Leidos Biomedical Research Inc. awarded $18.5M for NIH facilities support, a sole-source contract

Contract Overview

Contract Amount: $18,548,162 ($18.5M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-02

End Date: 2019-06-30

Contract Duration: 1,031 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Other

Official Description: IGF::OT::IGF BLDG. 538- 1ST FLOOR REFURBISHMENT AND INFRASTRUCTURE

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.5 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF BLDG. 538- 1ST FLOOR REFURBISHMENT AND INFRASTRUCTURE Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Facilities support services are critical for ongoing research operations. 3. Contract duration of over 1000 days suggests a significant, long-term need. 4. The contract type 'COST NO FEE' indicates reimbursement of costs without a fixed profit margin. 5. Awarded to a single contractor, raising questions about potential cost efficiencies. 6. The National Institutes of Health (NIH) relies on such services for its facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and cost-plus structure. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or optimal value for money. The 'COST NO FEE' structure means the government reimburses all allowable costs incurred by the contractor, plus a pre-determined fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Further analysis would require detailed cost breakdowns and comparisons to similar facilities support contracts at other government research institutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to specialized capabilities, existing infrastructure, or urgent needs. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: Taxpayers may have paid a higher price than necessary due to the absence of competitive bidding. The lack of competition limits the government's ability to negotiate favorable terms and ensures that the selected contractor faces no direct pressure to offer lower prices.

Public Impact

Benefits the National Institutes of Health (NIH) by ensuring the operational integrity of its research facilities. Provides essential facilities support services, including maintenance and infrastructure management. Impacts the scientific research community by enabling uninterrupted laboratory operations. Supports the workforce employed by Leidos Biomedical Research Inc. for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus contract structure may reduce contractor incentive for cost efficiency.
Lack of transparency in cost breakdown for 'COST NO FEE' contracts.

Positive Signals

Contract supports critical research infrastructure for a leading health agency.
Leidos Biomedical Research Inc. has a significant track record in managing complex government contracts.
The contract ensures continuity of essential services for NIH operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector includes services like building cleaning, pest control, landscaping, and general maintenance. Government spending in this area is substantial, as agencies operate vast real estate portfolios. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by agencies like the General Services Administration (GSA) or other research-intensive bodies like the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The award to a large entity like Leidos Biomedical Research Inc. suggests that the scope of work was likely beyond the capacity or specialization of most small businesses in this sector. This means that opportunities for small business participation in this specific contract are minimal, potentially limiting their access to this segment of federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). As a cost-plus contract, rigorous financial oversight is crucial to ensure that all reimbursed costs are allowable, reasonable, and allocable to the contract. The Inspector General's office within HHS would likely have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency would depend on the level of detail made public regarding cost reports and performance metrics.

Related Government Programs

NIH Facilities Maintenance Contracts
HHS Facilities Support Services
Federal Building Operations and Maintenance
Research Facility Management

Risk Flags

Sole-source award
Cost-plus contract type
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.5 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF BLDG. 538- 1ST FLOOR REFURBISHMENT AND INFRASTRUCTURE

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 $18.5 million.

What is the period of performance?

Start: 2016-09-02. End: 2019-06-30.

What is the historical spending pattern for facilities support services at the NIH?

Analyzing historical spending patterns for facilities support services at the NIH is crucial for understanding the scale and evolution of these needs. While specific historical data for this exact contract is not provided, the NIH, as a major biomedical research institution, consistently requires substantial investment in maintaining its extensive campus and specialized laboratory environments. This includes routine maintenance, repairs, upgrades, and infrastructure management. Spending in this category can fluctuate based on capital improvement projects, new construction, and the aging of existing facilities. Benchmarking against previous years and similar large federal research facilities can reveal trends in cost escalation and service scope. Without specific historical figures for this contract, a broader analysis of NIH's facilities budget over the past decade would be necessary to identify any significant shifts or patterns in spending for comparable services.

How does the 'COST NO FEE' contract type typically impact contractor performance and cost control?

The 'COST NO FEE' contract type, also known as Cost-Reimbursement No Fee, is a variation of cost-plus contracts where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no additional fee or profit. This structure is often used when the scope of work is uncertain or when the contractor is a non-profit entity or a government-owned, contractor-operated facility, as is the case with Leidos Biomedical Research Inc. for NIH. While it ensures that the government covers all necessary expenses to complete the work, it can reduce the contractor's incentive to control costs aggressively, as their profit is not directly tied to cost savings. Oversight is therefore critical to scrutinize all claimed costs. Performance is typically measured against technical requirements and delivery schedules, rather than cost efficiency, although the absence of a fee might imply a focus on mission accomplishment over profit maximization.

What are the risks associated with sole-source contracts for essential services like facilities support?

Sole-source contracts for essential services like facilities support carry several inherent risks. The primary risk is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not achieve the best possible price or terms. This can lead to taxpayers bearing a higher burden than necessary. Another risk is reduced innovation; a single contractor may have less incentive to develop and implement cost-saving technologies or improved processes when they are not vying for future contracts based on performance and price. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future, even if performance or pricing becomes unsatisfactory. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What is Leidos Biomedical Research Inc.'s track record with similar federal contracts?

Leidos Biomedical Research Inc. (LBRI) has a substantial track record of managing large, complex federal contracts, particularly within the health and research sectors. As a subsidiary of Leidos, LBRI is experienced in providing a wide array of scientific, engineering, and IT support services to government agencies. They have historically managed significant portions of the National Institutes of Health's (NIH) research support infrastructure, including IT, data management, and administrative services. Their experience often involves operating government-owned facilities and managing large workforces dedicated to supporting scientific missions. This extensive background suggests a familiarity with government contracting regulations, performance expectations, and the specific operational needs of agencies like the NIH, which is a positive indicator for their ability to execute this facilities support contract effectively.

How does this contract compare to other federal facilities support contracts in terms of value and scope?

Comparing this $18.5 million, sole-source, cost-plus contract for facilities support at NIH to other federal contracts requires careful consideration of scope and context. Facilities support contracts vary widely in size, complexity, and service offerings. While $18.5 million over approximately three years is a significant sum, it may represent a moderate scope for a large research institution like NIH, which operates extensive and specialized facilities. Contracts for similar services at larger federal complexes or those involving major construction/renovation could be substantially larger. The sole-source nature and 'COST NO FEE' structure make direct value-for-money comparisons difficult without detailed cost breakdowns and performance data. However, the duration and the nature of the services suggest a critical, ongoing need for operational continuity, which is a common characteristic of such contracts across various federal agencies.

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: $18,548,162

Exercised Options: $18,548,162

Current Obligation: $18,548,162

Actual Outlays: $72,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN261201500003I

IDV Type: IDC

Timeline