DoD's $31.5M R&D contract for UCH-L1 PROMISING PAIRS awarded to Abbott Laboratories Inc. with no competition

Contract Overview

Contract Amount: $31,497,180 ($31.5M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Defense

Start Date: 2014-08-13

End Date: 2017-04-12

Contract Duration: 973 days

Daily Burn Rate: $32.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: UCH-L1 PROMISING PAIRS

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to ABBOTT LABORATORIES INC. for work described as: UCH-L1 PROMISING PAIRS Key points: 1. The contract's value of $31.5 million for research and development in biotechnology appears to be a significant investment in a specific area. 2. The sole-source nature of this award raises questions about potential price discovery and whether alternative solutions were considered. 3. A lack of competition could indicate a highly specialized need or a potential for inflated costs. 4. The contract duration of 973 days suggests a substantial research and development effort. 5. The award was made by the Department of the Army, indicating a defense-related research objective. 6. The fixed-price contract type aims to control costs, but the absence of competition limits benchmarking opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this $31.5 million contract is challenging due to its sole-source nature and specific R&D focus. Without comparable contracts or competitive bids, it's difficult to definitively assess if the pricing represents good value for money. The fixed-price structure provides some cost certainty, but the lack of competition means there's no market-driven pressure to ensure the lowest possible price. Further analysis would require understanding the specific technological advancements sought and the typical cost structures within biotechnology R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only source capable of meeting the requirement. The lack of competition means there were no other bidders, and therefore, no direct price comparison or negotiation leverage derived from a competitive bidding process. This approach can sometimes lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from the potential cost savings that can arise from a competitive environment. The price is negotiated directly with the single source, potentially without the downward pressure that multiple bids would provide.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially military personnel, through advancements in biotechnology relevant to their needs. The contract supports research and development in biotechnology, specifically related to 'UCH-L1 PROMISING PAIRS'. The geographic impact is primarily within Illinois, where Abbott Laboratories Inc. is located, suggesting domestic R&D. The workforce implications involve highly skilled scientists and researchers in the biotechnology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if not rigorously managed due to lack of competitive pressure.

Positive Signals

Contract awarded to a known entity (Abbott Laboratories Inc.) with potential existing expertise.
Fixed-price contract type provides some cost predictability.
Focus on R&D suggests investment in future capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biotechnology (NAICS code 541711). The biotechnology market is characterized by high innovation, significant intellectual property, and often specialized expertise. Government spending in this area supports advancements that can have both defense and civilian applications. Comparable spending benchmarks are difficult to establish for highly specific R&D projects, but the $31.5 million value indicates a substantial investment in a particular area of research.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like Abbott Laboratories Inc. suggests that the focus was on specialized capabilities rather than broad distribution among smaller entities. This contract does not appear to directly impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the progress of the R&D would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Biotechnology Research and Development
Department of Defense Research Contracts
Medical and Pharmaceutical Research
Advanced Technology Development

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to ABBOTT LABORATORIES INC.. UCH-L1 PROMISING PAIRS

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2014-08-13. End: 2017-04-12.

What is the specific nature of 'UCH-L1 PROMISING PAIRS' and its relevance to the Department of Defense?

The specific nature of 'UCH-L1 PROMISING PAIRS' is not detailed in the provided data. However, UCH-L1 (Ubiquitin C-terminal Hydrolase L1) is an enzyme known to be involved in various cellular processes, including protein degradation and signaling. In a medical or defense context, research into such targets could relate to developing diagnostics, therapeutics, or understanding disease mechanisms. Given the Department of Defense as the awarding agency, the research might be aimed at improving soldier health, developing countermeasures against biological threats, or advancing medical technologies for battlefield applications. Without further documentation, the precise application remains speculative but likely ties into critical health or biological defense initiatives.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. While the specific justification is not detailed, sole-source awards are typically made when only one responsible source is available or capable of meeting the requirement. This could be due to unique proprietary technology, specialized expertise held by Abbott Laboratories Inc., critical urgency where competition would cause unacceptable delays, or if the value is below the threshold for mandatory competition. For R&D contracts, it's common if the research builds directly on prior proprietary work or requires highly specialized, non-replicable knowledge. A formal Justification for Other than Full and Open Competition (JOFOC) would typically be required and documented by the agency.

How does the $31.5 million contract value compare to similar R&D efforts in biotechnology by the DoD?

Comparing the $31.5 million value of this contract to similar R&D efforts in biotechnology by the DoD is challenging without access to a comprehensive database of all DoD R&D contracts, including their specific technical scopes and durations. However, $31.5 million is a substantial sum for a single R&D contract, suggesting a significant project. The DoD invests billions annually in R&D across various scientific fields, including biotechnology. The uniqueness of the research area ('UCH-L1 PROMISING PAIRS') and the sole-source nature of this award make direct comparisons difficult. It represents a significant investment in a specific technological or scientific advancement within the broader DoD research portfolio.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risk associated with a sole-source R&D contract of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the most favorable pricing. Another risk is the potential for contractor underperformance or delays, as the government has fewer options to pivot if issues arise. Furthermore, sole-sourcing can sometimes limit the government's access to innovative solutions that might have been proposed by other potential bidders. Ensuring robust oversight, clear performance metrics, and effective contract management becomes even more critical in sole-source situations to mitigate these risks and ensure value for taxpayer money.

What is Abbott Laboratories Inc.'s track record with the Department of Defense for R&D contracts?

The provided data only includes details for this specific contract. To assess Abbott Laboratories Inc.'s track record with the Department of Defense for R&D contracts, a broader search of federal procurement databases would be necessary. This would involve looking at past awards, contract performance history, and any reported issues or successes. Abbott Laboratories is a large, established company with a significant presence in healthcare and medical products, suggesting they likely have experience with government contracts. However, the specifics of their R&D performance with the DoD, particularly in areas related to this contract, would require further investigation beyond the scope of the given data.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81XWH12R0085

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Abbott Laboratories (UEI: 001307602)

Address: 200 ABBOTT PARK RD, ABBOTT PARK, IL, 60064

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: $31,497,180

Exercised Options: $31,497,180

Current Obligation: $31,497,180

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline