NIH's $102M contract for biological resource repository services awarded to ATCC

Contract Overview

Contract Amount: $102,028,425 ($102.0M)

Contractor: American Type Culture Collection

Awarding Agency: Department of Health and Human Services

Start Date: 2010-06-30

End Date: 2016-06-29

Contract Duration: 2,191 days

Daily Burn Rate: $46.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0885::TAS NAT INST ALLERGY & INFECTIOUS DISEASES MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESOURCE REPOSITORY

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $102.0 million to AMERICAN TYPE CULTURE COLLECTION for work described as: TAS::75 0885::TAS NAT INST ALLERGY & INFECTIOUS DISEASES MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESOURCE REPOSITORY Key points: 1. Contract value appears reasonable given the specialized nature of maintaining a biological resource repository. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of approximately 6 years indicates a long-term need for these services. 4. The contractor, ATCC, is a well-established entity in the biological resource management field. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 6. The primary agency is the National Institutes of Health (NIH), a major biomedical research funder.

Value Assessment

Rating: good

The contract value of $102 million over six years for maintaining a biological resource repository is within a reasonable range for such specialized services. While direct comparisons are difficult without more specific data on repository size and scope, ATCC is a known entity in this field. The Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and overall project objectives. Benchmarking against similar long-term biological repository contracts would provide further insight into value for money.

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 number of bidders is not specified, but the use of full and open competition generally promotes price discovery and encourages multiple vendors to offer competitive proposals. This approach is intended to secure the best value for the government.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to drive down costs and ensure the government receives high-quality services at a fair price.

Public Impact

Researchers and scientists benefit from access to a reliable repository of biological materials for study. The contract supports the National Institute of Allergy and Infectious Diseases (NIAID) in maintaining critical biological resources. Services include the storage, management, and distribution of microbial and infectious disease-related biological materials. The repository's existence facilitates ongoing research and development in infectious diseases and related fields. Geographic impact is national, supporting researchers across the United States and potentially internationally. Workforce implications include employment for scientists, technicians, and administrative staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage expenditures effectively.
Ensuring the long-term viability and accessibility of the biological resources is critical.
Maintaining the integrity and quality of the diverse biological samples is paramount.

Positive Signals

The contractor, ATCC, has a long-standing reputation and expertise in managing biological resources.
Full and open competition suggests a commitment to obtaining competitive pricing and quality.
The contract supports critical research for the National Institutes of Health, a leading biomedical research agency.

Sector Analysis

The contract falls within the Research and Development in Biotechnology sector, specifically focusing on the management and maintenance of biological resources. This sector is crucial for advancing medical research, drug discovery, and understanding infectious diseases. The market for such specialized services is relatively niche, dominated by organizations with specific expertise in biosafety, sample preservation, and inventory management. Comparable spending benchmarks would likely involve other government contracts for biobanking, cell line repositories, or microbial culture collections.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of biological resource repository management, it is possible that larger, specialized organizations like ATCC are best positioned to fulfill the requirements. Further investigation into subcontracting opportunities for small businesses within the scope of this contract would be beneficial.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor expenditures against the awarded fixed fee and ensure efficient use of funds. Transparency is generally maintained through contract reporting requirements, and the Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

NIH Research and Development Contracts
National Institute of Allergy and Infectious Diseases (NIAID) Funding
Biological Resource Centers
Biotechnology Research Support
Microbial Repository Services

Risk Flags

Cost Overruns Risk (CPFF)
Contractor Performance Risk
Biological Sample Integrity Risk
Long-Term Resource Availability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $102.0 million to AMERICAN TYPE CULTURE COLLECTION. TAS::75 0885::TAS NAT INST ALLERGY & INFECTIOUS DISEASES MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESOURCE REPOSITORY

Who is the contractor on this award?

The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.

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 $102.0 million.

What is the period of performance?

Start: 2010-06-30. End: 2016-06-29.

What is the track record of American Type Culture Collection (ATCC) in managing similar biological resource repositories for federal agencies?

