North Dakota State University awarded $5M contract for HPAI diagnostic testing services

Contract Overview

Contract Amount: $5,000 ($5.0K)

Contractor: North Dakota State University

Awarding Agency: Department of Agriculture

Start Date: 2026-04-08

End Date: 2027-04-07

Contract Duration: 364 days

Daily Burn Rate: $14/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $5,000 to NORTH DAKOTA STATE UNIVERSITY for work described as: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Limited competition may impact the government's ability to secure the best value. 3. The contract duration of one year suggests a need for ongoing, specialized services. 4. Fixed-price contract type aims to control costs, but initial pricing needs scrutiny. 5. The award falls under veterinary services, crucial for national animal health monitoring. 6. Focus on HPAI testing highlights a critical area of agricultural and public health concern.

Value Assessment

Rating: questionable

The contract value of $5 million for one year of diagnostic testing services requires careful benchmarking. Without competitive bids, it is difficult to assess if this price represents fair market value. Comparisons to similar contracts for avian influenza testing at other institutions or with other service providers would be necessary to determine if the pricing is reasonable. The fixed-firm price structure is a positive indicator for cost control, but the absence of competition means the government did not benefit from potential price reductions through bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required unique capabilities or when urgency dictates, it limits the government's ability to explore a wider range of options and potentially secure lower prices through competition. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive rates.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential diagnostic services due to the lack of a competitive bidding process. This could result in higher overall spending for the government compared to a scenario with multiple bidders vying for the contract.

Public Impact

The primary beneficiaries are the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) and the nation's animal health infrastructure. Services delivered include critical diagnostic testing for Highly Pathogenic Avian Influenza (HPAI). Geographic impact is national, supporting surveillance and response efforts across the United States. Workforce implications include support for laboratory personnel at North Dakota State University and potentially related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for innovation or service improvements.
Dependence on a single provider could pose a risk if performance issues arise.

Positive Signals

Contract awarded to a university with a likely established track record in animal health research.
Fixed-firm price contract provides cost certainty for the duration of the award.
Focus on HPAI testing addresses a significant and current biosecurity threat.

Sector Analysis

The contract falls within the broader scientific and technical services sector, specifically focusing on veterinary diagnostics. The market for animal disease testing is specialized, often involving academic institutions and private laboratories with specific expertise and certifications. While precise market size data for HPAI testing services is not readily available, the ongoing threat of avian influenza necessitates significant and consistent government investment in diagnostic capabilities, making this a critical area of spending within agricultural and biosecurity sectors.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is North Dakota State University, a large research institution. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and opportunities for small business participation in this specific contract are not apparent from the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). APHIS is responsible for monitoring contractor performance to ensure compliance with the terms and conditions of the delivery order. Accountability measures are typically embedded in the contract through performance standards and reporting requirements. Transparency is facilitated through federal contract databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

National Animal Health Laboratory Network (NAHLN)
Avian Health and Biosecurity Programs
USDA Veterinary Services
Animal Disease Surveillance and Diagnostics

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5,000 to NORTH DAKOTA STATE UNIVERSITY. MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING

Who is the contractor on this award?

The obligated recipient is NORTH DAKOTA STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $5,000.

What is the period of performance?

Start: 2026-04-08. End: 2027-04-07.

What is North Dakota State University's specific experience and track record in conducting HPAI diagnostic testing?

North Dakota State University (NDSU) is a land-grant institution with a strong history in veterinary medicine and animal health research. NDSU's Veterinary Diagnostic Laboratory is accredited by the American Association of Veterinary Laboratory Diagnosticians (AAVLD) and is a member of the National Animal Health Laboratory Network (NAHLN). This membership signifies that the lab meets rigorous standards for diagnostic capabilities, quality assurance, and data management, including proficiency in testing for high-consequence diseases like HPAI. NDSU has been involved in national efforts to detect and respond to HPAI outbreaks, contributing to surveillance and diagnostic capacity. Their experience likely includes extensive work with various avian species and the application of multiple diagnostic methodologies, such as PCR and virus isolation, essential for accurate HPAI identification.

How does the $5 million contract value compare to historical spending on similar HPAI diagnostic services?

Direct historical spending comparisons for this specific HPAI diagnostic testing service contract are challenging without access to detailed historical contract databases filtered by precise service descriptions and awardees. However, the $5 million figure for a one-year contract with a single provider suggests a significant investment. The frequency and severity of HPAI outbreaks can influence annual spending. In years with widespread outbreaks, federal agencies like APHIS may increase funding for diagnostic services to bolster surveillance and response efforts. Conversely, periods of lower disease activity might see reduced spending. The sole-source nature of this award means that a direct comparison to competitively bid contracts for similar services is not feasible, making it difficult to ascertain if this represents a benchmark value or a premium due to limited competition.

What are the primary risks associated with a sole-source award for critical diagnostic services?

The primary risks associated with a sole-source award for critical diagnostic services like HPAI testing include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to innovate or improve service efficiency, and a heightened risk if the sole provider experiences performance issues or capacity limitations. Without competition, the government foregoes the opportunity to leverage market forces to secure the best possible price and service terms. Furthermore, reliance on a single entity can create vulnerabilities in the supply chain or service delivery if that entity faces unforeseen challenges, such as staffing shortages, equipment failures, or other operational disruptions. This dependence necessitates robust contract management and performance monitoring by the awarding agency.

How effective is the National Animal Health Laboratory Network (NAHLN) in supporting national biosecurity?

The National Animal Health Laboratory Network (NAHLN) is highly effective in supporting national biosecurity by providing a coordinated system of state and university-affiliated veterinary diagnostic laboratories across the United States. NAHLN laboratories are equipped and accredited to rapidly detect, diagnose, and report foreign and emerging animal diseases, including Highly Pathogenic Avian Influenza (HPAI). This network ensures consistent diagnostic standards, timely data sharing, and surge capacity during disease outbreaks. By decentralizing diagnostic capabilities while maintaining national oversight and connectivity, NAHLN significantly enhances the nation's ability to respond swiftly and effectively to animal health emergencies, thereby protecting animal agriculture, public health, and the economy.

What are the implications of the fixed-firm price contract type for cost control and potential scope creep?

A firm-fixed-price (FFP) contract type is generally considered advantageous for cost control as it places the risk of cost overruns on the contractor. The contractor agrees to perform a specific scope of work for a predetermined price. This structure incentivizes the contractor to manage its costs efficiently. For this HPAI diagnostic testing contract, it means North Dakota State University is obligated to provide the specified testing services for the $5 million award. Potential scope creep, where the requirements of the contract expand beyond the original agreement, could still occur if not managed carefully through contract modifications. However, the FFP structure provides a clear baseline for costs, making it easier to identify and manage any proposed changes to the scope of work and their associated financial implications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Veterinary Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1919 UNIVERSITY DR N, STE 102, FARGO, ND, 58102

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $5,000

Exercised Options: $5,000

Current Obligation: $5,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639522D0009

IDV Type: IDC

Timeline