HHS awards $56.6M for R&D in Biotechnology to Technical Resources International, Inc

Contract Overview

Contract Amount: $56,583,915 ($56.6M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-15

End Date: 2027-04-14

Contract Duration: 1,094 days

Daily Burn Rate: $51.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NIAID/DAIDS REGULATORY SUPPORT CENTER

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.6 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: NIAID/DAIDS REGULATORY SUPPORT CENTER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1094 days indicates a long-term need for these research and development services. 4. The North American Industry Classification System (NAICS) code 541714 points to specialized biotechnology research. 5. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The awardee, Technical Resources International, Inc., is positioned to provide critical support to NIH's research initiatives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the actual costs incurred plus a fixed fee for profit. While this can be appropriate for research and development where costs are uncertain, it requires robust oversight to ensure costs are reasonable and the fixed fee represents fair profit. Comparing the fixed fee to industry standards for similar R&D contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding process with multiple interested parties. The specific number of bidders is not provided, but the designation implies that the government sought the best possible offer through a competitive solicitation, which should theoretically lead to better pricing and quality.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its specific research arms, such as the National Institute of Allergy and Infectious Diseases (NIAID) Division of AIDS (DAIDS), which will receive regulatory support. The services delivered are critical for the advancement of biotechnology research, particularly in areas related to infectious diseases and public health. The geographic impact is centered around the contractor's location in Maryland (MD), but the research outcomes can have a national and global public health impact. The contract supports specialized scientific and technical workforce within the biotechnology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs and ensure the fixed fee remains reasonable.
The long contract duration necessitates ongoing performance monitoring to ensure continued alignment with research objectives.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
The contractor, Technical Resources International, Inc., is likely selected based on demonstrated expertise in biotechnology R&D support.
The contract supports critical public health research initiatives at NIH.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a rapidly growing field focused on leveraging biological processes for innovation. The market for R&D services in this area is substantial, driven by government funding for health, agriculture, and environmental research, as well as private sector investment. Comparable spending benchmarks would typically involve analyzing other contracts awarded by NIH or similar agencies for specialized scientific support services, often measured by the total value of R&D contracts within the life sciences sector.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Technical Resources International, Inc. chooses to engage small businesses for specialized tasks. Without explicit subcontracting plans or goals, the direct benefit to small businesses from this specific award is uncertain, though the overall growth in the R&D sector can create indirect opportunities.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the contracting officers and program managers at the NIH/NIAID/DAIDS. They are responsible for monitoring incurred costs, approving reimbursements, ensuring the fixed fee is earned, and verifying that the contractor meets performance milestones and deliverables. Transparency is typically maintained through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH Research and Development Contracts
Biotechnology Research Support Services
NIAID/DAIDS Research Grants and Contracts
Federal R&D Spending in Life Sciences

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Potential for cost escalation in R&D environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.6 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. NIAID/DAIDS REGULATORY SUPPORT CENTER

Who is the contractor on this award?

The obligated recipient is TECHNICAL RESOURCES INTERNATIONAL, 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 $56.6 million.

What is the period of performance?

Start: 2024-04-15. End: 2027-04-14.

What is the track record of Technical Resources International, Inc. in performing similar government contracts, particularly within the biotechnology R&D sector?

Assessing the track record of Technical Resources International, Inc. requires a review of their past performance on federal contracts. This would involve examining contract databases (like SAM.gov or FPDS) for previous awards, their value, duration, and the agencies they served. Key performance indicators to look for include on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. Specifically for biotechnology R&D support, evidence of successful completion of complex research projects, regulatory compliance, and scientific contributions would be highly relevant. A history of positive past performance ratings and a portfolio of successfully managed CPFF contracts would indicate a lower risk for this current award.

How does the estimated value of this contract compare to similar biotechnology R&D support contracts awarded by NIH or other agencies?

To benchmark the value, one would compare the $56.6 million total award value over approximately three years against similar contracts for regulatory support and R&D services in biotechnology. This involves identifying contracts with comparable scope, duration, and complexity awarded by agencies like NIH, NIAID, or other health-focused federal bodies. Factors such as the specific scientific areas (e.g., infectious diseases, vaccine development), the level of regulatory expertise required, and the contractor's overhead structure influence pricing. If similar contracts for comparable services are significantly lower or higher, it could indicate potential overpricing or exceptional value, respectively. The CPFF structure also means the 'value' is tied to the efficiency of cost management and the reasonableness of the fixed fee.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biotechnology R&D, and how are they mitigated?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, there's a risk that costs could escalate beyond initial projections, especially in complex R&D where outcomes are uncertain. Mitigation strategies include robust government oversight of incurred costs, clear definition of allowable expenses, regular audits, and strong performance management. The government must ensure that the contractor's cost accounting system is adequate and that all costs claimed are reasonable, allocable, and directly related to the contract. The fixed fee itself should be negotiated based on a realistic estimate of effort and risk.

How effective is the current contract likely to be in supporting NIAID/DAIDS's research objectives, given the contractor's specialization?

The effectiveness of this contract hinges on the alignment between Technical Resources International, Inc.'s specialized expertise in biotechnology R&D and the specific research objectives of NIAID/DAIDS. If the contractor possesses a proven track record in areas critical to DAIDS's mission, such as HIV/AIDS research, vaccine development, or related infectious disease areas, the contract is likely to be highly effective. Key indicators of effectiveness would include the contractor's ability to meet research milestones, contribute novel insights, navigate complex regulatory pathways, and adapt to evolving scientific challenges. The government's ability to effectively manage the contract, provide clear direction, and monitor progress will also be crucial determinants of its success.

What are the historical spending patterns for biotechnology R&D support services by NIH, and how does this award fit within that trend?

NIH historically allocates significant funding towards research and development, with a substantial portion dedicated to biotechnology. Spending patterns in this area are influenced by national health priorities, emerging scientific discoveries, and the availability of federal funding. Awards for R&D support services, like this one, are common as NIH often relies on external expertise and specialized capabilities. This $56.6 million award fits within the expected trend of substantial federal investment in biotechnology R&D. Analyzing historical data would reveal whether this award represents a typical contract size for such services, or if it is unusually large or small, and whether it aligns with funding trends for specific research areas within NIAID/DAIDS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

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: 75N93023R00008

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6500 ROCK SPRING DR STE 650, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $164,128,686

Exercised Options: $56,583,915

Current Obligation: $56,583,915

Actual Outlays: $27,887,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N93021D00038

IDV Type: IDC

Timeline