HHS Awards $233M for International Reagent Resource, CDC Contract Runs Through 2029
Contract Overview
Contract Amount: $233,263,878 ($233.3M)
Contractor: American Type Culture Collection
Awarding Agency: Department of Health and Human Services
Start Date: 2019-03-01
End Date: 2029-02-28
Contract Duration: 3,652 days
Daily Burn Rate: $63.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: INTERNATIONAL REAGENT RESOURCE (IRR)
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $233.3 million to AMERICAN TYPE CULTURE COLLECTION for work described as: INTERNATIONAL REAGENT RESOURCE (IRR) Key points: 1. Significant contract value of $233M over 10 years. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns. 4. The sector is 'Professional, Scientific, and Technical Services', with a focus on reagents.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which historically can be less price-efficient than fixed-price contracts. Benchmarking against similar contracts for scientific services is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the price discovery benefits of competition.
Taxpayer Impact: The substantial contract value means taxpayer funds are significantly allocated. Ensuring cost efficiency through robust oversight is crucial for maximizing taxpayer value.
Public Impact
Ensures availability of critical biological reagents for research and public health. Supports the mission of the Centers for Disease Control and Prevention (CDC). Potential for long-term scientific advancements due to consistent reagent supply.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation noted
Positive Signals
- Full and open competition
- Long contract duration ensures stability
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to biological reagents. Spending in this area is critical for research and development, and public health initiatives.
Small Business Impact
The data indicates that small business participation was not a factor in this award. Given the contract's scope and value, exploring opportunities for small businesses in future procurements or subcontracts could be beneficial.
Oversight & Accountability
The contract is managed by the CDC, a key agency within HHS. Oversight will be critical to monitor costs under the Cost Plus Fixed Fee structure and ensure performance meets requirements.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of small business participation.
- Long contract duration may reduce flexibility for future technological advancements.
- Potential for vendor lock-in given the specialized nature of reagent resources.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $233.3 million to AMERICAN TYPE CULTURE COLLECTION. INTERNATIONAL REAGENT RESOURCE (IRR)
Who is the contractor on this award?
The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $233.3 million.
What is the period of performance?
Start: 2019-03-01. End: 2029-02-28.
What is the projected total cost for the entire 10-year contract period, and how does it compare to historical spending for similar reagent services?
The provided data shows an obligated amount of $233,263,878.35. To fully assess value, this figure needs to be projected over the full 10-year term and benchmarked against inflation-adjusted historical spending for comparable reagent resource services. Understanding the baseline and growth trends is key to determining if the current award represents good value.
What are the specific risk mitigation strategies in place for the Cost Plus Fixed Fee contract to control potential cost overruns?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective mitigation requires stringent oversight, clear definition of allowable costs, regular audits, and performance metrics tied to fee adjustments. The CDC must actively manage these elements to prevent budget creep and ensure efficient use of funds.
How will the effectiveness of the International Reagent Resource be measured throughout the contract's duration to ensure it meets public health and research needs?
Effectiveness will likely be measured through key performance indicators (KPIs) related to reagent availability, quality control, timely delivery, and customer satisfaction from research institutions and public health entities. Regular performance reviews and feedback mechanisms will be essential to ensure the resource continues to meet evolving scientific and public health demands effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2018N76801R
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $491,239,512
Exercised Options: $422,251,235
Current Obligation: $233,263,878
Actual Outlays: $146,446,611
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $61,731,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-01
Current End Date: 2029-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-03-11
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