Leidos Biomedical Research Inc. awarded $233.6M contract for NIH COVID-19 research, spanning nearly 9 years

Contract Overview

Contract Amount: $233,588,020 ($233.6M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-02

End Date: 2029-09-29

Contract Duration: 3,314 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NIAID COVID-19 ACTIV3

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $233.6 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: NIAID COVID-19 ACTIV3 Key points: 1. Contract value represents a significant investment in critical public health research. 2. Full and open competition suggests a robust market for these specialized research services. 3. Long contract duration indicates a sustained need for ongoing research and development. 4. The contract's focus on COVID-19 aligns with urgent national health priorities. 5. Research and Development sector positioning is strong, with significant government funding. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight.

Value Assessment

Rating: good

The contract value of $233.6 million over nearly nine years for COVID-19 research appears reasonable given the scope and duration. Benchmarking against similar large-scale R&D contracts for infectious disease research would provide further context. The Cost Plus Fixed Fee structure, while common for R&D, necessitates diligent monitoring to ensure costs remain within acceptable parameters and that the fixed fee is commensurate with the contractor's effort and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and capability for this type of research.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to yield a more cost-effective outcome for essential COVID-19 research.

Public Impact

The primary beneficiaries are the public, through advancements in understanding and combating COVID-19. Services delivered include critical research and development activities related to the pandemic. Geographic impact is national, with potential global implications for public health. Workforce implications include employment for scientists, researchers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not closely managed.
Long-term nature of the contract may reduce flexibility if research priorities shift significantly.

Positive Signals

Awarded under full and open competition, suggesting strong contractor capabilities.
Focus on critical COVID-19 research addresses a significant public health need.
Long contract duration allows for sustained progress on complex research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences related to infectious diseases. The market for biomedical R&D is substantial, driven by government funding for public health initiatives and private sector investment. Comparable spending benchmarks would involve analyzing other large federal grants and contracts awarded for pandemic preparedness and response research.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and the contractor is not a small business. There is no explicit information on subcontracting plans for small businesses. Further investigation into subcontracting requirements would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the National Institutes of Health (NIH), a division of HHS. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though specific research progress details may be subject to proprietary or sensitive information.

Related Government Programs

NIAID COVID-19 Research Programs
NIH Grants for Infectious Disease Research
HHS Pandemic Preparedness Initiatives
Federal Funding for Biomedical Research

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk
Long-term Project Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $233.6 million to LEIDOS BIOMEDICAL RESEARCH INC. NIAID COVID-19 ACTIV3

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 $233.6 million.

What is the period of performance?

Start: 2020-09-02. End: 2029-09-29.

What is the track record of Leidos Biomedical Research Inc. in managing large federal R&D contracts, particularly in infectious diseases?

Leidos Biomedical Research Inc. has a significant track record in managing large-scale federal research and development contracts, particularly for agencies like the National Institutes of Health (NIH). They are known for their expertise in managing complex scientific programs, including those related to infectious diseases and public health emergencies. Their role as the prime contractor for the Frederick National Laboratory for Cancer Research, also managed for NIH, demonstrates their capacity for handling substantial, long-term government research initiatives. This extensive experience suggests a strong foundation for managing the COVID-19 ACTIV3 contract, although specific performance metrics for this particular contract would require further review of past performance evaluations and award histories.

How does the awarded amount compare to similar federal investments in COVID-19 research or other infectious disease R&D efforts?

The $233.6 million awarded to Leidos Biomedical Research Inc. for COVID-19 research is a substantial figure, reflecting the urgency and scale of the pandemic response. To benchmark this, one would compare it to other large federal contracts and grants awarded by agencies like NIH, BARDA, and DOD for COVID-19 vaccine development, therapeutic research, and diagnostic innovation. For instance, Operation Warp Speed involved billions in funding for various aspects of COVID-19 countermeasures. While direct comparisons are complex due to differing scopes (e.g., vaccine vs. basic research), this award appears to be in line with significant federal investments necessary for comprehensive research into a global health crisis. It represents a considerable portion of the federal R&D budget allocated to specific pandemic research efforts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of research, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their allowable costs are reimbursed, and they receive a predetermined fixed fee for their effort. This can lead to cost overruns if not managed diligently. Mitigation strategies employed by the government include robust oversight, detailed auditing of expenditures, strict adherence to the contract's scope of work, and performance metrics tied to milestones. The fixed fee itself acts as a ceiling on the contractor's profit, incentivizing efficiency to some degree. For this specific contract, NIH's program officers and contracting specialists would be responsible for continuous monitoring of expenditures and progress to ensure the research remains on track and within budget expectations.

What is the expected impact of this contract on the development of COVID-19 treatments or vaccines?

This contract, specifically for the NIAID COVID-19 ACTIV3 initiative, is expected to significantly impact the development of COVID-19 treatments. ACTIV3 is a platform designed to rapidly evaluate multiple potential therapeutics. Therefore, this award to Leidos Biomedical Research Inc. will likely fund critical clinical trial operations, data management, and logistical support necessary to test promising drug candidates. The success of this contract could accelerate the identification and approval of effective treatments, thereby reducing the severity of illness, hospitalizations, and deaths associated with COVID-19, and contributing to the broader public health strategy for managing the pandemic.

How has federal spending on infectious disease research evolved over the past decade, and where does this contract fit in?

Federal spending on infectious disease research has seen significant fluctuations over the past decade, often driven by emerging threats and public health emergencies. Prior to the COVID-19 pandemic, funding levels were relatively stable, supporting ongoing research into diseases like influenza, HIV, and Ebola. The COVID-19 pandemic triggered a massive surge in federal investment, with billions allocated to vaccine development, therapeutics, diagnostics, and basic research. This $233.6 million contract for the ACTIV3 initiative represents a substantial component of that surge, specifically targeting the clinical evaluation of therapeutics. It fits within the broader context of increased federal commitment to pandemic preparedness and response, reflecting a strategic prioritization of infectious disease R&D.

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

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: $233,588,020

Exercised Options: $233,588,020

Current Obligation: $233,588,020

Actual Outlays: $154,733,099

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $8,882,386

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