NIH Awards $115M for NIAID Animal Facility Support to Charles River Laboratories
Contract Overview
Contract Amount: $115,441,922 ($115.4M)
Contractor: Charles River Laboratories, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2018-04-13
End Date: 2024-03-13
Contract Duration: 2,161 days
Daily Burn Rate: $53.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Healthcare
Official Description: IGF::OT::IGF MANAGEMENT, OPERATION, PROFESSIONAL, AND TECHNICAL SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $115.4 million to CHARLES RIVER LABORATORIES, INC. for work described as: IGF::OT::IGF MANAGEMENT, OPERATION, PROFESSIONAL, AND TECHNICAL SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES Key points: 1. Contract awarded to a single large business, Charles River Laboratories. 2. Spending is concentrated within the Health and Human Services sector, specifically NIH. 3. The contract duration is significant at 2161 days. 4. Facilities Support Services (NAICS 561210) is the primary service category. 5. No small business participation is indicated.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee (CPFF) structure, while common for complex services, can lead to higher costs if not managed tightly. Benchmarking against similar large-scale facility support contracts is needed to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies that Charles River Laboratories was the most advantageous offer.
Taxpayer Impact: Taxpayer funds are being used for essential research support services, with the value determined through a competitive process.
Public Impact
Supports critical biomedical research infrastructure at NIAID. Ensures continuity of animal care services for NIH studies. Potential for cost overruns if not closely monitored due to CPFF structure. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep in CPFF contracts.
- No small business participation.
- Long contract duration may reduce flexibility.
Positive Signals
- Awarded via full and open competition.
- Supports critical research infrastructure.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on facilities support for a major research institution. Benchmarks for similar large-scale animal care facility contracts are scarce but typically involve significant multi-year commitments.
Small Business Impact
This contract does not appear to include any provisions for small business participation. The services provided are highly specialized and likely require the resources of a large, established contractor.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee (CPFF) nature of the contract, ensuring that costs remain within reasonable bounds and that performance meets NIAID's stringent requirements. Regular performance reviews and financial audits are essential.
Related Government Programs
- Facilities Support Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Lack of small business participation.
- Potential for vendor lock-in.
- Performance degradation over long contract term.
- Reliance on a single large contractor.
Tags
facilities-support-services, department-of-health-and-human-services, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $115.4 million to CHARLES RIVER LABORATORIES, INC.. IGF::OT::IGF MANAGEMENT, OPERATION, PROFESSIONAL, AND TECHNICAL SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES
Who is the contractor on this award?
The obligated recipient is CHARLES RIVER LABORATORIES, 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 $115.4 million.
What is the period of performance?
Start: 2018-04-13. End: 2024-03-13.
What is the projected cost efficiency of this contract over its full term, considering the CPFF structure?
Assessing cost efficiency for a CPFF contract requires detailed analysis of direct costs, indirect costs, and the fixed fee. Without specific cost breakdowns and performance metrics, it's difficult to provide a precise efficiency projection. However, the long duration and specialized nature suggest that effective oversight and performance management are key to maximizing value and preventing cost overruns.
What are the primary risks associated with the long duration and specialized nature of these services?
The primary risks include potential cost escalation due to inflation or unforeseen operational challenges over the 2161-day period. There's also a risk of vendor lock-in, reduced flexibility for NIAID to adopt new technologies or service models, and potential performance degradation if contractor motivation wanes. Ensuring robust performance standards and regular contract reviews can mitigate these risks.
How effectively does this contract support NIAID's mission objectives for animal research?
This contract is designed to directly support NIAID's mission by providing essential operational and technical services for its animal care facilities. By outsourcing these critical functions to a specialized provider, NIAID can focus its resources on core research activities. The success hinges on the contractor's ability to maintain high standards of animal welfare, facility operations, and compliance with regulations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NIHAO201800001
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Charles River Laboratories International, Inc.
Address: 251 BALLARDVALE ST, WILMINGTON, MA, 01887
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,441,922
Exercised Options: $115,441,922
Current Obligation: $115,441,922
Actual Outlays: $52,249,775
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-04-13
Current End Date: 2024-03-13
Potential End Date: 2024-03-13 00:00:00
Last Modified: 2025-09-23
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