NIH awards $14M for biomedical specimen processing and storage, supporting cancer research
Contract Overview
Contract Amount: $14,021,271 ($14.0M)
Contractor: LGC Clinical Diagnostics Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2005-10-01
End Date: 2012-11-16
Contract Duration: 2,603 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LABORATORY SUPPORT FOR PROCESSING AND STORAGE OF BIOMEDICAL SPECIMENS FOR PERSONS AT HIGH RISK FOR CANCER
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $14.0 million to LGC CLINICAL DIAGNOSTICS INC for work described as: LABORATORY SUPPORT FOR PROCESSING AND STORAGE OF BIOMEDICAL SPECIMENS FOR PERSONS AT HIGH RISK FOR CANCER Key points: 1. Spending supports critical cancer research infrastructure. 2. Contract awarded via full and open competition. 3. Potential for long-term reliance on LGC Clinical Diagnostics. 4. Sector focus on R&D in life sciences.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research but can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to project variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a competitive bidding process that should have driven a fair price. The specific price discovery mechanisms are not detailed but competition is a positive indicator.
Taxpayer Impact: Taxpayer funds are directed towards essential biomedical research, with competition aiming to ensure value for money.
Public Impact
Supports advancement in cancer research and treatment development. Ensures integrity and availability of vital biological samples. Potential for spin-off technologies and discoveries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2603 days) may indicate potential for scope creep or evolving needs.
- CPFF contract type can be less cost-efficient than fixed-price if not carefully managed.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D in life sciences.
- Long-term commitment to a vital research area.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for scientific advancement and innovation, often characterized by long-term projects and evolving requirements.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The award was made to LGC Clinical Diagnostics INC, a large entity, and there's no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the National Institutes of Health (NIH), a reputable agency with established oversight mechanisms. The duration and CPFF nature suggest ongoing monitoring is essential to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration
- Cost Plus Fixed Fee contract type
- Potential for vendor lock-in
- Lack of small business participation noted
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.0 million to LGC CLINICAL DIAGNOSTICS INC. LABORATORY SUPPORT FOR PROCESSING AND STORAGE OF BIOMEDICAL SPECIMENS FOR PERSONS AT HIGH RISK FOR CANCER
Who is the contractor on this award?
The obligated recipient is LGC CLINICAL DIAGNOSTICS 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 $14.0 million.
What is the period of performance?
Start: 2005-10-01. End: 2012-11-16.
What is the specific value proposition of LGC Clinical Diagnostics INC's services compared to potential competitors in the biomedical specimen processing and storage market?
The value proposition likely centers on specialized expertise, established infrastructure, and a proven track record in handling sensitive biomedical specimens. LGC's ability to meet stringent regulatory and quality standards for cancer research samples is a key differentiator. Benchmarking against competitors would require analyzing their specific service offerings, pricing models, and success rates in similar NIH-funded projects.
What are the primary risks associated with the long duration and CPFF contract type for this high-risk cancer research support?
The primary risks include potential cost overruns due to the CPFF structure, where contractor profit is fixed regardless of actual costs, incentivizing less cost-consciousness. The long duration (2603 days) increases the risk of scope creep, technological obsolescence, or changes in research priorities that may not be adequately captured by the initial contract. Ensuring continuous alignment with evolving research needs and maintaining strict cost controls are paramount.
How effectively does this contract contribute to the overall mission of NIH in advancing cancer research and improving public health outcomes?
This contract is highly effective in supporting NIH's mission by providing essential, reliable infrastructure for processing and storing biomedical specimens crucial for cancer research. High-quality samples are fundamental for accurate analysis, discovery of biomarkers, and development of new therapies. By ensuring the integrity and accessibility of these specimens over a significant period, the contract directly enables critical research that can lead to improved public health outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N02CP5101166
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Propharma Group LLC (UEI: 092829055)
Address: 1935 AVENIDA DEL ORO STE F, OCEANSIDE, CA, 49
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $155,541,581
Exercised Options: $155,541,581
Current Obligation: $14,021,271
Timeline
Start Date: 2005-10-01
Current End Date: 2012-11-16
Potential End Date: 2012-11-16 00:00:00
Last Modified: 2013-07-11
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