HHS awarded $38.5M for biotech R&D, with a 2098-day duration, to Terumo BCT

Contract Overview

Contract Amount: $38,531,241 ($38.5M)

Contractor: Terumo BCT Biotechnologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-06-01

End Date: 2022-02-28

Contract Duration: 2,098 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF TERUMO BCT BIOTECHNOLOGIES, INC.

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80215

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38.5 million to TERUMO BCT BIOTECHNOLOGIES, LLC for work described as: IGF::CT::IGF TERUMO BCT BIOTECHNOLOGIES, INC. Key points: 1. Contract value of $38.5 million over nearly six years suggests a significant investment in biotechnology research. 2. The 'Research and Development in Biotechnology' NAICS code indicates a focus on scientific advancement. 3. A definitive contract type implies a long-term agreement for specific services. 4. The cost-plus-fixed-fee (CPFF) pricing structure allows for cost reimbursement plus a fixed fee, potentially incentivizing efficiency. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The duration of 2098 days points to a substantial, multi-year research effort.

Value Assessment

Rating: fair

The contract value of $38.5 million over 2098 days averages approximately $18,366 per day. Without specific deliverables or milestones, it's challenging to benchmark this against similar contracts. The CPFF structure can lead to cost overruns if not managed tightly, but it also allows for flexibility in research projects where costs may be uncertain. The fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This process is designed to ensure fair pricing and access to the best available solutions. The number of bidders is not specified, but the 'full and open' designation suggests a competitive environment that should theoretically drive down costs and improve value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace, which can lead to more favorable pricing and innovative solutions compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and potentially the broader public through advancements in biotechnology. The contract supports research and development activities in the biotechnology sector. The geographic impact is primarily linked to the contractor's location in Colorado, though the research outcomes could have national or global implications. Workforce implications include employment for scientists, researchers, and support staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Research outcomes may not meet initial expectations or timelines due to the nature of R&D.
Lack of specific performance metrics in the provided data makes it difficult to assess progress.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long contract duration indicates a sustained commitment to a specific research area.
Focus on biotechnology R&D aligns with national health and scientific priorities.

Sector Analysis

The biotechnology sector is a rapidly growing field focused on leveraging biological systems and organisms to develop or create different products. This contract falls under the 'Research and Development in Biotechnology' NAICS code (541711), which is a significant area of federal investment. Comparable spending benchmarks would require analysis of other federal R&D contracts in this specific sub-sector, but the $38.5 million award over nearly six years represents a substantial commitment.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no indication of small business set-asides (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist but are not detailed in this summary. The focus on a large contract value might limit direct opportunities for very small businesses unless they are specialized subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at HHS, regular progress reports from the contractor, and potentially reviews by the HHS Office of Inspector General (OIG). The CPFF structure necessitates careful monitoring of expenditures to ensure costs are reasonable and allocable to the contract. Transparency would be enhanced through public contract databases and reporting requirements.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Biomedical Advanced Research and Development Authority (BARDA) Contracts
Department of Defense (DoD) Biotechnology Research

Risk Flags

Cost Overrun Risk (CPFF)
Research Outcome Uncertainty
Performance Monitoring Gaps (based on summary data)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38.5 million to TERUMO BCT BIOTECHNOLOGIES, LLC. IGF::CT::IGF TERUMO BCT BIOTECHNOLOGIES, INC.

Who is the contractor on this award?

The obligated recipient is TERUMO BCT BIOTECHNOLOGIES, 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 $38.5 million.

What is the period of performance?

Start: 2016-06-01. End: 2022-02-28.

What specific biotechnology research areas does this contract cover?

The provided data specifies the NAICS code as 'Research and Development in Biotechnology' (541711) and the awarding agency as the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). However, the exact research focus, such as gene therapy, drug discovery, vaccine development, or diagnostic tools, is not detailed in the summary data. Further investigation into the contract's statement of work or associated documentation would be required to ascertain the precise scientific objectives and areas of investigation.

How does the $38.5 million contract value compare to other federal biotechnology R&D awards?

Benchmarking the $38.5 million contract value requires comparing it against similar contracts within the biotechnology R&D sector, particularly those awarded by HHS or other agencies like the NIH or DoD. The duration of 2098 days (approximately 5.75 years) is substantial, suggesting a significant, long-term research initiative. Without access to a comprehensive database of federal R&D contracts filtered by specific biotechnology sub-fields and contract types, a precise comparison is difficult. However, $38.5 million over nearly six years represents a considerable investment, likely for a project with ambitious goals or high development costs.

What are the key performance indicators (KPIs) or milestones associated with this contract?

The provided summary data does not explicitly list the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, milestones are often tied to research progress, development stages, or the delivery of specific research findings or prototypes. The contracting officer's representative (COR) would typically monitor adherence to these milestones. The absence of this information in the summary highlights a potential gap in readily accessible performance data, making it challenging to assess the contract's progress and success solely from this overview.

What is the track record of Terumo BCT Biotechnologies, Inc. with federal contracts?

Terumo BCT Biotechnologies, Inc. (or its parent/related entities) has a history of receiving federal contracts. The data indicates this specific contract was awarded to 'TERUMO BCT BIOTECHNOLOGIES, INC.' with 'TERUMO BCT BIOTECHNOLOGIES, LLC' listed as the contractor. Analyzing their broader federal contracting history, including past performance on similar R&D contracts, contract values, and any past performance issues or awards, would provide a more comprehensive view of their track record. This specific contract's duration and value suggest a level of trust and capability recognized by the awarding agency.

What is the potential impact of this contract on public health preparedness?

Given that the contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, it is highly probable that the biotechnology research funded by this contract is intended to enhance public health preparedness. This could involve developing new medical countermeasures, diagnostic tools, or therapeutic strategies to address existing or emerging public health threats, such as infectious diseases or biological agents. The long-term nature of the R&D suggests a focus on foundational science that could lead to significant advancements in the nation's ability to respond to health emergencies.

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: BASIC RESEARCH

Solicitation ID: BAA16100SOL00001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Terumo Corporation (UEI: 690543319)

Address: 1215 QUAIL ST, LAKEWOOD, CO, 80215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,531,241

Exercised Options: $38,531,241

Current Obligation: $38,531,241

Actual Outlays: $-1,234,005

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline