FDA Seeks VC Insights on Innovative Contracting to Accelerate Public Health Technologies
The U.S. Food and Drug Administration (FDA) has taken a noteworthy step toward modernizing how it collaborates with innovative technology companies — particularly those backed by venture capital (VC) — by issuing a Request for Information (RFI) seeking feedback from venture capital firms on a proposed new contracting approach. The RFI, announced on December 19, 2025, reflects a shift in federal procurement thinking that could unlock stronger public-private engagement and accelerate life sciences innovation.
Traditionally, federal contracting mechanisms have relied heavily on large systems integrators and intermediaries, which tend to emphasize labor-intensive work over scalable technology solutions and often create barriers for early-stage companies. The FDA notes that this can limit its access to cutting-edge tools and emerging technologies that could advance public health — from artificial intelligence and regulatory technology to novel medical devices and next-generation biotechnologies.
In the RFI, the FDA outlines a proposed contracting model that would:
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Establish direct contractual relationships with qualified VC firms rather than pass-through intermediaries.
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Enable companies within an approved VC’s portfolio to compete directly for FDA task orders and contracts.
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Support a wide range of agency activities — including research partnerships, technology deployment, and regulatory innovation.
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Solicit input on qualification criteria, financial/administrative frameworks, intellectual property protections, and regulatory compliance considerations.
Internally described as the Foundational Innovation and RAPID Engagement (FIRE) initiative in federal contracting circles, this RFI (Solicitation FDA-26-132067) remains a market research effort and does not commit the agency to any specific contract awards. Responses are due January 18, 2026.
For the life sciences community — including innovators, startups, investors, and industry advocates like BIO and MichBio — this RFI signals several important potential shifts:
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Lowering Structural Barriers to Engagement
By exploring a contracting structure that routes opportunities through VC firms, the FDA is acknowledging long-standing challenges that small and mid-sized innovators face when trying to engage with federal agencies, whether due to procurement complexity or the dynamics of traditional subcontracting. A more streamlined pathway could reduce those hurdles and increase opportunities for early-stage technologies to support public health missions directly.
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Harnessing Cutting-Edge Innovation Earlier
Many transformative technologies — such as machine learning for regulatory science, advanced diagnostics, biologics manufacturing platforms, or regulatory technology (“regtech”) tools — are emerging from venture-backed startups. A mechanism that integrates these innovators more seamlessly into FDA partnerships could help the agency benefit from real-time advancements while offering entrepreneurs earlier exposure to federal project scopes and needs.
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Aligning Public Health Priorities with Market Forces
The lifelong challenge for regulators has been balancing rigorous safety and effectiveness standards while keeping pace with innovation. This RFI demonstrates an intent to align federal acquisition strategies with market dynamics, potentially enabling the FDA to access solutions that mature outside traditional government contracting pipelines.
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New Opportunities for VC and Startup Engagement
Venture capital firms and their portfolio companies now have a defined channel to influence the design and structure of government engagement mechanisms — not just participate in them. This could prompt broader conversations about how public procurement can adapt to the accelerated cadence of technology development in life sciences.
Stakeholders are encouraged to consider whether and how to respond to the RFI before the January 18, 2026 deadline. Thoughtful input from the VC and life sciences community can help shape a model that improves public health outcomes while fostering a more innovative and accessible ecosystem for emerging companies.
For life sciences innovators and investors alike, this RFI presents a timely opportunity to engage with the FDA on how federal contracting can evolve to support a more dynamic future of public health innovation.
