NIH awards $663K for biomarker assay services to Cerba Research USA, Inc

Contract Overview

Contract Amount: $66,334 ($66.3K)

Contractor: Cerba Research USA, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-16

End Date: 2022-06-30

Contract Duration: 379 days

Daily Burn Rate: $175/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: CERBA RESEARCH, ASSAY SERUM BIOMARKERS

Place of Performance

Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11042

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $66,333.75 to CERBA RESEARCH USA, INC for work described as: CERBA RESEARCH, ASSAY SERUM BIOMARKERS Key points: 1. Contract awarded for specialized biomarker assay services, indicating a need for advanced diagnostic capabilities. 2. The award was made via a purchase order, suggesting a streamlined procurement process for this specific need. 3. The duration of the contract is approximately one year, aligning with project-based service requirements. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The geographic location of the contractor is New York, potentially impacting local economic contributions.

Value Assessment

Rating: fair

The contract value of $663,333.75 for biomarker assay services appears to be within a reasonable range for specialized laboratory testing. Benchmarking against similar contracts for complex biological assays is challenging without more detailed service descriptions. However, the fixed-price structure suggests an attempt to control costs. Further analysis would require comparing the specific assays performed and their complexity to industry standards and pricing for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This indicates that the agency likely identified a specific need that could only be met by Cerba Research USA, Inc., or that the procurement process did not allow for broader competition. The lack of competition means there was no opportunity for price discovery through multiple bids, potentially leading to a higher price than if multiple vendors had been involved.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive pricing that could have potentially lowered the overall cost of these essential laboratory services.

Public Impact

The primary beneficiaries are researchers and scientists within the National Institutes of Health (NIH) who require specialized biomarker assay services for their studies. The services delivered are critical for advancing medical research, potentially leading to new diagnostic tools or therapeutic strategies. The geographic impact is primarily within the research facilities of the NIH, though the contractor is based in New York. Workforce implications are likely limited to the specialized technical staff at Cerba Research USA, Inc. performing the assays.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for innovation from other vendors.
The sole-source nature limits transparency into the pricing structure and justification for selecting this specific vendor.

Positive Signals

The contract supports critical biomedical research at the NIH, contributing to advancements in public health.
The fixed-price award provides budget predictability for the agency.

Sector Analysis

The contract falls within the scientific research and testing services sector, specifically focusing on laboratory analysis of biological samples. This sector is characterized by high specialization and significant investment in technology and expertise. The market for biomarker assays is driven by advancements in genomics, proteomics, and other '-omics' fields, supporting drug discovery, diagnostics, and personalized medicine. Comparable spending benchmarks are difficult to establish without knowing the exact assays and their complexity, but the overall federal spending on R&D and health services research is substantial.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting opportunities for small businesses. The award to a single entity, Cerba Research USA, Inc., does not directly impact the small business ecosystem in terms of set-asides or subcontracting.

Oversight & Accountability

Oversight for this purchase order would typically reside with the contracting officer and program officials at the National Institutes of Health. Accountability is maintained through the terms and conditions of the purchase order and the delivery of specified services. Transparency is limited due to the sole-source nature of the award, with less public visibility into the justification and pricing compared to a competed contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Research Grants
Biomedical Research Services
Clinical Laboratory Services
Diagnostic Assay Development

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $66,333.75 to CERBA RESEARCH USA, INC. CERBA RESEARCH, ASSAY SERUM BIOMARKERS

Who is the contractor on this award?

The obligated recipient is CERBA RESEARCH USA, 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 $66,333.75.

What is the period of performance?

Start: 2021-06-16. End: 2022-06-30.

What specific biomarker assays were performed under this contract, and what is their scientific significance?

The provided data indicates the contract is for 'CERBA RESEARCH, ASSAY SERUM BIOMARKERS.' While the exact list of specific biomarker assays is not detailed in the award information, serum biomarker assays are crucial in medical research for identifying and quantifying substances in the blood that can indicate a normal biological process, a disease process, or a response to a therapeutic intervention. These assays can range from measuring protein levels, genetic markers, or metabolic byproducts. Their scientific significance lies in their potential to aid in early disease detection, prognosis, monitoring treatment efficacy, and understanding disease mechanisms. For instance, specific biomarker assays might be used in studies related to cancer, cardiovascular disease, neurological disorders, or infectious diseases, contributing to the NIH's broader mission of advancing health knowledge.

How does the $663,333.75 contract value compare to typical spending for similar biomarker assay services at NIH?

Direct comparison of the $663,333.75 contract value to typical spending for similar biomarker assay services at NIH is challenging without more granular data on the specific assays performed, their complexity, and the volume required. Biomarker assay costs can vary significantly based on the technology used (e.g., ELISA, mass spectrometry, PCR), the number of analytes being measured, and the required turnaround time. However, for a contract spanning approximately 379 days (from June 16, 2021, to June 30, 2022), this value suggests a substantial need for specialized laboratory services. If this represented a large-scale screening or a complex multi-analyte panel, the cost might be considered reasonable. Conversely, if it involved simpler, high-volume assays, it could be on the higher end. The sole-source nature of the award further complicates a direct value-for-money assessment against potentially more competitive pricing.

What are the potential risks associated with awarding this contract on a sole-source basis?

Awarding this contract on a sole-source basis carries several potential risks. Firstly, there is a risk of paying a non-competitive price, which could be higher than what would have been achieved through a competitive bidding process. This lack of price discovery means taxpayers may not be receiving the best value for their money. Secondly, sole-source awards can limit access to innovative solutions or specialized expertise that other qualified vendors might offer. This can stifle competition and potentially lead to the agency missing out on more efficient or effective service delivery methods. Thirdly, it can create a perception of favoritism or a lack of transparency, even if the sole-source justification is valid. Finally, relying on a single vendor for critical services can introduce supply chain risks if that vendor experiences operational issues.

What is Cerba Research USA, Inc.'s track record with federal contracts, particularly with the NIH?

Information regarding Cerba Research USA, Inc.'s specific track record with federal contracts, particularly with the NIH, is not detailed in the provided award data. This award is a purchase order for $663,333.75. To assess their track record, one would need to examine historical contract databases (like FPDS or SAM.gov) for previous awards, contract performance reviews, and any reported issues or successes. Without this historical data, it's difficult to gauge their reliability, past performance quality, or experience in fulfilling similar federal requirements. The current award being a sole-source purchase order suggests that either this is a new relationship or previous engagements did not necessitate a formal competitive process.

How does this contract align with the National Institutes of Health's broader research objectives and spending patterns?

This contract for serum biomarker assays directly aligns with the National Institutes of Health's (NIH) core mission of advancing fundamental knowledge about health and disease and applying that knowledge to reduce the burden of illness and improve health. Biomarker research is a critical component of modern biomedical research, underpinning efforts in disease prevention, diagnosis, and treatment development across numerous therapeutic areas. NIH's spending patterns typically reflect a significant investment in research services, including laboratory testing, data analysis, and specialized scientific support. A $663,333.75 award for such services, while specific, is likely a component of a larger research portfolio. It supports the scientific endeavors of NIH researchers by providing essential tools and analyses needed to pursue their research objectives, contributing to the overall scientific output and public health impact of the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75N92020Q0099

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 DELAWARE DR STE 2, NEW HYDE PARK, NY, 11042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,334

Exercised Options: $66,334

Current Obligation: $66,334

Actual Outlays: $66,334

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline