NIH spent over $50M on R&D services, with a 15-year contract awarded via full and open competition

Contract Overview

Contract Amount: $50,377,945 ($50.4M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2003-07-15

End Date: 2016-08-12

Contract Duration: 4,777 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.4 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. Long contract duration (15 years) may indicate a need for sustained research support. 3. Cost Plus Award Fee contract type allows for flexibility in payment based on performance. 4. The contract was awarded to a single vendor, Technical Resources International, Inc. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for NIH. 6. The contract's value suggests significant investment in scientific advancement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its long duration and specific R&D focus. The Cost Plus Award Fee structure means the final cost could vary based on performance, making direct price comparisons difficult. However, the total obligated amount of over $50 million over 15 years suggests a substantial investment. Without specific performance metrics or comparable contracts for similar niche R&D services, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive process, though the exact number of interested parties and the rigor of the evaluation are not detailed. Full and open competition generally promotes price discovery and allows the government to select the best value offering.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible research services at a reasonable cost.

Public Impact

The primary beneficiaries are researchers and scientists within the National Institutes of Health (NIH) who receive support for their physical, engineering, and life sciences research. The contract delivers essential research and development services, contributing to scientific discovery and innovation. The geographic impact is primarily within Maryland, where the contractor is located and likely where services are performed. The contract supports a specialized workforce in research and development, potentially including scientists, technicians, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in and reduced flexibility for the agency.
Cost Plus Award Fee contracts can sometimes incentivize cost overruns if not managed carefully.
Limited information on specific performance metrics makes it hard to assess if the full award fee was earned.
The contract's age means current market rates for similar services may have changed significantly.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract supported critical R&D activities for a major health research agency.
The long-term nature suggests a stable and reliable partnership for research support.
The Cost Plus Award Fee structure allows for rewarding exceptional performance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a core area for the National Institutes of Health (NIH), a leading biomedical research agency. The market for R&D services is highly specialized, with significant government investment. Comparable spending benchmarks would typically be found within other agencies funding similar scientific research, such as the National Science Foundation or Department of Defense research arms.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss: false' and 'sb: false'. The primary contractor, Technical Resources International, Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized R&D expertise, and opportunities for small business participation may have been limited unless they were subcontractors to the prime.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. As a Cost Plus Award Fee contract, performance monitoring and evaluation would be crucial to determine award fees. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH Research Grants
Biomedical Research Support
Federal R&D Spending
Life Sciences Research Contracts
Engineering Services Contracts

Risk Flags

Long contract duration
Cost-reimbursable contract type
Limited competition details provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.4 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TECHNICAL RESOURCES INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $50.4 million.

What is the period of performance?

Start: 2003-07-15. End: 2016-08-12.

What was the specific nature of the Research and Development services provided under this contract?

The contract, NAICS code 541710, covers Research and Development in the Physical, Engineering, and Life Sciences. While the data does not specify the exact projects, it implies support for NIH's mission in areas such as basic and applied research, clinical trials support, data analysis, and laboratory services within these scientific domains. The long duration and significant value suggest a broad and sustained need for technical expertise and research infrastructure.

How did the performance of Technical Resources International, Inc. influence the 'Award Fee' component of the contract?

The Cost Plus Award Fee (CPAF) contract structure means that Technical Resources International, Inc. (TRII) could earn a base fee plus an award fee based on performance against pre-defined criteria. The 'award' portion of the fee is discretionary and determined by the government based on how well TRII met or exceeded expectations in areas like technical performance, cost control, schedule adherence, and management. Without access to the performance evaluations and award fee determinations made by NIH, it's impossible to quantify how much of the potential award fee TRII actually received.

What is the typical market rate for similar R&D services provided to federal agencies?

Determining a precise 'market rate' for R&D services is complex due to the highly specialized and variable nature of the work. Factors like the specific scientific discipline, required expertise, equipment, and project scope heavily influence pricing. For a contract of this magnitude and duration (over $50M over 15 years), it suggests services that are either highly specialized or involve significant infrastructure support. Benchmarking would require comparing against other large, long-term R&D contracts within the physical, engineering, and life sciences sectors awarded by agencies like NIH, NSF, or DoD, considering the specific service mix and performance requirements.

Were there any significant cost underruns or overruns associated with this contract?

The contract type is 'Cost Plus Award Fee' (CPAF), which means the government reimburses the contractor's allowable costs plus a fee. The fee consists of a fixed base amount and a variable award amount, determined by performance. While the total obligated amount reached over $50 million, this figure represents the maximum potential liability. CPAF contracts are designed to incentivize performance, but they also carry a risk of cost growth if not managed diligently. Without detailed financial reports or audits specific to this contract, it's not possible to definitively state whether there were significant cost underruns or overruns relative to the initial estimates or the work performed.

What is the historical spending trend for R&D services by the National Institutes of Health?

The National Institutes of Health (NIH) is a major federal funder of biomedical and health-related research. Historical spending trends for NIH show a consistent and significant investment in Research and Development, both through grants to external institutions and direct contracts for services and support. Over the years, NIH's budget has generally increased, reflecting a sustained commitment to scientific advancement. Contracts like the one awarded to Technical Resources International, Inc. represent a portion of this overall R&D expenditure, focusing on specific needs that cannot be met through grants alone.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 6500 ROCK SPRING DR, BETHESDA, MD, 20817

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,457,190

Exercised Options: $62,812,017

Current Obligation: $50,377,945

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline