Leidos Biomedical Research Inc. awarded $25.6M contract for facilities support services by NIH

Contract Overview

Contract Amount: $25,652,545 ($25.7M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-28

End Date: 2025-09-30

Contract Duration: 2,924 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF BIOBANK

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.7 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF BIOBANK Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price efficiencies and value for money. 3. Long contract duration of over 8 years suggests a need for ongoing, sustained services. 4. The primary contractor, Leidos Biomedical Research Inc., has a significant presence in federal contracting. 5. Facilities support services are critical for the operational continuity of research institutions like NIH. 6. The contract's value is moderate within the context of large federal research and development support.

Value Assessment

Rating: fair

Assessing the value for money is challenging without a competitive bidding process. The cost-plus-fixed-fee structure requires diligent oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without excessive profit. Benchmarking against similar facilities support contracts for research institutions would be necessary for a more precise value assessment. Given the lack of competition, it's difficult to definitively state if this represents optimal pricing.

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 can provide the required services. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a multi-bidder scenario, potentially leading to higher costs than if multiple firms had competed.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's ability to negotiate favorable terms is also diminished in a sole-source situation.

Public Impact

The National Institutes of Health (NIH) benefits from uninterrupted facilities support services, enabling its research mission. The contract ensures the operational readiness and maintenance of critical research infrastructure. The primary impact is on the scientific community and administrative staff at the NIH facilities in Maryland. Workforce implications include employment opportunities for personnel involved in facilities management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost-plus-fixed-fee contracts require robust oversight to control costs.
Long contract duration could mask inefficiencies if not actively managed.

Positive Signals

Contract ensures continuity of essential facilities support for critical research.
Leidos Biomedical Research Inc. is an established contractor with experience in this domain.
The contract is for a necessary service supporting a vital government function.

Sector Analysis

Facilities support services are a broad category within the federal contracting landscape, encompassing maintenance, repair, and operational support for government buildings and infrastructure. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks for facilities management at large research institutions can vary significantly based on the size and complexity of the facilities, but federal spending in this area is substantial.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, subcontracting opportunities for small businesses would depend on Leidos Biomedical Research Inc.'s internal policies and the specific needs of the facilities support services. Without a set-aside, the direct impact on the small business ecosystem is likely limited unless the prime contractor actively engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program officials within the National Institutes of Health. The cost-plus-fixed-fee structure necessitates close monitoring of expenditures and contractor performance to ensure compliance with contract terms and to manage costs effectively. Transparency is generally maintained through contract reporting mechanisms, though specific details of cost-plus contracts can be less public than fixed-price awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Research Support Contracts
Federal Facilities Management Services
Biomedical Research Infrastructure Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing structure
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.7 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF BIOBANK

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 $25.7 million.

What is the period of performance?

Start: 2017-09-28. End: 2025-09-30.

What is the track record of Leidos Biomedical Research Inc. with federal contracts, particularly in facilities support?

Leidos Biomedical Research Inc. is a significant federal contractor with a substantial history of performance across various agencies and service areas. While specific data on their facilities support track record for this exact contract is limited without deeper analysis, the company generally performs well in large-scale research and development support contracts. Their experience often includes managing complex operations and infrastructure. However, as with any large contractor, past performance reviews and any reported issues or disputes would be crucial for a comprehensive assessment. The 'IGF::OT::IGF BIOBANK' designation suggests a specific program focus, and their performance within that context would be a key indicator.

How does the pricing structure (Cost Plus Fixed Fee) typically compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty, such as in research and development or complex service provision. This structure reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally carries more risk for the government regarding cost overruns, as the final cost is not predetermined. However, it can be advantageous when innovation or flexibility is paramount. For routine facilities support, FFP or other fixed-price variants are often preferred for better cost control, but CPFF might be justified if the services involve unique or evolving requirements not easily scoped upfront.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risk of a sole-source award for facilities support services is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective solution. Another risk is reduced incentive for the contractor to innovate or improve efficiency, as they face no direct competition. Furthermore, it can limit the government's ability to leverage new technologies or service models that might be introduced by other potential providers. Ensuring fair and reasonable pricing and robust performance monitoring becomes even more critical in sole-source situations.

What is the historical spending pattern for facilities support services at the National Institutes of Health?

Historical spending on facilities support services at the National Institutes of Health (NIH) is substantial, reflecting the vast infrastructure required to support its extensive biomedical research mission. NIH operates numerous research facilities, requiring ongoing maintenance, repair, utilities management, and operational support. Spending in this category typically fluctuates based on infrastructure upgrades, new construction projects, and the specific needs of ongoing research programs. Analyzing past contract awards for similar services, including those awarded to other contractors and through different contract types, would provide a clearer picture of NIH's typical investment in facilities management and identify any trends in spending levels or contractor utilization.

How does the contract duration of over 8 years impact potential cost savings or risks?

A long contract duration, such as over 8 years (2924 days), can offer benefits like stability and continuity of essential services, potentially reducing transition costs and ensuring consistent operational support for NIH's research activities. It also allows the contractor to amortize startup costs over a longer period. However, it also introduces risks. Over such an extended period, the fixed fee may become disproportionately high if costs decrease or efficiencies are found. Furthermore, the government is locked into a single provider, potentially missing out on better pricing or service innovations from competitors that emerge later. Robust contract management and periodic reviews are essential to mitigate these risks and ensure continued value.

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: $25,652,545

Exercised Options: $25,652,545

Current Obligation: $25,652,545

Actual Outlays: $12,838,968

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