USDA awards $6.2M for animal health diagnostic testing, raising questions on competition and value

Contract Overview

Contract Amount: $6,200 ($6.2K)

Contractor: North Dakota State University

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $17/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR AMR AST TESTING

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $6,200 to NORTH DAKOTA STATE UNIVERSITY for work described as: NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR AMR AST TESTING Key points: 1. Contract awarded without competition, limiting potential for cost savings. 2. Limited transparency into pricing benchmarks and value for money. 3. Potential for higher costs due to lack of competitive bidding. 4. Services are critical for national animal health surveillance. 5. Contract duration aligns with typical service needs. 6. Focus on antimicrobial resistance testing is a key public health concern.

Value Assessment

Rating: questionable

The contract value of $6.2 million over one year for diagnostic testing services lacks a clear benchmark for value for money due to the absence of competitive bidding. Without comparison to other bids or market rates for similar services, it is difficult to assess if the price is fair and reasonable. The fixed-price nature suggests cost certainty for the government, but the lack of competition prevents an assessment of whether this price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for this determination are not provided, but it means that only one vendor was solicited. This lack of competition limits the government's ability to explore different service offerings and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential services due to the absence of a competitive marketplace driving down costs.

Public Impact

Benefits the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) in its mission to protect U.S. animal health. Provides critical diagnostic testing services for antimicrobial resistance (AMR) in animals. Supports national surveillance efforts to detect and respond to animal disease threats. Contributes to safeguarding the U.S. food supply and public health by monitoring AMR. Services are essential for maintaining the health and productivity of livestock and other animals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Absence of competitive bidding reduces transparency in pricing.
Potential for vendor lock-in if not re-competed in the future.

Positive Signals

Essential services for national animal health and public safety.
Focus on antimicrobial resistance testing addresses a critical public health issue.
Fixed-price contract provides cost certainty for the government.

Sector Analysis

The animal health diagnostics sector is crucial for veterinary services and public health, encompassing a range of testing and laboratory services. This contract falls within the broader scientific and technical services industry, specifically supporting government efforts in disease surveillance and control. Comparable spending in this area can vary widely based on the scope of testing and the specific pathogens or resistance mechanisms being monitored.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions or subcontracting requirements. As a sole-source award to North Dakota State University, it is unlikely that small businesses will be directly involved as prime contractors. Further analysis would be needed to determine if any subcontracting opportunities exist within the university's performance of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's APHIS, with potential involvement from the agency's Office of Inspector General (OIG) for audits and investigations. Transparency is limited by the sole-source nature of the award, but contract performance and payment data are generally available through federal procurement databases.

Related Government Programs

National Animal Health Laboratory Network (NAHLN)
Animal Disease Traceability Programs
Food and Drug Administration (FDA) Antimicrobial Resistance Initiatives
Centers for Disease Control and Prevention (CDC) Antimicrobial Resistance Programs

Risk Flags

Lack of Competition
Limited Value for Money Assessment
Potential for Higher Costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6,200 to NORTH DAKOTA STATE UNIVERSITY. NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR AMR AST 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 $6,200.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without this justification, it is difficult to assess the necessity of bypassing the competitive bidding process and its potential impact on cost-effectiveness for the taxpayer.

How does the pricing of this contract compare to similar diagnostic testing services in the market?

Benchmarking the pricing for this $6.2 million contract against similar diagnostic testing services is challenging without access to competitive bidding data or publicly available market rate information for comparable services. As a sole-source award, there is no direct comparison from a competitive process. To assess value for money, one would need to research industry pricing for veterinary diagnostic testing, particularly for antimicrobial resistance, considering factors like test volume, complexity, turnaround time, and the specific pathogens or resistance mechanisms covered. The absence of this comparative data makes a definitive value assessment difficult.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the methods used to measure the performance of North Dakota State University under this contract. For diagnostic testing services, typical KPIs might include turnaround time for test results, accuracy rates, adherence to laboratory standards (e.g., CLIA, ISO), reporting completeness, and responsiveness to emerging threats. Effective oversight would involve regular performance reviews against these defined metrics to ensure the government is receiving the quality and timeliness of services required.

What is the historical spending pattern for similar diagnostic testing services by APHIS or related agencies?

Historical spending data for similar diagnostic testing services by APHIS or related agencies is not provided in the current data. To understand historical patterns, one would need to analyze past contracts for veterinary diagnostic testing, particularly those related to antimicrobial resistance surveillance. Examining trends in contract values, durations, and the number of competitors over time could reveal whether spending has increased, decreased, or remained stable, and whether competitive solicitations have been the norm or the exception for these types of services.

What is the potential risk associated with relying on a single provider for critical animal health diagnostic services?

The primary risk associated with relying on a single provider for critical animal health diagnostic services is the potential for service disruption if the contractor faces operational issues, financial instability, or decides not to renew the contract. Furthermore, the lack of competition can reduce the incentive for the incumbent provider to innovate or maintain the most cost-effective operations. This sole-source award, while potentially efficient in the short term, could create a dependency that poses a risk to the continuity and cost-effectiveness of essential national surveillance programs.

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: $6,200

Exercised Options: $6,200

Current Obligation: $6,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639522D0009

IDV Type: IDC

Timeline