HHS awards $113M to Emergent BioDefense for Biothrax manufacturing process development
Contract Overview
Contract Amount: $113,168,404 ($113.2M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2010-07-13
End Date: 2018-09-28
Contract Duration: 2,999 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TAS::75 0140::TAS EMERGENT BIODEFENSE OPERATIONS LANSINGS DEVELOPMENT AND LICENSURE OF A LARGE SCALE MANUFACTURING PROCESS FOR BIOTHRAX
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $113.2 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: TAS::75 0140::TAS EMERGENT BIODEFENSE OPERATIONS LANSINGS DEVELOPMENT AND LICENSURE OF A LARGE SCALE MANUFACTURING PROCESS FOR BIOTHRAX Key points: 1. Significant investment in biodefense capabilities. 2. Contract awarded via full and open competition. 3. Research and Development focus in biotechnology. 4. Potential long-term national security implications.
Value Assessment
Rating: fair
The contract value of $113M over 8 years for R&D is substantial. Benchmarking against similar large-scale biomanufacturing development contracts is difficult due to the specialized nature of biodefense, but the duration and cost suggest a complex, high-risk undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the specialized nature of biodefense R&D may limit the pool of qualified bidders.
Taxpayer Impact: Taxpayer funds are supporting critical national security infrastructure, aiming to ensure a supply of essential medical countermeasures against biothreats.
Public Impact
Enhances national preparedness against bioterrorism. Supports domestic manufacturing capabilities for critical medical supplies. Potential for job creation in the biotechnology sector. Ensures availability of a vaccine against a major biothreat.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High R&D costs and long development timelines.
- Reliance on a single contractor for a critical capability.
- Potential for cost overruns in complex manufacturing development.
Positive Signals
- Addresses a critical national security need.
- Investment in advanced biotechnology.
- Supports domestic industrial base.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, specifically focused on biodefense. Spending in this area is driven by national security priorities and public health preparedness, often involving significant, long-term investments.
Small Business Impact
The contract was awarded to Emergent BioDefense Operations Lansing LLC, a large entity. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, indicating oversight by a federal agency focused on public health emergencies. Further oversight details are not provided.
Related Government Programs
- Research and Development in Biotechnology
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Long contract duration with significant financial commitment.
- Complexity of biopharmaceutical manufacturing development.
- Dependence on a single entity for a critical national asset.
- Potential for evolving threat landscape requiring adaptation.
- Regulatory hurdles in drug manufacturing and licensure.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, mi, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $113.2 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. TAS::75 0140::TAS EMERGENT BIODEFENSE OPERATIONS LANSINGS DEVELOPMENT AND LICENSURE OF A LARGE SCALE MANUFACTURING PROCESS FOR BIOTHRAX
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING LLC.
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 $113.2 million.
What is the period of performance?
Start: 2010-07-13. End: 2018-09-28.
What is the projected cost per unit of Biothrax once manufacturing is scaled?
The provided data does not include projected per-unit costs for Biothrax. This contract focuses on the development and licensure of the manufacturing process itself, which is a research and development effort. Unit cost analysis would typically occur after the manufacturing process is established and production begins, and is subject to future contracts or operational costs.
What are the key performance indicators and milestones for this contract?
The data does not specify the key performance indicators or milestones for this contract. However, given the objective of developing and licensing a large-scale manufacturing process for Biothrax, milestones would likely include successful process validation, achievement of production targets, and regulatory approval for manufacturing by relevant authorities like the FDA.
How does the cost of this R&D contract compare to similar biodefense manufacturing development projects?
Direct cost comparisons are challenging due to the unique and specialized nature of biodefense R&D. The $113 million awarded over approximately 8 years reflects the complexity, high-risk nature, and stringent regulatory requirements inherent in developing and scaling biopharmaceutical manufacturing for critical medical countermeasures against biological threats.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc.
Address: 3500 N MARTIN LUTHER KING JR BLVD # 1, LANSING, MI, 48906
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $113,168,404
Exercised Options: $113,168,404
Current Obligation: $113,168,404
Actual Outlays: $9,183,335
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-13
Current End Date: 2018-09-28
Potential End Date: 2022-08-05 00:00:00
Last Modified: 2022-08-10
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