NIH's $141M Microbiology Research Contract Awarded to ATCC Under Full and Open Competition

Contract Overview

Contract Amount: $140,973,859 ($141.0M)

Contractor: American Type Culture Collection

Awarding Agency: Department of Health and Human Services

Start Date: 2016-05-05

End Date: 2023-10-31

Contract Duration: 2,735 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF - MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESEARCH REPOSITORY (MID BRR)

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $141.0 million to AMERICAN TYPE CULTURE COLLECTION for work described as: IGF::OT::IGF - MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESEARCH REPOSITORY (MID BRR) Key points: 1. The contract supports critical biological research and development in microbiology and infectious diseases. 2. ATCC, a well-established organization, holds this significant contract, indicating specialized capabilities. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for cost control and efficiency. 4. Spending in the Biotechnology R&D sector (NAICS 541711) is substantial, making this a key investment.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes, but the total award value suggests a need for rigorous oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single award indicates ATCC was the sole successful bidder, raising questions about the breadth of competition achieved.

Taxpayer Impact: Taxpayer funds are being invested in critical research, but the CPFF structure necessitates careful monitoring to ensure value for money and prevent unnecessary costs.

Public Impact

Supports advancements in understanding and combating infectious diseases, a public health priority. Ensures availability of biological materials and research infrastructure for national scientific endeavors. Potential for breakthroughs in diagnostics, treatments, and prevention strategies. Long-term contract duration may indicate ongoing, complex research needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure requires diligent oversight to prevent cost escalation.
Single award despite full and open competition may warrant further investigation into the bidding process.
Long contract duration (2735 days) increases exposure to potential scope creep or changing research priorities.

Positive Signals

Supports critical national research in microbiology and infectious diseases.
Awarded under full and open competition, theoretically ensuring best value.
ATCC is a recognized leader in biological resource management.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector (NAICS 541711). Spending in this area is crucial for national health security and scientific advancement, often involving significant investment due to the specialized nature of the work.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses. Further review would be needed to determine if small businesses had opportunities to participate in this contract.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate robust oversight from NIH to ensure adherence to scope, cost controls, and timely delivery of research objectives. Regular performance reviews and audits are essential.

Related Government Programs

Research and Development in Biotechnology
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) structure can incentivize higher costs if not managed.
Long contract duration increases risk of scope creep and changing requirements.
Single award under full and open competition raises questions about competitive intensity.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $141.0 million to AMERICAN TYPE CULTURE COLLECTION. IGF::OT::IGF - MICROBIOLOGY AND INFECTIOUS DISEASES BIOLOGICAL RESEARCH REPOSITORY (MID BRR)

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 $141.0 million.

What is the period of performance?

Start: 2016-05-05. End: 2023-10-31.

What specific research milestones and deliverables are outlined in the contract, and how is progress measured against them?

The contract likely details specific research objectives, experimental protocols, data analysis requirements, and reporting schedules. Progress is typically measured through periodic technical reports, milestone achievement reviews, and adherence to the fixed fee payment schedule. NIH contracting officers and technical monitors would be responsible for evaluating ATCC's performance against these defined metrics.

Given the CPFF structure, what mechanisms are in place to ensure cost efficiency and prevent contractor overruns?

NIH employs several mechanisms, including detailed budget reviews, cost reasonableness analyses, and performance-based payment schedules. The fixed fee component incentivizes efficient performance. Regular audits and close monitoring by contracting officers are crucial to identify potential cost deviations early and ensure the contractor operates within the agreed-upon budget parameters.

How does the NIH ensure that the research conducted under this contract aligns with current public health priorities and scientific advancements?

The NIH utilizes a rigorous process for defining contract scope and objectives, often involving input from scientific advisory boards and program managers. During the contract period, regular communication and review meetings ensure that research remains relevant. The agency can also issue contract modifications or task orders to adapt to evolving scientific landscapes and public health 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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPNIAIDDMIDNIHAI201

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $140,973,859

Exercised Options: $140,973,859

Current Obligation: $140,973,859

Actual Outlays: $63,482,773

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,052,782,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline