NIH awards $10.45M contract for drug dependency management support to Lumina Corps Inc

Contract Overview

Contract Amount: $10,451,686 ($10.5M)

Contractor: Lumina Corps Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-07

End Date: 2006-09-21

Contract Duration: 1,840 days

Daily Burn Rate: $5.7K/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-DRUG DEPENDENCY-MGMT SUP

Place of Performance

Location: MARYLAND

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.5 million to LUMINA CORPS INC. for work described as: R&D-DRUG DEPENDENCY-MGMT SUP Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 1840 days (approx. 5 years) indicates a significant, long-term need. 3. Award type 'DCA' (Definitive Contract Award) is a standard contract vehicle. 4. The fixed-fee structure aims to control costs while allowing for flexibility. 5. The contract's focus on R&D in life sciences aligns with NIH's core mission. 6. The contractor, Lumina Corps Inc., has secured this significant award, indicating capability.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparable contract data. However, the total award of over $10 million spread over approximately five years suggests a moderate annual spend. The 'COST PLUS FIXED FEE' (CPFF) contract type can be efficient when scope is well-defined but requires careful oversight to prevent cost overruns. Without specific performance metrics or comparisons to similar R&D support contracts, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and service quality. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider range of innovative solutions, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are researchers and programs within the National Institutes of Health (NIH) focused on drug dependency. The contract supports essential management and research services related to drug dependency. The geographic impact is primarily within the United States, supporting federal research initiatives. Workforce implications include specialized scientific and administrative support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in CPFF contracts if not managed tightly.
Reliance on a single contractor for a significant period could pose continuity risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Long contract duration suggests a stable, ongoing need and potential for contractor expertise development.
Clear contract type (CPFF) provides a framework for cost management.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on life sciences and health. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific endeavors. Federal spending in this area is substantial, driven by agencies like NIH aiming to advance medical knowledge and develop treatments for various conditions, including drug dependency.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The contract was awarded under full and open competition, and the number of bidders (2) does not suggest a specific focus on small business participation. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Lumina Corps Inc., but are not explicitly mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). Performance monitoring, financial reviews, and adherence to the contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Substance Abuse and Mental Health Services Administration (SAMHSA) Programs
National Institute on Drug Abuse (NIDA) Initiatives
Federal R&D Spending in Life Sciences

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.5 million to LUMINA CORPS INC.. R&D-DRUG DEPENDENCY-MGMT SUP

Who is the contractor on this award?

The obligated recipient is LUMINA CORPS 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 $10.5 million.

What is the period of performance?

Start: 2001-09-07. End: 2006-09-21.

What is Lumina Corps Inc.'s track record with federal contracts, particularly with NIH?

Lumina Corps Inc. has a history of federal contracting, with this award representing a significant sum from the National Institutes of Health (NIH). Analyzing their past performance on similar contracts, especially those involving R&D support or life sciences, would provide deeper insight. Federal procurement data typically tracks on-time delivery, cost performance, and overall satisfaction ratings. A review of Lumina Corps Inc.'s contract history would reveal if they have a pattern of successful contract completion or any past performance issues that might be relevant to assessing the risk associated with this current award.

How does the $10.45 million award compare to typical NIH spending on drug dependency research support?

The $10.45 million award for drug dependency management support over approximately five years represents a substantial investment by the NIH. To benchmark this value, one would compare it to the average annual spending on similar support contracts or research grants managed by the National Institute on Drug Abuse (NIDA) or other relevant NIH institutes. Factors such as the scope of services (e.g., data management, research coordination, administrative support), the complexity of the research, and the number of projects supported would influence the typical cost. Without specific comparative data on NIH's historical spending for comparable services, it's difficult to definitively state if this award is high or low, but its scale suggests a significant program requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($10.45 million) revolve around cost control and contractor performance. For the government, the risk is that the contractor's actual costs may exceed initial estimates, although the fixed fee provides a ceiling on the profit. Effective oversight is crucial to ensure that all costs incurred are reasonable, allocable, and allowable. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient profit. If costs are underestimated, the contractor may incur losses. Additionally, CPFF contracts can sometimes incentivize contractors to incur more costs than necessary if not carefully monitored, potentially impacting the overall value for money.

How effective is full and open competition in ensuring value for money for R&D support contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for R&D support. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. When multiple bidders vie for a contract, agencies can compare proposals not only on price but also on technical merit and past performance. This process helps agencies select the offer that represents the best overall value to the government. In the case of this $10.45 million contract, the fact that it was competed fully and attracted two bidders suggests a healthy market and a good opportunity for the NIH to secure competitive terms.

What are the implications of the contract's duration (approx. 5 years) on program continuity and contractor performance?

A contract duration of approximately five years (1840 days) for R&D support services offers significant benefits for program continuity. It allows the contractor, Lumina Corps Inc., to develop deep expertise and institutional knowledge related to the NIH's drug dependency research objectives. This long-term engagement can lead to more efficient operations and a stable support environment for researchers. From a performance perspective, a longer duration provides the contractor with the incentive to invest in their capabilities and maintain high standards, as their future business with the agency may depend on successful execution. However, it also necessitates robust performance management by the NIH to address any potential issues promptly and ensure accountability throughout the contract period.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4600 EAST-WEST HWY, BETHESDA, MD, 08

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,544,796

Exercised Options: $10,451,686

Current Obligation: $10,451,686

Timeline