NIH awards Leidos Biomedical $163M R&D contract for MD NET, full and open competition

Contract Overview

Contract Amount: $163,472,364 ($163.5M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-26

End Date: 2028-09-29

Contract Duration: 3,291 days

Daily Burn Rate: $49.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MD NET

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $163.5 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: MD NET Key points: 1. Contract awarded to Leidos Biomedical Research Inc. for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract has a significant duration, spanning from 2019 to 2028. 4. The total award value is substantial at $163.47 million.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. This is common in R&D where costs can be unpredictable. Benchmarking CPFF contracts in this sector is challenging without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for the R&D services.

Public Impact

Supports critical research and development activities for the National Institutes of Health. Potential for advancements in physical, engineering, and life sciences. Long-term commitment to a single contractor for a significant period. Economic impact through employment and subcontracts within the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed carefully.
Long contract duration may limit flexibility for future technological shifts.
Lack of specific performance metrics makes it hard to assess R&D effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Significant investment in a critical R&D sector.
Contractor has a long-term commitment, suggesting stability in research efforts.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and scientific advancement, with significant government investment typically seen across various agencies.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Therefore, it is unclear what, if any, portion of this contract value will flow down to small business concerns.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate robust oversight from the Department of Health and Human Services to ensure cost control and effective research outcomes. Regular performance reviews and audits are crucial.

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

Potential for cost overruns due to CPFF structure.
Long contract duration may not adapt well to rapidly evolving R&D landscapes.
Lack of specific performance metrics in the provided data.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $163.5 million to LEIDOS BIOMEDICAL RESEARCH INC. MD NET

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 $163.5 million.

What is the period of performance?

Start: 2019-09-26. End: 2028-09-29.

What specific R&D projects does MD NET encompass, and how do they align with NIH's strategic goals?

The contract, 'MD NET,' likely refers to a specific research program or network managed by the National Institutes of Health (NIH). While the data doesn't detail the projects, it falls under R&D in physical, engineering, and life sciences. These projects are expected to align with NIH's mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. Specific project details would require access to the contract's statement of work.

How will the Cost Plus Fixed Fee (CPFF) structure be managed to prevent cost overruns and ensure value for money?

Managing a CPFF contract requires stringent oversight. The agency must establish clear baseline cost estimates and monitor expenditures closely. Regular audits, performance reviews, and milestone tracking are essential. The fixed fee provides an incentive for the contractor to control costs, but the agency must ensure the fee remains appropriate for the scope of work and that any cost deviations are thoroughly justified and documented.

What are the key performance indicators (KPIs) for this contract, and how is the success of the R&D measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. For R&D contracts, KPIs often include scientific milestones, publication targets, successful development of prototypes, or achievement of specific research outcomes. The effectiveness of the R&D is typically measured against the objectives outlined in the Statement of Work and assessed through periodic technical reviews and final project reports.

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: RESEARCH AND DEVELOPMENT › N – Health R&D Services

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.

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: $163,472,364

Exercised Options: $163,472,364

Current Obligation: $163,472,364

Actual Outlays: $104,571,241

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $13,252,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N91019D00024

IDV Type: IDC

Timeline