NIH Awards $65.7M Contract to Leidos Biomedical for Clinical Research Support Services

Contract Overview

Contract Amount: $65,749,607 ($65.7M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-08-31

End Date: 2020-08-30

Contract Duration: 365 days

Daily Burn Rate: $180.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROVIDE THE FULL RANGE OF SERVICES REQUIRED TO SUPPORT DCR IN ITS PROVISION OF SUPPORT SERVICES, OVERSIGHT, AND MANAGEMENT OF INTRAMURAL CLINICAL RESEARCH, PROGRAM PLANNING AND MANAGEMENT, REGULATORY MONITORING AND COMPLIANCE, STATISTICAL CONSULTATIO

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $65.7 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: PROVIDE THE FULL RANGE OF SERVICES REQUIRED TO SUPPORT DCR IN ITS PROVISION OF SUPPORT SERVICES, OVERSIGHT, AND MANAGEMENT OF INTRAMURAL CLINICAL RESEARCH, PROGRAM PLANNING AND MANAGEMENT, REGULATORY MONITORING AND COMPLIANCE, STATISTICAL CONSULTATIO Key points: 1. Contract focuses on comprehensive support for intramural clinical research, program management, and regulatory compliance. 2. Leidos Biomedical Research Inc. secured the award, indicating established capabilities in the sector. 3. The contract's value of $65.7M for a 1-year term warrants scrutiny for cost-effectiveness. 4. Spending falls under R&D, a critical sector for scientific advancement and public health.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure is common for R&D services where scope can evolve. Benchmarking CPFF contracts of similar size and complexity is necessary to confirm pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing compared to sole-source or limited competition.

Taxpayer Impact: Taxpayer funds are directed towards essential research support, aiming for advancements in public health. The competitive award process should ensure value for money.

Public Impact

Supports critical intramural clinical research at NIH, potentially leading to medical breakthroughs. Ensures regulatory compliance and oversight, safeguarding research integrity and public safety. Provides essential program planning and management for complex research initiatives. Leverages specialized statistical consultation for data analysis and interpretation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPFF if not closely managed.
Reliance on a single contractor for a broad range of critical support services.

Positive Signals

Awarded through full and open competition.
Supports vital R&D in physical, engineering, and life sciences.
Contract duration of 1 year allows for periodic reassessment.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending benchmarks for similar R&D support services would typically vary based on the specific scientific domain and required expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was awarded to a large business (Leidos Biomedical Research Inc.). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight is crucial for CPFF contracts to manage costs and ensure performance aligns with objectives. The Department of Health and Human Services and NIH are responsible for monitoring contractor performance and adherence to contract terms.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost control challenges inherent in CPFF contracts.
Potential for scope creep impacting final cost.
Dependence on contractor's expertise for critical research functions.
Need for robust performance monitoring by the agency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65.7 million to LEIDOS BIOMEDICAL RESEARCH INC. PROVIDE THE FULL RANGE OF SERVICES REQUIRED TO SUPPORT DCR IN ITS PROVISION OF SUPPORT SERVICES, OVERSIGHT, AND MANAGEMENT OF INTRAMURAL CLINICAL RESEARCH, PROGRAM PLANNING AND MANAGEMENT, REGULATORY MONITORING AND COMPLIANCE, STATISTICAL CONSULTATIO

Who is the contractor on this award?

The obligated recipient is LEIDOS BIOMEDICAL RESEARCH 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 $65.7 million.

What is the period of performance?

Start: 2019-08-31. End: 2020-08-30.

What is the typical cost structure for similar R&D support contracts at NIH?

Cost Plus Fixed Fee (CPFF) contracts are common for R&D due to the inherent uncertainties in research scope and outcomes. Benchmarking against similar contracts would involve analyzing the fixed fee percentage relative to the total estimated cost and comparing the overall contract value against the scope of services provided.

What are the key performance indicators (KPIs) used to measure contractor success?

Key performance indicators likely include timely delivery of support services, adherence to regulatory compliance standards, quality of statistical consultations, effectiveness of program management, and overall client satisfaction from DCR. Regular performance reviews would assess contractor's ability to meet these KPIs.

How does this contract contribute to NIH's overall research mission effectiveness?

This contract is vital for enabling NIH's intramural research by providing essential operational, managerial, and technical support. By ensuring efficient program planning, regulatory adherence, and expert statistical analysis, it allows researchers to focus on scientific discovery, thereby enhancing the overall effectiveness and output of NIH's research mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02CO7240681

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 1050 BOYLES ST, FREDERICK, MD, 21702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,071,640

Exercised Options: $67,071,640

Current Obligation: $65,749,607

Actual Outlays: $2,654,687

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,523,509

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N91019D00024

IDV Type: IDC

Timeline