The Bionetics Corp awarded $15.2M contract for NCTR animal care and technical procedures
Contract Overview
Contract Amount: $15,239,171 ($15.2M)
Contractor: THE Bionetics Corp
Awarding Agency: Department of Health and Human Services
Start Date: 2023-08-24
End Date: 2027-02-25
Contract Duration: 1,281 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: R&D
Official Description: NCTR ON-SITE ANIMAL CARE AND TECHNICAL PROCEDURES IN ACCORDANCE WITH PWS AND APPENDICES
Place of Performance
Location: JEFFERSON, JEFFERSON County, ARKANSAS, 72079
State: Arkansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $15.2 million to THE BIONETICS CORP for work described as: NCTR ON-SITE ANIMAL CARE AND TECHNICAL PROCEDURES IN ACCORDANCE WITH PWS AND APPENDICES Key points: 1. Contract value of $15.2M over its period of performance. 2. Awarded by the Department of Health and Human Services, Food and Drug Administration. 3. Contract type is a Definitive Contract with Labor Hours pricing. 4. Performance period spans from August 24, 2023, to February 25, 2027. 5. The North American Industry Classification System (NAICS) code is 541714, indicating Research and Development in Biotechnology. 6. The contract was awarded under Full and Open Competition after Exclusion of Sources. 7. The contractor, The Bionetics Corp, has been awarded this contract. 8. The place of performance is Arkansas (AR).
Value Assessment
Rating: fair
The contract's value of $15.2M over approximately 3.5 years suggests a moderate annual spend. Without specific details on the scope of 'animal care and technical procedures,' a direct value-for-money assessment is challenging. Benchmarking against similar contracts for specialized laboratory animal support services would be necessary to determine if the pricing is competitive. The Labor Hours pricing structure can sometimes lead to cost overruns if not carefully managed and monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources may have been excluded for defined reasons, which warrants further investigation. The number of bidders is not specified, but the 'full and open' designation suggests an effort to solicit broad participation. The exclusion of sources could potentially limit the breadth of competition and impact price discovery.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, though the exclusion of sources may have narrowed this benefit. Transparency regarding the reasons for source exclusion is crucial for ensuring optimal value.
Public Impact
The contract directly supports the National Center for Toxicological Research (NCTR) operations. It ensures the provision of essential animal care and technical procedures critical for research integrity. The services delivered are vital for the Food and Drug Administration's (FDA) mission in evaluating the safety of products. The geographic impact is primarily within Arkansas, where the NCTR is located and performance will occur. This contract supports specialized technical and animal care workforce needs within the biotechnology research sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Exclusion of Sources' clause in the competition type requires scrutiny to ensure it was justified and did not unduly restrict competition.
- Labor Hours pricing can be susceptible to scope creep and cost escalation if not rigorously managed.
- The specific nature of 'technical procedures' is broad and may require detailed performance metrics to ensure accountability.
Positive Signals
- Awarded under Full and Open Competition, indicating an attempt to leverage market forces for best value.
- The contract duration of over three years provides stability for the contractor and ensures continuity of critical research support services.
- The contract supports a vital function for the FDA's public health mission.
Sector Analysis
This contract falls within the Biotechnology Research and Development sector, specifically focusing on laboratory animal support. The NAICS code 541714 covers R&D in Biotechnology, excluding Nanobiotechnology. This sector is characterized by specialized scientific expertise and stringent regulatory oversight. Spending in this area is crucial for drug development, safety testing, and understanding toxicological impacts. Comparable spending benchmarks would involve analyzing other contracts for similar animal care and technical support services at federal research institutions.
Small Business Impact
There is no indication that this contract includes a small business set-aside. The contract value and specialized nature of the services suggest it may not be easily broken down into smaller components suitable for small business participation. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but would depend on the prime contractor's strategy and the specific needs of the services rendered.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Health and Human Services and the Food and Drug Administration contracting and program officials. Performance monitoring against the Performance Work Statement (PWS) and appendices is essential. Transparency is facilitated through contract award databases, but detailed operational oversight specifics are not provided. The Inspector General's office for HHS may have jurisdiction for audits and investigations if concerns arise.
Related Government Programs
- NIH Animal Care and Use Programs
- USDA Animal Research Support Contracts
- CDC Laboratory Support Services
- Biotechnology Research Grants
- Toxicological Research Services
Risk Flags
- Potential for cost overruns due to Labor Hours pricing.
- Justification for 'Exclusion of Sources' requires review.
