HHS awards $205M to BioCryst for influenza antiviral development via full and open competition
Contract Overview
Contract Amount: $204,984,699 ($205.0M)
Contractor: Biocryst Pharmaceuticals Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2007-01-03
End Date: 2014-04-30
Contract Duration: 2,674 days
Daily Burn Rate: $76.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ADVANCE DEVELOPMENT OF NEW ANTIVIRAL AGENT FOR INFLUENZA
Place of Performance
Location: BIRMINGHAM, SHELBY County, ALABAMA, 35244
State: Alabama Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $205.0 million to BIOCRYST PHARMACEUTICALS INC for work described as: ADVANCE DEVELOPMENT OF NEW ANTIVIRAL AGENT FOR INFLUENZA Key points: 1. Significant investment in critical public health research. 2. BioCryst Pharmaceuticals Inc. is the sole awardee. 3. Contract duration is substantial, spanning over 7 years. 4. Focus on R&D in life sciences, a key government priority.
Value Assessment
Rating: good
The contract value of $205M over 7 years for R&D is within a reasonable range for advanced pharmaceutical development. Benchmarking is difficult without specific comparable contracts for novel antiviral agents.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust process for selecting the best offer. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: Taxpayer funds are directed towards developing a potentially life-saving medical countermeasure, representing a strategic investment in national health security.
Public Impact
Development of new influenza treatments enhances national pandemic preparedness. Investment supports the pharmaceutical sector and scientific advancement. Potential for future public health benefits if the agent proves effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may indicate development challenges or scope creep.
- Sole awardee limits immediate competitive pressure on this specific contract.
- Cost-plus contracts can incentivize spending if not closely monitored.
Positive Signals
- Addresses a critical national security need (influenza preparedness).
- Utilizes a competitive award process.
- Supports advanced scientific research and development.
Sector Analysis
This contract falls under Research and Development in the life sciences sector. Government spending in this area is crucial for addressing public health threats and fostering innovation, often involving long-term, high-risk investments.
Small Business Impact
The awardee is BioCryst Pharmaceuticals Inc., a significant entity. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract's long duration and cost-plus nature necessitate robust oversight from HHS to ensure efficient use of funds and adherence to project milestones. Regular reporting and performance reviews are critical.
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
- Long contract duration.
- Cost-plus contract type.
- Sole awardee.
- High R&D risk inherent in drug development.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $205.0 million to BIOCRYST PHARMACEUTICALS INC. ADVANCE DEVELOPMENT OF NEW ANTIVIRAL AGENT FOR INFLUENZA
Who is the contractor on this award?
The obligated recipient is BIOCRYST PHARMACEUTICALS 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 $205.0 million.
What is the period of performance?
Start: 2007-01-03. End: 2014-04-30.
What is the projected timeline for the antiviral agent's development and potential market entry?
The contract spans from 2007 to 2014, indicating a 7-year development period. However, the data does not specify the exact milestones or the expected timeline for regulatory approval or market entry post-development. Further information would be needed to assess the efficiency of this timeline relative to industry standards for antiviral drug development.
How does the cost-plus fixed fee structure impact the risk of cost overruns for this R&D project?
Cost-plus fixed fee contracts share cost risks. While the contractor is reimbursed for allowable costs plus a fixed fee, the government bears the primary risk of cost overruns. Effective oversight is crucial to manage scope and prevent unnecessary expenditures, especially in long-term R&D where uncertainties are high.
What are the key performance indicators (KPIs) used to measure the success of this antiviral development contract?
The provided data does not detail the specific KPIs for this contract. Typically, for R&D contracts like this, KPIs would include achieving specific scientific milestones (e.g., efficacy in preclinical models, safety profiles), adherence to development timelines, and successful progression through regulatory pathways. Robust measurement is key to assessing value.
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: DHSORDCVB0601
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2190 PKWY LAKE DR, BIRMINGHAM, AL, 35244
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $204,984,699
Exercised Options: $204,984,699
Current Obligation: $204,984,699
Actual Outlays: $-305,899
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2007-01-03
Current End Date: 2014-04-30
Potential End Date: 2014-04-30 00:00:00
Last Modified: 2025-01-10
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