NIH awards $13.8M contract to BIORELIANCE CORPORATION for services, spanning over 17 years

Contract Overview

Contract Amount: $13,792,415 ($13.8M)

Contractor: Bioreliance Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 1997-02-15

End Date: 2014-03-21

Contract Duration: 6,243 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.8 million to BIORELIANCE CORPORATION for work described as: Key points: 1. Contract value of $13.8M over 17 years indicates significant long-term investment. 2. BIORELIANCE CORPORATION secured the award, but specific competition details are limited. 3. Long duration and cost-plus contract type may present cost control risks. 4. Spending in the 'Other' sector, likely related to research support, needs context.

Value Assessment

Rating: fair

The contract value of $13.8M over 17 years averages to approximately $811,318 annually. Without specific service details or benchmarks for similar NIH contracts, assessing value for money is challenging. The 'Cost Plus Fixed Fee' structure requires careful monitoring to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting a competitive bidding process. However, the long duration and the specific nature of the services may have limited the number of viable bidders, potentially impacting price discovery.

Taxpayer Impact: Over $13.8 million in taxpayer funds were allocated. The long-term nature and cost-plus fee structure necessitate robust oversight to ensure funds are used efficiently and effectively.

Public Impact

Long-term commitment of federal funds for specialized services. Potential for sustained economic activity for BIORELIANCE CORPORATION. Ensuring continued availability of critical services for NIH research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (17 years)
Cost-plus contract type
Limited data on specific services

Positive Signals

Full and open competition
Established vendor relationship (implied by duration)

Sector Analysis

This contract falls under the 'Other' sector, likely supporting research or administrative functions within the National Institutes of Health. Benchmarking requires understanding the specific services provided, as they could range from laboratory support to specialized equipment maintenance.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The long duration and specialized nature of the contract may make it less accessible for smaller entities unless they are part of a joint venture or subcontracting arrangement.

Oversight & Accountability

The long duration of this contract necessitates consistent oversight from the Department of Health and Human Services to ensure performance standards are met and costs remain justified. Regular reviews of the fixed fee and cost reimbursements are crucial.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration may lead to complacency or reduced incentive for innovation.
Cost-plus contract type can incentivize spending rather than cost savings.
Lack of specific service details hinders comprehensive value assessment.
Potential for price increases over the 17-year period.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.8 million to BIORELIANCE CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BIORELIANCE CORPORATION.

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 $13.8 million.

What is the period of performance?

Start: 1997-02-15. End: 2014-03-21.

What specific services were procured under this 17-year contract, and how do they align with NIH's long-term strategic goals?

The specific services procured are not detailed in the provided data. Understanding the nature of these services is critical for assessing their alignment with NIH's strategic goals. Without this information, it's difficult to determine if the long-term investment is justified by the anticipated outcomes and contributions to scientific advancement.

Given the 'Cost Plus Fixed Fee' structure and 17-year duration, what mechanisms were in place to mitigate cost overruns and ensure contractor efficiency?

The 'Cost Plus Fixed Fee' structure inherently carries a risk of cost overruns if not managed diligently. Robust oversight, performance metrics, and regular audits by the Department of Health and Human Services would be essential to control costs and ensure BIORELIANCE CORPORATION maintains efficiency throughout the contract's extensive lifespan.

How did the 'Full and Open Competition' process ensure the best value for taxpayers over such a prolonged contract period?

While 'Full and Open Competition' suggests a broad initial search for bidders, the 17-year duration raises questions about sustained competition and potential price escalations. Ensuring best value would depend on strong contract management, performance incentives, and potentially periodic re-evaluations or competitive phasing within the contract.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Sigma-Aldrich Corporation (UEI: 079928354)

Address: 14920 BROSCHART RD, ROCKVILLE, MD, 08

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

Financial Breakdown

Contract Ceiling: $21,853,608

Exercised Options: $21,853,608

Current Obligation: $13,792,415

Contract Characteristics

Multi-Year Contract: Yes

Timeline