Leidos Inc. awarded $20.6M for R&D in Biotechnology, a significant investment in biomedical research
Contract Overview
Contract Amount: $20,564,699 ($20.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-09-22
End Date: 2016-12-15
Contract Duration: 3,006 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIOMEDICAL (OPERATIONAL)
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21703
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.6 million to LEIDOS, INC. for work described as: BIOMEDICAL (OPERATIONAL) Key points: 1. The contract represents a substantial commitment to advancing biotechnology research and development. 2. Leidos, Inc. has a significant presence in the federal contracting space, particularly in R&D. 3. The duration of the contract (3006 days) suggests a long-term strategic investment. 4. The 'Research and Development in Biotechnology' NAICS code indicates a focus on cutting-edge scientific endeavors. 5. The contract type (Cost Plus Fixed Fee) implies a need for flexibility in research scope and cost management.
Value Assessment
Rating: good
The contract value of $20.6 million over approximately 8 years for R&D in biotechnology appears reasonable when benchmarked against similar large-scale, long-term research initiatives. While specific per-unit cost comparisons are difficult for R&D due to its inherent variability, the overall award suggests a competitive process yielded a fair price for the anticipated research outcomes. The fixed fee component provides some cost control for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives the best value. The number of bidders is not specified, but the 'full and open' designation suggests a robust selection process.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.
Public Impact
The primary beneficiaries are likely the scientific community and the public, through advancements in biotechnology and potential medical breakthroughs. The contract supports critical research and development activities within the biomedical sector. The geographic impact is centered in Maryland, where the contractor is located, potentially creating or sustaining high-skilled jobs. This contract contributes to the growth and innovation within the biotechnology workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The long duration of the contract requires ongoing monitoring to ensure continued alignment with evolving research priorities.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and potentially cost-effective process.
- The contract supports critical R&D in a high-impact sector (biotechnology).
- Leidos, Inc. is a well-established contractor with experience in government R&D.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a rapidly growing and critical area for scientific advancement and public health. The market for federal R&D contracts in this space is substantial, driven by agencies like NIH seeking to push the boundaries of scientific knowledge. Comparable spending benchmarks would involve other large-scale, multi-year R&D grants and contracts awarded to leading research institutions and private firms.
Small Business Impact
As this contract was awarded under full and open competition and does not indicate a small business set-aside, its direct impact on small businesses is likely limited to potential subcontracting opportunities. The prime contractor, Leidos, Inc., is a large business, and the focus is on their capabilities. Further analysis would be needed to determine if specific subcontracting plans were mandated to include small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, milestones, and reporting requirements. Transparency is generally maintained through contract databases, though specific research details may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Biotechnology Research Grants
- National Institutes of Health Contracts
- Federal Biomedical Research and Development
- Advanced Scientific Research Services
Risk Flags
- Long contract duration may require adaptive management.
- Cost Plus Fixed Fee contracts need diligent cost oversight.
Tags
biotechnology, research-and-development, biomedical, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, leidos-inc, national-institutes-of-health, department-of-health-and-human-services, maryland, large-business, r&d-in-biotechnology
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.6 million to LEIDOS, INC.. BIOMEDICAL (OPERATIONAL)
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $20.6 million.
What is the period of performance?
Start: 2008-09-22. End: 2016-12-15.
What is Leidos, Inc.'s track record with federal R&D contracts, particularly in biotechnology?
Leidos, Inc. has a substantial track record with federal R&D contracts across various agencies, including significant work with the Department of Health and Human Services (HHS) and its components like the National Institutes of Health (NIH). Their portfolio often includes complex scientific research, data analytics, and technology development. Within biotechnology, they have been involved in projects ranging from drug discovery support to advanced biological research. Their history suggests a capacity to manage large, long-term R&D initiatives, though specific performance metrics for individual contracts would require deeper analysis of past performance evaluations and contract close-outs.
How does the $20.6 million award compare to other federal biotechnology R&D contracts?
The $20.6 million award to Leidos, Inc. for biotechnology R&D is a significant sum, placing it in the mid-to-large tier for individual federal R&D contracts. However, it is not exceptionally large when compared to the overall federal investment in biomedical research, which can run into billions annually through various grants and contracts. For instance, NIH alone awards tens of billions each year. This specific contract's value is more appropriately benchmarked against other multi-year, definitive contracts awarded for specialized R&D services rather than broad research funding initiatives. Its duration of over 8 years suggests a substantial, focused effort.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and scope creep. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses allowable costs incurred. If research proves more complex or requires more resources than initially anticipated, costs can escalate significantly. Effective oversight is crucial to ensure that all costs are reasonable, allocable, and necessary for the research objectives. There's also a risk that the contractor might not be sufficiently incentivized to control costs beyond ensuring the fixed fee is met, as their profit is predetermined.
How effective is full and open competition in ensuring value for taxpayer money in specialized R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including specialized R&D. It allows a wide range of qualified contractors to compete, fostering innovation and driving down prices through market forces. For R&D, this means the government can solicit proposals based on technical merit and innovative approaches, selecting the best solution at a competitive price. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess complex technical proposals. In highly specialized fields, the pool of qualified bidders might be limited, potentially reducing the competitive intensity.
What is the historical spending pattern for biotechnology R&D by the National Institutes of Health?
The National Institutes of Health (NIH) is the world's largest funder of biomedical research, with historical spending patterns showing a consistent and significant investment in biotechnology R&D. Annual outlays for NIH have grown substantially over the decades, often exceeding $30 billion, with a considerable portion dedicated to biotechnology-related research. This includes funding for basic science, translational research, and development of new technologies and therapeutics. Spending is distributed across numerous grants to academic institutions, research centers, and contracts with private companies like Leidos. The trend indicates a sustained commitment to advancing biotechnology as a key area for improving public health.
What are the potential implications of this contract's long duration (3006 days) on program adaptability?
A contract duration of 3006 days (over 8 years) for R&D presents both opportunities and challenges for program adaptability. On the positive side, it allows for sustained focus and long-term research goals, which are often necessary for significant scientific breakthroughs. It provides stability for the contractor and allows for deep dives into complex problems. However, the rapid pace of change in biotechnology means that research priorities and technological landscapes can shift dramatically over such a long period. The contract must include mechanisms for flexibility, such as clear modification procedures, regular reviews, and potentially phased objectives, to ensure the research remains relevant and adaptable to new discoveries and evolving scientific needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,564,699
Exercised Options: $20,564,699
Current Obligation: $20,564,699
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-09-22
Current End Date: 2016-12-15
Potential End Date: 2016-12-15 00:00:00
Last Modified: 2019-07-22
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