NIH contract for R&D services awarded to Seracare Bioservices for over $18.2 million

Contract Overview

Contract Amount: $18,281,774 ($18.3M)

Contractor: Seracare Bioservices

Awarding Agency: Department of Health and Human Services

Start Date: 2000-01-14

End Date: 2015-03-24

Contract Duration: 5,548 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-OTHER R & D-B RES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.3 million to SERACARE BIOSERVICES for work described as: R&D-OTHER R & D-B RES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 15 years indicates a long-term need for these R&D services. 3. Awarded as a Cost Plus Fixed Fee (CPFF) type, which can incentivize cost control but also carries risk. 4. The contract was awarded to a single vendor, Seracare Bioservices. 5. The geographic location of performance is Maryland. 6. The contract was awarded by the National Institutes of Health (NIH), a major biomedical research agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure means the government pays the actual costs plus a negotiated fixed fee. While this can be appropriate for R&D where costs are uncertain, it requires robust oversight to ensure costs are reasonable and the fixed fee represents fair profit. Comparing to similar R&D contracts for similar services would be necessary for a more definitive value assessment. The long duration suggests a sustained need, but the overall value-for-money depends heavily on the outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests some level of competition, though the exact number of bidders can vary widely for R&D services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The limited number of bids here might suggest a specialized service area or a limited pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bids, the potential for cost savings might be less than if there were numerous competing offers.

Public Impact

This contract supports research and development activities, likely contributing to advancements in biomedical science and public health. The primary beneficiary is the National Institutes of Health (NIH) and its research mission. Services are performed in Maryland, potentially impacting the local economy and workforce in the state. The contract's focus on R&D suggests it may lead to new technologies, treatments, or scientific understanding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The long contract duration (over 15 years) necessitates ongoing performance monitoring to ensure continued value and relevance.
Limited competition (2 bids) could potentially lead to higher prices than a more robustly competed contract.

Positive Signals

Awarded through full and open competition, adhering to principles of fair and transparent procurement.
The contract supports critical R&D functions for a leading health research agency (NIH).
The fixed fee component in the CPFF structure provides some cost predictability once negotiated.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on biomedical or biological R&D services, as indicated by the awarding agency (NIH). The R&D sector is characterized by innovation, long development cycles, and often high upfront investment. Comparable spending benchmarks would involve looking at other NIH contracts for similar R&D services, or contracts awarded by other federal agencies for scientific research and development. The market for specialized bioservices R&D can be competitive but also requires highly specialized expertise.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to Seracare Bioservices, and without further information on the size of this entity, it's difficult to assess its impact on the small business ecosystem. However, large contracts like this often involve significant subcontracting opportunities, which could potentially benefit small businesses if they possess the necessary capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs are reasonable and allocable to the contract. Performance monitoring would also be key to ensure the R&D objectives are being met. Transparency is generally facilitated through contract award databases, but detailed performance reports are typically internal.

Related Government Programs

NIH Research Grants
Biomedical Research Contracts
Federal R&D Spending
Department of Health and Human Services Contracts

Risk Flags

Long contract duration
Cost Plus Fixed Fee contract type
Limited number of bids received

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.3 million to SERACARE BIOSERVICES. R&D-OTHER R & D-B RES

Who is the contractor on this award?

The obligated recipient is SERACARE BIOSERVICES.

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 $18.3 million.

What is the period of performance?

Start: 2000-01-14. End: 2015-03-24.

What specific R&D services were procured under this contract?

The provided data does not specify the exact nature of the R&D services. However, given the awarding agency is the National Institutes of Health (NIH) and the contractor is Seracare Bioservices (a company often involved in biological testing and services), it is highly probable that the contract supports biomedical research, potentially in areas like diagnostics, assay development, clinical testing services, or related biological research and development activities. Further details would require accessing the contract's statement of work or performance reports.

How does the $18.2 million award amount compare to typical NIH R&D contract values?

The $18.2 million award amount over a 15-year period averages to approximately $1.2 million per year. This figure is within the range of many R&D contracts awarded by the NIH, which can vary significantly based on the scope, duration, and complexity of the research. Larger, multi-year R&D initiatives can easily reach tens or hundreds of millions of dollars. To provide a precise comparison, one would need to analyze the distribution of NIH R&D contract values for similar service types and durations over the contract's performance period.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a CPFF contract is that the government may end up paying more than necessary if the contractor does not manage costs efficiently. While the fixed fee provides some predictability, the 'cost' portion can escalate if not properly monitored. For R&D, where outcomes are uncertain, it can be challenging to define 'reasonable' costs upfront. This necessitates strong government oversight to ensure all incurred costs are allowable, allocable, and reasonable. Contractors may have less incentive to control costs compared to fixed-price contracts, although the fixed fee itself is not directly tied to cost savings.

What does the limited number of bids (2) suggest about the competition for this specific R&D service?

A limited number of bids, such as two in this case, can suggest several possibilities regarding the competition for this specific R&D service. It might indicate that the required services are highly specialized, and only a few companies possess the necessary technical expertise, facilities, and clearances. Alternatively, it could reflect a niche market where only a few players operate, or perhaps the solicitation process itself had specific requirements that narrowed the field. While 'full and open competition' was advertised, the actual number of responsive bidders was low, potentially impacting the government's ability to achieve the lowest possible price through robust competition.

What is the historical spending pattern for Seracare Bioservices with the federal government?

The provided data only pertains to this single contract awarded in 2000. To understand Seracare Bioservices' historical spending patterns with the federal government, a broader search across federal procurement databases (like USASpending.gov) would be necessary. This would reveal if they have received other contracts, their values, agencies involved, and contract types. Without this broader data, it's impossible to establish a historical spending pattern beyond this one award.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 217 PERRY PARKWAY, GAITHERSBURG, MD, 20877

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,520,265

Exercised Options: $18,281,774

Current Obligation: $18,281,774

Contract Characteristics

Multi-Year Contract: Yes

Timeline