NIH Spends $12.7M on Rhesus Monkeys from Charles River Labs via Full and Open Competition

Contract Overview

Contract Amount: $12,668,779 ($12.7M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-06-29

End Date: 2020-02-25

Contract Duration: 4,624 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BREED AND MAINTAIN FREE RANGING MACACA MULATTA RHESUS MONKEYS

Place of Performance

Location: YEMASSEE, HAMPTON County, SOUTH CAROLINA, 29945

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.7 million to CHARLES RIVER LABORATORIES, INC. for work described as: BREED AND MAINTAIN FREE RANGING MACACA MULATTA RHESUS MONKEYS Key points: 1. Significant investment in primate research, crucial for medical advancements. 2. Charles River Laboratories is a major player in this specialized market. 3. Long contract duration (2007-2020) suggests sustained need and potential for vendor lock-in. 4. Cost-plus-fixed-fee contract type requires careful monitoring of costs and fees.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking per-unit costs for specialized research animals like these is difficult due to unique requirements and ethical considerations.

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 service might limit future competition.

Taxpayer Impact: Taxpayer funds are supporting critical biomedical research, but the cost-plus-fixed-fee structure necessitates robust oversight to ensure value for money.

Public Impact

Supports vital medical research, potentially leading to breakthroughs in disease treatment. Ensures a supply of research animals essential for scientific studies. Contracting process aimed for competitive pricing, benefiting taxpayers. Long-term commitment highlights the ongoing need for such research resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type
Long contract duration
Specialized nature of the service

Positive Signals

Full and open competition
Supports critical research

Sector Analysis

This contract falls under the 'Other Animal Production' sector, a niche but critical area supporting biomedical research. Spending benchmarks are difficult to establish due to the specialized nature of primate research and associated ethical considerations.

Small Business Impact

The data indicates this contract was awarded to a large corporation, Charles River Laboratories, Inc. There is no indication of small business participation in this specific contract.

Oversight & Accountability

The contract type (Cost Plus Fixed Fee) requires diligent oversight from the Department of Health and Human Services to ensure costs are reasonable and the fixed fee is justified. Monitoring performance and adherence to ethical standards is crucial.

Related Government Programs

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

Risk Flags

Potential for cost creep due to Cost Plus Fixed Fee structure.
Long contract duration may limit future competitive opportunities.
Specialized nature of service makes direct cost comparison difficult.
Ethical considerations in animal research require ongoing scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.7 million to CHARLES RIVER LABORATORIES, INC.. BREED AND MAINTAIN FREE RANGING MACACA MULATTA RHESUS MONKEYS

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 $12.7 million.

What is the period of performance?

Start: 2007-06-29. End: 2020-02-25.

What was the average cost per monkey over the contract period, and how does it compare to industry benchmarks?

Calculating an exact average cost per monkey is challenging without detailed breakdowns of the 'cost' component in the Cost Plus Fixed Fee structure. However, given the specialized breeding, maintenance, and ethical considerations for rhesus macaques, costs are inherently high. Benchmarking is difficult due to the unique nature of research needs and regulatory compliance.

What were the key performance indicators (KPIs) for Charles River Laboratories, and how were they monitored to ensure the quality and ethical treatment of the animals?

Specific KPIs are not detailed in the provided data. However, contracts of this nature typically include stringent requirements for animal health, welfare, and adherence to ethical guidelines set by NIH and federal regulations (e.g., Animal Welfare Act). Oversight likely involved regular inspections, veterinary reports, and compliance audits.

Were there any challenges encountered during the contract period regarding the supply, health, or ethical sourcing of the monkeys?

The long duration (over 12 years) suggests a generally stable relationship, but challenges are possible. Potential issues could include disease outbreaks affecting supply, changes in regulatory requirements impacting costs, or public scrutiny regarding animal research ethics. The contract's structure implies ongoing communication and problem-solving between NIH and the contractor.

Industry Classification

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

Product/Service Code: LIVE ANIMALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIAIDDIR0752

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Charles River Laboratories International, Inc.

Address: 251 BALLARDVALE ST, WILMINGTON, MA, 01887

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,668,779

Exercised Options: $12,668,779

Current Obligation: $12,668,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline