Leidos Inc. awarded $69.6M for Biomedical Research and Development, with 2 bids received
Contract Overview
Contract Amount: $69,606,231 ($69.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2000-09-21
End Date: 2017-05-17
Contract Duration: 6,082 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIOMEDICAL (BASIC)
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21703
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $69.6 million to LEIDOS, INC. for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was over 6000 days, indicating a long-term research and development effort. 4. The award was made by the National Institutes of Health, a key agency for biomedical research funding. 5. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity. 6. The contract was awarded in Maryland, a hub for federal research and development activities.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee structure inherently carries risk for cost control. Comparing it to similar long-term biomedical R&D contracts would require detailed analysis of scope and outcomes. The fixed fee component provides some predictability, but the cost-reimbursement aspect necessitates robust 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. The data shows two bids were received, which is a moderate level of competition. While two bidders are better than one, a higher number of bids typically leads to more competitive pricing and a wider range of innovative solutions.
Taxpayer Impact: The moderate competition suggests that taxpayers may not have received the absolute lowest possible price, but the open competition process likely prevented significantly inflated costs.
Public Impact
The primary beneficiaries are likely researchers and institutions involved in biomedical advancements funded by the NIH. The services delivered are expected to be in the area of Research and Development in the Physical, Engineering, and Life Sciences. The geographic impact is centered in Maryland, where the contract was awarded, potentially supporting local research infrastructure and workforce. Workforce implications could include employment for scientists, technicians, and support staff engaged in the R&D activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring diligent oversight.
- A low number of bids (2) might indicate limited market interest or high barriers to entry for this specific R&D area.
- The long contract duration (over 16 years) increases the risk of scope creep and potential for cost escalation over time.
Positive Signals
- Awarded under full and open competition, ensuring a broad range of potential offerors could participate.
- The fixed fee component provides a defined profit margin, offering some cost predictability.
- The contract is with Leidos, Inc., a large and established government contractor with significant experience in R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on biomedical sciences. The market for biomedical R&D is substantial, driven by government funding and private investment. Comparable spending benchmarks would involve analyzing other large-scale NIH grants and contracts for similar research areas, considering the long-term nature and complexity of the work.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was likely on larger, specialized firms capable of undertaking complex biomedical R&D. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs incurred and progress towards research milestones. Transparency is generally maintained through contract award databases, though specific project details might be proprietary.
Related Government Programs
- National Institutes of Health Research Grants
- Department of Health and Human Services Biomedical Research Programs
- Federal R&D Spending
- Life Sciences Research Contracts
Risk Flags
- Long contract duration may lead to cost overruns and obsolescence.
- Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
- Limited competition (2 bids) may reduce price competitiveness.
Tags
biomedical-r&d, leidos-inc, department-of-health-and-human-services, national-institutes-of-health, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, maryland, research-and-development, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $69.6 million to LEIDOS, INC.. BIOMEDICAL (BASIC)
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $69.6 million.
What is the period of performance?
Start: 2000-09-21. End: 2017-05-17.
What is the historical spending trend for Leidos, Inc. with the NIH in the R&D sector?
Analyzing Leidos, Inc.'s historical spending with the NIH in the R&D sector requires accessing detailed federal procurement data. Generally, Leidos is a large government contractor with a significant presence across multiple agencies, including HHS and NIH. Their R&D portfolio is diverse, encompassing various scientific and engineering disciplines. To provide a precise trend, one would need to query databases like USAspending.gov or FPDS-NG for contracts awarded to Leidos by NIH under NAICS codes related to R&D over a specific period. This would reveal patterns in contract values, types, and durations, indicating the scale and consistency of their engagement in NIH-funded research.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for long-term biomedical R&D?
The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development efforts where the scope is not precisely defined at the outset, or where innovation is a key objective. In CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if the scope evolves but carries a higher risk of cost overruns. Cost-Plus-Incentive-Fee (CPIF) contracts, another alternative, tie a portion of the fee to performance metrics, potentially offering better value. For long-term biomedical R&D, CPFF can be suitable for exploratory phases, but as research matures and objectives become clearer, transitioning to FFP or CPIF might yield better cost control and value for taxpayers.
What are the potential risks associated with a contract duration exceeding 16 years?
A contract duration of over 16 years presents several significant risks. Firstly, the risk of 'scope creep' is high, where the project's objectives may expand beyond the original intent, leading to increased costs and delays. Secondly, technological advancements can render the initial research objectives or methodologies obsolete before the contract concludes, diminishing its value. Thirdly, maintaining consistent oversight and accountability over such an extended period can be challenging for the contracting agency, potentially leading to reduced vigilance. Finally, the long-term commitment ties up significant resources that could potentially be allocated to newer, more promising research avenues if the project's trajectory falters.
What does the limited competition (2 bids) imply for the NIH's ability to secure innovative solutions?
Limited competition, such as the two bids received for this contract, can imply several things for the NIH's ability to secure innovative solutions. On one hand, it suggests that the specific niche of biomedical R&D may have a limited number of highly specialized contractors capable of meeting the requirements. This could mean that the NIH is already engaging with the most qualified entities. However, a lower number of bidders generally reduces the pressure on each bidder to offer their most competitive pricing and potentially their most groundbreaking ideas. To foster greater innovation, agencies often employ strategies like market research, pre-solicitation conferences, and breaking down large requirements into smaller, more accessible contracts to attract a wider pool of diverse and innovative bidders.
How does the geographic location (Maryland) influence the contract's impact on the R&D ecosystem?
The contract's award in Maryland is significant given the state's robust ecosystem for federal research and development. Maryland hosts numerous federal research institutions (like NIH, FDA, and various DoD labs), a large number of private biotech and life science companies, and a highly educated workforce. This concentration of resources and talent means that a large contract awarded to a company operating in Maryland can have a substantial positive impact. It can stimulate local economic activity through job creation, support for ancillary services (like specialized labs, equipment suppliers), and foster collaboration between the contractor, academic institutions, and other research organizations within the state, further strengthening the regional R&D cluster.
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 › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $162,950,791
Exercised Options: $133,375,743
Current Obligation: $69,606,231
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2000-09-21
Current End Date: 2017-05-17
Potential End Date: 2017-05-17 00:00:00
Last Modified: 2019-06-20
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