Leidos Biomedical Research Awarded $25.3M for Pharmacodynamic Biomarker Assay Services by NIH

Contract Overview

Contract Amount: $25,266,647 ($25.3M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-21

End Date: 2022-09-20

Contract Duration: 1,825 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF HIGH-PLEX PHARMACODYNAMIC BIOMARKER ASSAY

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.3 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF HIGH-PLEX PHARMACODYNAMIC BIOMARKER ASSAY Key points: 1. The contract focuses on specialized biomarker assay services, a niche within the broader healthcare and R&D sectors. 2. Leidos Biomedical Research Inc. is a significant player in government contracting, particularly within health and life sciences. 3. The 'NOT COMPETED' status raises questions about potential price discovery and market competition. 4. The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's value of $25.3 million over five years suggests a substantial investment. Benchmarking against similar specialized biomarker assay contracts is difficult without more detailed service descriptions, but the price appears within a reasonable range for complex scientific services.

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 the incentive for the contractor to offer the most competitive pricing. The rationale for the sole-source award is not provided.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Supports critical research into disease mechanisms and drug efficacy. Enhances the capabilities of the National Institutes of Health in biomedical research. Potential for advancements in personalized medicine and treatment development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Supports critical NIH research objectives
Experienced contractor in the field

Sector Analysis

This contract falls within the Healthcare and Research & Development sectors, specifically focusing on specialized laboratory services. Spending in this area is driven by government investment in scientific advancement and public health initiatives. Benchmarks for similar highly specialized assay services are difficult to ascertain without more granular data.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large research organization suggests a focus on specialized capabilities that may not be readily available from smaller entities.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was sound and that the pricing is reasonable. Regular reviews of contract performance and expenditures are crucial for accountability.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competition may lead to inflated costs.
CPFF contract type can incentivize higher spending.
Potential for scope creep without strict management.
Limited transparency on specific scientific deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.3 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF HIGH-PLEX PHARMACODYNAMIC BIOMARKER ASSAY

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 $25.3 million.

What is the period of performance?

Start: 2017-09-21. End: 2022-09-20.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive approaches considered?

The justification for a sole-source award is critical for understanding the procurement process. Without this information, it's difficult to assess if the government received the best value. Agencies typically sole-source when only one vendor possesses the unique capability or when urgency precludes competition. A thorough review would examine the documentation supporting this decision and whether market research was conducted to identify potential competitors.

How does the Cost Plus Fixed Fee structure impact cost control and contractor incentive for efficiency in this specific contract?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF can be useful for research and development where costs are uncertain, it can reduce the contractor's incentive to control costs, as the fee is fixed regardless of the final cost. Effective oversight is essential to scrutinize costs and ensure the fixed fee remains appropriate for the work performed.

What are the key performance indicators (KPIs) for this contract, and how is the success of the pharmacodynamic biomarker assay services being measured?

Measuring the success of specialized scientific services like pharmacodynamic biomarker assays requires clearly defined KPIs. These could include turnaround time for assays, accuracy and reproducibility of results, adherence to scientific protocols, and contribution to research milestones. Robust performance metrics are essential for evaluating the contractor's effectiveness and ensuring the NIH receives the intended scientific value from this significant investment.

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: $25,266,647

Exercised Options: $25,266,647

Current Obligation: $25,266,647

Actual Outlays: $9,762,133

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,788,486

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