NIH awards $124.8M for clinical research support, highlighting R&D in life sciences

Contract Overview

Contract Amount: $124,784,123 ($124.8M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-04-30

End Date: 2017-04-29

Contract Duration: 2,556 days

Daily Burn Rate: $48.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0885::TAS DMID CLINICAL RESEARCH OPERATIONS AND MANAGEMENT SUPPORT (CROMS)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $124.8 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: TAS::75 0885::TAS DMID CLINICAL RESEARCH OPERATIONS AND MANAGEMENT SUPPORT (CROMS) Key points: 1. Contract value represents significant investment in clinical research infrastructure. 2. Full and open competition suggests a robust market for these services. 3. Contract duration of over 7 years indicates a long-term need for these capabilities. 4. The award to Technical Resources International, Inc. positions them as a key player in NIH's research support. 5. Focus on life sciences R&D aligns with national health priorities. 6. The definitive contract type suggests a well-defined scope of work.

Value Assessment

Rating: good

The contract value of $124.8 million over approximately 7 years averages to about $17.8 million annually. Benchmarking this against similar contracts for clinical research operations and management support is challenging without more specific service details. However, the scale of the award suggests a substantial requirement. The Cost Plus Fixed Fee (CPFF) pricing structure means costs are reimbursed, plus a fixed fee, which can incentivize efficiency but also requires careful oversight to manage costs.

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 presence of 7 bids suggests a competitive environment, which typically leads to better pricing and service innovation for the government. The level of competition is a positive sign for price discovery and ensuring the government receives value for its investment.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective and high-quality research support services for the National Institutes of Health.

Public Impact

The primary beneficiaries are the researchers and institutions supported by the National Institutes of Health, enabling critical clinical research. Services delivered include operations and management support for clinical research, facilitating the advancement of medical knowledge. The geographic impact is primarily within Maryland, where the National Institutes of Health is headquartered, but the research supported can have national and global health implications. Workforce implications include the creation and sustainment of jobs for scientists, project managers, and support staff involved in clinical research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Dependence on a single contractor for critical research support functions over an extended period.
Ensuring consistent quality and performance across all aspects of clinical research operations.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Long contract duration suggests a stable and reliable partner for NIH.
The significant value awarded reflects the importance and scale of the research supported.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on clinical research operations and management support. The market for such services is driven by government funding for health and medical research, as well as private sector pharmaceutical and biotechnology development. The size of this award indicates a substantial portion of NIH's operational budget allocated to external support for its extensive research portfolio.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary awardee, Technical Resources International, Inc., is likely a large business, and the focus was on securing the best overall offer through full and open competition rather than specific small business participation goals for the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health. Performance monitoring, financial audits, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases and public reporting, though specific operational details may be sensitive.

Related Government Programs

Clinical Research Services
Biomedical Research Support
Health Services Research
Medical and Surgical Instruments
Research and Development Contracts

Risk Flags

Cost Control in CPFF Contracts
Long-Term Contractor Dependence
Performance Monitoring Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $124.8 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. TAS::75 0885::TAS DMID CLINICAL RESEARCH OPERATIONS AND MANAGEMENT SUPPORT (CROMS)

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 $124.8 million.

What is the period of performance?

Start: 2010-04-30. End: 2017-04-29.

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

Assessing the track record of Technical Resources International, Inc. requires a review of their past performance on federal contracts, particularly those involving clinical research operations and management support. Information on contract databases like SAM.gov or FPDS can reveal previous awards, performance ratings, and any documented issues. A history of successful contract completions, positive performance evaluations, and minimal disputes would indicate a strong capability. Conversely, a pattern of performance deficiencies, contract disputes, or terminations would raise concerns about their ability to meet the requirements of this significant NIH award. Without specific past performance data for this contractor, it is difficult to definitively assess their reliability for this particular contract.

How does the annual value of this contract compare to other NIH clinical research support contracts?

The annual value of this contract, approximately $17.8 million ($124.8M / 7 years), represents a substantial investment. To benchmark this, one would need to compare it against the average annual value of similar 'Clinical Research Operations and Management Support' contracts awarded by NIH or other agencies within the Department of Health and Human Services. If this contract's annual value is significantly higher than the average for comparable services, it could indicate a more complex scope, higher service levels, or potentially less competitive pricing. Conversely, if it aligns with or is below the average, it suggests the pricing is within the expected range for the market. Access to aggregated spending data and contract award details across NIH would be necessary for a precise comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($124.8 million) revolve around cost control and contractor incentive. In a CPFF structure, the government reimburses the contractor for allowable costs plus a predetermined fixed fee. The risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to the total contract cost exceeding initial estimates, even though the fee remains fixed. Effective oversight, rigorous auditing of costs, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment. The contractor's risk is limited to the fixed fee, which is earned upon successful completion of the work.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of R&D support?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for money for R&D support services like those procured under this contract. By allowing all responsible sources to compete, the government broadens the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. The presence of 7 bidders in this case suggests a healthy competitive environment, which typically drives down prices and improves service quality as contractors vie for the award. This approach fosters price discovery and allows the agency to select the offer that represents the best overall value, balancing technical merit, past performance, and cost. The effectiveness is further enhanced when evaluation criteria are clearly defined and rigorously applied.

What are the historical spending patterns for clinical research operations and management support at NIH?

Analyzing historical spending patterns for clinical research operations and management support at NIH would involve examining contract data over several fiscal years. This would reveal trends in the total amount obligated for these services, the number and types of contracts awarded (e.g., IDIQ, definitive), and the primary contractors receiving awards. Understanding these patterns can help identify fluctuations in demand, shifts in procurement strategies, and the evolution of service requirements. For instance, a consistent increase in spending might indicate growing research initiatives, while a shift towards larger, longer-term contracts could suggest a move towards consolidating support functions. This contract, awarded in 2010 and ending in 2017, represents a specific period within NIH's broader spending history for these critical support functions.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies the core nature of the services being procured. This classification indicates that the contract supports scientific inquiry and experimentation aimed at advancing knowledge in fields such as medicine, biology, chemistry, physics, and engineering. For this specific contract, it confirms the focus on the operational and management aspects required to conduct clinical research within these scientific domains. This code is crucial for government agencies in tracking spending across different R&D sectors, understanding industry capabilities, and ensuring appropriate classification for statistical and analytical purposes. It helps define the scope and context of the work performed by Technical Resources International, Inc.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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

Solicitation ID: RFPNIAIDDMIDNIHAI2009052

Offers Received: 7

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, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $228,755,187

Exercised Options: $134,389,139

Current Obligation: $124,784,123

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline