DoD's $12.1M contract for biological threat countermeasures awarded to University of South Florida

Contract Overview

Contract Amount: $12,082,936 ($12.1M)

Contractor: University of South Florida

Awarding Agency: Department of Defense

Start Date: 2007-09-26

End Date: 2011-03-28

Contract Duration: 1,279 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: COUNTERMEASURES TO BIOLOGICAL THREATS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33620

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to UNIVERSITY OF SOUTH FLORIDA for work described as: COUNTERMEASURES TO BIOLOGICAL THREATS Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 1279 days suggests a significant, long-term research effort. 3. Focus on 'Countermeasures to Biological Threats' aligns with critical national security needs. 4. The award to a university indicates a focus on research and development capabilities. 5. Lack of competition may lead to higher costs compared to a fully competed contract. 6. The 'Cost No Fee' contract type shifts risk to the government. 7. The North American Industry Classification System (NAICS) code 611310 points to higher education institutions.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specific research nature and sole-source award. Without comparable contracts or a competitive bidding process, it's difficult to definitively assess if the $12.1 million represents optimal value for money. The 'Cost No Fee' structure, while common in R&D, places the financial risk on the government, which could inflate the ultimate cost if expenditures exceed initial projections.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not solicit bids from multiple vendors. This approach is typically used when a specific entity possesses unique capabilities or when urgency precludes a competitive process. The absence of competition means there was no direct price comparison, potentially impacting the government's ability to secure the lowest possible price.

Taxpayer Impact: Sole-source awards limit opportunities for taxpayers to benefit from competitive pricing, potentially resulting in a higher overall expenditure for the government.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in developing countermeasures against biological threats. The services delivered focus on advancing scientific understanding and developing protective measures against biological agents. The geographic impact is primarily centered in Florida, where the University of South Florida is located. Workforce implications include potential employment for researchers, scientists, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost-plus contract type places financial risk on the government.
Lack of transparency in the selection process due to sole-source nature.

Positive Signals

Addresses critical national security need for biological threat countermeasures.
Leverages university research expertise for advanced scientific development.
Long contract duration suggests a sustained effort in a complex research area.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on life sciences and defense applications. The market for biological threat countermeasures is driven by national security concerns and public health initiatives. Universities are key players in this space, often possessing specialized knowledge and facilities for cutting-edge research. Comparable spending in this area can vary widely depending on the specific threat and the stage of research, but significant government investment is typical for such critical areas.

Small Business Impact

As this contract was awarded to a university, it is unlikely to have direct small business set-aside provisions. However, the university may engage small businesses as subcontractors for specialized services or equipment, though this is not explicitly detailed. The primary impact is on the academic research ecosystem rather than the traditional small business contracting landscape.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency within the Department of Defense, likely through program managers and contracting officers. Accountability measures would be tied to the research milestones and deliverables outlined in the contract. Transparency might be limited due to the sole-source nature, but research findings may be subject to publication or reporting requirements.

Related Government Programs

Department of Health and Human Services - Biomedical Advanced Research and Development Authority (BARDA)
National Institutes of Health (NIH) - Research Grants
Department of Homeland Security - Science and Technology Directorate

Risk Flags

Sole-source award may limit value for money.
Cost-reimbursement contract type shifts financial risk to the government.
Contract duration is significant, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to UNIVERSITY OF SOUTH FLORIDA. COUNTERMEASURES TO BIOLOGICAL THREATS

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF SOUTH FLORIDA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2007-09-26. End: 2011-03-28.

What is the specific nature of the 'Countermeasures to Biological Threats' being developed under this contract?

The contract details are limited, but 'Countermeasures to Biological Threats' generally encompasses a broad range of research and development activities aimed at preventing, detecting, and treating illnesses or injuries caused by exposure to biological agents. This can include the development of vaccines, antiviral drugs, diagnostic tools, protective equipment, and decontamination technologies. Given the award to a university by the Department of Defense, the focus is likely on advanced research into novel agents and sophisticated countermeasures, potentially including those relevant to military personnel or biodefense scenarios.

How does the 'Cost No Fee' contract type impact the government's financial exposure?

A 'Cost No Fee' (Cost) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This means the government bears the full financial risk of cost overruns. While it can incentivize contractors to perform work that might otherwise be too risky for a fixed-price contract, it requires robust government oversight to ensure costs are reasonable and necessary. For research-intensive projects like this, it allows the university to pursue scientific inquiry without the pressure of a fixed profit margin, but the total expenditure is directly tied to the actual costs incurred.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. Without competing bids, the government may not be obtaining the best possible value for its investment. Furthermore, it can create a perception of favoritism or limit opportunities for other qualified entities to participate. In this case, awarding $12.1 million without competition means the Department of Defense relied heavily on the unique capabilities of the University of South Florida, assuming no other institution could fulfill the requirement as effectively or efficiently.

What is the typical track record of universities in securing large federal research contracts, particularly in defense?

Universities are frequent recipients of large federal research contracts, especially in fields like science, engineering, and medicine. They are often at the forefront of basic and applied research, possessing specialized expertise, advanced facilities, and a highly educated workforce. The Department of Defense, along with agencies like NIH and NSF, regularly partners with academic institutions to advance scientific knowledge and develop new technologies. While universities may not have a 'track record' in the same commercial sense as a for-profit company, their success in securing grants and contracts is often measured by research output, publications, and the ability to attract top scientific talent.

How does this contract's spending compare to other federal investments in biological threat countermeasures?

The $12.1 million awarded to the University of South Florida represents a specific investment in a particular research area. Federal spending on biological threat countermeasures is substantial and distributed across multiple agencies, including the Department of Defense, Department of Health and Human Services (e.g., BARDA, NIH), and the Department of Homeland Security. Total annual federal outlays for biodefense and pandemic preparedness can reach billions of dollars, encompassing vaccine development, therapeutics, surveillance, and infrastructure. This single contract is a component of a much larger national effort.

What are the implications of the contract's start and end dates (2007-2011) for current biological threat preparedness?

The contract dates of 2007-2011 indicate that this was a research initiative undertaken over a decade ago. While the research conducted during this period may have laid foundational knowledge or contributed to ongoing efforts, it does not directly reflect current capabilities or ongoing investments in biological threat countermeasures. Federal priorities and scientific understanding evolve rapidly. Therefore, while this contract provides historical context for DoD's investment in the area, current preparedness strategies and funding would be based on more recent assessments and emerging threats.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4202 E FOWLER AVE ADM, TAMPA, FL, 90

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,082,936

Exercised Options: $12,082,936

Current Obligation: $12,082,936

Contract Characteristics

Cost or Pricing Data: YES

Timeline