NIH awards $49.4M for drug development support, highlighting need for specialized scientific services

Contract Overview

Contract Amount: $49,412,201 ($49.4M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-04-01

End Date: 2015-06-30

Contract Duration: 2,646 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: TAS::75 0849::TAS DRUG DEVELOPMENT SUPPORT FOR THE CANCER THERAPY EVALUATION PROGRAM (CTEP)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $49.4 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: TAS::75 0849::TAS DRUG DEVELOPMENT SUPPORT FOR THE CANCER THERAPY EVALUATION PROGRAM (CTEP) Key points: 1. Contract provides essential support for cancer therapy evaluation, aligning with critical public health goals. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. Long contract duration (over 7 years) indicates a sustained need for these specialized technical resources. 4. The cost-plus-fixed-fee structure allows for flexibility while managing project costs. 5. This contract falls within a broad professional, scientific, and technical services category, reflecting diverse government needs. 6. The single awardee suggests a high degree of specialization or a competitive process that favored one strong bidder.

Value Assessment

Rating: good

The contract value of $49.4 million over approximately 7 years averages to about $7 million annually. Benchmarking this against similar contracts for drug development support requires access to proprietary databases. However, the cost-plus-fixed-fee (CPFF) pricing structure is common for research and development efforts where the scope may evolve. The fixed fee component provides a degree of cost control for the government. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the duration and nature of the services suggest a reasonable investment for critical research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it resulted in a single award suggests that Technical Resources International, Inc. was the most advantageous offer to the government, potentially due to specialized expertise, technical approach, or price. The level of competition is not explicitly detailed (e.g., number of bidders), but the designation implies a fair process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. It ensures that the government explores the market broadly, potentially securing services at a more favorable cost than through limited or sole-source procurements.

Public Impact

Patients and researchers benefit from accelerated development of cancer therapies through enhanced evaluation support. The National Institutes of Health (NIH) and its National Cancer Institute (NCI) receive critical scientific and technical assistance. Services support the Cancer Therapy Evaluation Program (CTEP), a key component of cancer research. The contract's impact is primarily on the advancement of medical research and public health outcomes, with a national scope. Workforce implications include employment for scientific, technical, and administrative personnel at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term nature of the contract could indicate a lack of agile procurement strategies for evolving research needs.
Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
Reliance on a single contractor for a critical function like drug development support may pose a risk if performance issues arise.

Positive Signals

Contract supports a vital public health mission in cancer research.
Full and open competition suggests a healthy market and potentially competitive pricing.
The contractor has a long-term engagement, implying successful past performance.
Specialized services are being provided, addressing a specific and complex government need.

Sector Analysis

This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). This broad category encompasses a wide range of specialized services. The market for drug development support is highly specialized, involving expertise in preclinical and clinical research, regulatory affairs, and data analysis. Government spending in this sector is significant, driven by agencies like NIH, DOD, and others focused on health and scientific advancement. Comparable spending benchmarks would typically be found within specific therapeutic areas or research phases.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically for small businesses. The awardee, Technical Resources International, Inc., is likely a mid-to-large-sized business given the contract value and duration. The absence of small business set-asides or explicit subcontracting goals means the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses opportunistically.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure adherence to the contract terms and prevent potential overruns. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction details aren't provided, the HHS OIG has broad authority to investigate fraud, waste, and abuse within the department.

Related Government Programs

NIH Research and Development Contracts
Cancer Therapy Evaluation Program (CTEP) Funding
Biomedical Research Support Services
Clinical Trial Support Services
Pharmaceutical Development Contracts

Risk Flags

Long Contract Duration
Cost-Plus-Fixed-Fee Structure
Single Award Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $49.4 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. TAS::75 0849::TAS DRUG DEVELOPMENT SUPPORT FOR THE CANCER THERAPY EVALUATION PROGRAM (CTEP)

Who is the contractor on this award?

The obligated recipient is TECHNICAL RESOURCES INTERNATIONAL, 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 $49.4 million.

What is the period of performance?

Start: 2008-04-01. End: 2015-06-30.

What is the specific nature of the 'Drug Development Support' provided under this contract?

