HHS awards $116M contract for NIAID research facility operations, with 2673 days duration

Contract Overview

Contract Amount: $115,817,915 ($115.8M)

Contractor: Laulima Government Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-03-01

End Date: 2025-06-25

Contract Duration: 2,673 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANAGEMENT AND OPERATION OF THE NIAID HIGH CONTAINMENT INTEGRATED RESEARCH FACILITY AT FORT DETRICK, MD

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $115.8 million to LAULIMA GOVERNMENT SOLUTIONS, LLC for work described as: MANAGEMENT AND OPERATION OF THE NIAID HIGH CONTAINMENT INTEGRATED RESEARCH FACILITY AT FORT DETRICK, MD Key points: 1. Contract value of $116M over nearly 7 years suggests significant operational scope. 2. Full and open competition indicates a potentially competitive bidding process. 3. The definitive contract type with cost-plus-fixed-fee structure warrants scrutiny of cost controls. 4. Operations at a high-containment research facility imply critical national health security functions. 5. The contract's duration of over 2600 days points to long-term service requirements. 6. The specific NAICS code (541990) covers a broad range of professional, scientific, and technical services.

Value Assessment

Rating: fair

The total award amount of approximately $116 million over a period of nearly 7 years (2673 days) indicates a substantial investment in the operation of a high-containment research facility. Benchmarking this cost requires detailed understanding of the specific services provided, personnel required, and the unique operational demands of a high-containment environment. Without more granular data on the scope of work and comparable facility operational costs, a precise value-for-money assessment is challenging. However, the duration suggests a stable, long-term need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. The presence of two bids indicates a degree of competition, though the exact number of bidders and the nature of their proposals would provide a clearer picture of the competitive landscape. A competitive process is generally expected to drive better pricing and service quality.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overcharges that could arise from limited or sole-source awards.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and the broader scientific community relying on the NIAID High Containment Integrated Research Facility. The contract supports the critical operation and maintenance of a specialized research facility, enabling advanced scientific research. Geographic impact is concentrated in Fort Detrick, Maryland, where the facility is located. Workforce implications include the potential for employment of specialized personnel in facility management, scientific support, and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not closely monitored.
The long duration of the contract may reduce flexibility to adapt to changing research needs or technological advancements.
Operational costs for high-containment facilities are inherently high and require continuous justification.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract supports critical national health research infrastructure.
The contractor, Laulima Government Solutions, LLC, is tasked with essential facility operations.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to the operation of specialized research facilities. The market for such services is driven by government funding for scientific research and development, particularly in areas like infectious diseases and biodefense. Comparable spending benchmarks would involve analyzing other contracts for the management and operation of high-containment laboratories or similar critical infrastructure within federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, Laulima Government Solutions, LLC, will be responsible for managing the entire scope of work. Opportunities for small businesses would likely arise through their own procurement practices if they choose to subcontract portions of the work.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are reasonable and allocable to the contract. Transparency would be enhanced through regular reporting requirements and potential reviews by HHS's Office of Inspector General, particularly concerning expenditures and performance metrics.

Related Government Programs

NIH Research Facility Operations
High Containment Laboratory Management
Biodefense Research Support
Federal Scientific Infrastructure Contracts
Cost-Plus-Fixed-Fee Service Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration may limit adaptability to future needs.
High-containment facility operations involve inherent safety and security risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.8 million to LAULIMA GOVERNMENT SOLUTIONS, LLC. MANAGEMENT AND OPERATION OF THE NIAID HIGH CONTAINMENT INTEGRATED RESEARCH FACILITY AT FORT DETRICK, MD

Who is the contractor on this award?

The obligated recipient is LAULIMA GOVERNMENT SOLUTIONS, LLC.

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 $115.8 million.

What is the period of performance?

Start: 2018-03-01. End: 2025-06-25.

What is the specific scope of services provided under this contract for the NIAID High Containment Integrated Research Facility?

The contract data indicates 'MANAGEMENT AND OPERATION OF THE NIAID HIGH CONTAINMENT INTEGRATED RESEARCH FACILITY AT FORT DETRICK, MD.' This broad description suggests services likely encompass facility maintenance, security, laboratory support, equipment management, waste disposal, and potentially specialized scientific support functions necessary for operating a high-containment environment. The exact details of the services would be elaborated in the contract's statement of work, which is not provided in the summary data. These services are critical for ensuring the safe and effective functioning of a facility designed to handle dangerous pathogens and conduct advanced research.

How does the cost-plus-fixed-fee (CPFF) contract type influence the contractor's incentives and potential for cost overruns?

A Cost-Plus-Fixed-Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also carries a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise. Robust government oversight, detailed cost accounting, and clear performance metrics are essential to mitigate the risk of contractor inefficiency or excessive spending under a CPFF arrangement. The fixed fee provides a ceiling on profit, but the total cost to the government can still escalate if actual costs exceed estimates.

What are the implications of awarding a contract for nearly 7 years (2673 days) for facility operations?

A contract duration of 2673 days (approximately 6.8 years) signifies a long-term commitment by the government to the contractor for the sustained operation of a critical research facility. This extended period suggests stability and predictability for both the agency and the contractor, allowing for long-term planning and investment in specialized personnel and equipment. For the government, it ensures continuity of essential services. However, it also means less flexibility to adapt quickly to potential changes in research priorities, technological advancements, or market conditions. Regular performance reviews and potential contract modifications would be necessary to ensure the contract remains aligned with evolving needs over its lifespan.

What is the significance of the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') in understanding this contract?

The NAICS code 541990 is a broad classification that encompasses a wide array of professional, scientific, and technical services not categorized under other specific NAICS codes. For this contract, it indicates that the services provided are specialized and likely unique to the operation of a high-containment research facility. This code suggests the contract could involve a diverse range of activities, from specialized scientific support and technical consulting to facility management and safety compliance, all tailored to the specific demands of advanced biological research. It highlights the specialized nature of the work required, which may not fit neatly into more common service categories.

What is the potential impact of this contract on the small business ecosystem, given it was not a small business set-aside?

Since this contract was not set aside for small businesses and the prime contractor is Laulima Government Solutions, LLC (which may or may not be a small business itself, though the 'ss: false' flag suggests it's not being treated as one for this award), the direct impact on the small business ecosystem through set-aside provisions is nil. However, the prime contractor may engage small businesses as subcontractors to fulfill parts of the contract. The extent of this subcontracting would depend on Laulima's procurement strategy and the specific requirements of the facility's operation. Without explicit subcontracting goals or reporting, the flow-down of work to small businesses remains uncertain and dependent on the prime's discretion.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DHHSNIHAO2016038

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,557,036

Exercised Options: $115,817,915

Current Obligation: $115,817,915

Actual Outlays: $78,379,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline