NIAID Spends $17.7M on Specimen Repository Contract with Precision for Medicine, Inc

Contract Overview

Contract Amount: $17,693,393 ($17.7M)

Contractor: Precision for Medicine, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-03-10

End Date: 2014-06-25

Contract Duration: 2,298 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0885::TAS NIAID SPECIMEN REPOSITORY

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.7 million to PRECISION FOR MEDICINE, INC. for work described as: TAS::75 0885::TAS NIAID SPECIMEN REPOSITORY Key points: 1. The contract awarded to Precision for Medicine, Inc. for a specimen repository totaled $17.7 million. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The contract type, Cost Plus Fixed Fee, suggests potential for cost overruns if not managed carefully. 4. The sector is Research and Development, aligning with the National Institutes of Health's mission.

Value Assessment

Rating: fair

The $17.7 million contract value for a specimen repository over its duration appears reasonable given the specialized nature of the service. Benchmarking against similar large-scale biological sample management contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'Full and Open Competition After Exclusion of Sources,' suggesting that while competition was sought, certain entities were excluded based on specific criteria. This method aims for competitive pricing but may limit the pool of bidders.

Taxpayer Impact: The competitive nature of the award, despite source exclusion, likely resulted in a fair market price, minimizing undue taxpayer burden for this specialized research support.

Public Impact

Supports critical research by maintaining a repository of biological specimens. Ensures availability of samples for future scientific investigations. Facilitates advancements in medical research and public health initiatives. Contract duration of nearly 7 years indicates a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Exclusion of sources may limit competitive pricing.
Long contract duration increases risk of scope creep or obsolescence.

Positive Signals

Full and open competition ensures a broad search for qualified vendors.
Specimen repository is vital for ongoing research.
Clear contract award with defined end date.

Sector Analysis

This contract falls within the Research and Development sector, specifically supporting biological sample management for the National Institutes of Health. Spending benchmarks in this niche area are difficult to establish without detailed service scope, but significant federal investment in biomedical research infrastructure is common.

Small Business Impact

The data indicates the awardee is Precision for Medicine, Inc., a commercial entity. There is no explicit information provided regarding small business participation or subcontracting opportunities within this contract.

Oversight & Accountability

The contract was awarded by the National Institutes of Health, a component of HHS, suggesting established oversight mechanisms. The 'definitive contract' type implies a structured agreement with defined terms, subject to standard federal procurement regulations and oversight.

Related Government Programs

Research and Development in the Social Sciences and Humanities
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for limited competition due to source exclusion.
Long contract duration increases risk.
Lack of detail on specific services and performance metrics.
No explicit mention of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.7 million to PRECISION FOR MEDICINE, INC.. TAS::75 0885::TAS NIAID SPECIMEN REPOSITORY

Who is the contractor on this award?

The obligated recipient is PRECISION FOR MEDICINE, 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 $17.7 million.

What is the period of performance?

Start: 2008-03-10. End: 2014-06-25.

What specific services were included in the 'Specimen Repository' to justify the $17.7 million cost over nearly seven years?

The exact scope of services for the 'Specimen Repository' is not detailed in the provided data. However, such contracts typically encompass collection, processing, storage, inventory management, and distribution of biological samples. The cost would reflect specialized facilities, personnel, quality control, and long-term preservation requirements critical for research integrity.

How did the 'exclusion of sources' impact the final price and the quality of competition for this $17.7 million contract?

The 'exclusion of sources' implies that certain potential bidders were deemed ineligible, potentially narrowing the competitive field. While the contract was still 'full and open' among the remaining eligible entities, this exclusion could have influenced the final price by reducing direct competition. The impact on price and quality depends heavily on the justification for the exclusion and the competitiveness of the remaining bidders.

What are the long-term implications of a Cost Plus Fixed Fee contract for a critical research infrastructure like a specimen repository?

Cost Plus Fixed Fee contracts allow for flexibility in scope but can incentivize contractors to increase costs to achieve a higher fixed fee, potentially leading to cost overruns. For a critical research infrastructure, this necessitates robust government oversight to monitor expenditures and ensure efficiency. While providing necessary flexibility, it requires diligent management to maintain cost control and value for taxpayer investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8425 PROGRESS DR STE M, FREDERICK, MD, 21701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,707,279

Exercised Options: $34,707,279

Current Obligation: $17,693,393

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline