NIH Awards $3.49M for Animal Feed & Bedding, Competed Under SAP

Contract Overview

Contract Amount: $3,492,424 ($3.5M)

Contractor: Animal Specialties and Provisions South, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-06

End Date: 2027-03-31

Contract Duration: 1,820 days

Daily Burn Rate: $1.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABORATORY ANIMAL FEED AND BEDDING SUPPLIES BASE YEAR (PLUS FOUR OPTION YEARS)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to ANIMAL SPECIALTIES AND PROVISIONS SOUTH, LLC for work described as: LABORATORY ANIMAL FEED AND BEDDING SUPPLIES BASE YEAR (PLUS FOUR OPTION YEARS) Key points: 1. Contract awarded to Animal Specialties and Provisions South, LLC for essential lab supplies. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting smaller value or urgency. 3. The contract spans 5 years (base + 4 options), indicating a need for long-term supply. 4. The sector is 'Other Animal Food Manufacturing', a niche but critical support service for biomedical research.

Value Assessment

Rating: good

The award amount of $3.49M over 5 years appears reasonable for specialized animal feed and bedding. Benchmarking against similar contracts for lab animal supplies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves fewer vendors and potentially less aggressive price negotiation than full and open competition. This method may have limited the price discovery process.

Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for a likely moderate-value contract, aiming for efficiency while still seeking competitive pricing.

Public Impact

Ensures continuity of research at NIH facilities by providing essential supplies for laboratory animals. Supports the biomedical research ecosystem by maintaining the welfare of animal subjects. The award to a specific LLC highlights the role of specialized small businesses in government supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not yield the best possible price.
Reliance on a single vendor for a critical supply chain component.
Potential for price increases in option years if not carefully managed.

Positive Signals

Contract awarded to a specific company, providing clear accountability.
Long-term contract (5 years) offers supply chain stability for NIH.
Procurement method (SAP) suggests efficiency for this type of purchase.

Sector Analysis

This contract falls within the 'Other Animal Food Manufacturing' sector, a niche but vital part of the broader life sciences and research support industry. Spending benchmarks for this specific sub-sector are difficult to ascertain without more granular data, but it supports the significant federal investment in biomedical research.

Small Business Impact

The contract was awarded to 'ANIMAL SPECIALTIES AND PROVISIONS SOUTH, LLC'. While the data indicates the company is not listed as a small business (sb: false), further investigation into its size status and past performance would be beneficial to understand its role in supporting small business goals.

Oversight & Accountability

The contract was competed under SAP, which has its own set of oversight requirements. The awarding agency, NIH, is responsible for ensuring fair and reasonable pricing and performance throughout the contract's life. Post-award monitoring of vendor performance and adherence to contract terms is crucial.

Related Government Programs

Other Animal Food Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition under SAP.
Potential for price escalation in option years.
Lack of explicit small business awardee.
Dependence on a single supplier for critical research materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to ANIMAL SPECIALTIES AND PROVISIONS SOUTH, LLC. LABORATORY ANIMAL FEED AND BEDDING SUPPLIES BASE YEAR (PLUS FOUR OPTION YEARS)

Who is the contractor on this award?

The obligated recipient is ANIMAL SPECIALTIES AND PROVISIONS SOUTH, 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 $3.5 million.

What is the period of performance?

Start: 2022-04-06. End: 2027-03-31.

What is the specific definition of 'Other Animal Food Manufacturing' and how does it compare to broader agricultural or food production spending?

This NAICS code (311119) covers establishments primarily engaged in manufacturing animal feeds, including dog and cat food, and other animal feeds from basic ingredients. It's distinct from primary agricultural production or general food manufacturing, focusing specifically on formulated feeds for animals, often with specialized nutritional requirements for research or specific species. Federal spending in this niche supports the operational needs of research institutions rather than broad agricultural markets.

How does the use of Simplified Acquisition Procedures (SAP) impact the potential for cost savings compared to full and open competition for this contract?

SAP is designed for purchases under the simplified acquisition threshold (currently $250,000, though specific agency thresholds can vary). While this contract's total value exceeds that, it may have been broken down or awarded under specific SAP flexibilities. SAP generally involves less formal solicitation and evaluation processes, which can increase efficiency but may limit the number of bidders and the intensity of price competition, potentially leading to higher costs than a full and open competition.

What are the key performance indicators (KPIs) for ensuring the quality and timely delivery of laboratory animal feed and bedding, and how are they monitored?

Key performance indicators would likely include adherence to nutritional specifications, freshness/shelf-life of feed, absence of contaminants, and timely delivery schedules to prevent research disruptions. Monitoring typically involves regular quality checks by NIH personnel, review of delivery logs, and potentially vendor performance reports. Any deviations from specifications or delivery failures would trigger corrective actions, potentially impacting future contract awards or payments.

Industry Classification

NAICS: Manufacturing › Animal Food Manufacturing › Other Animal Food Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6660 SANTA BARBARA RD STE 19, ELKRIDGE, MD, 21075

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,492,424

Exercised Options: $3,492,424

Current Obligation: $3,492,424

Actual Outlays: $2,091,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline