NIH awards $17.5M for R&D services, with a significant portion for laboratory support

Contract Overview

Contract Amount: $17,491,932 ($17.5M)

Contractor: Integrated Laboratory Systems, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2016-05-26

Contract Duration: 4,637 days

Daily Burn Rate: $3.8K/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 $17.5 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract spans over 12 years, indicating a long-term need for these services. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The contractor, INTEGRATED LABORATORY SYSTEMS, LLC, has a substantial history with this contract. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The geographic location of performance is North Carolina.

Value Assessment

Rating: fair

The total award amount of $17.5 million over approximately 12 years suggests an average annual spend of roughly $1.46 million. Benchmarking this against similar R&D contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not stringent. The duration of the contract implies a stable, ongoing need, but the value-for-money assessment would benefit from a comparison of the specific deliverables and outcomes achieved against the investment.

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 fact that it resulted in a single award suggests that INTEGRATED LABORATORY SYSTEMS, LLC was the most advantageous offer to the government based on the evaluation criteria. The level of competition prior to award is not detailed, but the 'full and open' designation generally promotes price discovery and allows the government to select the best value.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

The primary beneficiaries are the researchers and scientists at the National Institutes of Health (NIH) who receive essential laboratory support services. The services delivered are crucial for advancing physical, engineering, and life sciences research. The contract's performance is located in North Carolina, potentially impacting the local economy through employment and business activity. The contract supports scientific endeavors that can lead to advancements in healthcare and public well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize cost increases if not closely monitored.
Long contract duration (over 12 years) could indicate potential for vendor lock-in or reduced agility in adapting to new technologies.
Lack of specific details on performance metrics makes it difficult to fully assess value for money.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract indicates a consistent and valued service provider for NIH.
Contract supports critical research and development in life sciences.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is characterized by innovation and scientific discovery, often involving long-term projects and significant investment. Comparable spending benchmarks would depend heavily on the specific nature of the laboratory services provided, but NIH's overall R&D spending is substantial, reflecting its mission to seek fundamental knowledge about the nature and behavior of living systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, INTEGRATED LABORATORY SYSTEMS, LLC, is likely a mid-to-large-sized entity given the contract's value and duration. Opportunities for small businesses would typically arise through subcontracting if the prime contractor chooses to engage them, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). As a Cost Plus Fixed Fee contract, rigorous oversight of costs incurred and adherence to the fixed fee is crucial. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are typically internal to the agency. The HHS Office of Inspector General (OIG) would have jurisdiction for investigating fraud, waste, and abuse related to this contract.

Related Government Programs

NIH Research and Development Contracts
Biomedical Research Support
Laboratory Services Contracts
Federal Scientific Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Contract Dependency
Performance Measurement Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.5 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 $17.5 million.

What is the period of performance?

Start: 2003-09-15. End: 2016-05-26.

What is the track record of INTEGRATED LABORATORY SYSTEMS, LLC with the federal government, particularly with NIH?

INTEGRATED LABORATORY SYSTEMS, LLC has a significant history with the federal government, evidenced by this contract with the National Institutes of Health (NIH) spanning from September 15, 2003, to May 26, 2016. The contract's duration of over 12 years suggests a sustained relationship and likely a satisfactory performance history to warrant such a long-term commitment. While this specific award is for Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710), further analysis would require examining other contracts held by the company to understand the breadth of their federal engagements, their performance ratings on past contracts (if publicly available), and any potential issues or commendations received.

How does the value of this contract compare to similar R&D contracts awarded by NIH or other agencies?

The total award value of $17.5 million over approximately 12 years equates to an average annual value of roughly $1.46 million. Comparing this to similar R&D contracts requires detailed knowledge of the specific services rendered. NIH awards a wide range of R&D contracts, from small, specialized research grants to large, comprehensive support services. Contracts for basic scientific research can vary dramatically in cost depending on the field, scope, and duration. Without specific details on the deliverables, personnel hours, or equipment involved in this contract, a precise benchmark is difficult. However, for long-term, comprehensive laboratory support services at a major research institution like NIH, this annual average appears within a plausible range, though potentially on the lower end for highly specialized or complex R&D support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to INTEGRATED LABORATORY SYSTEMS, LLC, revolve around cost control and potential for contractor inefficiency. In a CPFF structure, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs rigorously, as cost overruns directly increase the total amount reimbursed (though not the fee itself). This can lead to the contract exceeding its estimated cost ceiling. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee remains profitable. Effective oversight by the government is critical to monitor expenditures, ensure efficiency, and prevent scope creep that could inflate costs without commensurate value.

How effective has this contract been in supporting NIH's research objectives?

Assessing the effectiveness of this contract in supporting NIH's research objectives requires access to performance metrics and outcomes data that are not publicly available in this dataset. The contract's long duration (over 12 years) suggests a level of effectiveness that satisfied NIH's needs over an extended period. However, effectiveness is best measured by the quality and impact of the research enabled by the laboratory services provided. Without specific details on research breakthroughs, publications, or advancements attributed to the support from INTEGRATED LABORATORY SYSTEMS, LLC, a definitive judgment on effectiveness cannot be made. The 'full and open competition' award mechanism implies that NIH sought the most capable provider, which is a positive indicator for potential effectiveness.

What are the historical spending patterns for similar laboratory support services at NIH?

Historical spending patterns for laboratory support services at NIH are extensive and varied, reflecting the agency's vast research portfolio. NIH consistently allocates significant portions of its budget to support research infrastructure, including laboratory services. While this specific contract awarded $17.5 million over its lifespan, NIH's overall R&D spending runs into the tens of billions annually. Spending on laboratory support can fluctuate based on agency priorities, specific research initiatives, and the availability of funding. Contracts for such services can range from a few million dollars for specialized support to hundreds of millions for large-scale, multi-year operations. Analyzing historical patterns would involve looking at trends in contract types (e.g., CPFF vs. fixed-price), average contract values, and the number of competitors over time for similar service codes (NAICS 541710).

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: $11,776,775

Exercised Options: $15,898,043

Current Obligation: $17,491,932

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline