NIH awards $28.2M for biodefense and emerging infectious disease countermeasures
Contract Overview
Contract Amount: $28,199,896 ($28.2M)
Contractor: Venatorx Pharmaceuticals Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2013-09-16
End Date: 2019-09-30
Contract Duration: 2,205 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF DEVELOPMENT OF THERAPEUTIC MEDICAL COUNTERMEASURES FOR BIODEFENSE AND EMERGING INFECTIOUS DISEASES
Place of Performance
Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355
Plain-Language Summary
Department of Health and Human Services obligated $28.2 million to VENATORX PHARMACEUTICALS INC for work described as: IGF::OT::IGF DEVELOPMENT OF THERAPEUTIC MEDICAL COUNTERMEASURES FOR BIODEFENSE AND EMERGING INFECTIOUS DISEASES Key points: 1. Contract focuses on critical R&D for public health security. 2. Value appears reasonable given the specialized nature of biodefense research. 3. Full and open competition suggests a competitive bidding process. 4. Contract duration of 2205 days indicates a long-term research commitment. 5. Performance is tied to the development of novel medical countermeasures. 6. This award aligns with national priorities for pandemic preparedness.
Value Assessment
Rating: good
The contract value of $28.2 million over approximately six years for R&D in biotechnology is within a reasonable range for specialized therapeutic development. Benchmarking against similar contracts for biodefense countermeasures is challenging due to the niche nature of the work, but the cost-plus-fixed-fee structure allows for flexibility while managing expenses. The fixed fee component provides incentive for efficient performance.
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 bids. The presence of 28 bids suggests a robust level of interest and competition for this research and development effort. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: A competitive bidding process for critical biodefense research helps ensure taxpayer funds are used efficiently and that the most innovative solutions are considered.
Public Impact
Benefits the public by advancing the development of medical countermeasures against biothreats and emerging infectious diseases. Services delivered include research and development activities aimed at creating new therapies. Geographic impact is national, focusing on public health security. Workforce implications include supporting specialized scientific and research personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition, indicating broad market engagement.
- Contract type (Cost Plus Fixed Fee) allows for flexibility in R&D while incentivizing efficient performance.
- Long contract duration suggests a sustained commitment to a critical research area.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a critical area for national security and public health. The market for biodefense countermeasures is specialized, driven by government funding and the need to address potential biological threats. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of biodefense R&D, but significant federal investment is directed towards this area by agencies like HHS and DoD.
Small Business Impact
While the data does not indicate a specific small business set-aside, the contract was awarded under full and open competition, which allows for participation by small businesses if they are capable and competitive. The prime contractor, Venatorx Pharmaceuticals Inc., is a mid-sized company. Subcontracting opportunities for small businesses may arise depending on the specific research needs and the prime contractor's strategy.
Oversight & Accountability
Oversight for this contract is likely managed by the National Institutes of Health (NIH), a component of HHS. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing are expected to ensure that costs are reasonable and allocable. The contract's performance metrics and deliverables would be monitored to ensure progress towards the development of medical countermeasures. Transparency is generally maintained through contract awards databases and public reporting.
Related Government Programs
- Biodefense Medical Countermeasures
- Emerging Infectious Diseases Research
- Biotechnology Research and Development
- National Institutes of Health Contracts
- Department of Health and Human Services Funding
Risk Flags
- Potential for scientific research failure
- Risk of cost overruns in R&D
- Challenges in meeting long-term development timelines
- Dependence on future funding appropriations
Tags
r-and-d, biotechnology, health-and-human-services, national-institutes-of-health, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, biodefense, emerging-infectious-diseases, medical-countermeasures, research-and-development, mid-size-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.2 million to VENATORX PHARMACEUTICALS INC. IGF::OT::IGF DEVELOPMENT OF THERAPEUTIC MEDICAL COUNTERMEASURES FOR BIODEFENSE AND EMERGING INFECTIOUS DISEASES
Who is the contractor on this award?
The obligated recipient is VENATORX PHARMACEUTICALS 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 $28.2 million.
What is the period of performance?
Start: 2013-09-16. End: 2019-09-30.
What is the track record of Venatorx Pharmaceuticals Inc. in securing and performing on federal contracts, particularly in R&D?
Venatorx Pharmaceuticals Inc. has a history of engaging with federal agencies, primarily through research and development grants and contracts. While specific details on their past federal contract performance require deeper database analysis, their ability to secure this definitive contract from NIH for a critical area like biodefense suggests a level of established capability and trust. Their focus on infectious diseases and antibiotic resistance aligns with the objectives of this award. Further investigation would involve examining past performance reviews, any reported issues, and the scale of their previous federal awards to fully assess their track record.
How does the $28.2 million contract value compare to similar R&D efforts in biodefense or emerging infectious diseases?
The $28.2 million contract value over approximately six years for R&D in biodefense and emerging infectious diseases is within a typical range for such specialized and long-term research initiatives. However, direct comparisons are difficult due to the unique nature of biodefense threats and the specific countermeasures being developed. Funding for biodefense R&D can vary significantly based on the threat level, the stage of research (basic vs. applied), and the specific technologies involved. NIH and other agencies like BARDA (Biomedical Advanced Research and Development Authority) fund numerous projects in this domain, with individual awards ranging from a few million to tens of millions of dollars, depending on the scope and duration.
What are the primary risks associated with this type of R&D contract, and how are they mitigated?
The primary risks in this R&D contract include scientific uncertainty (failure to achieve desired research outcomes), technical challenges (inability to develop effective countermeasures), cost overruns (exceeding the estimated costs), and schedule delays. Mitigation strategies are embedded in the contract structure and oversight. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in R&D while providing a fixed fee incentive for the contractor. NIH's oversight would involve regular progress reviews, milestone tracking, and financial audits. The long duration also allows for iterative development and adaptation. Furthermore, the full and open competition process aims to select contractors with proven capabilities, reducing technical and performance risks.
What is the expected effectiveness or impact of the medical countermeasures being developed under this contract?
The expected effectiveness of the medical countermeasures developed under this contract is to provide viable options for preventing, treating, or diagnosing diseases caused by biothreat agents and emerging infectious diseases. This could include vaccines, therapeutics (antivirals, antibiotics, antitoxins), or diagnostic tools. The ultimate impact is to enhance national biosecurity and public health preparedness by ensuring the availability of effective medical interventions against potential biological threats, thereby reducing morbidity, mortality, and societal disruption.
How has federal spending in the R&D in Biotechnology (NAICS 541711) sector trended over the past five years?
Federal spending in the R&D in Biotechnology sector (NAICS 541711) has generally shown a consistent upward trend over the past five years, driven by increased focus on public health, pandemic preparedness, and advancements in life sciences. Agencies like NIH, NSF, DoD, and BARDA are major contributors to this spending. The COVID-19 pandemic further accelerated investment in areas related to vaccine development, diagnostics, and therapeutics. While specific annual figures fluctuate based on appropriations and emerging priorities, the overall trajectory indicates sustained and growing federal commitment to biotechnology R&D.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: BAANIAIDDMIDNIHAI2012149
Offers Received: 28
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1806 HAWKWEED WAY, MALVERN, PA, 19355
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,199,896
Exercised Options: $28,199,896
Current Obligation: $28,199,896
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-16
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2023-06-30
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