HHS awards $19.8M for Anthrax diagnostic systems, with R&D focus and full competition

Contract Overview

Contract Amount: $19,765,033 ($19.8M)

Contractor: SRI International

Awarding Agency: Department of Health and Human Services

Start Date: 2016-05-16

End Date: 2023-08-31

Contract Duration: 2,663 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF POINT-OF-CARE DIAGNOSTIC ASSAY SYSTEM FOR ANTHRAX

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.8 million to SRI INTERNATIONAL for work described as: IGF::OT::IGF POINT-OF-CARE DIAGNOSTIC ASSAY SYSTEM FOR ANTHRAX Key points: 1. Contract focuses on research and development for critical public health needs. 2. Full and open competition suggests a robust market for this technology. 3. Contract duration of over 7 years indicates a long-term development effort. 4. SRI INTERNATIONAL, a known research entity, is the awardee. 5. The contract type (Cost Plus Fixed Fee) is common for R&D projects. 6. Geographic location in California may indicate a concentration of biotech expertise.

Value Assessment

Rating: good

The total award of $19.8 million over approximately 7 years for R&D in diagnostic systems appears reasonable. Benchmarking against similar R&D contracts for advanced medical countermeasures is challenging due to the specialized nature of the technology. However, the cost-plus-fixed-fee structure allows for flexibility in research while providing incentives for the contractor to manage costs effectively. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of full and open competition generally leads to a wider range of innovative solutions and competitive pricing. The specific number of bidders is not provided, but the competition type suggests a healthy market for this specialized R&D.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages innovation, potentially leading to more effective and affordable diagnostic solutions.

Public Impact

The public benefits from advancements in rapid diagnostic capabilities for anthrax, enhancing national biodefense. Services delivered include research and development of point-of-care diagnostic assay systems. The geographic impact is primarily within California where SRI INTERNATIONAL is located, but the technology has national security implications. Workforce implications include specialized scientific and technical jobs in biotechnology and diagnostics research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee R&D contracts.
Long contract duration may require ongoing monitoring to ensure progress aligns with objectives.
Dependence on a single contractor for a critical technology could pose a risk if performance falters.

Positive Signals

Award to a reputable research institution (SRI INTERNATIONAL) suggests technical competence.
Full and open competition indicates a mature market and potential for innovation.
Focus on a critical biodefense capability addresses a significant public health and security need.

Sector Analysis

The contract falls within the Biotechnology Research and Development sector (NAICS 541711). This sector is characterized by significant investment in innovation, long development cycles, and high technical risk. The market for advanced diagnostics, particularly for biodefense applications, is driven by government funding and the need for rapid response capabilities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of anthrax diagnostics, but R&D in this area typically involves substantial investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). SRI INTERNATIONAL is a large research organization. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem for this specific contract appears limited, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). Contract performance, adherence to cost controls, and achievement of R&D milestones would be monitored. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Biodefense Advanced Research Projects Agency (BARDA) programs
National Institutes of Health (NIH) research grants
Department of Homeland Security (DHS) biosecurity initiatives
Centers for Disease Control and Prevention (CDC) diagnostics development

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee contracts carry inherent cost escalation risks in R&D.
Dependence on a single awardee for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.8 million to SRI INTERNATIONAL. IGF::OT::IGF POINT-OF-CARE DIAGNOSTIC ASSAY SYSTEM FOR ANTHRAX

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

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 $19.8 million.

What is the period of performance?

Start: 2016-05-16. End: 2023-08-31.

What is the track record of SRI INTERNATIONAL in developing diagnostic systems for biothreat agents?

SRI INTERNATIONAL has a long history of research and development across various scientific disciplines, including life sciences and advanced diagnostics. While specific details on their past anthrax diagnostic system development are not provided in this data snippet, their general expertise in areas like biosensors, molecular diagnostics, and assay development suggests a strong capability. They have been involved in numerous government-funded research projects, often focusing on complex scientific challenges. Further investigation into their specific project portfolio and publications related to biothreat detection would provide a more comprehensive understanding of their track record in this precise area.

How does the $19.8 million award compare to similar R&D contracts for diagnostic systems?

Direct comparison of the $19.8 million award for an anthrax point-of-care diagnostic system is challenging without more specific contract details and market data. Research and Development (R&D) contracts, especially for novel biodefense technologies, vary significantly in cost based on complexity, technological maturity, and development phase. Contracts for early-stage research might be smaller, while those involving advanced prototype development and testing, like this one appears to be, can reach tens of millions of dollars. The duration of over 7 years also suggests a comprehensive development effort. Benchmarking would ideally involve comparing it to other HHS or BARDA contracts for similar diagnostic capabilities against other biothreat agents, considering factors like the number of bidders and the specific technical challenges addressed.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) stem from the nature of innovation. For the government, the main risk is that costs could exceed initial estimates, although the fixed fee provides some ceiling on profit. The contractor bears the risk of cost overruns beyond the allowable costs, but their incentive is to perform the work efficiently to ensure the fixed fee is realized. For R&D, the inherent uncertainty means that the scope may need to evolve, potentially leading to contract modifications. Ensuring that the contractor maintains rigorous cost controls and that the government's technical oversight is robust are critical to mitigating these risks and achieving value for money.

What is the expected effectiveness or impact of the developed diagnostic system?

The expected effectiveness and impact of the developed point-of-care diagnostic assay system for anthrax are significant for national biodefense and public health preparedness. Such a system aims to provide rapid, accurate detection of anthrax exposure or infection at or near the site of need, potentially outside of traditional laboratory settings. This speed is crucial for timely medical intervention, reducing morbidity and mortality, and enabling effective public health responses, such as contact tracing and prophylaxis administration. The system's development under this contract is intended to enhance the nation's capability to quickly identify and manage anthrax threats, thereby improving overall resilience against biological attacks or natural outbreaks.

How has federal spending on anthrax-related diagnostics evolved over time?

Federal spending on anthrax-related diagnostics has likely seen fluctuations and increases, particularly following the 2001 anthrax attacks. Prior to 2001, investment in rapid, point-of-care diagnostics for anthrax may have been relatively limited, focusing more on laboratory-based methods. Post-2001, there was a significant push to develop faster, more deployable diagnostic tools as part of broader biodefense initiatives funded by agencies like HHS (e.g., ASPR/BARDA) and DHS. This included funding for research, development, and procurement of various diagnostic platforms. The $19.8 million award to SRI INTERNATIONAL is indicative of ongoing, substantial investment in advancing these critical capabilities, reflecting a sustained commitment to preparedness.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,765,033

Exercised Options: $19,765,033

Current Obligation: $19,765,033

Actual Outlays: $9,195,655

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $16,831,310

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline