NIH's $25M R&D contract with Integrated Laboratory Systems, LLC, spanning a decade

Contract Overview

Contract Amount: $25,175,261 ($25.2M)

Contractor: Integrated Laboratory Systems, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2003-04-16

End Date: 2013-10-15

Contract Duration: 3,835 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-OTHER R&D-B RES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27712

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.2 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: R&D-OTHER R&D-B RES Key points: 1. Contract awarded for extensive research and development activities. 2. Long contract duration suggests a sustained need for specialized services. 3. Cost-plus-fixed-fee structure incentivizes efficient cost management. 4. Performance period concluded in late 2013. 5. Contractor has a significant tenure with the agency. 6. Geographic location of performance was North Carolina.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of R&D services. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can lead to cost overruns if not managed carefully. Without detailed performance reports or comparable contract data from the same period, a precise value-for-money assessment is difficult. However, the contract's duration implies a consistent need and potentially satisfactory performance over its lifespan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair pricing and encourage innovation. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions.

Public Impact

This contract supported research and development efforts within the physical, engineering, and life sciences. The primary beneficiary is the National Institutes of Health (NIH) and its research objectives. Services were delivered in North Carolina, impacting the local economy and workforce. The contract likely contributed to advancements in scientific knowledge and potential medical breakthroughs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The age of the contract makes it difficult to assess current relevance and performance.
Cost-plus-fixed-fee contracts carry inherent risks of cost escalation if not rigorously overseen.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Long contract duration may indicate consistent need and successful service delivery.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment. Comparable spending in this area often involves grants, cooperative agreements, and various contract types to fund scientific exploration and technological advancement.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Integrated Laboratory Systems, LLC voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the National Institutes of Health (NIH). As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring would be crucial to ensure funds were used effectively and objectives were met. Transparency would depend on the agency's reporting practices during the contract period.

Related Government Programs

NIH Research Grants
Biomedical Research Contracts
Life Sciences R&D
Federal Science and Technology Funding

Risk Flags

Contract awarded in the past, limiting current relevance.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.2 million to INTEGRATED LABORATORY SYSTEMS, LLC. R&D-OTHER R&D-B RES

Who is the contractor on this award?

The obligated recipient is INTEGRATED LABORATORY SYSTEMS, LLC.

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 $25.2 million.

What is the period of performance?

Start: 2003-04-16. End: 2013-10-15.

What was the specific nature of the R&D conducted under this contract?

The contract, NA 541710, was for 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific projects are not detailed in the provided data, this broad category suggests work could have encompassed a wide range of scientific inquiry, from basic laboratory research to applied engineering solutions. Given the agency (NIH), a significant portion likely focused on biomedical and health-related research, potentially involving laboratory analysis, experimental design, data interpretation, and the development of new scientific methodologies or technologies.

How does the $25 million total award compare to similar R&D contracts from the same era?

Comparing the $25.17 million total award to similar R&D contracts from the 2003-2013 period requires access to historical contract databases and specific R&D categories. However, for a decade-long definitive contract under full and open competition, this amount is within a reasonable range for specialized R&D services, particularly those involving complex scientific endeavors. Larger, multi-year R&D programs at agencies like NIH often reach tens or hundreds of millions of dollars. The key would be to benchmark against contracts with similar scope, duration, and scientific focus within the physical, engineering, and life sciences.

What were the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this nature include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, increasing the actual costs. The fixed fee provides a profit incentive, but the government bears the brunt of cost increases above the estimate. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin. Effective oversight by the agency is critical to mitigate these risks by scrutinizing costs, ensuring efficient resource allocation, and managing scope creep.

What does the 10-year duration of this contract imply about the program's stability and the agency's needs?

A 10-year duration (from April 2003 to October 2013) for an R&D contract strongly suggests a stable, long-term requirement for the services provided by Integrated Laboratory Systems, LLC. Such extended periods typically indicate that the research or development activities were foundational, complex, and required sustained expertise and effort. It implies a high degree of confidence from the National Institutes of Health (NIH) in the contractor's capabilities and the ongoing relevance of the research objectives. This longevity also points to a consistent funding stream allocated to this specific area of R&D.

Were there any specific performance metrics or milestones tied to this contract?

The provided data does not include specific performance metrics or milestones. However, for a Cost Plus Fixed Fee (CPFF) contract, especially one involving R&D, performance is typically evaluated based on the achievement of research objectives, adherence to scientific protocols, timely delivery of research findings (reports, publications, data), and effective management of resources. The agency's contracting officer and technical monitors would have been responsible for assessing whether the contractor met these implicit or explicit performance expectations throughout the contract's lifespan.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1 PARK PL STE 200, DURHAM, NC, 27712

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $47,242,250

Exercised Options: $23,208,435

Current Obligation: $25,175,261

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline