NIH awards $22.4M for research support and animal care services to Charles River Laboratories

Contract Overview

Contract Amount: $22,369,562 ($22.4M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-07

End Date: 2012-07-08

Contract Duration: 1,828 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH SUPPORT AND ANIMAL CARE SERVICES

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.4 million to CHARLES RIVER LABORATORIES, INC. for work described as: RESEARCH SUPPORT AND ANIMAL CARE SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1828 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity. 5. The award amount of $22.4 million over approximately five years warrants a review of value for money. 6. The contract was awarded by the Department of Health and Human Services, a major health research agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can lead to higher overall costs if not managed carefully. While the fixed fee provides some cost certainty for the contractor's profit, the total cost can fluctuate. Further analysis would require comparing the per-unit costs of specific services (e.g., animal housing, veterinary care) against industry benchmarks or similar NIH contracts.

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 bids. The presence of 3 bidders suggests a reasonable level of competition for these specialized research support services. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage efficiency among bidders.

Public Impact

This contract directly supports the research endeavors of the National Institutes of Health (NIH), a leading biomedical research agency. It ensures the availability of essential animal care and support services crucial for a wide range of life sciences research. The services provided are fundamental to advancing medical knowledge and developing new treatments for diseases. The contract's geographic impact is primarily within the vicinity of the NIH research facilities where the services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs compared to fixed-price contracts if cost controls are not rigorously enforced.
The duration of the contract (over 5 years) means that potential cost overruns or inefficiencies could accumulate significantly over time.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance history and potential risks.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should theoretically lead to better pricing.
The contract is with a known entity, Charles River Laboratories, which likely has established expertise in animal research support.
The contract supports critical research at the NIH, aligning with national health priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by significant government investment, particularly in areas like biomedical research. Comparable spending benchmarks would involve looking at other NIH or federal contracts for similar animal care and research support services, which are often substantial due to the specialized nature and ethical considerations involved.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Charles River Laboratories is a large corporation. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though large prime contractors may engage small businesses for ancillary services not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure that costs are allowable, reasonable, and allocable, and that the fixed fee is earned. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. The Inspector General for the Department of Health and Human Services would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Services Contracts
Federal Animal Care and Use Programs
Biomedical Research Support Services
Life Sciences R&D Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration (5 years) increases exposure to cost fluctuations and performance degradation.
Specialized nature of service may limit competition, potentially impacting price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.4 million to CHARLES RIVER LABORATORIES, INC.. RESEARCH SUPPORT AND ANIMAL CARE SERVICES

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 $22.4 million.

What is the period of performance?

Start: 2007-07-07. End: 2012-07-08.

What is the historical spending pattern for research support and animal care services at NIH?

Historical spending on research support and animal care services at NIH is substantial and has generally trended upwards over the years, reflecting the agency's core mission and increasing research scope. While specific figures for this exact service category can fluctuate based on research priorities and funding appropriations, NIH consistently awards billions of dollars annually across various research and support contracts. Analyzing past awards for similar services, including those with Charles River Laboratories and other major research support providers, would reveal trends in contract values, durations, and competition levels. For instance, prior to this 2007 award, NIH would have had existing contracts for these essential services, likely with similar or different providers, indicating a continuous need and established market for such support. Understanding these historical patterns is crucial for assessing the reasonableness of current spending and identifying any significant deviations.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be advantageous when the scope of work is not precisely defined or is expected to evolve, as it allows flexibility. However, it inherently carries a risk of cost overruns, as the contractor is incentivized to incur costs to perform the work, while their profit (the fixed fee) remains constant regardless of the total cost. For value for money, rigorous oversight is paramount. The government must meticulously audit incurred costs to ensure they are reasonable, allocable, and necessary. If oversight is weak, the total cost to the government could be significantly higher than under a fixed-price contract. Conversely, if costs are well-managed and the fixed fee is reasonable, CPFF can ensure critical services are performed even with inherent uncertainties, potentially offering good value by enabling necessary research.

What is Charles River Laboratories' track record with federal research support contracts?

Charles River Laboratories (CRL) is a major global contract research organization (CRO) with a significant history of providing research services, including animal care and preclinical testing, to government agencies, particularly NIH. Their track record with federal contracts is extensive, often involving large-value, long-term agreements. Publicly available data from contract databases like FPDS often shows numerous awards to CRL from various federal entities, including NIH, Department of Defense, and others, spanning decades. While specific performance details for individual contracts are not always public, CRL's continued success in winning competitive bids for complex research support services suggests a generally positive performance history and established capability. However, like any large contractor, there may be instances of contract disputes, performance issues, or investigations, which would require a deeper dive into specific contract histories and agency oversight reports.

How does the competition level (3 bidders) for this contract compare to similar federal R&D service contracts?

A competition level of 3 bidders for a specialized federal R&D service contract like this one can be considered moderate. In highly specialized fields, particularly those requiring significant infrastructure, expertise, and regulatory compliance (such as animal research support), the pool of qualified bidders might be smaller than for more common services. For many large federal contracts, especially those under full and open competition, receiving anywhere from 3 to 10 bids is not uncommon. Fewer than 3 bidders might raise concerns about market competitiveness or potential barriers to entry. More than 10 bidders might suggest a very robust market. Therefore, 3 bidders suggests that while the competition was present and likely drove some price discovery, it may not represent the maximum possible competition, potentially indicating a niche market or high barriers to entry for new competitors in this specific area of research support.

What are the potential risks associated with a 5-year contract for animal care and research support?

A 5-year contract for animal care and research support carries several potential risks. Firstly, the long duration increases the exposure to potential cost increases due to inflation, changes in regulatory requirements (e.g., animal welfare standards), or unforeseen operational challenges. Secondly, if the contractor's performance degrades over time, the agency is locked into a lengthy agreement, making it difficult and costly to switch providers. Thirdly, the CPFF structure, as mentioned, requires constant vigilance to prevent cost creep. Fourthly, changes in scientific priorities or funding levels within NIH could alter the demand for specific services, potentially leading to contract modifications or disputes. Finally, reliance on a single contractor for such a critical function can create operational dependencies and risks if the contractor faces financial instability or major disruptions.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $23,078,442

Exercised Options: $23,078,442

Current Obligation: $22,369,562

Timeline