Leidos Biomedical Research Inc. awarded $327M contract for NCI operational support, spanning FY26-FY27

Contract Overview

Contract Amount: $327,127,680 ($327.1M)

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: $898.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NCI OPERATIONAL TASK ORDER, FY26-FY27

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $327.1 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: NCI OPERATIONAL TASK ORDER, FY26-FY27 Key points: 1. Contract value of $327M over two years suggests significant operational requirements for the National Cancer Institute. 2. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a focus on scientific and technical support. 3. Full and open competition was utilized, implying a robust bidding process and potential for competitive pricing. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility in research and development. 5. The award to Leidos Biomedical Research Inc. positions them as a key partner in NCI's ongoing operational and research endeavors. 6. The duration of 364 days for the base period suggests a need for sustained support. 7. The contract's geographic focus is Maryland, aligning with the location of NIH facilities.

Value Assessment

Rating: good

The contract value of $327M over two years for operational task orders at NCI appears substantial, reflecting the scale of the institute's mission. Benchmarking this against similar large-scale R&D support contracts within HHS or other federal research agencies would provide further context on value for money. The Cost Plus Fixed Fee structure, while common in R&D, requires careful monitoring to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work. Without specific comparable contract data, a definitive value assessment is challenging, but the scale suggests a significant investment in critical research infrastructure.

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. This approach generally fosters a competitive environment, encouraging multiple bidders to present their best proposals and pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of interest and a strong opportunity for price discovery. This method is designed to ensure the government receives the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services as contractors vie for the award. This process helps ensure that federal funds are used efficiently by driving down costs and promoting innovation among offerors.

Public Impact

The National Cancer Institute (NCI) and its research initiatives are the primary beneficiaries, receiving essential operational support. This contract facilitates the delivery of critical research and development services in the life sciences, contributing to advancements in cancer research. The geographic impact is concentrated in Maryland, where NIH facilities are located, supporting the local economy through employment and related services. The contract implies a need for a skilled workforce in scientific, technical, and administrative support roles within the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains justified by the scope of work.
The substantial contract value necessitates robust performance monitoring to ensure objectives are met and value is delivered.
Reliance on a single contractor for significant operational tasks could pose a risk if performance falters or if the contractor faces unforeseen challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a strong offer.
The contractor, Leidos Biomedical Research Inc., has a track record in supporting government research and development efforts.
The contract duration of approximately one year (base period) allows for regular performance reviews and potential adjustments.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The NAICS code 541715 covers a broad range of scientific research and experimental development services. Federal spending in this area is crucial for advancing scientific knowledge and technological innovation across various fields, including healthcare and national security. Comparable spending benchmarks would involve analyzing other large R&D support contracts awarded by agencies like NIH, NSF, or DoD to similar research institutions and contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is likely that Leidos Biomedical Research Inc. may engage small businesses as subcontractors to fulfill specific aspects of the contract. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is not explicitly defined. Further analysis of subcontracting reports would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH) contracting officers and program managers. Performance monitoring, financial audits, and adherence to the Cost Plus Fixed Fee terms are key accountability measures. Transparency is typically facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Institutes of Health Research Support Contracts
Federal Biomedical Research and Development Funding
Department of Health and Human Services Operational Support
Life Sciences Research and Development Services
Cost-Plus-Fixed-Fee R&D Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Contractor Dependency
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $327.1 million to LEIDOS BIOMEDICAL RESEARCH INC. NCI OPERATIONAL TASK ORDER, FY26-FY27

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 $327.1 million.

What is the period of performance?

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

What is Leidos Biomedical Research Inc.'s past performance record with the federal government, particularly with NIH and NCI?

Leidos Biomedical Research Inc. has a significant history of performing large-scale contracts for the federal government, particularly within the biomedical research domain. They have been a long-standing prime contractor for the National Cancer Institute (NCI) at the Frederick National Laboratory for Cancer Research (FNLCR), managing critical research, development, and operational support services. Their performance has often been characterized by the successful execution of complex scientific and technical tasks, including managing large workforces, advanced laboratory operations, and specialized research programs. While specific performance metrics for past contracts are not detailed here, their continued selection for major awards by NCI suggests a generally positive track record and a high level of confidence from the agency in their capabilities to deliver on complex scientific missions.

How does the $327M value compare to previous NCI operational support contracts?

The $327 million value for this two-year NCI operational task order contract represents a substantial investment. To provide a comparative benchmark, one would need to analyze historical NCI operational support contracts, particularly those awarded under similar NAICS codes (e.g., 541715) and contract types (Cost Plus Fixed Fee). Federal contract databases like FPDS or SAM.gov would be essential for this analysis. If previous contracts for similar scope and duration were significantly lower, it might indicate an increase in scope, inflation, or a less competitive bidding environment. Conversely, if prior awards were in a similar range or higher, it would suggest this award is consistent with the scale of NCI's ongoing operational needs and the market rates for such services.

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

The primary risks associated with a CPFF contract of this magnitude for R&D support revolve around cost control and contractor incentive alignment. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' component means the government reimburses allowable costs. A key risk is that the contractor may have less incentive to aggressively control costs compared to a firm-fixed-price contract, as cost overruns (within allowable limits) are reimbursed. This necessitates robust government oversight to scrutinize all claimed costs and ensure they are reasonable, allocable, and necessary. Another risk is ensuring the fixed fee accurately reflects the complexity and risk of the effort; if it's too high, the government overpays for the contractor's effort, and if too low, it might disincentivize performance or lead to contractor requests for equitable adjustments. Effective management requires clear definition of allowable costs and rigorous monitoring.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification impact the expected outcomes of this contract?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' (NAICS 541715) indicates that this contract is intended to support scientific inquiry and innovation. For the National Cancer Institute (NCI), this likely translates to contracts that fund basic and applied research, experimental development, and the operational infrastructure required to conduct such work. Expected outcomes could include advancements in understanding cancer biology, development of new diagnostic tools or therapeutic strategies, preclinical studies, and the maintenance of research facilities and data management systems. The 'except Nanotechnology and Biotechnology' clause suggests a focus on broader life sciences, physical sciences, and engineering applications relevant to cancer research, rather than highly specialized niche areas.

What are the implications of the contract duration (364 days base period) for NCI's long-term operational strategy?

A base period duration of 364 days for this contract suggests a need for immediate and sustained operational support, likely aligning with annual budget cycles and planning horizons. While this is a relatively short base period, the presence of potential follow-on options or task orders (implied by the nature of operational support) indicates that NCI anticipates a longer-term relationship. This structure allows the agency flexibility to assess performance annually before committing to further periods, mitigating risk. For NCI's long-term strategy, it signifies a reliance on external contractors for essential functions, enabling internal resources to focus on core scientific research and strategic planning. It also implies a need for continuous contract management and performance evaluation to ensure alignment with evolving research priorities.

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: $775,628,838

Exercised Options: $381,861,571

Current Obligation: $327,127,680

Actual Outlays: $24,112,343

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $18,390,038

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