American Type Culture Collection (ATCC) is a globally recognized non-profit organization with a long and distinguished history in managing biological resources. For decades, ATCC has served as a central repository for a vast array of microorganisms, cell lines, and other biological materials. They have a proven track record of providing services such as preservation, characterization, distribution, and quality control for these valuable resources. ATCC has collaborated with various government agencies, including those within the Department of Health and Human Services, on projects related to maintaining and distributing critical biological samples. Their expertise in biosafety, cryopreservation, and inventory management makes them a leading candidate for such contracts. The scale and complexity of their operations suggest a strong capability to fulfill the requirements of the NIH contract.

How does the $102 million contract value compare to similar long-term contracts for biological resource repositories?

Benchmarking the $102 million contract value for a six-year period requires careful consideration of the scope and scale of the biological resource repository. Contracts for maintaining and managing biological collections can vary significantly based on the number and type of specimens, the required preservation techniques, the level of characterization, and the distribution services offered. Given that this contract supports the National Institute of Allergy and Infectious Diseases (NIAID) and involves microbial and infectious disease-related biological materials, it likely encompasses a substantial and diverse collection. While specific comparable contract values are not readily available in the public domain without extensive searching of federal procurement databases, a $102 million outlay over six years (averaging approximately $17 million annually) suggests a significant operational undertaking. This figure appears to be within a reasonable range for a large-scale, long-term biological resource management contract, especially considering the specialized expertise and infrastructure required.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a biological resource repository?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a biological resource repository revolve around cost control and contractor performance. For the government, the risk is that the contractor may not manage costs efficiently, potentially leading to expenditures exceeding initial projections, even with a fixed fee. The CPFF structure incentivizes the contractor to incur costs, as their fee is a percentage of those costs (though capped by the fixed fee). This necessitates robust government oversight to scrutinize all incurred costs and ensure they are reasonable, allocable, and necessary for contract performance. For the contractor, the risk lies in underestimating the costs required to perform the work, which could erode their profit margin if the fixed fee is insufficient to cover actual expenses. Ensuring the long-term preservation and integrity of sensitive biological materials also presents inherent risks, regardless of contract type, requiring stringent quality control and contingency planning.

What is the expected program effectiveness and impact of maintaining this biological resource repository?

The program's effectiveness is measured by its ability to reliably preserve, manage, and distribute critical biological materials for research purposes. A well-functioning repository ensures that researchers have access to high-quality, well-characterized specimens, which is fundamental for advancing scientific understanding and developing new diagnostics, treatments, and vaccines. The impact is significant, as it directly supports the mission of the National Institute of Allergy and Infectious Diseases (NIAID) and the broader biomedical research community. By providing a stable source of reference materials, the repository facilitates reproducibility in research, enables comparative studies, and supports the development of new research initiatives. Its effectiveness contributes to accelerating the pace of scientific discovery in infectious diseases and related fields, ultimately benefiting public health.

How has federal spending on biological resource repositories evolved over time, and what is the significance of this contract within that trend?

Federal spending on biological resource repositories has generally seen a steady increase over the past few decades, driven by the growing recognition of their importance in biomedical research, public health surveillance, and biosecurity. Agencies like the National Institutes of Health (NIH), the Centers for Disease Control and Prevention (CDC), and the Department of Agriculture (USDA) rely on these repositories for various functions, from storing pathogen strains to maintaining cell lines for drug development. This $102 million contract with ATCC represents a substantial, long-term investment by NIH in maintaining a critical resource for infectious disease research. Its significance lies in its scale and duration, underscoring the federal government's commitment to supporting foundational research infrastructure. Such contracts are crucial for ensuring the availability of essential biological materials that underpin a wide range of scientific endeavors and public health initiatives.

What are the implications of this contract for the broader biotechnology and life sciences sector?

This contract has several implications for the broader biotechnology and life sciences sector. Firstly, it reinforces the critical role of specialized organizations like ATCC in supporting national research priorities. Secondly, it highlights the government's reliance on robust infrastructure for managing valuable biological assets, which can spur innovation in related fields such as cryopreservation technology, data management systems for biological collections, and quality control methodologies. Thirdly, the sustained funding through such contracts provides stability for the organizations involved and their employees, contributing to a skilled workforce in the life sciences. Finally, by ensuring the availability of well-maintained biological resources, the contract indirectly supports the pipeline for drug discovery, vaccine development, and other biotechnological advancements that benefit both the economy and public health.

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

Solicitation ID: NIAIDDMIDNIHAI2009053

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $159,955,573

Exercised Options: $102,028,425

Current Obligation: $102,028,425

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline