HHS awards $12.3M for live animals, not for food, to Charles River Laboratories over 10 years

Contract Overview

Contract Amount: $12,348,853 ($12.3M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-05-03

End Date: 2013-05-02

Contract Duration: 3,286 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: LIVE ANIMALS, NOT RAISED FOR FOOD

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.3 million to CHARLES RIVER LABORATORIES, INC. for work described as: LIVE ANIMALS, NOT RAISED FOR FOOD Key points: 1. Spending on live animals for non-food purposes represents a niche but potentially significant area of research support. 2. Charles River Laboratories is a major player in preclinical services, indicating substantial market presence. 3. The long contract duration (10 years) suggests a stable, ongoing need but also locks in pricing. 4. The sector context points towards biomedical research and development, a critical area for public health.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar contracts for specialized animal research services is difficult due to unique requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which is positive for price discovery. However, the long-term nature and specialized requirements may limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are supporting critical research, but the long-term commitment and cost-plus nature warrant careful monitoring to ensure value for money.

Public Impact

Supports vital biomedical research, potentially leading to advancements in human and animal health. Ensures a supply chain for specialized research animals, crucial for scientific progress. Funds a private sector entity, contributing to the economy and employment in the life sciences sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts can incentivize spending.
Long contract duration may reduce flexibility.
Specialized nature of service could limit competition over time.

Positive Signals

Full and open competition was conducted.
Supports critical research needs.
Established vendor with proven capabilities.

Sector Analysis

This spending falls within the broader healthcare and research sector, specifically supporting preclinical research. Benchmarks are difficult due to the specialized nature of live animal supply for non-food research.

Small Business Impact

The data does not indicate any specific set-asides or participation from small businesses in this contract. The nature of the service likely favors larger, specialized providers.

Oversight & Accountability

The contract was awarded by NIH, a reputable agency. Oversight would focus on ensuring the ethical treatment of animals, adherence to research protocols, and cost control within the fixed-fee structure.

Related Government Programs

Nonwoven Fabric Mills
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost creep in CPFF contracts.
Long contract duration limits flexibility.
Dependence on a single vendor for specialized resources.
Ethical considerations in animal research require stringent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.3 million to CHARLES RIVER LABORATORIES, INC.. LIVE ANIMALS, NOT RAISED FOR FOOD

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 $12.3 million.

What is the period of performance?

Start: 2004-05-03. End: 2013-05-02.

What is the specific research purpose for these live animals, and how does it align with public health priorities?

The specific research purpose is not detailed in the provided data. However, contracts with NIH for live animals typically support critical biomedical research, such as disease modeling, drug efficacy testing, and fundamental biological studies. Alignment with public health priorities would depend on the specific research projects funded under this contract, which are likely focused on understanding and treating diseases.

How was the 'fixed fee' component determined, and what mechanisms are in place to prevent cost overruns beyond this fee?

The 'fixed fee' in a Cost Plus Fixed Fee (CPFF) contract is negotiated at the outset and represents the contractor's profit. While the fee is fixed, the 'cost' portion is reimbursable. Mechanisms to prevent cost overruns beyond the total estimated cost (which includes the fixed fee) rely on robust government oversight, detailed cost reporting, and potentially contract modifications if scope changes significantly. The agency must diligently monitor expenditures against the estimated cost.

Are there alternative sources or methods for acquiring these specialized research animals that could offer better value or reduce long-term reliance on a single vendor?

Given the specialized nature of live animals raised for specific research purposes, alternatives might be limited. However, agencies should periodically review the market for emerging suppliers or advancements in research methodologies (e.g., in vitro models, computational biology) that could reduce reliance on live animal studies. Periodic re-competition, even with full and open processes, helps ensure continued market competitiveness and reassess the need for such specialized services.

Industry Classification

NAICS: Manufacturing › Fabric Mills › Nonwoven Fabric Mills

Product/Service Code: LIVE ANIMALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Charles River Laboratories International, Inc. (UEI: 110376014)

Address: 251 BALLARDVALE ST, WILMINGTON, MA, 06

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,900,092

Exercised Options: $16,769,466

Current Obligation: $12,348,853

Contract Characteristics

Multi-Year Contract: Yes

Timeline