HHS awards $124M+ R&D contract to ACHAOGEN, INC. for biotechnology research
Contract Overview
Contract Amount: $124,427,027 ($124.4M)
Contractor: Achaogen, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-08-21
End Date: 2018-06-30
Contract Duration: 2,870 days
Daily Burn Rate: $43.4K/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
Place of Performance
Location: SOUTH SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94080
Plain-Language Summary
Department of Health and Human Services obligated $124.4 million to ACHAOGEN, INC. for work described as: TAS::75 0140::TAS Key points: 1. Significant investment in biotechnology R&D. 2. Single awardee suggests potential for specialized expertise or limited market. 3. Contract duration of nearly 8 years indicates a long-term project. 4. Cost-plus-fixed-fee structure may incentivize cost escalation.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure, while allowing flexibility for R&D, can lead to higher overall costs compared to fixed-price contracts. Benchmarking against similar long-term R&D efforts is difficult without more detailed cost breakdowns.
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 single awardee implies that only one entity met the specific requirements or offered the best value.
Taxpayer Impact: Taxpayer funds are supporting critical R&D in biotechnology, with the potential for significant public health benefits. The cost-plus-fixed-fee nature warrants close monitoring to ensure efficient use of funds.
Public Impact
Supports advancement in biotechnology, potentially leading to new medical treatments or public health solutions. Long-term commitment to a specific research area. Investment in a single company for specialized R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure
- Long contract duration
- Single awardee for R&D
Positive Signals
- Full and open competition
- Focus on critical R&D area
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a critical area for public health and scientific advancement. Spending benchmarks in this highly specialized field vary widely based on project scope and duration.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract's long duration and cost-plus-fixed-fee structure necessitate robust oversight to ensure performance, cost control, and adherence to research objectives. Regular reviews of progress and expenditures are crucial.
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
- Potential for cost overruns due to cost-plus-fixed-fee structure.
- Long contract duration may lead to scope creep or evolving research needs.
- Single awardee limits competitive pressure throughout the contract life.
- Lack of small business prime awardee.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $124.4 million to ACHAOGEN, INC.. TAS::75 0140::TAS
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 (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $124.4 million.
What is the period of performance?
Start: 2010-08-21. End: 2018-06-30.
What specific biotechnology advancements or public health outcomes were achieved or are anticipated from this significant investment?
The contract aimed to support research and development in biotechnology, likely focusing on areas critical to public health preparedness and response, as indicated by the agency. Specific outcomes would typically be detailed in project reports and scientific publications, demonstrating the tangible benefits derived from the $124M+ investment over its nearly 8-year duration.
How effectively did the full and open competition process identify the most capable and cost-efficient provider for this specialized R&D?
While awarded under full and open competition, the selection of a single awardee suggests that only one offeror fully met the stringent technical and programmatic requirements. The effectiveness in terms of cost efficiency would be assessed by comparing the final costs against initial projections and the value of the research outcomes achieved.
What measures were in place to mitigate cost overruns inherent in a cost-plus-fixed-fee R&D contract of this magnitude and duration?
Mitigation strategies for cost-plus-fixed-fee contracts typically include stringent oversight, detailed cost tracking, performance milestones, and clear definitions of allowable costs. For this contract, the agency likely employed regular reviews of expenditures, progress reports, and adherence to the fixed fee to ensure accountability and manage financial risks.
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
Address: 7000 SHORELINE CT STE 371, SOUTH SAN FRANCISCO, CA, 94080
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $133,495,368
Exercised Options: $124,427,027
Current Obligation: $124,427,027
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-08-21
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-03-28
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