ATCC awarded $10.1M for specimen banking services, highlighting long-term contract value and specialized support

Contract Overview

Contract Amount: $10,133,006 ($10.1M)

Contractor: American Type Culture Collection

Awarding Agency: Department of Health and Human Services

Start Date: 2002-12-01

End Date: 2009-12-23

Contract Duration: 2,579 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ATCC 200-2003-00927 SPECIMEN BANK

Place of Performance

Location: LAWRENCEVILLE, GWINNETT County, GEORGIA, 30045, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.1 million to AMERICAN TYPE CULTURE COLLECTION for work described as: ATCC 200-2003-00927 SPECIMEN BANK Key points: 1. Contract value of $10.1M over 7 years suggests a stable, long-term need for specimen banking. 2. Full and open competition indicates a potentially competitive bidding process for these specialized services. 3. The contract's duration and fixed-price nature may offer cost predictability for the agency. 4. Services provided are critical for biological research and public health initiatives. 5. The award to AMERICAN TYPE CULTURE COLLECTION suggests a focus on established, specialized providers. 6. Geographic concentration in Georgia for service delivery.

Value Assessment

Rating: good

The contract's total value of $10.1M over approximately 7 years averages to about $1.4M annually. Without specific benchmarks for specimen banking services, it's difficult to definitively assess value for money. However, the duration suggests a sustained need and potentially negotiated favorable terms. The fixed-price contract type provides cost certainty, which is a positive indicator for efficient spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders, even if only one award was made, implies a market capable of supporting these services.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Benefits researchers and public health professionals by ensuring the availability and integrity of biological specimens. Supports critical scientific research, diagnostics, and the development of new treatments. Services are geographically concentrated in Georgia, impacting the local workforce and economy. Ensures the long-term preservation of valuable biological resources for future study.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized nature of specimen banking.
Reliance on a single contractor for a critical service could pose a risk if performance falters.

Positive Signals

Long-term contract provides stability and predictability for service continuity.
Fixed-price contract offers cost control and budget certainty.
Awarded through full and open competition, suggesting a robust market and competitive pricing.

Sector Analysis

Specimen banking falls under the broader scientific and research services sector, which is crucial for healthcare and biotechnology. This contract supports the infrastructure for biological research, akin to investments in laboratory facilities and specialized equipment. The market for such services often involves highly specialized organizations with unique capabilities in preservation and management, making competition dynamics unique.

Small Business Impact

The contract details do not indicate a small business set-aside, nor is there information on subcontracting plans. Given the specialized nature of specimen banking, it is possible that larger, established organizations with specific expertise are better positioned to win such contracts. Further analysis would be needed to determine if small businesses are participating in the supply chain or if there are opportunities for them.

Oversight & Accountability

The contract is managed by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would likely involve regular performance reviews, adherence to service level agreements, and financial audits. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

CDC Research Support Services
National Institutes of Health (NIH) Specimen Repository Contracts
Biologics and Vaccine Manufacturing Support
Laboratory Services Contracts

Risk Flags

Long contract duration may not adapt to evolving technological needs.
Fixed-price contract could lead to suboptimal value if market costs fluctuate significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.1 million to AMERICAN TYPE CULTURE COLLECTION. ATCC 200-2003-00927 SPECIMEN BANK

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 (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2002-12-01. End: 2009-12-23.

What is the historical spending pattern for specimen banking services by the CDC or HHS?

Analyzing historical spending on specimen banking by the CDC and HHS would provide context for the $10.1M award. While this specific contract spans from 2002 to 2009, understanding if this is a recurring need and the typical scale of such contracts is important. For instance, if similar contracts in the past were significantly smaller or larger, it could indicate changes in agency needs, market prices, or the scope of services. Without access to a comprehensive historical database of HHS/CDC specimen banking contracts, it's challenging to establish a precise trend. However, the duration and value of this contract suggest a significant, long-term investment in maintaining biological specimen collections, which are vital for ongoing research and public health surveillance.

How does the per-unit cost of specimen storage and management compare to industry benchmarks for this contract?

Determining the per-unit cost for specimen storage and management under this ATCC contract requires detailed breakdown of services and quantities, which is not fully available in the provided data. Specimen banking involves various costs, including specialized storage facilities (e.g., -80°C freezers, liquid nitrogen tanks), inventory management systems, quality control, and personnel. Benchmarking would involve comparing the contract's unit prices for specific services (e.g., cost per sample stored per year, cost per sample accessioned) against rates charged by other reputable biorepositories or industry standards. Given the $10.1M value over approximately 7 years, the average annual cost is around $1.4M. If the contract covers millions of samples, the per-sample cost might be relatively low, indicating good value. Conversely, if the volume is smaller, the cost per sample could be higher, warranting further investigation into the scope and necessity of the services.

What is the track record of AMERICAN TYPE CULTURE COLLECTION (ATCC) in performing similar government contracts?

AMERICAN TYPE CULTURE COLLECTION (ATCC) has a long-standing reputation as a leading biological resource center, involved in the preservation, standards, and distribution of biological materials. Their track record with government contracts, particularly those involving specimen banking and related services, is generally considered strong due to their specialized expertise and infrastructure. While specific performance details for this particular contract (ATCC 200-2003-00927) are not publicly detailed here, ATCC's mission aligns directly with the requirements of such agreements. They are known for maintaining high standards in quality control and sample integrity. Government agencies often partner with ATCC for critical biological resource management due to their established protocols and reliability in handling sensitive materials, suggesting a positive history of fulfilling contractual obligations.

What are the key performance indicators (KPIs) used to measure the success of this specimen banking contract?

Key Performance Indicators (KPIs) for a specimen banking contract like ATCC 200-2003-00927 typically focus on the integrity, accessibility, and management of the biological specimens. While specific KPIs for this contract aren't detailed, common metrics include sample viability rates (ensuring specimens remain in a usable state), inventory accuracy (correct cataloging and tracking of samples), turnaround time for sample retrieval requests, compliance with storage conditions (temperature, humidity monitoring), and adherence to security protocols. The Centers for Disease Control and Prevention (CDC) would likely have established Service Level Agreements (SLAs) outlining these KPIs. Performance would be assessed through regular reporting, audits, and potentially site visits to ensure ATCC meets the stringent requirements for maintaining valuable biological resources critical for research and public health.

Are there any identified risks associated with the long duration and fixed-price nature of this contract?

The long duration (approx. 7 years) and fixed-price nature of this contract present both potential benefits and risks. A key risk of a long-term fixed-price contract is that market prices for services or materials could increase significantly over the contract period, potentially leading to the contractor realizing unexpectedly high profits or, conversely, the government receiving less value if costs decrease. For the contractor, unforeseen technical challenges or increased operational costs could erode profit margins. For the government, a risk is that the fixed price might not reflect the most current, efficient methods or technologies available later in the contract term, potentially leading to suboptimal service delivery or missed opportunities for cost savings if the contract isn't flexible enough to incorporate innovations. However, the fixed price also offers budget certainty, a significant advantage.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2002N00444

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $108,440,532

Exercised Options: $61,450,015

Current Obligation: $10,133,006

Timeline