Leidos Biomedical Research Inc. awarded $65.3M contract by NIH for operational support

Contract Overview

Contract Amount: $65,313,869 ($65.3M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-31

End Date: 2025-08-30

Contract Duration: 364 days

Daily Burn Rate: $179.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NIAID DCR OPERATIONAL TASK ORDER

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $65.3 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: NIAID DCR OPERATIONAL TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 364 days indicates a focused, short-term operational support requirement. 4. The primary NAICS code (541715) points to significant R&D activity, aligning with NIH's mission. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the underlying IDIQ contract. However, the Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to ensure costs remain reasonable and the fixed fee is justified. Comparing the total value to similar operational support contracts within the life sciences R&D sector would provide a better understanding of its market alignment. Without more detailed performance metrics or cost breakdowns, a definitive value assessment is difficult.

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 bids. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for the services required.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of a contractor that offers the best overall value, rather than being limited to a restricted pool of potential providers.

Public Impact

The contract supports operational tasks likely crucial for the National Institutes of Health's research and development initiatives. The primary beneficiary is the NIH, which receives essential support services to advance its scientific mission. The contract is geographically focused in Maryland (ST: MD, SN: MARYLAND), indicating a concentration of federal research activity in that region. The workforce implications are likely related to skilled personnel in research support, administration, and potentially specialized scientific roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee.
Lack of transparency on the number of bidders in a full and open competition makes it difficult to assess the true level of competition and potential for price optimization.
The contract is a delivery order, which could indicate a reliance on a specific IDIQ vehicle, potentially limiting future competition if not managed strategically.

Positive Signals

Awarded through full and open competition, maximizing the opportunity to select the most capable and cost-effective provider.
The contractor, Leidos Biomedical Research Inc., is a known entity in supporting federal research, suggesting a degree of established capability.
The contract duration of approximately one year allows for focused execution and performance evaluation before potential renewal.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The NAICS code 541715 represents a significant segment of federal R&D spending, particularly within agencies like the National Institutes of Health. Comparable spending benchmarks would involve analyzing other operational support contracts awarded to research institutions or government laboratories, considering factors like contract type, duration, and specific services rendered.

Small Business Impact

The contract was not awarded as a small business set-aside, and the primary awardee, Leidos Biomedical Research Inc., is a large business. This suggests that the scope of work was likely deemed too large or specialized for a small business set-aside, or that the competitive landscape favored large business capabilities. There is no explicit information provided regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is earned based on performance. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically internal. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Support Contracts
Biomedical Research and Development Services
Federal Health IT and R&D Support
Life Sciences Research Operations

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage cost risks.
Lack of specific bidder count limits assessment of competitive intensity.
Delivery order implies potential reliance on a pre-existing IDIQ, whose competition details are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65.3 million to LEIDOS BIOMEDICAL RESEARCH INC. NIAID DCR OPERATIONAL TASK ORDER

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 $65.3 million.

What is the period of performance?

Start: 2024-08-31. End: 2025-08-30.

What is the specific nature of the 'operational tasks' being supported by Leidos Biomedical Research Inc. under this contract?

The provided data indicates the contract is for 'NIAID DCR OPERATIONAL TASK ORDER' and falls under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). While 'operational tasks' is broad, in the context of the National Institute of Allergy and Infectious Diseases (NIAID) and its Division of Clinical Research (DCR), this likely encompasses a range of support functions essential for conducting clinical trials and research. These could include project management, data management, regulatory support, administrative services, laboratory support, procurement of supplies, and coordination of research personnel. The Cost Plus Fixed Fee structure suggests that the contractor is reimbursed for direct and indirect costs incurred, plus a negotiated fixed fee representing profit and indirect costs not easily allocated. The exact scope would be detailed in the task order's statement of work, which is not publicly available in this data snippet.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types used for similar R&D operational support services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation and flexibility are paramount. Unlike Firm-Fixed-Price (FFP) contracts, which offer the government price certainty but can stifle innovation if scope changes, CPFF allows for cost reimbursement. This flexibility is beneficial for R&D where unforeseen challenges or discoveries may necessitate adjustments. However, CPFF shifts cost risk to the government, requiring robust oversight to ensure costs are reasonable and allocable. Other common types include Cost Plus Incentive Fee (CPIF), which adds performance incentives, or Cost Plus Award Fee (CPAF), where the fee is determined by subjective performance evaluations. For more defined services, FFP or Time and Materials (T&M) might be used, but CPFF is often preferred for complex, evolving R&D support.

What is the historical spending pattern for operational support contracts awarded by the National Institutes of Health (NIH) to Leidos Biomedical Research Inc. or similar entities?

Analyzing historical spending requires access to comprehensive federal procurement databases. However, Leidos Biomedical Research Inc. (formerly Leidos Health) has been a significant contractor for the NIH, particularly supporting the National Cancer Institute (NCI) through its Frederick National Laboratory for Cancer Research (FNLCR) contract, which is a substantial, long-term agreement. This $65.3M delivery order is likely a component of a larger contracting vehicle. NIH frequently awards large contracts for R&D support, often using CPFF or other cost-reimbursement types, given the nature of scientific research. Spending patterns for operational support are generally substantial and consistent, reflecting the ongoing need for infrastructure and services to facilitate government-led research. Trends may show shifts towards specific technological support, data analytics, or specialized laboratory services over time.

What are the potential risks associated with a CPFF contract for operational support in a sensitive research environment like NIAID?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs. Without stringent oversight, contractors may lack sufficient incentive to control expenses. In a sensitive research environment like NIAID, this could extend to costs associated with personnel, specialized equipment, or data management. Another risk is 'scope creep,' where the project expands beyond its original intent without formal modification, leading to increased costs. Ensuring that the 'fixed fee' component is appropriately negotiated and that all costs are 'allowable, allocable, and reasonable' requires diligent contract administration. Furthermore, if the contractor's internal controls are weak, there's a risk of improper payments or inefficient resource allocation. The government must actively manage the contract to mitigate these risks.

How does the 'delivery order' nature of this contract impact competition and pricing compared to a standalone contract?

A delivery order is typically issued under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This means the competition for the underlying IDIQ contract likely occurred previously, often through a full and open process. The delivery order itself may or may not involve further competition, depending on the terms of the IDIQ. Some IDIQs require competition among awardees for each delivery order above a certain threshold, while others allow the agency to select an awardee without further competition. If this delivery order was competed among multiple IDIQ holders, it would foster price discovery. If it was a sole-source task order under a previously competed IDIQ, the pricing would be based on the rates established in the IDIQ. The 'delivery order' structure allows for flexibility and rapid acquisition of services as needed, but the initial IDIQ competition is critical for establishing a competitive baseline.

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: $69,299,577

Exercised Options: $69,299,577

Current Obligation: $65,313,869

Actual Outlays: $58,083,506

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $7,498,127

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