NIH awards $34.5M to Charles River Labs for Rodent Production and Support

Contract Overview

Contract Amount: $34,489,189 ($34.5M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-26

End Date: 2014-11-24

Contract Duration: 2,981 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: PRIMARY RODENT PRODUCTION AND SUPPORT CENTER

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.5 million to CHARLES RIVER LABORATORIES, INC. for work described as: PRIMARY RODENT PRODUCTION AND SUPPORT CENTER Key points: 1. Significant contract value for specialized animal production services. 2. Charles River Laboratories is a major player in this niche market. 3. Long contract duration (2006-2014) suggests established relationship and potential for lock-in. 4. Focus on animal production is critical for biomedical research sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not carefully managed. Benchmarking against similar contracts for specialized animal production is difficult without more granular data on the specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the long duration and specialized nature of the services might limit the number of truly competitive bids over time.

Taxpayer Impact: Taxpayer funds are used for essential research support services. The cost-plus award fee structure requires careful oversight to ensure value for money.

Public Impact

Supports critical biomedical research by providing essential animal models. Ensures availability of specialized rodent strains for scientific studies. Impacts the pace and direction of medical advancements dependent on animal research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Award Fee structure.
Long-term contract may reduce competitive pressure.
Reliance on a single vendor for critical research inputs.

Positive Signals

Full and open competition initially utilized.
Supports vital scientific research and development.
Established vendor with proven track record.

Sector Analysis

This contract falls within the healthcare and R&D sectors, specifically supporting the infrastructure for biomedical research. Spending benchmarks for specialized animal production can vary widely based on strain, health status, and required services.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The nature of specialized animal production often requires significant infrastructure and expertise, which may favor larger, established companies.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates robust oversight from the National Institutes of Health to ensure performance standards are met and costs are controlled. Award fees should be tied to clearly defined metrics.

Related Government Programs

All Other Animal Production
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Award Fee structure can lead to higher costs.
Long contract duration may limit future competition.
No small business participation noted.
Potential for vendor lock-in due to specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.5 million to CHARLES RIVER LABORATORIES, INC.. PRIMARY RODENT PRODUCTION AND SUPPORT CENTER

Who is the contractor on this award?

The obligated recipient is CHARLES RIVER LABORATORIES, 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 $34.5 million.

What is the period of performance?

Start: 2006-09-26. End: 2014-11-24.

What was the average annual cost per year of the contract, and how does it compare to industry benchmarks for similar services?

The total contract value was approximately $34.5 million over a period of roughly 8 years (2981 days). This averages to about $4.3 million per year. Comparing this to industry benchmarks is challenging without knowing the specific rodent strains, quantities, and health monitoring protocols. However, for specialized, high-quality research animals, this figure may be within a reasonable range, but requires detailed service-level analysis.

What were the key performance indicators (KPIs) used to determine award fees, and how effectively did Charles River Laboratories meet them?

The specific KPIs for award fees are not detailed in the provided data. However, for a contract of this nature, KPIs likely included timely delivery of healthy animals, adherence to ethical treatment standards, genetic quality control, and responsiveness to research needs. Effective meeting of these KPIs would be crucial for justifying award fees and ensuring the value of the contract.

Given the long duration, what mechanisms were in place to ensure continued cost-effectiveness and prevent vendor lock-in?

While awarded under full and open competition, the long duration (2006-2014) raises questions about ongoing cost-effectiveness. Mechanisms to ensure this would typically include periodic price reviews, benchmarking against market rates, and clear contract clauses allowing for renegotiation or termination if costs become uncompetitive. The Cost Plus Award Fee structure itself requires diligent management to prevent scope creep and unnecessary expenses.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Animal Production › All Other Animal Production

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02CM6240196

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Charles River Laboratories International, Inc. (UEI: 110376014)

Address: 251 BALLARDVALE ST, WILMINGTON, MA, 06

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $189,544,149

Exercised Options: $78,684,088

Current Obligation: $34,489,189

Contract Characteristics

Cost or Pricing Data: NO

Timeline