- Scope definition for 'technical procedures' may lack specificity.
- Need for detailed performance metrics and oversight.
Tags
biotechnology, research-and-development, animal-care, technical-services, definitive-contract, labor-hours, full-and-open-competition, hhs, fda, arkansas, large-contract, biotechnology-r&d
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $15.2 million to THE BIONETICS CORP. NCTR ON-SITE ANIMAL CARE AND TECHNICAL PROCEDURES IN ACCORDANCE WITH PWS AND APPENDICES
Who is the contractor on this award?
The obligated recipient is THE BIONETICS CORP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2023-08-24. End: 2027-02-25.
What specific technical procedures are included under this contract, and how are they measured for performance?
The provided data indicates 'technical procedures' as part of the contract's scope, alongside 'NCTR on-site animal care.' However, the specific technical procedures are not detailed in the summary data. These would typically be outlined in the Performance Work Statement (PWS) and its appendices. Performance measurement would likely involve metrics related to accuracy, timeliness, adherence to protocols, and compliance with scientific standards. For instance, if the procedures involve sample processing, metrics might include turnaround time, sample integrity, and error rates. If they relate to experimental setup, metrics could involve adherence to design, proper equipment calibration, and data recording accuracy. A thorough review of the PWS is necessary to understand the exact scope and performance metrics.
How does the pricing structure (Labor Hours) compare to fixed-price contracts for similar services, and what are the associated risks?
Labor Hours (LH) pricing is common for services where the exact amount of effort is difficult to predict upfront, such as research support. Unlike fixed-price contracts, LH contracts reimburse the contractor for the actual hours worked by specific labor categories at pre-negotiated rates. This offers flexibility but carries risks. The primary risk for the government is cost escalation if the contractor takes longer than anticipated or if labor rates are higher than expected. For the contractor, the risk is lower as they are assured payment for effort expended. Compared to fixed-price contracts, LH can be less cost-effective for the government if efficiency is not rigorously managed. Effective oversight, including detailed timesheet review and work scope monitoring, is crucial to mitigate the risks associated with LH contracts and ensure value for money.
What is the justification for 'Exclusion of Sources' in a 'Full and Open Competition' award, and what impact does this have on competition?
The designation 'Full and Open Competition after Exclusion of Sources' implies that the solicitation was initially intended for broad competition, but specific sources were intentionally excluded. The Federal Acquisition Regulation (FAR) permits such exclusions under specific circumstances, such as when only a limited number of responsible sources can provide the required supplies or services, or when it's necessary to meet program requirements. The justification for exclusion must be documented and approved. This exclusion inherently narrows the competitive pool, potentially reducing the number of bids received and possibly impacting the government's ability to secure the lowest possible price. The specific reasons for excluding sources in this contract award would need to be reviewed in the contract file to assess the impact on taxpayer value and ensure the exclusion was justified and in the government's best interest.
What is The Bionetics Corp's track record with similar government contracts, particularly within HHS/FDA?
The provided data identifies The Bionetics Corp as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, especially those involving animal care, technical procedures, and research support within the Department of Health and Human Services (HHS) or the Food and Drug Administration (FDA). Publicly available contract databases (like SAM.gov or FPDS) can reveal previous awards, contract values, and performance history. Information on past performance evaluations, any contract disputes, or awards for outstanding performance would provide a clearer picture of their reliability, expertise, and ability to deliver services effectively and within budget. Without this specific historical data, assessing their track record is speculative.
How does the annual spending on this contract compare to historical spending for similar NCTR animal care and technical support services?
The total contract value is $15.2 million, with a performance period from August 24, 2023, to February 25, 2027. This spans approximately 3.5 years. The approximate annual spending would be around $4.34 million ($15.2M / 3.5 years). To compare this to historical spending, one would need to access historical contract data for NCTR's animal care and technical support services. Analyzing previous contracts awarded for similar functions, their values, durations, and inflation-adjusted costs would provide context. Significant deviations from historical spending patterns, adjusted for scope and inflation, could indicate potential issues with pricing or efficiency, or conversely, reflect increased needs or improved service delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75F40123R00001
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Bionetics Corporation
Address: 101 PRODUCTION DR, YORKTOWN, VA, 23693
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,012,641
Exercised Options: $15,239,171
Current Obligation: $15,239,171
Actual Outlays: $11,114,354
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-24
Current End Date: 2027-02-25
Potential End Date: 2028-08-25 00:00:00
Last Modified: 2026-04-02
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