NIH awards $678M to Leidos for PDX Panels, a non-competed contract for facilities support

Contract Overview

Contract Amount: $67,882,919 ($67.9M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-28

End Date: 2027-09-25

Contract Duration: 3,284 days

Daily Burn Rate: $20.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: PDX PANELS FROM COMMON TUMORS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67.9 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: PDX PANELS FROM COMMON TUMORS Key points: 1. Significant contract value of $678.8M over nearly 9 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on facilities support services within the healthcare/biomedical sector. 4. Long contract duration may indicate specialized needs or limited vendor pool.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific service details, but the overall value suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price for these services.

Public Impact

Patients may benefit from advanced diagnostic tools derived from PDX panels. Research institutions could gain access to critical data for cancer studies. Taxpayer funds are allocated to a significant biomedical research support contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Supports critical biomedical research
Long-term stability for a key contractor

Sector Analysis

This contract falls within the Facilities Support Services sector, which is crucial for the operation of research institutions like the National Institutes of Health. Spending in this area is often substantial due to the complex needs of laboratories and research facilities.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The large value and sole-source nature suggest it is unlikely to involve significant small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. Regular reviews of the Cost Plus Fixed Fee elements are essential.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns with Cost Plus Fixed Fee
Limited transparency on specific services and pricing
Long contract duration may reduce agility

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67.9 million to LEIDOS BIOMEDICAL RESEARCH INC. PDX PANELS FROM COMMON TUMORS

Who is the contractor on this award?

The obligated recipient is LEIDOS BIOMEDICAL RESEARCH INC.

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 $67.9 million.

What is the period of performance?

Start: 2018-09-28. End: 2027-09-25.

What specific facilities support services are included under this $678M contract, and how do they directly contribute to the NIH's mission?

The contract covers facilities support services essential for the operation of research facilities. While specific details are not provided, these services likely include maintenance, infrastructure management, and potentially specialized support for laboratory environments. Their contribution is vital for enabling uninterrupted scientific research and development at the NIH, ensuring the smooth functioning of critical research infrastructure.

Given the sole-source award, what mechanisms are in place to ensure Leidos Biomedical Research Inc. is providing cost-effective services and not overcharging?

As a Cost Plus Fixed Fee contract, oversight focuses on the 'cost' portion. The government likely employs rigorous auditing and monitoring of Leidos's incurred costs to ensure they are reasonable and allocable to the contract. Fixed fee components are negotiated, and performance metrics should be established to incentivize efficiency and value, though the lack of competition limits direct price comparison.

How does the long-term nature of this contract (ending in 2027) impact the NIH's ability to adapt to future technological advancements or changing research needs?

The long duration provides stability for critical facilities support, ensuring continuity. However, it could also create inertia, making it harder to pivot to new technologies or adapt services if research priorities shift significantly. The contract may include clauses for modifications or re-negotiation, but flexibility could be constrained compared to shorter, more frequent contract cycles.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N01CO5240180

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1050 BOYLES ST, FREDERICK, MD, 21702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,882,919

Exercised Options: $67,882,919

Current Obligation: $67,882,919

Actual Outlays: $36,054,038

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,323,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN261201500003I

IDV Type: IDC

Timeline