NIH awards $28.7M for R&D in Physical, Engineering, and Life Sciences to Integrated Laboratory Systems, LLC

Contract Overview

Contract Amount: $28,743,763 ($28.7M)

Contractor: Integrated Laboratory Systems, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2014-05-22

Contract Duration: 3,902 days

Daily Burn Rate: $7.4K/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: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3902 days (over 10 years) indicates a long-term need for these research services. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 4. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity within the life sciences sector. 5. The awardee, Integrated Laboratory Systems, LLC, has secured this contract, highlighting their established presence in the federal R&D space. 6. The contract was awarded by the National Institutes of Health (NIH), a major funder of biomedical research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar long-term R&D contracts would require detailed analysis of scope and outcomes. The total award amount of $28.7 million over more than 10 years suggests a moderate annual spend for specialized research services.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of potential contractors, aiming to secure the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and improving the quality of services offered.

Public Impact

The primary beneficiaries are likely researchers and institutions supported by NIH funding, who will gain access to specialized R&D services. The contract supports critical research and development activities within the physical, engineering, and life sciences, potentially leading to advancements in health and technology. The geographic impact is primarily centered around the awardee's location in North Carolina, but the research outcomes could have national or global implications. Workforce implications include the creation or maintenance of jobs for scientists, researchers, and support staff at Integrated Laboratory Systems, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
Long contract durations (over 10 years) can sometimes lead to scope creep or a lack of agility if needs change significantly.
The specific nature of R&D can make it difficult to define success metrics upfront, potentially impacting performance evaluation.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The long duration indicates a sustained and critical need for the services provided by the contractor.
The contract is with NIH, a reputable agency known for funding significant scientific advancements.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in the Physical, Engineering, and Life Sciences. This is a critical sector for innovation and economic growth. Federal spending in R&D is substantial, with agencies like NIH being major contributors. Comparable spending benchmarks would involve analyzing other large, long-term R&D contracts awarded by federal agencies for similar scientific disciplines.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large, long-term R&D contract, it is unlikely to have significant subcontracting opportunities specifically targeted at small businesses unless explicitly required by the prime contractor or agency. The focus is on specialized R&D capabilities, which may be concentrated among larger firms or those with specific technical expertise.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate. Transparency would be facilitated through contract reporting mechanisms and potentially public disclosures of research outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Biomedical Research Grants
National Science Foundation R&D Contracts
Department of Defense Research and Development
National Aeronautics and Space Administration (NASA) Research

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
CPFF contract type requires robust cost monitoring to ensure value for money.
R&D outcomes can be inherently uncertain, posing performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to INTEGRATED LABORATORY SYSTEMS, LLC. See the official description on USAspending.

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 $28.7 million.

What is the period of performance?

Start: 2003-09-15. End: 2014-05-22.

What is the historical spending pattern for Integrated Laboratory Systems, LLC with the federal government?

Analyzing the complete federal spending history for Integrated Laboratory Systems, LLC would require access to a comprehensive federal procurement database. However, this specific contract, awarded in 2003 and ending in 2014, represents a significant, long-term engagement with the National Institutes of Health (NIH). The total award value of $28.7 million over approximately 10.7 years suggests a substantial commitment from NIH to the services provided by this contractor. Further investigation into other contracts awarded to this entity would reveal the breadth and depth of their federal contracting activities and their performance across different agencies and programs.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money in this R&D contract?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure can be beneficial as it allows flexibility to explore research avenues that may not have clearly defined outcomes or costs upfront. However, it places a significant burden on the government to meticulously audit and approve all costs. The 'fixed fee' component aims to provide the contractor with an incentive to control costs, as the fee does not increase with higher costs. Nevertheless, without stringent oversight and clear performance metrics, there's a risk of cost escalation and reduced value for money compared to fixed-price contracts, especially if the scope is not well-defined or managed.

What are the key performance indicators (KPIs) typically used for R&D contracts of this nature?

Key Performance Indicators (KPIs) for R&D contracts like this one are often qualitative and tied to scientific milestones rather than purely quantitative metrics. Common KPIs include the successful completion of research phases, achievement of specific scientific objectives, publication of findings in peer-reviewed journals, development of prototypes or methodologies, and adherence to project timelines and budgets. For a CPFF contract, KPIs also extend to cost control and efficient resource utilization. The agency would likely track progress against a detailed research plan and assess the scientific merit and potential impact of the outcomes.

What is the typical duration for federal R&D contracts in the life sciences sector?

Federal R&D contracts, particularly in the life sciences sector, can vary significantly in duration depending on the complexity and scope of the research. Contracts can range from short-term, project-specific awards lasting a few years to long-term, multi-year engagements like the one awarded to Integrated Laboratory Systems, LLC (over 10 years). Longer durations are common for foundational research, large-scale studies, or programs requiring sustained effort and development. Agencies like NIH often fund research over extended periods to allow for scientific discovery and validation, making durations exceeding a decade not uncommon for significant R&D initiatives.

How does the NAICS code 541710 define the scope of services for this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' defines a broad scope of services. This includes fundamental research, applied research, and experimental development. For the life sciences aspect, it encompasses areas such as biotechnology, medical research, pharmaceutical development, agricultural sciences, and environmental sciences. Contracts under this code typically involve scientific investigation, experimentation, and analysis aimed at discovering new knowledge or developing new products, processes, or services within these scientific domains.

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, 04

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

Financial Breakdown

Contract Ceiling: $84,301,990

Exercised Options: $75,323,823

Current Obligation: $28,743,763

Timeline