HHS Awards $95.8M Contract to Charles River Labs for NIAID Animal Care Facilities Support

Contract Overview

Contract Amount: $95,846,494 ($95.8M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-14

End Date: 2027-03-13

Contract Duration: 1,094 days

Daily Burn Rate: $87.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $95.8 million to CHARLES RIVER LABORATORIES, INC. for work described as: MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES Key points: 1. Contract awarded to a single, established provider, Charles River Laboratories, Inc. 2. The contract is for management, operation, and technical support services. 3. The duration of the contract is 1094 days. 4. The contract value is $95,846,494. 5. The award falls under Facilities Support Services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $95.8M for a nearly 3-year period needs further scrutiny against similar services.

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 specific details of the bidding and selection process are not provided, making it difficult to assess price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are being used for essential research support services. The effectiveness of the competition in securing the best value for taxpayers is a key consideration.

Public Impact

Supports critical research at NIAID by ensuring proper animal care facilities. Potential for cost efficiencies through effective facility management. Ensures compliance with animal welfare regulations and research standards. Impacts the operational capacity of research projects relying on these facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of detailed performance metrics in the provided data.
No information on small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical NIH research mission.
Long-term contract provides stability for facility operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is crucial for government research institutions. Benchmarks for similar contracts would typically consider the scope of services, facility size, and animal population managed.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were explored or if this is a specialized service typically dominated by larger firms.

Oversight & Accountability

Oversight will be critical to ensure Charles River Laboratories meets performance expectations and manages costs effectively under the Cost Plus Fixed Fee structure. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of transparency on specific performance metrics.
No indication of small business utilization.
High contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $95.8 million to CHARLES RIVER LABORATORIES, INC.. MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND 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 $95.8 million.

What is the period of performance?

Start: 2024-03-14. End: 2027-03-13.

What is the benchmark cost for similar animal care facility management services at other federal research institutions?

Benchmarking similar contracts requires detailed comparison of service scope, facility size, animal species and numbers, and contract duration. Without this granular data, a precise benchmark is difficult. However, contracts for large-scale animal facility management can range from tens to hundreds of millions of dollars over several years, depending on complexity and scale.

What are the specific performance metrics and KPIs tied to this contract to ensure effective service delivery?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Effective oversight would necessitate clearly defined metrics related to animal welfare, facility maintenance, operational efficiency, and compliance. These should be regularly monitored and reported by the contractor.

How does the Cost Plus Fixed Fee structure incentivize cost control and efficiency for this specific service?

A Cost Plus Fixed Fee (CPFF) contract covers allowable costs plus a fixed fee representing profit. While it allows for flexibility, it can incentivize the contractor to incur more costs to increase the overall profit margin, as the fee is fixed. Effective management requires rigorous cost monitoring and justification of all expenses.

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: 75N93023R00014

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $185,051,915

Exercised Options: $95,846,494

Current Obligation: $95,846,494

Actual Outlays: $41,554,823

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline