Leidos Biomedical Research Inc. awarded $44.4M contract for facilities support services by NIH

Contract Overview

Contract Amount: $44,431,034 ($44.4M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-26

End Date: 2021-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $24.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $44.4 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF Key points: 1. Contract value of $44.4M over 5 years suggests a significant investment in facilities management. 2. Sole-source award raises questions about potential lack of competition and price optimization. 3. Long contract duration of 1825 days indicates a need for stable, long-term service provision. 4. Facilities Support Services (NAICS 561210) is a broad category, requiring detailed understanding of specific needs. 5. Contract type 'COST NO FEE' implies reimbursement of allowable costs without additional profit, potentially reducing risk for the contractor but requiring robust cost oversight. 6. The absence of small business set-aside or subcontracting data warrants further investigation into small business participation.

Value Assessment

Rating: fair

The contract value of $44.4 million over five years for facilities support services is substantial. Without comparable contracts or detailed service breakdowns, a precise value-for-money assessment is difficult. However, the 'COST NO FEE' contract type suggests that the government is primarily reimbursing direct costs, which can be efficient if costs are well-managed. Benchmarking against similar facilities support contracts for large research institutions would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means that the government did not benefit from multiple bids, which could have driven down prices or led to innovative solutions. A thorough justification for the sole-source award is crucial to understand why full and open competition was not pursued.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not achieve the best possible price without competitive pressure. It also limits opportunities for other qualified vendors to secure federal contracts.

Public Impact

The primary beneficiaries are likely the researchers and staff at the National Institutes of Health (NIH) facilities, who will receive uninterrupted support services. Services delivered include essential facilities support, ensuring the operational readiness and maintenance of critical research infrastructure. The geographic impact is concentrated in Maryland, where the NIH facilities are located. Workforce implications may include the direct employment of personnel by Leidos Biomedical Research Inc. to fulfill these services, potentially impacting the local job market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding on a large contract may result in suboptimal pricing.
The 'COST NO FEE' structure requires stringent oversight to prevent cost overruns.
Limited transparency on specific service deliverables and performance metrics.
Potential for vendor lock-in due to the sole-source nature of the award.

Positive Signals

Long-term contract indicates a stable and reliable service provider.
Focus on facilities support ensures critical research infrastructure remains operational.
Leidos Biomedical Research Inc. has a significant role in supporting NIH operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad industry encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This contract fits within the broader government services sector, which is a significant area of federal spending. Comparable spending benchmarks for facilities management at large federal research institutions would be needed for a precise comparison, but the $44.4 million value over five years suggests a substantial contract for a major research campus.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the sole-source nature of the award, it is less likely that small businesses were specifically targeted for subcontracting opportunities unless mandated by the prime contractor's internal policies or specific government directives not evident in the summary data. Further review of the contract details would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the National Institutes of Health. As a 'COST NO FEE' contract, rigorous financial oversight is essential to ensure that only allowable costs are reimbursed and that the contractor operates efficiently. Transparency regarding performance metrics and cost reporting would be key accountability measures. The Inspector General for HHS would likely have jurisdiction for audits and investigations.

Related Government Programs

NIH Research Facilities Operations
Federal Facilities Management Contracts
Biomedical Research Support Services
Department of Health and Human Services Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for cost overruns due to 'COST NO FEE' structure.
Limited public information on specific deliverables and performance.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $44.4 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF

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 $44.4 million.

What is the period of performance?

Start: 2016-09-26. End: 2021-09-25.

What specific facilities support services are included under this contract?

The contract falls under NAICS code 561210, Facilities Support Services. This broad category typically includes services such as general maintenance, repair, custodial services, groundskeeping, security, and potentially specialized support for laboratory environments. However, the precise scope of services for this specific $44.4 million contract with Leidos Biomedical Research Inc. is not detailed in the provided summary. A thorough review of the contract statement of work (SOW) would be necessary to understand the exact deliverables, which could range from routine building upkeep to complex environmental controls and infrastructure management critical for NIH's research operations.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is capable of providing the required services, or in situations of urgent and compelling need where competition is not feasible. For this contract with Leidos Biomedical Research Inc., the justification would likely stem from a unique capability, existing infrastructure integration, or a specific relationship that makes them the only viable option. Without the official justification document, it's difficult to ascertain the exact reasons. However, sole-source awards warrant scrutiny to ensure that the government is not foregoing potential cost savings or innovative solutions that could arise from a competitive bidding process.

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

A 'COST NO FEE' contract means the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no additional profit. This structure shifts the primary risk of cost overruns to the government. While it can be beneficial for ensuring essential services are provided without contractor hesitation due to profit uncertainty, it places a heavy burden on the contracting agency to meticulously monitor and audit all costs. Contractor incentives for efficiency are primarily driven by the need to maintain the contract and avoid disallowed costs, rather than maximizing profit. Robust oversight and clear cost accounting standards are paramount for effective management of such contracts.

What is Leidos Biomedical Research Inc.'s track record with the federal government, particularly with NIH?

Leidos Biomedical Research Inc. has a substantial history of working with the federal government, particularly the National Institutes of Health (NIH). They have been a key contractor for managing and operating the Frederick National Laboratory for Cancer Research (FNLCR) for many years, a role that inherently involves extensive facilities support and management. Their long-standing relationship with NIH suggests a deep understanding of the agency's mission, infrastructure, and operational requirements. While this specific contract is for facilities support, their broader experience in managing complex research environments likely informs their capabilities and performance.

Are there any performance metrics or service level agreements associated with this contract?

The provided summary data does not explicitly detail performance metrics or service level agreements (SLAs) for this contract. However, for a contract of this magnitude and duration, particularly one supporting critical research facilities, it is highly probable that performance standards and SLAs are defined within the contract's statement of work (SOW). These would typically outline expectations for response times, maintenance schedules, quality of service, and operational uptime. Effective oversight by NIH would involve regular monitoring of contractor performance against these agreed-upon metrics to ensure service quality and value.

How does this contract's value compare to historical federal spending on facilities support services at NIH?

The $44.4 million contract value over five years ($8.88 million annually on average) for facilities support services at NIH is significant. To provide a comparative analysis, one would need to examine historical federal spending data for similar facilities support contracts awarded by NIH or other large research agencies. Factors such as the size and complexity of the facilities being supported, the specific services included, and the prevailing market rates at the time of award would influence historical spending. Without access to detailed historical spending databases and contract specifics, it's challenging to definitively benchmark this contract's value against past expenditures.

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: $44,431,034

Exercised Options: $44,431,034

Current Obligation: $44,431,034

Actual Outlays: $111,681

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN261201500003I

IDV Type: IDC

Timeline