HHS awards $18.5M contract to THERADEX SYSTEMS, INC. for research support

Contract Overview

Contract Amount: $18,507,741 ($18.5M)

Contractor: Theradex Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2003-05-15

End Date: 2010-04-30

Contract Duration: 2,542 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: PRINCETON JUNCTION, MERCER County, NEW JERSEY, 08550

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.5 million to THERADEX SYSTEMS, INC. for work described as: Key points: 1. Contract awarded to THERADEX SYSTEMS, INC. for $18.5 million. 2. The contract falls under the 'Research and Development' sector. 3. Full and open competition was utilized. 4. The contract duration is 2542 days. 5. The award was made by the Department of Health and Human Services (HHS).

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. The total award value of $18.5 million over approximately 7 years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Supports critical research initiatives within the National Institutes of Health. The long duration suggests a sustained need for the services provided. THERADEX SYSTEMS, INC. is a key provider in this research area. Potential for follow-on contracts based on performance. Impacts the advancement of scientific knowledge and public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize overspending.
Long contract duration may not reflect current market prices.
Lack of specific performance metrics provided.

Positive Signals

Awarded through full and open competition.
Supports a critical government agency (HHS/NIH).
Established vendor with a long-term relationship.

Sector Analysis

This contract falls within the Research and Development sector, specifically supporting biomedical research. Spending in this sector is crucial for innovation and public health advancements, with significant government investment.

Small Business Impact

No specific information is available regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or could have been.

Oversight & Accountability

The contract's long duration and Cost Plus Fixed Fee structure warrant close oversight to ensure cost control and adherence to research objectives. Regular performance reviews are essential.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of detailed performance metrics.
Potential for cost overruns.
Limited transparency on specific services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.5 million to THERADEX SYSTEMS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is THERADEX SYSTEMS, 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 $18.5 million.

What is the period of performance?

Start: 2003-05-15. End: 2010-04-30.

What specific research services does THERADEX SYSTEMS, INC. provide under this contract, and how do they align with NIH's strategic goals?

The contract likely supports specialized laboratory services, data analysis, or research project management crucial for NIH's mission. Understanding the precise nature of these services is key to assessing their alignment with strategic goals, ensuring that taxpayer funds are directed towards high-priority scientific endeavors and contribute effectively to advancing medical knowledge and public health outcomes.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns?

Cost Plus Fixed Fee contracts require robust government oversight. Mechanisms should include detailed cost tracking, regular audits of expenditures, clear performance metrics tied to fee determination, and strict adherence to the contract's scope of work. The government contracting officer must actively manage the contract to ensure costs remain reasonable and justified.

How does the $18.5 million award compare to similar contracts for research support services within the federal government?

Benchmarking this $18.5 million award against similar contracts requires detailed analysis of service scope, duration, and agency. Without specific comparable data, it's difficult to definitively assess value. However, for a multi-year contract supporting critical research, this figure appears within a reasonable range, assuming the services are specialized and essential.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 14 WASHINGTON RD BLDG 3, PRINCETON JUNCTION, NJ, 08550

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $106,539,211

Exercised Options: $80,396,519

Current Obligation: $18,507,741

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline