Leidos Biomedical Research Inc. awarded $67.4M for NIAID operational support, extending NIH's R&D capabilities

Contract Overview

Contract Amount: $67,383,704 ($67.4M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-31

End Date: 2026-08-30

Contract Duration: 364 days

Daily Burn Rate: $185.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NIAID DCR FY26-27 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 $67.4 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: NIAID DCR FY26-27 OPERATIONAL TASK ORDER Key points: 1. Contract value of $67.4M over one year suggests significant operational needs for NIAID. 2. Full and open competition indicates a potentially competitive bidding process. 3. Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control but requires careful oversight. 4. The contract supports Research and Development in the Physical, Engineering, and Life Sciences. 5. Performance period of one year allows for regular reassessment of needs and contractor performance. 6. The award is a delivery order under a larger contract, implying a pre-existing relationship and framework.

Value Assessment

Rating: good

The contract value of $67.4 million for a one-year operational task order for NIAID appears reasonable given the scope of supporting research and development activities. Benchmarking against similar large-scale R&D support contracts within NIH or other federal agencies would provide further context. The CPFF structure necessitates close monitoring to ensure costs remain aligned with the fixed fee and project objectives, but it is a common structure for R&D where scope can evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition is the government's preferred method for ensuring the widest possible access to innovative solutions and competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for their investment by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are the National Institute of Allergy and Infectious Diseases (NIAID) and its research initiatives. Services delivered include operational support crucial for the execution of NIAID's research and development programs. The geographic impact is centered around the National Institutes of Health (NIH) facilities, likely in Maryland. Workforce implications may include the employment of scientists, researchers, technicians, and administrative staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for all allowable costs plus a fixed fee.
The duration of one year for this task order may limit long-term strategic planning for operational support.
Reliance on a single contractor for significant operational tasks could pose a risk if performance issues arise.
The specific nature of 'operational task order' requires clarity to fully assess the scope and potential risks.

Positive Signals

Award to Leidos Biomedical Research Inc., a known entity with experience in supporting federal research institutions.
Full and open competition suggests a robust selection process and potential for strong performance.
The contract supports critical research and development for NIAID, aligning with national health priorities.
The fixed fee component of the CPFF contract provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D support services for federal agencies like NIH is substantial, with numerous companies specializing in scientific research, laboratory management, and operational support. Comparable spending benchmarks would involve analyzing other large R&D support contracts awarded by NIH and other science-focused agencies to gauge the cost-effectiveness of this award.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this award's structure. However, the prime contractor, Leidos, may engage small businesses as subcontractors for specialized services, which would contribute to the broader small business economy.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), specifically the National Institute of Allergy and Infectious Diseases (NIAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that all costs incurred are allowable and reasonable, and that the fixed fee is commensurate with the work performed. Transparency is generally maintained through contract reporting mechanisms, and the potential for Inspector General review exists, particularly concerning financial accountability and performance.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Contractor Performance Dependency
Budgetary Constraints Impacting Long-Term Needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67.4 million to LEIDOS BIOMEDICAL RESEARCH INC. NIAID DCR FY26-27 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 $67.4 million.

What is the period of performance?

Start: 2025-08-31. End: 2026-08-30.

What is Leidos Biomedical Research Inc.'s track record with federal R&D support contracts?

Leidos Biomedical Research Inc. has a significant track record supporting federal research and development, particularly with the National Institutes of Health (NIH). They have historically managed large, complex contracts, including operating Frederick National Laboratory for Cancer Research. Their experience encompasses a wide range of scientific disciplines, laboratory management, data analysis, and operational support services. This extensive background suggests a strong understanding of government contracting requirements, scientific research needs, and regulatory compliance within the biomedical field. Their past performance is likely a key factor in their continued success in securing such awards.

How does the $67.4M value compare to similar NIAID operational support contracts?

The $67.4 million value for a one-year operational task order for NIAID is substantial and indicative of significant support requirements. To benchmark effectively, one would need to compare it against other recent, similar task orders or contracts awarded by NIAID or other institutes within NIH for comparable operational and R&D support services. Factors such as the specific scientific areas supported, the level of personnel involved (e.g., scientists, technicians, administrative staff), and the duration of the support are critical for a precise comparison. Without access to a broader dataset of NIAID's specific operational support contract values, it's challenging to definitively state if this represents a high, low, or average investment, but it clearly signifies a major operational commitment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D operational support?

The primary risks associated with a CPFF contract for R&D operational support revolve around cost control and potential for scope creep. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of all allowable costs. If the project scope expands or unforeseen technical challenges arise, costs can escalate significantly, even with a fixed fee. Effective risk mitigation requires robust government oversight, clear definition of work requirements, stringent cost monitoring, and proactive management of any changes to the scope of work. The contractor's incentive is to complete the work efficiently to maximize their return on the fixed fee, but the government must remain vigilant to prevent unnecessary expenditures.

How effective is full and open competition in ensuring value for money in R&D support services?

Full and open competition is generally considered the most effective method for ensuring value for money in R&D support services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative technical solutions. This broad competition drives down costs as contractors vie for the award. For complex R&D support, it also allows the government to select the offeror with the best combination of technical capability, past performance, and price. The rigor of the evaluation process under full and open competition is designed to identify the proposal that offers the greatest overall value to the government and, by extension, the taxpayer.

What is the historical spending pattern for NIAID operational support contracts?

Historical spending patterns for NIAID operational support contracts typically show a consistent need for external expertise and services to augment internal capabilities. Funding levels often fluctuate based on specific research priorities, emerging public health threats, and the overall federal budget allocated to NIH. Large, multi-year contracts for operational support are common, reflecting the long-term nature of biomedical research. Analysis of past spending would likely reveal significant investments in areas such as laboratory management, clinical trial support, data analysis, and specialized scientific services. The trend is generally towards increasing reliance on specialized contractors to access cutting-edge technologies and expertise.

What are the implications of this contract being a delivery order under a larger contract?

This contract being a delivery order (aw: DELIVERY ORDER) under a larger, potentially indefinite-delivery/indefinite-quantity (IDIQ) contract means that the foundational terms, conditions, and pricing structures were established previously. This approach allows for flexibility and efficiency in procuring specific services or supplies as needed, without requiring a full recompete for each individual task. For the government, it streamlines the acquisition process and leverages pre-negotiated rates. For the contractor, it provides a framework for ongoing work. The $67.4M represents the value of this specific order, and the overall value of the parent contract could be significantly higher, spanning multiple years and numerous delivery orders.

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: $139,889,945

Exercised Options: $70,212,052

Current Obligation: $67,383,704

Actual Outlays: $8,756,436

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $29,089,529

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