NIH awards $22.3M for pathology support, highlighting long-term R&D investment

Contract Overview

Contract Amount: $22,287,643 ($22.3M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-06-06

End Date: 2015-08-31

Contract Duration: 3,738 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PATHOLGY SUPPORT FOR THE NIEHS

Place of Performance

Location: CARY, WAKE County, NORTH CAROLINA, 27513

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.3 million to CHARLES RIVER LABORATORIES, INC. for work described as: PATHOLGY SUPPORT FOR THE NIEHS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract spans over 10 years, indicating a sustained need for these services. 3. Cost-plus-fixed-fee pricing structure may incentivize cost control while ensuring service availability. 4. The awardee, Charles River Laboratories, Inc., has a significant presence in the life sciences sector. 5. Services are categorized under Research and Development in the Physical, Engineering, and Life Sciences. 6. The contract's duration and value suggest a substantial and ongoing research support requirement.

Value Assessment

Rating: good

The contract value of $22.3 million over approximately 10 years averages to about $2.23 million per year. Benchmarking this against similar pathology support contracts for federal research institutions is challenging without more specific service details. However, the duration suggests a stable, long-term partnership. The cost-plus-fixed-fee structure is common for R&D where exact costs are uncertain, but it requires careful oversight to ensure 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 a bid. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition suggests a healthy level of interest and a fair process for selecting the most advantageous offer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received, ensuring federal funds are used efficiently.

Public Impact

The National Institutes of Health (NIH) benefits from consistent, high-quality pathology support for its research endeavors. Researchers at NIEHS will have access to essential services that facilitate scientific discovery and advancement. The contract supports ongoing research in North Carolina, potentially impacting the local scientific community. The services provided are critical for the progression of biomedical research, contributing to public health outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not closely monitored.
Long contract duration could lead to vendor lock-in if not periodically re-evaluated for market competitiveness.
Reliance on a single contractor for a critical function over an extended period.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Long-term contract suggests a stable and reliable provision of essential research support services.
The contractor, Charles River Laboratories, Inc., is a well-established entity in the life sciences sector, implying experience and capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically supporting life sciences research. The market for specialized pathology support services for federal agencies is often characterized by a few key players with the necessary expertise and infrastructure. The value of this contract, approximately $2.23 million annually, is moderate within the context of large federal R&D investments, but critical for the specific research programs it supports.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The primary focus was on full and open competition to secure the best value for the government.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health (NIH). The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure adherence to the contract terms and prevent potential overruns. Transparency is generally maintained through contract reporting requirements, though specific public access to detailed performance metrics may vary.

Related Government Programs

NIH Research Support Services
Biomedical Research Contracts
Pathology Services for Federal Agencies
Life Sciences R&D Funding

Risk Flags

Long contract duration may limit flexibility to adopt new technologies.
Cost-plus-fixed-fee structure requires robust oversight to manage costs effectively.
Potential for vendor lock-in over the extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.3 million to CHARLES RIVER LABORATORIES, INC.. PATHOLGY SUPPORT FOR THE NIEHS

Who is the contractor on this award?

The obligated recipient is CHARLES RIVER LABORATORIES, 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 $22.3 million.

What is the period of performance?

Start: 2005-06-06. End: 2015-08-31.

What is the historical spending pattern for pathology support services at NIEHS or similar NIH institutes?

Analyzing historical spending requires access to detailed procurement data beyond this single contract. However, the duration of this contract (2005-2015) suggests a consistent and long-term need for pathology support at NIEHS. Federal agencies like NIH often engage in multi-year contracts for specialized services to ensure continuity and leverage economies of scale. Without specific historical data, it's difficult to ascertain if this $22.3 million award represents an increase, decrease, or stable level of spending compared to previous periods or other institutes. Trends in federal R&D budgets and specific research priorities would influence such spending patterns.

How does the annual cost of this contract compare to industry benchmarks for similar pathology support services?

Determining a precise annual cost benchmark ($2.23M/year) is challenging without detailed service scope and volume metrics. Pathology support can range widely in cost depending on the complexity of services (e.g., routine histology vs. specialized molecular pathology), the number of samples processed, and the level of expertise required. Charles River Laboratories is a major player, and their pricing would reflect their capabilities. However, comparing this to industry benchmarks would necessitate analyzing the specific deliverables outlined in the contract against market rates for similar services, considering factors like overhead, personnel costs, and profit margins typical for R&D support contractors.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

While specific KPIs are not detailed in the summary data, contracts of this nature typically include performance standards related to turnaround times for sample processing, accuracy of diagnostic interpretations, adherence to quality control protocols, and compliance with regulatory requirements (e.g., Good Laboratory Practice - GLP). The cost-plus-fixed-fee structure often ties contractor performance to meeting defined milestones and maintaining service levels within the agreed-upon fixed fee component, alongside managing the variable costs. Regular performance reviews by NIH program officials would assess the contractor's ability to meet these critical research support needs.

What is the track record of Charles River Laboratories, Inc. in performing similar federal contracts?

Charles River Laboratories, Inc. is a well-established contract research organization (CRO) with extensive experience in preclinical services, including pathology. They have a history of performing work for government agencies, including NIH. Their track record generally indicates a strong capability in providing research support services. However, a comprehensive assessment would involve reviewing their past performance evaluations on federal contracts, including any past performance issues, awards for outstanding performance, and their overall history of meeting contractual obligations across various government procurements.

What are the potential risks associated with a long-term (10+ year) contract for pathology support?

Long-term contracts, like this one spanning over a decade, carry several potential risks. Firstly, technology and scientific methodologies in pathology can evolve rapidly; a long-term contract might not easily adapt to newer, more efficient, or cost-effective techniques unless flexibility is built into the contract. Secondly, there's a risk of complacency or reduced innovation from the contractor over time. Thirdly, market prices for services can fluctuate, and a fixed-term contract might not capture potential cost savings if market rates decrease. Finally, if the contractor's performance degrades, the long duration makes it difficult and costly to transition to a new provider.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

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: Charles River Laboratories International, Inc. (UEI: 110376014)

Address: 251 BALLARDVALE ST, WILMINGTON, MA, 01887

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $75,495,905

Exercised Options: $49,843,406

Current Obligation: $22,287,643

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline