of responsive bidders.
Taxpayer Impact: Taxpayer funds are being used for critical research into infectious diseases, which has long-term public health benefits. The cost-effectiveness will depend on the success of the research outcomes.
Public Impact
Supports development of new treatments for infectious diseases, a critical public health need. Long-term contract may yield significant advancements in medical research. Funding directed towards research and development in the life sciences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost uncertainty.
- Long contract duration (over 10 years) increases risk of scope creep or changing research needs.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical area of public health research.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be subject to long timelines and uncertain outcomes. Benchmarks are highly dependent on the specific research area.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation may be needed to determine if opportunities were missed.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the National Institutes of Health to ensure progress, manage costs, and maintain accountability for taxpayer funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost Plus Fixed Fee contract.
- Long contract duration.
- No small business participation noted.
- R&D projects have inherent uncertainty of outcome.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.4 million to ICON GOVERNMENT AND PUBLIC HEALTH SOLUTIONS, INC.. PHASE I CLINICAL TRIAL UNIT FOR THERAPEUTICS AGAINST INFECTIOUS DISEASES
Who is the contractor on this award?
The obligated recipient is ICON GOVERNMENT AND PUBLIC HEALTH SOLUTIONS, 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 $24.4 million.
What is the period of performance?
Start: 2008-05-30. End: 2018-08-31.
What specific infectious diseases are targeted by this research, and what are the expected milestones for Phase I trials?
The provided data does not specify the exact infectious diseases targeted. Phase I clinical trials typically focus on safety and dosage in a small group of healthy volunteers or patients. Milestones would likely include preliminary safety data, pharmacokinetic profiles, and identification of potential therapeutic effects, all crucial for determining if further development is warranted.
How does the Cost Plus Fixed Fee structure mitigate risks for the government in a long-term R&D project?
The Cost Plus Fixed Fee (CPFF) structure aims to provide the contractor with cost reimbursement plus a predetermined fixed fee. For the government, it offers flexibility in R&D where exact costs are unpredictable. However, it requires diligent oversight to prevent cost overruns and ensure the fixed fee remains reasonable relative to the effort expended.
What is the projected return on investment or public health impact anticipated from this $24.4 million R&D expenditure?
Quantifying the ROI for R&D is inherently challenging due to the speculative nature of scientific discovery. The anticipated impact is the development of novel therapeutics against infectious diseases, potentially saving lives, reducing healthcare burdens, and improving public health security. The success of this investment hinges on the scientific breakthroughs achieved over the contract's duration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Icon Public Limited Company
Address: 1265 RIDGE RD STE A, HINCKLEY, OH, 44233
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation, Woman Owned Business
Financial Breakdown
Contract Ceiling: $26,454,775
Exercised Options: $24,405,059
Current Obligation: $24,405,059
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-05-30
Current End Date: 2018-08-31
Potential End Date: 2023-03-29 00:00:00
Last Modified: 2023-03-30
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