HHS awards $545M GOCO R&D facility contract to Leidos Biomedical Research Inc
Contract Overview
Contract Amount: $54,467,336 ($54.5M)
Contractor: Leidos Biomedical Research Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-26
End Date: 2020-09-25
Contract Duration: 1,826 days
Daily Burn Rate: $29.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF OPERATION OF GOVERNMENT-OWNED CONTRACTOR-OPERATED (GOCO) R&D FACILITIES
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $54.5 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF OPERATION OF GOVERNMENT-OWNED CONTRACTOR-OPERATED (GOCO) R&D FACILITIES Key points: 1. Contract supports critical government-owned, contractor-operated research facilities. 2. Leidos Biomedical Research Inc. is the sole awardee, raising competition concerns. 3. The contract's cost-plus-award-fee structure requires careful monitoring for efficiency. 4. Facilities Support Services sector sees significant government investment.
Value Assessment
Rating: good
The contract value of $544.7M over five years appears reasonable for operating complex R&D facilities. Benchmarking against similar GOCO contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure to achieve the lowest possible cost.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Supports vital biomedical research, potentially leading to health advancements. Ensures continuity of operations for critical research infrastructure. Job creation and economic activity in Maryland. Potential for innovation within the GOCO model.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-award-fee structure requires robust oversight.
- Contract duration is substantial.
Positive Signals
- Supports critical R&D mission.
- Experienced contractor in biomedical research.
- Potential for significant scientific breakthroughs.
Sector Analysis
This contract falls within the Facilities Support Services sector, specifically for the operation of Government-Owned Contractor-Operated (GOCO) Research and Development facilities. Spending in this area is crucial for maintaining national research capabilities.
Small Business Impact
The provided data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The cost-plus-award-fee structure necessitates strong oversight from the National Institutes of Health to ensure performance objectives are met and costs are controlled effectively. Award fees should be tied to measurable outcomes.
Related Government Programs
- Facilities Support Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award
- Cost-plus-award-fee contract type
- Long contract duration
- Lack of small business participation data
Tags
facilities-support-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $54.5 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF OPERATION OF GOVERNMENT-OWNED CONTRACTOR-OPERATED (GOCO) R&D FACILITIES
Who is the contractor on this award?
The obligated recipient is LEIDOS BIOMEDICAL RESEARCH 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 $54.5 million.
What is the period of performance?
Start: 2015-09-26. End: 2020-09-25.
What is the historical performance of Leidos Biomedical Research Inc. in managing GOCO facilities?
Leidos Biomedical Research Inc. has a significant track record in managing GOCO facilities, particularly through its operation of the Frederick National Laboratory for Cancer Research. Their experience suggests a strong capability in handling complex research operations, safety protocols, and scientific support services. This history is a key factor in the agency's decision to award them this contract, likely based on past performance evaluations and demonstrated expertise in the field.
How does the cost-plus-award-fee structure impact cost control and contractor incentive?
The Cost-Plus-Award-Fee (CPAF) structure allows the contractor to recover allowable costs plus a base fee, with the potential for an additional award fee based on performance. This incentivizes the contractor to exceed minimum performance standards. However, it requires diligent government oversight to ensure costs are reasonable and the award fee criteria are objective and tied to mission success, preventing potential cost overruns or inflated fees.
What are the specific R&D areas supported by this GOCO facility, and what is their national significance?
This contract supports operations at a GOCO R&D facility managed by Leidos Biomedical Research Inc. for the National Institutes of Health. While the specific research areas are not detailed in the provided data, such facilities typically focus on critical national priorities like infectious disease research, cancer, neuroscience, or other areas of public health. The national significance lies in advancing scientific knowledge, developing new treatments, and ensuring preparedness for health emergencies.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N01CO5240180
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1050 BOYLES ST, FREDERICK, MD, 21702
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,467,336
Exercised Options: $54,467,336
Current Obligation: $54,467,336
Actual Outlays: $23,199
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $485,450
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSN261201500003I
IDV Type: IDC
Timeline
Start Date: 2015-09-26
Current End Date: 2020-09-25
Potential End Date: 2020-09-25 00:00:00
Last Modified: 2024-07-26
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