Biotechnology R&D contract awarded to ACHAOGEN, INC. for over $21 million by NIH

Contract Overview

Contract Amount: $21,072,782 ($21.1M)

Contractor: Achaogen, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-01

End Date: 2016-08-26

Contract Duration: 2,916 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW CONTRACT AWARD UNDER RFP: BAA NIH-NIAID-DMID-08-20

Place of Performance

Location: SOUTH SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94080

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.1 million to ACHAOGEN, INC. for work described as: NEW CONTRACT AWARD UNDER RFP: BAA NIH-NIAID-DMID-08-20 Key points: 1. Contract value of $21.1 million over an 8-year period suggests significant investment in research and development. 2. The 'Research and Development in Biotechnology' NAICS code indicates a focus on advanced scientific endeavors. 3. A definitive contract award implies a commitment to a specific project or set of deliverables. 4. The cost-plus-fixed-fee contract type suggests that ACHAOGEN, INC. will be reimbursed for allowable costs plus a fixed fee. 5. The contract duration of 2916 days (approx. 8 years) points to a long-term research objective. 6. The award was made under a Broad Agency Announcement (BAA), a common mechanism for R&D procurement. 7. The contract was awarded by the National Institutes of Health (NIH), a leading federal agency for biomedical research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable R&D projects. The $21.1 million over 8 years averages to approximately $2.6 million per year, which could be reasonable for a significant biotechnology research program. However, the cost-plus-fixed-fee structure means that the final cost is dependent on actual expenses incurred, making a precise value-for-money assessment difficult at this stage. Further analysis would require understanding the specific research outcomes and milestones achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The presence of 23 bids suggests a robust competitive environment for this research and development opportunity. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in biotechnology R&D, potentially leading to advancements in medical treatments or diagnostics. The services delivered are focused on research and development in the biotechnology sector, contributing to scientific knowledge and innovation. The geographic impact is primarily within California, where ACHAOGEN, INC. is located, but the scientific advancements could have a national or global reach. Workforce implications include the creation or sustainment of highly skilled jobs in scientific research and development within the biotechnology field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract may present challenges in adapting to rapidly evolving scientific landscapes.
The specific research outcomes and their ultimate impact on public health are not detailed in the award notice.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract is with the National Institutes of Health, a reputable agency for biomedical research.
The significant investment suggests a commitment to advancing critical research areas.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a rapidly growing and highly innovative field. The NAICS code 541711 specifically covers Research and Development in Biotechnology. The market for biotechnology R&D is characterized by significant investment, long development cycles, and a high degree of scientific specialization. Federal spending in this area is crucial for driving innovation that can lead to new therapies, diagnostics, and agricultural advancements. Comparable spending benchmarks would typically involve analyzing other NIH grants and contracts awarded for similar R&D efforts.

Small Business Impact

The award notice indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem would be indirect, potentially through competition with larger firms or through opportunities if ACHAOGEN, INC. chooses to subcontract.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), specifically the National Institute of Allergy and Infectious Diseases (NIAID) division, as indicated by the BAA number. Mechanisms likely include regular progress reports, financial reviews, and adherence to research protocols. Accountability is tied to the achievement of research milestones and the responsible use of funds. Transparency is generally facilitated through contract award databases and public reporting of research outcomes, though specific project details may be proprietary.

Related Government Programs

NIH Research Grants
Biotechnology Research and Development Contracts
National Institute of Allergy and Infectious Diseases (NIAID) Funding
Department of Health and Human Services R&D Spending

Risk Flags

Long contract duration may require flexibility to adapt to evolving research needs.
Cost-plus-fixed-fee structure necessitates diligent government oversight to manage costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.1 million to ACHAOGEN, INC.. NEW CONTRACT AWARD UNDER RFP: BAA NIH-NIAID-DMID-08-20

Who is the contractor on this award?

The obligated recipient is ACHAOGEN, 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 $21.1 million.

What is the period of performance?

Start: 2008-09-01. End: 2016-08-26.

What is the specific research focus of this contract awarded to ACHAOGEN, INC.?

The provided data indicates the contract is for 'Research and Development in Biotechnology' under NAICS code 541711. The award was made under the BAA NIH-NIAID-DMID-08-20, suggesting it aligns with the research priorities of the National Institute of Allergy and Infectious Diseases (NIAID) and the Division of Microbiology and Infectious Diseases (DMID). While the exact research topic is not specified in the award details, it likely pertains to areas such as infectious disease research, vaccine development, or therapeutic interventions within the scope of NIAID's mission. Further details would typically be found in the Broad Agency Announcement itself or in subsequent project reports.

How does the $21.1 million contract value compare to typical NIH biotechnology R&D awards?

The $21.1 million contract value over approximately 8 years represents an average annual award of about $2.6 million. This figure falls within a reasonable range for significant, multi-year research and development projects funded by the NIH in the biotechnology sector. NIH awards vary widely based on the scope, duration, and complexity of the research. Large-scale initiatives, clinical trials, or development of novel platforms can easily reach tens of millions of dollars over their lifecycle. Without knowing the specific research aims, it's difficult to provide a precise benchmark, but this award appears to be a substantial commitment to a particular R&D endeavor.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where the scope may evolve, carry inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as all allowable costs are reimbursed. The 'fixed fee' component is negotiated upfront and does not change, but the total cost can escalate if actual expenses are higher than anticipated. For the contractor, there's a risk if they underestimate the costs required to achieve the fixed fee. Effective oversight, clear milestone definitions, and robust cost accounting are crucial to mitigate these risks for the government.

What does the 'full and open competition' and 23 bids signify for this contract's efficiency?

The fact that this contract was awarded under 'full and open competition' and received 23 bids is a strong positive signal for efficiency and value for taxpayer money. It indicates that the government actively sought proposals from all responsible sources and that there was significant market interest. A large number of bidders typically fosters a more competitive environment, driving down proposed prices and encouraging innovation in technical approaches. This process increases the likelihood that the government selected the best value proposal, balancing technical merit with cost, rather than simply the lowest price.

What is ACHAOGEN, INC.'s track record with federal R&D contracts, particularly with NIH?

Information regarding ACHAOGEN, INC.'s specific track record with federal R&D contracts, especially with NIH, is not detailed in the provided award data. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) to review their past performance on similar contracts, including contract values, durations, types, and any reported performance issues or successes. Understanding their history with NIH would be particularly relevant given this new award. A positive track record would suggest reliability and expertise in executing complex R&D projects.

How might this contract contribute to advancements in infectious disease research, given the NIAID/DMID BAA?

Given that the Broad Agency Announcement (BAA) originated from NIH's NIAID and DMID, this contract is highly likely to contribute to advancements in infectious disease research. NIAID's mission includes leading research to understand, prevent, and treat infectious diseases, as well as immunologic and allergic diseases. DMID specifically focuses on research to combat a wide range of bacterial, parasitic, and viral diseases. Therefore, the R&D conducted under this contract could lead to breakthroughs in areas such as novel vaccines, improved diagnostics, new antimicrobial therapies, or a better understanding of disease pathogenesis and transmission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 23

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7000 SHORELINE COURT 3RD FL, SOUTH SAN FRANCISCO, CA, 94080

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $30,704,926

Exercised Options: $30,704,926

Current Obligation: $21,072,782

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline