USDA awards $5M contract for HPAI diagnostic testing to University of Kentucky Research Foundation

Contract Overview

Contract Amount: $5,000 ($5.0K)

Contractor: University of Kentucky Research Foundation, the

Awarding Agency: Department of Agriculture

Start Date: 2026-04-03

End Date: 2027-04-02

Contract Duration: 364 days

Daily Burn Rate: $14/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $5,000 to UNIVERSITY OF KENTUCKY RESEARCH FOUNDATION, THE for work described as: MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING Key points: 1. Contract focuses on critical avian influenza testing, aligning with national animal health priorities. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Limited competition may impact price discovery and potentially lead to higher costs. 4. The contract duration of one year suggests a need for ongoing surveillance and response capabilities. 5. Testing services are crucial for safeguarding the poultry industry and public health. 6. Geographic focus on Iowa indicates a specific regional need for diagnostic support.

Value Assessment

Rating: fair

The contract value of $5 million for one year of diagnostic testing services is difficult to benchmark without more detailed service descriptions and comparable contract data. As a sole-source award, a direct comparison to competitively bid contracts is not feasible. The fixed-price nature of the contract provides some cost certainty, but the absence of competition limits the ability to assess if the pricing represents optimal value for money. Further analysis would require understanding the specific testing volumes and methodologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the available data. Sole-source awards can sometimes be necessary for specialized services or when a specific contractor possesses unique capabilities. However, they typically result in less price competition compared to full and open solicitations, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The absence of multiple bids means there was no direct incentive for contractors to offer their lowest possible price.

Public Impact

The primary beneficiaries are the Animal and Plant Health Inspection Service (APHIS) and the broader agricultural sector, particularly poultry producers. The contract delivers essential diagnostic testing services for Highly Pathogenic Avian Influenza (HPAI). The geographic impact is focused on Iowa, suggesting a need for enhanced surveillance or response in that region. Workforce implications include potential support for laboratory technicians and veterinary diagnosticians at the University of Kentucky Research Foundation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics makes it difficult to assess efficiency.
Geographic limitation to Iowa might not address national HPAI surveillance needs comprehensively.

Positive Signals

Addresses a critical national health security issue (HPAI).
Utilizes a research foundation, potentially leveraging specialized expertise.
Fixed-price contract offers budget predictability.

Sector Analysis

This contract falls within the broader 'Healthcare' or 'Research and Development' sectors, specifically focusing on veterinary diagnostics and public health. The market for animal disease testing is specialized, often involving academic institutions and private laboratories with specific accreditations and expertise. Spending in this area is driven by the need for disease surveillance, outbreak response, and safeguarding agricultural economies. Comparable spending benchmarks would likely be found within federal agencies like USDA, HHS, and DOD that conduct similar diagnostic and research activities.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a research foundation, suggesting a larger, established entity is performing the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Animal Health Laboratory Network (NAHLN)
Avian Health Programs
USDA Veterinary Services
Animal Disease Surveillance Contracts

Risk Flags

Sole-source award may limit cost-effectiveness.
Potential for service disruption if the single provider faces issues.
Geographic focus might not cover all national surveillance needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5,000 to UNIVERSITY OF KENTUCKY RESEARCH FOUNDATION, THE. MORATORIUM EXCEPTION: HPAI NATIONAL ANIMAL HEALTH LABORATORY NETWORK DIAGNOSTIC TESTING SERVICES FOR HPAI AVIAN INFLUENZA TESTING

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF KENTUCKY RESEARCH FOUNDATION, THE.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $5,000.

What is the period of performance?

Start: 2026-04-03. End: 2027-04-02.

What is the specific expertise of the University of Kentucky Research Foundation in HPAI diagnostic testing that justifies a sole-source award?

The justification for a sole-source award typically rests on the unique capabilities, specialized knowledge, or proprietary technology possessed by a specific contractor. For the University of Kentucky Research Foundation, this could involve established research programs in virology, extensive experience with avian influenza strains, advanced diagnostic methodologies, or existing infrastructure and personnel already engaged in related work. Without the specific justification document, it's presumed that APHIS determined that no other entity could meet the requirements as effectively or efficiently. This often occurs when a particular institution has been instrumental in developing or validating specific testing protocols, or has a long-standing, successful track record with the agency on this precise issue.

How does the $5 million contract value compare to historical spending on similar HPAI diagnostic services by APHIS?

To accurately compare the $5 million contract value to historical spending, one would need to analyze APHIS's procurement history for HPAI diagnostic testing services over several fiscal years. This analysis should identify contracts with similar scopes of work, durations, and service providers. If previous contracts for comparable services were significantly lower, it might indicate an increase in testing demand, inflation, or potentially less favorable pricing due to the sole-source nature of this award. Conversely, if historical spending was similar or higher, it could suggest that $5 million is within the expected range for these critical services, especially considering the ongoing threat of HPAI outbreaks.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective diagnostic testing?

While the specific KPIs and SLAs are not detailed in the provided summary data, contracts for diagnostic testing services typically include stringent performance requirements. These often encompass turnaround times for test results (e.g., within 24-48 hours of sample receipt), accuracy and sensitivity rates of the diagnostic methods used, adherence to established laboratory protocols (e.g., ISO standards, APHIS guidelines), and robust data reporting mechanisms. The contract likely mandates regular progress reports and may include provisions for audits or inspections to ensure compliance. Failure to meet these KPIs could result in penalties or contract termination, underscoring the importance of rigorous oversight.

What is the potential risk associated with relying on a single source for a critical national health service like HPAI testing?

The primary risk associated with a sole-source award for critical services like HPAI testing is the lack of competitive pressure, which can lead to suboptimal pricing and potentially reduced innovation. Furthermore, over-reliance on a single provider creates vulnerability; if that provider experiences operational disruptions (e.g., staffing issues, equipment failure, natural disasters), the government's ability to conduct essential testing could be severely compromised. This lack of redundancy increases the overall risk profile of the service delivery. A competitive environment typically fosters resilience and encourages providers to maintain high standards to retain business.

How does this contract contribute to the overall mission of the National Animal Health Laboratory Network (NAHLN)?

This contract directly supports the mission of the National Animal Health Laboratory Network (NAHLN) by providing essential diagnostic testing capabilities for Highly Pathogenic Avian Influenza (HPAI). NAHLN aims to ensure a coordinated, nationwide system for detecting and responding to animal diseases. By engaging the University of Kentucky Research Foundation, APHIS is augmenting the network's capacity to perform timely and accurate HPAI testing, which is crucial for early detection, outbreak containment, and safeguarding the U.S. poultry industry and potentially public health. The services procured likely align with NAHLN's standardized protocols and reporting requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Veterinary Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 S LIMESTONE 109 KINKEAD HALL, LEXINGTON, KY, 40526

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $5,000

Exercised Options: $5,000

Current Obligation: $5,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639522D0033

IDV Type: IDC

Timeline