NIH awards $67.5M for biological research resources, supporting critical infectious disease research

Contract Overview

Contract Amount: $67,520,071 ($67.5M)

Contractor: American Type Culture Collection

Awarding Agency: Department of Health and Human Services

Start Date: 2023-10-16

End Date: 2026-10-15

Contract Duration: 1,095 days

Daily Burn Rate: $61.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOLOGICAL AND EMERGING INFECTIONS RESEARCH RESOURCES PROGRAM (BEI-RRP)

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67.5 million to AMERICAN TYPE CULTURE COLLECTION for work described as: BIOLOGICAL AND EMERGING INFECTIONS RESEARCH RESOURCES PROGRAM (BEI-RRP) Key points: 1. Contract supports the maintenance and distribution of biological research resources. 2. Focus on infectious diseases aligns with national health priorities. 3. Long-term contract (3 years) indicates a stable need for these resources. 4. Single award suggests a specialized capability required from the contractor. 5. Performance period extends through October 2026, ensuring continuity. 6. Funding mechanism is Cost Plus Fixed Fee, common for R&D services.

Value Assessment

Rating: good

The contract value of $67.5 million over three years for biological research resources appears reasonable given the specialized nature of maintaining and distributing critical biological materials. Benchmarking against similar contracts for biological resource management is challenging due to the unique scope of the BEI-RRP. However, the fixed fee component suggests a degree of cost control. The contract's purpose is to ensure the availability of high-quality biological materials for research, which is a vital but difficult-to-quantify value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair pricing. The use of a definitive contract with a Cost Plus Fixed Fee structure is appropriate for research and development services where the full scope may evolve.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential biological research resources, ensuring funds are used efficiently for critical scientific endeavors.

Public Impact

Researchers nationwide benefit from access to high-quality biological materials for infectious disease studies. The program supports advancements in understanding and combating infectious diseases. Geographic impact is national, serving research institutions across the United States. Workforce implications include support for scientists, technicians, and administrative staff involved in resource management and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
Reliance on a single contractor for such critical resources could pose a risk if performance issues arise.

Positive Signals

Full and open competition suggests a robust selection process.
The long-term nature of the contract indicates a stable and ongoing need for these vital resources.
The specific NAICS code (541715) points to specialized R&D capabilities.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This sector is crucial for scientific advancement and public health. The market for maintaining and distributing specialized biological resources is niche, often dominated by organizations with established expertise and infrastructure like the American Type Culture Collection. Spending in this area is driven by the need for reliable access to research materials for various scientific disciplines, particularly in public health and biodefense.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor is the American Type Culture Collection, which is a large organization, there is potential for subcontracting opportunities for small businesses that provide specialized services or supplies related to biological resource management or distribution. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a Cost Plus Fixed Fee contract, NIH program officials will monitor costs and performance closely to ensure adherence to the contract's objectives and budget. Transparency is generally maintained through federal contract databases, and any significant issues would likely be subject to review by the HHS Office of Inspector General.

Related Government Programs

NIH Research Grants
CDC Infectious Disease Programs
Biodefense Research Programs
National Institute of Allergy and Infectious Diseases (NIAID) Funding

Risk Flags

Potential for cost overruns in CPFF contracts.
Risk of biological material degradation or contamination.
Dependence on a single contractor for critical resources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67.5 million to AMERICAN TYPE CULTURE COLLECTION. BIOLOGICAL AND EMERGING INFECTIONS RESEARCH RESOURCES PROGRAM (BEI-RRP)

Who is the contractor on this award?

The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.

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 $67.5 million.

What is the period of performance?

Start: 2023-10-16. End: 2026-10-15.

What is the historical spending pattern for the Biological and Emerging Infections Research Resources Program (BEI-RRP)?

Historical spending data for the BEI-RRP program indicates a consistent need for these biological resources. While specific annual figures for this exact contract are not detailed here, the program has been a long-standing initiative within NIH. Previous contract awards for similar services would likely show a steady allocation of funds to ensure the maintenance and distribution of critical research materials. The current award of approximately $67.5 million over three years suggests a sustained level of investment in this area, reflecting its ongoing importance to infectious disease research and public health preparedness. Analyzing prior contract durations and values would provide a clearer picture of the program's budgetary trajectory and the government's commitment to this resource.

How does the American Type Culture Collection's (ATCC) track record influence this award?

The American Type Culture Collection (ATCC) is a globally recognized non-profit organization with a long-standing reputation for maintaining and distributing a vast array of biological standards, including cell lines, microorganisms, and molecular tools. Their extensive experience and established infrastructure in managing and characterizing these critical research resources likely played a significant role in the NIH's decision to award them this contract. ATCC's proven ability to ensure the quality, viability, and accessibility of biological materials, coupled with their deep understanding of research needs, makes them a highly qualified candidate for programs like BEI-RRP. This award signifies confidence in ATCC's capacity to fulfill the demanding requirements of providing reliable biological resources for infectious disease research.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biological resource management?

A primary risk with Cost Plus Fixed Fee (CPFF) contracts, such as this one for the BEI-RRP, is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a ceiling on profit. For biological resource management, risks include the potential for contamination or degradation of valuable biological materials, which could necessitate costly re-acquisition or re-culturing efforts. Ensuring the consistent quality and viability of distributed samples is paramount; any lapse could compromise research outcomes and require significant corrective actions. Furthermore, unforeseen scientific developments or emerging infectious threats might necessitate rapid adaptation of resource management protocols, potentially increasing costs beyond initial projections. Robust oversight by the contracting agency is crucial to mitigate these risks.

How does this contract contribute to national biodefense preparedness?

This contract significantly contributes to national biodefense preparedness by ensuring the availability of essential biological research resources. The BEI-RRP program supports the maintenance and distribution of a wide range of infectious agents, toxins, and related materials that are critical for developing countermeasures, diagnostic tools, and vaccines against both naturally occurring and deliberately introduced biological threats. Researchers studying emerging infectious diseases and potential bioweapons rely on these high-quality, well-characterized resources to conduct their work effectively. By funding the ATCC to manage these resources, the NIH ensures that the scientific community has consistent access to the materials needed for threat assessment, research, and the development of robust defense strategies, thereby strengthening the nation's overall biodefense posture.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is for highly specialized research and development activities. This particular code encompasses a broad range of scientific inquiry, including biological research. For the BEI-RRP program, it indicates that the work involves the scientific investigation, experimentation, and analysis necessary to maintain, characterize, and distribute biological materials for research purposes. This classification helps categorize the contract within the federal procurement system, allowing for targeted sourcing and analysis of spending within the R&D sector, and highlights the scientific and technical expertise required from the contractor.

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

Solicitation ID: 75N93021R00022

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $333,708,817

Exercised Options: $67,520,071

Current Obligation: $67,520,071

Actual Outlays: $45,431,126

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $26,879,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline