Leidos Biomedical Research Inc. awarded $19.8M contract for tumor characterization analysis by NIH

Contract Overview

Contract Amount: $19,759,807 ($19.8M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-28

End Date: 2026-09-30

Contract Duration: 3,289 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF RETROSPECTIVE TUMOR CHARACTERIZATION ANALYSIS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.8 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF RETROSPECTIVE TUMOR CHARACTERIZATION ANALYSIS Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract was not competed, raising questions about price discovery and value for money. 3. Long contract duration of over 9 years suggests a need for ongoing, specialized services. 4. The primary contractor, Leidos Biomedical Research Inc., has a significant presence in federal health IT. 5. Services are delivered in Maryland, a hub for federal health agencies and research facilities. 6. The contract falls under Facilities Support Services, which can encompass a broad range of activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and lack of competitive data. The cost-plus-fixed-fee structure means the government pays for allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if cost controls are not robust. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if the pricing is optimal. However, the long duration and specialized nature of the services suggest a potentially complex and valuable undertaking for the agency.

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 a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a direct award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors. This raises concerns about whether the most cost-effective solution was secured.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for services due to the absence of competitive pressure. It also limits opportunities for other businesses to compete for federal dollars.

Public Impact

The National Institutes of Health (NIH) benefits from specialized analytical services to support its research objectives. The contract facilitates advancements in tumor characterization, potentially leading to improved cancer diagnostics and treatments. Services are primarily delivered within Maryland, supporting the local economy and research ecosystem. The contract likely involves a team of specialized scientists, technicians, and support staff, implying workforce implications within the biomedical research sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for innovation.
Cost-plus-fixed-fee structure may incentivize higher costs if not closely managed.
Long contract duration requires sustained oversight to ensure continued value and performance.
Lack of detailed public information on specific deliverables makes performance assessment difficult.

Positive Signals

Contract supports critical biomedical research for the NIH.
Leidos Biomedical Research Inc. is a known entity with experience in federal health contracts.
The contract is in Maryland, a key location for federal health research and development.

Sector Analysis

This contract falls within the broader Health and Scientific Research Services sector, which is a significant area of federal spending. The market is characterized by specialized firms, academic institutions, and large government contractors vying for research and development grants and service contracts. Federal agencies like NIH are major clients, driving demand for expertise in areas such as bioinformatics, data analysis, and laboratory support. Spending in this sector is often driven by national health priorities and scientific discovery goals.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the sole-source nature and the specialized services required, it is unlikely that subcontracting opportunities for small businesses would be a primary focus unless specifically mandated. The absence of set-aside provisions means that the direct impact on the small business ecosystem for this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). As a sole-source award, scrutiny on performance and cost management is crucial. Transparency is limited by the non-competitive nature, but contract performance reviews and financial audits would be standard oversight mechanisms. The Inspector General's office for the Department of Health and Human Services would have jurisdiction for audits and investigations if any concerns arise regarding fraud, waste, or abuse.

Related Government Programs

NIH Research and Development Contracts
Biomedical Research Support Services
Federal Health IT Services
Facilities Support Services Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.8 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF RETROSPECTIVE TUMOR CHARACTERIZATION ANALYSIS

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 $19.8 million.

What is the period of performance?

Start: 2017-09-28. End: 2026-09-30.

What is the specific nature of the 'Tumor Characterization Analysis' services provided under this contract?

The contract, identified by the description 'IGF::OT::IGF RETROSPECTIVE TUMOR CHARACTERIZATION ANALYSIS', suggests services related to analyzing historical data and samples to characterize tumors. This likely involves complex data processing, statistical analysis, and potentially the application of machine learning or AI techniques to identify patterns, biomarkers, or other significant features of tumors. The goal is to provide insights that can aid in understanding tumor development, progression, and potential therapeutic targets. The specific methodologies and data sources used would be detailed in the contract's statement of work, but the overarching aim is to enhance the understanding and classification of tumors for research purposes.

How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar services?

Cost-plus-fixed-fee (CPFF) contracts are common for research and development or services where the scope is not precisely defined at the outset, or where innovation is a key component. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, and cost-reimbursement contracts without a fixed fee. While CPFF offers flexibility and encourages the contractor to undertake complex or uncertain tasks, it carries a higher risk of cost overruns for the government compared to fixed-price agreements. Benchmarking CPFF contracts against fixed-price equivalents for similar, well-defined services often shows higher total costs for CPFF due to the inherent risk and flexibility provided to the contractor.

What are the potential risks associated with a sole-source award for specialized biomedical research services?

Sole-source awards, like this one to Leidos Biomedical Research Inc., carry several risks, particularly in specialized fields such as biomedical research. The primary risk is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to optimize efficiency or innovate beyond the minimum requirements. Without multiple bidders, the government may not be aware of or able to access potentially more cost-effective or technologically superior solutions offered by other firms. Furthermore, sole-source awards can create a perception of favoritism and may limit opportunities for emerging or smaller businesses that could offer valuable contributions. Ensuring robust oversight and negotiation is critical to mitigate these risks.

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

Leidos Biomedical Research Inc. (formerly Leidos Health) is a significant contractor within the federal health sector, with a substantial history of working with agencies like the National Institutes of Health (NIH). They manage large, complex programs, including operating federally funded research and development centers (FFRDCs) and providing a wide range of scientific, IT, and administrative support services. Their track record includes managing substantial budgets and diverse research initiatives. While specific performance metrics for individual contracts are not always publicly detailed, their continued awards and long-term engagements, such as this one, suggest a generally satisfactory performance history and established relationship with NIH. However, like any large contractor, they would be subject to ongoing performance evaluations and contract compliance reviews.

How does the $19.8 million contract value compare to historical federal spending on similar tumor characterization or biomedical analysis services?

The $19.8 million contract value over its potential 9-year duration (approximately $2.2 million annually) is substantial but needs to be viewed within the context of NIH's overall budget and the specialized nature of the services. NIH's annual budget runs into the tens of billions of dollars, funding a vast array of research projects. Contracts for highly specialized analytical services, especially those involving retrospective data analysis and potentially complex biological interpretations, can command significant funding. Without specific benchmarks for 'retrospective tumor characterization analysis' across the federal government, direct comparisons are difficult. However, this figure appears reasonable for a long-term, specialized support contract within a major research institution like NIH, especially considering the potential for cost-plus-fixed-fee arrangements which can accommodate evolving research needs and costs.

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 PLUS FIXED FEE (U)

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: $19,759,807

Exercised Options: $19,759,807

Current Obligation: $19,759,807

Actual Outlays: $11,568,653

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $779,317

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