HHS awards $136.7M R&D contract to GlaxoSmithKline for life sciences research
Contract Overview
Contract Amount: $136,766,617 ($136.8M)
Contractor: Glaxosmithkline Holdings (americas) Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2007-01-17
End Date: 2017-02-06
Contract Duration: 3,673 days
Daily Burn Rate: $37.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT FACILITIES
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19120
Plain-Language Summary
Department of Health and Human Services obligated $136.8 million to GLAXOSMITHKLINE HOLDINGS (AMERICAS) INC. for work described as: RESEARCH AND DEVELOPMENT FACILITIES Key points: 1. The contract value is substantial, indicating a significant investment in research and development. 2. GlaxoSmithKline is a major player in the pharmaceutical and life sciences sector. 3. The contract duration is long (over 10 years), suggesting a complex, multi-phase project. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code covers a broad range of scientific activities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking this specific R&D contract's pricing is difficult due to its specialized nature and long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specialized nature of R&D may limit the number of truly comparable bids.
Taxpayer Impact: Taxpayer funds are supporting critical research and development, with the potential for significant long-term benefits. The cost-plus-fixed-fee structure requires careful oversight to ensure value for money.
Public Impact
Supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or treatments. Investment in R&D can foster innovation and economic growth within the scientific sector. Long-term contracts can provide stability for research institutions and their employees.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending.
- Long contract duration increases risk of scope creep or changing research priorities.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D in life sciences.
- Long-term commitment provides research stability.
Sector Analysis
This contract falls within the broad Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be difficult to benchmark due to the unique nature of R&D projects.
Small Business Impact
The data does not indicate any specific involvement or set-asides for small businesses in this contract. Large R&D contracts are often awarded to established prime contractors.
Oversight & Accountability
The long duration and cost-plus-fixed-fee structure necessitate robust oversight from the Department of Health and Human Services to ensure funds are used effectively and milestones are met.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 10 years).
- Specialized R&D subject matter.
- Potential for scope creep.
- Difficulty in benchmarking R&D value.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $136.8 million to GLAXOSMITHKLINE HOLDINGS (AMERICAS) INC.. RESEARCH AND DEVELOPMENT FACILITIES
Who is the contractor on this award?
The obligated recipient is GLAXOSMITHKLINE HOLDINGS (AMERICAS) INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $136.8 million.
What is the period of performance?
Start: 2007-01-17. End: 2017-02-06.
What specific research outcomes or deliverables were expected from this contract, and how was their value assessed?
The contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences.' Specific deliverables would likely include research reports, data analysis, prototypes, or scientific publications. Value assessment in R&D is inherently challenging and often relies on expert review, potential impact, and progress towards stated objectives rather than purely financial metrics.
Given the Cost Plus Fixed Fee structure and long duration, what mechanisms were in place to mitigate cost overruns and ensure continued relevance of the research?
Cost Plus Fixed Fee contracts require stringent financial oversight and regular audits. Milestones and progress reports are crucial for monitoring. For long-term R&D, mechanisms likely included periodic reviews of research direction, opportunities to adjust scope based on emerging scientific findings, and clear termination clauses if the project deviated significantly from its intended goals or lost relevance.
How did the full and open competition process ensure that GlaxoSmithKline was the most capable and cost-effective provider for this specialized R&D need?
Full and open competition implies that all responsible sources were permitted to submit bids. The evaluation criteria would have focused on technical capability, past performance, and proposed costs. For specialized R&D, the agency likely assessed the bidder's scientific expertise, existing infrastructure, and track record in similar research areas to determine the best overall value, not just the lowest price.
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
Solicitation ID: DHSORDCVB0508
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Glaxosmithkline PLC (UEI: 238980408)
Address: ONE FRANKLIN PLAZA, PHILADELPHIA, PA, 19102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $136,766,617
Exercised Options: $136,766,617
Current Obligation: $136,766,617
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-01-17
Current End Date: 2017-02-06
Potential End Date: 2017-02-26 00:00:00
Last Modified: 2017-03-09
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