The contract, "TAS DRUG DEVELOPMENT SUPPORT FOR THE CANCER THERAPY EVALUATION PROGRAM (CTEP)," awarded to TECHNICAL RESOURCES INTERNATIONAL, INC., focuses on providing comprehensive support services essential for advancing cancer therapies through the evaluation pipeline. This likely includes a range of activities such as scientific consultation, data management and analysis, logistical support for clinical trials, regulatory affairs assistance, and potentially project management for various stages of drug development. The Cancer Therapy Evaluation Program (CTEP) within the National Cancer Institute (NCI) aims to facilitate the development and testing of novel cancer treatments, and this contract provides the necessary technical and scientific expertise to execute these complex research initiatives effectively. The support ensures that research protocols are well-managed, data is accurately collected and interpreted, and the overall process aligns with scientific and regulatory standards.

How does the $49.4 million contract value compare to typical spending on similar drug development support services?

The $49.4 million contract value over approximately seven years (April 2008 to June 2015) represents an average annual expenditure of roughly $7 million. Assessing this against 'typical' spending is complex due to the highly specialized nature of drug development support and variations in contract scope, duration, and the specific phase of development being supported. Contracts can range from smaller, focused task orders for specific analyses to large, multi-year agreements for comprehensive program management. Given that this contract supports the Cancer Therapy Evaluation Program (CTEP) at NIH, a leading biomedical research institution, the funding level appears commensurate with the critical and extensive nature of cancer research. Without access to proprietary benchmarking data or detailed comparisons of specific services rendered, a precise value-for-money judgment is difficult, but the investment aligns with the significant resources required for advancing cancer therapies.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for a contract supporting drug development and therapy evaluation, success would typically be measured by metrics related to the progress and efficiency of the research and development process. This could include the timely completion of research milestones, the quality and integrity of data collected and analyzed, adherence to project timelines and budgets, successful navigation of regulatory requirements, and ultimately, the contribution to the advancement of promising cancer therapies towards clinical application. The contracting officers at NIH would be responsible for monitoring performance against contract requirements, which would likely involve regular progress reports, scientific reviews, and potentially audits to ensure the contractor is meeting its obligations and delivering value.

What is the track record of Technical Resources International, Inc. in performing similar government contracts?

Technical Resources International, Inc. (TRI) has a history of performing government contracts, particularly within the scientific and technical services domain. While the provided data focuses on this specific $49.4 million contract with NIH, TRI has been involved in various federal procurements. Information available through federal procurement databases often indicates past performance ratings and contract history. For this particular contract, the duration of over seven years suggests a positive working relationship and successful performance, as agencies typically extend or re-award contracts to vendors who meet or exceed expectations. Further investigation into TRI's broader federal contract portfolio would reveal the extent and nature of their experience across different agencies and service areas.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this contract include the inherent uncertainties in drug development, where research outcomes are not guaranteed. There's also a risk related to contractor performance – ensuring that Technical Resources International, Inc. consistently delivers high-quality scientific and technical support. Cost control is another consideration, particularly with the Cost Plus Fixed Fee (CPFF) structure, which requires diligent oversight to manage expenditures effectively. Mitigations likely involve robust government oversight by NIH program managers and contracting officers, clear definition of tasks and deliverables, regular performance reviews, and adherence to established scientific and regulatory protocols. The long-term nature of the contract also implies a level of trust and established working relationship, which can mitigate some performance risks.

How does this contract fit into the broader strategic goals of the National Institutes of Health (NIH) and the National Cancer Institute (NCI)?

This contract is directly aligned with the core mission of the NIH and NCI, which is to advance the understanding of cancer and to support the development of effective strategies for its prevention, diagnosis, and treatment. The Cancer Therapy Evaluation Program (CTEP) specifically focuses on testing novel therapeutic agents and approaches. By providing essential drug development support, this contract enables CTEP to efficiently manage and execute its portfolio of clinical trials and research projects. It facilitates the rigorous scientific evaluation needed to determine the safety and efficacy of potential new cancer treatments, ultimately contributing to the NCI's goal of reducing the burden of cancer on patients and the public.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02CM8100048

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6500 ROCK SPRING DR, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $205,116,392

Exercised Options: $168,475,665

Current Obligation: $49,412,201

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline