DoD awards $37.6M for TBI diagnostic research to Abbott Laboratories, raising questions on competition and value

Contract Overview

Contract Amount: $37,604,629 ($37.6M)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2027-09-30

Contract Duration: 3,135 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LABORATORY ASSAY FOR TRAUMATIC BRAIN INJURY

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $37.6 million to ABBOTT LABORATORIES INC. for work described as: LABORATORY ASSAY FOR TRAUMATIC BRAIN INJURY Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Research and Development in Biotechnology sector, focusing on critical TBI diagnostics. 3. Long contract duration (2019-2027) suggests a significant, ongoing need for this capability. 4. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency. 5. No small business set-aside indicates a focus on specialized capabilities. 6. High value suggests a critical need or limited market alternatives for this specific research.

Value Assessment

Rating: fair

Benchmarking Abbott Laboratories' pricing for similar R&D contracts is challenging without more specific data on the scope of work. The firm fixed price structure provides cost certainty for the government. However, the lack of competition makes it difficult to assess if the price represents optimal value for money. The contract value of $37.6 million over its duration suggests a substantial investment in a specialized area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Abbott Laboratories was the only vendor considered. This approach is typically used when a unique capability or proprietary technology is required, or when only one source is capable of meeting the requirement. The absence of a competitive bidding process means that the government did not explore alternative solutions or pricing from other potential vendors.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the potential for competitive pressure on pricing is eliminated. It also limits opportunities for other companies to demonstrate their capabilities and potentially offer more cost-effective solutions.

Public Impact

Service members and veterans suffering from Traumatic Brain Injury (TBI) are the primary beneficiaries, with the potential for improved diagnostic tools. The contract supports critical research and development in biotechnology, specifically for TBI. The geographic impact is primarily within Illinois, where Abbott Laboratories is headquartered, though the benefits of TBI diagnostics are national. Workforce implications include specialized scientific and research roles within Abbott Laboratories.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source award limits opportunities for other innovative companies in the TBI diagnostic space.
Long contract duration without clear performance milestones could pose a risk if research stalls.

Positive Signals

Abbott Laboratories is a recognized leader in diagnostics, suggesting a high likelihood of technical success.
Firm Fixed Price contract provides budget certainty for the government.
Focus on TBI diagnostics addresses a critical unmet need for military personnel and veterans.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on biotechnology and medical diagnostics. The market for TBI diagnostics is growing due to increased awareness and the prevalence of TBI in military and civilian populations. While specific market size data for TBI diagnostics R&D is not readily available, the overall biotechnology R&D market is substantial, with significant government investment.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the available data. This suggests that the specialized nature of the research and development required for TBI diagnostics is currently being addressed by larger, established firms like Abbott Laboratories. The focus is on leveraging existing advanced capabilities rather than fostering small business growth in this specific niche.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency (DHA) and the Department of Defense (DoD). Mechanisms likely include regular reporting requirements from Abbott Laboratories, periodic reviews of research progress, and financial audits. The specific Inspector General jurisdiction would be that of the DoD. Transparency is generally limited for sole-source R&D contracts, with details often considered proprietary.

Related Government Programs

Traumatic Brain Injury Research Programs
Biotechnology Research and Development Contracts
Medical Diagnostics Development
Department of Defense Research Contracts
Defense Health Agency Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost inefficiency
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 million to ABBOTT LABORATORIES INC.. LABORATORY ASSAY FOR TRAUMATIC BRAIN INJURY

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $37.6 million.

What is the period of performance?

Start: 2019-03-01. End: 2027-09-30.

What is Abbott Laboratories' track record with the Department of Defense, particularly in research and development contracts?

Abbott Laboratories has a history of engaging with the Department of Defense, though specific details on their R&D contract performance require deeper analysis. As a major healthcare and diagnostics company, their involvement often centers on providing medical products and services. For R&D, their track record would need to be assessed based on successful delivery of research outcomes, adherence to timelines, and budget management in prior government engagements. Without access to specific performance evaluations or past contract data, it's difficult to provide a definitive assessment, but their established presence suggests a capacity to handle complex research projects.

How does the $37.6 million contract value compare to similar TBI diagnostic research efforts funded by the government?

Comparing the $37.6 million value requires identifying comparable government-funded TBI diagnostic research projects. This contract's value is substantial, suggesting a comprehensive, multi-year research initiative. Similar large-scale R&D efforts in specialized medical fields can range from tens to hundreds of millions of dollars, depending on the complexity, duration, and technological innovation involved. To benchmark effectively, one would need to analyze contracts with similar objectives (e.g., developing novel diagnostic assays), similar contract types (e.g., R&D), and similar durations. The sole-source nature of this award also complicates direct value-for-money comparisons with competitively bid projects.

What are the primary risks associated with this sole-source R&D contract for TBI diagnostics?

The primary risks associated with this sole-source R&D contract include potential cost overruns if the fixed price doesn't adequately account for unforeseen research challenges, and a lack of innovation spurred by competition. Taxpayers may not be receiving the best possible value due to the absence of competitive bidding. Furthermore, if Abbott Laboratories encounters significant scientific or technical hurdles, the project's timeline could be extended, impacting the delivery of critical diagnostic tools. There's also a risk that alternative, potentially more effective, diagnostic approaches might not be explored due to the single-source award.

How effective is the current diagnostic approach for TBI, and what is the expected impact of this research?

Current diagnostic approaches for TBI often rely on a combination of clinical assessment, imaging (like CT or MRI), and sometimes cognitive tests. However, there is a recognized need for more objective, sensitive, and rapid diagnostic tools, particularly for mild TBI (concussion). This research aims to develop a laboratory assay, likely involving biomarkers, that could provide a more definitive and potentially earlier diagnosis. The expected impact is significant: improved patient management, better understanding of injury severity, and potentially reduced long-term consequences by enabling timely and appropriate treatment. Success in this R&D effort could revolutionize TBI diagnosis.

What are the historical spending patterns for TBI-related research and development within the Department of Defense?

Historical spending patterns for TBI-related R&D within the Department of Defense have generally increased over the past two decades, reflecting the growing recognition of TBI as a signature injury among service members, particularly following conflicts in Iraq and Afghanistan. The DoD has invested significantly through various agencies, including the Defense Health Agency, Congressionally Directed Medical Research Programs (CDMRP), and specific service branches. Funding allocations fluctuate based on research priorities, scientific breakthroughs, and budgetary cycles. This $37.6 million contract represents a notable investment within that broader historical context, underscoring the sustained focus on addressing TBI.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81XWH19R0074

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $48,418,678

Exercised Options: $37,604,629

Current Obligation: $37,604,629

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline