NIH awards $31.1M for drug development support, with a 4-year duration

Contract Overview

Contract Amount: $31,120,905 ($31.1M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-07-01

End Date: 2026-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DRUG DEVELOPMENT SUPPORT FOR CTEP

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.1 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: DRUG DEVELOPMENT SUPPORT FOR CTEP Key points: 1. Contract value appears reasonable for the scope of R&D services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract type (Cost Plus Fixed Fee) may present cost control challenges. 4. Performance period is substantial, indicating a long-term need. 5. The contract falls within the R&D sector, aligning with NIH's mission. 6. No small business set-aside noted, potentially limiting smaller firm participation.

Value Assessment

Rating: good

The contract value of $31.1 million over four years for drug development support is within a typical range for complex research and development services. Benchmarking against similar NIH contracts for specialized scientific support would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can incentivize contractor efficiency but requires careful oversight to manage overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of competitors typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by securing essential support for its Center for Cancer Therapeutics Development Program. Services delivered include crucial drug development support, aiding in the advancement of cancer therapies. The geographic impact is primarily within Maryland, where the contractor is located and likely where research activities will be concentrated. Workforce implications include the potential for highly skilled scientists and researchers to be engaged in critical cancer research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent monitoring to ensure costs remain controlled and the fixed fee remains appropriate.
Limited competition (two bidders) may not have yielded the most cost-effective outcome compared to a larger pool of offerors.

Positive Signals

Awarded under full and open competition, maximizing the opportunity for qualified contractors to participate.
The contract supports a critical area of research (cancer drug development), aligning with a significant public health need.
The contractor, Technical Resources International, Inc., has a track record with government contracts, suggesting some level of established performance.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized R&D support services for government agencies like the NIH is competitive, with numerous firms offering expertise in areas such as drug discovery, preclinical testing, and clinical trial support. Spending in this area is driven by the government's commitment to advancing scientific knowledge and developing new treatments for diseases.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This means that larger, established firms were likely the primary participants in the competition, and opportunities for small businesses to participate in this specific contract may be limited unless they are part of a larger team.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within the National Institutes of Health. The Cost Plus Fixed Fee (CPFF) contract type necessitates robust financial oversight to ensure that costs are allowable and reasonable, and that the fixed fee is earned. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

National Cancer Institute (NCI) Research Programs
Biomedical Research and Development Contracts
Federal Drug Discovery and Development Initiatives
Small Business Innovation Research (SBIR) Program (as a point of comparison for R&D funding mechanisms)

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of expenditures.
Limited number of bidders may impact price competitiveness.
Specialized nature of R&D may limit the pool of qualified offerors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.1 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. DRUG DEVELOPMENT SUPPORT FOR CTEP

Who is the contractor on this award?

The obligated recipient is TECHNICAL RESOURCES INTERNATIONAL, 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 $31.1 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-06-30.

What is the track record of Technical Resources International, Inc. with federal contracts, particularly in R&D and drug development support?

Technical Resources International, Inc. (TRI) has a history of performing federal contracts, including those related to scientific and technical support services. While specific details on their success rate or past performance on similar drug development contracts would require deeper analysis of contract databases and performance reports, their ability to win this NIH contract suggests they meet the agency's requirements. Examining past performance evaluations and any reported issues on previous contracts would provide a more comprehensive understanding of their reliability and expertise in this specialized field. Their presence in the federal contracting space indicates experience navigating government procurement processes and compliance requirements.

How does the $31.1 million contract value compare to similar R&D support contracts awarded by NIH or other agencies?

The $31.1 million contract value over four years for drug development support is a significant but not extraordinary amount for specialized R&D services. To benchmark effectively, one would compare this to contracts for similar services, such as preclinical research, assay development, or early-stage clinical support, awarded by agencies like the NIH, FDA, or DoD. Factors such as the specific scientific scope, required expertise, duration, and number of bidders influence pricing. A preliminary assessment suggests this value is within a reasonable range, but a detailed comparison with contracts of identical scope and duration would be necessary for a definitive value-for-money conclusion. The CPFF structure also means the final cost could vary based on actual expenses incurred.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for drug development support?

The primary risks with a CPFF contract for drug development support revolve around cost control and potential for scope creep. While the fixed fee incentivizes efficiency, the government bears the risk of all allowable costs. If the project encounters unforeseen scientific challenges or requires more resources than initially estimated, the total cost to the government can escalate beyond initial projections. Ensuring rigorous oversight of expenditures, clear definition of allowable costs, and effective project management are crucial to mitigate these risks. Additionally, defining the 'fixed fee' appropriately requires careful negotiation to ensure it reflects the contractor's effort and risk without being excessive.

How effective is full and open competition in ensuring competitive pricing for specialized R&D services like drug development support?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows all qualified sources to bid, fostering a robust marketplace. However, for highly specialized R&D services like drug development support, the pool of qualified bidders may be limited. In this case, with two bidders, the competition was present but not extensive. While this is preferable to a sole-source award, a larger number of bidders typically drives prices down further. The effectiveness also depends on the clarity of the solicitation and the evaluation criteria, ensuring that price is appropriately weighted against technical merit.

What are the historical spending patterns for drug development support services at NIH?

Historical spending patterns for drug development support services at NIH typically show consistent investment in advancing biomedical research and therapeutic development. Agencies like the National Cancer Institute (NCI), which oversees the Center for Cancer Therapeutics Development Program, regularly award contracts for various stages of drug development, from discovery to preclinical and early clinical phases. Spending fluctuates based on research priorities, congressional appropriations, and the pipeline of promising drug candidates. Analyzing historical data for similar contracts can reveal trends in contract values, durations, and the types of services most frequently procured, providing context for the current award.

What are the implications of the contract duration (1460 days) for the continuity of drug development efforts?

A contract duration of 1460 days (approximately four years) for drug development support signifies a commitment to a long-term research endeavor. This extended period allows for sustained progress in complex scientific projects, which often require multiple phases and iterative development. It provides stability for the contractor, enabling them to invest in personnel and resources, and ensures continuity of critical research activities without frequent re-competition. For the NIH, this duration supports the methodical advancement of drug candidates through various stages, potentially leading to more robust outcomes than shorter, fragmented efforts.

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: 75N91021R00043

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6500 ROCK SPRING DR STE 650, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $111,883,041

Exercised Options: $31,167,088

Current Obligation: $31,120,905

Actual Outlays: $25,229,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline