NIH awards $143.6M to Leidos Biomedical Research for SERONET, a 5-year R&D contract

Contract Overview

Contract Amount: $143,577,599 ($143.6M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-10

End Date: 2026-10-31

Contract Duration: 2,089 days

Daily Burn Rate: $68.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CENTER FOR SEROLOGICAL SCIENCES NETWORK (SERONET)

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $143.6 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: CENTER FOR SEROLOGICAL SCIENCES NETWORK (SERONET) Key points: 1. Contract value represents a significant investment in serological sciences research. 2. Leidos Biomedical Research Inc. has a substantial track record in managing large-scale biomedical research initiatives. 3. The contract's duration of over 5 years suggests a long-term commitment to the research objectives. 4. Performance will be monitored through delivery orders, indicating a phased approach to research execution. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code positions this contract within a critical scientific sector. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research while managing costs.

Value Assessment

Rating: good

The total contract value of $143.6 million over approximately five years averages to about $28.7 million annually. This figure appears reasonable for a large-scale, multi-year research and development initiative managed by a prime contractor like Leidos Biomedical Research Inc. Benchmarking against similar large R&D contracts within the NIH or other federal health agencies would provide a more precise value-for-money assessment, but the scale aligns with complex scientific endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This competitive process is expected to yield fair pricing and innovative solutions. The number of bidders is not specified, but the full and open nature suggests a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are researchers and institutions involved in serological sciences, advancing the understanding and combating of diseases. The contract supports the development and maintenance of the SERONET network, crucial for immunological research. Geographic impact is likely broad, supporting national and potentially international research collaborations. Workforce implications include support for scientists, technicians, and administrative staff involved in the research and network operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single prime contractor for a critical research network could pose a risk if performance falters.
The long duration of the contract necessitates sustained oversight to ensure continued alignment with evolving research priorities.

Positive Signals

Award to a known entity, Leidos Biomedical Research Inc., suggests a level of confidence in their capabilities.
Full and open competition indicates a thorough vetting process and potential for competitive pricing.
The phased approach via delivery orders allows for adaptive management of research tasks and budgets.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The SERONET initiative is critical for advancing immunological research, a key area within the broader biotechnology and healthcare R&D landscape. Federal spending in this area is substantial, driven by the need for scientific advancement in public health and disease countermeasures. Comparable spending benchmarks would involve looking at other large-scale NIH research grants and contracts in related scientific fields.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, as a large prime contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to Leidos Biomedical Research Inc. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the SERONET network.

Oversight & Accountability

Oversight for this contract is primarily managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. The contract's structure, utilizing delivery orders, allows for phased oversight and performance monitoring. Accountability measures are embedded within the delivery order system and the Cost Plus Fixed Fee payment structure, which requires detailed financial reporting. Transparency is generally maintained through federal contract databases, though specific research progress details may be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development Contracts
Public Health Surveillance Systems
Immunological Research Initiatives

Risk Flags

Cost Overrun Potential
Performance Monitoring Complexity
Long-Term Contract Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $143.6 million to LEIDOS BIOMEDICAL RESEARCH INC. CENTER FOR SEROLOGICAL SCIENCES NETWORK (SERONET)

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 $143.6 million.

What is the period of performance?

Start: 2021-02-10. End: 2026-10-31.

What is the historical spending pattern for the Center for Serological Sciences Network (SERONET) prior to this award?

Information on historical spending specifically for SERONET prior to this $143.6 million award is not directly available in the provided data. However, the scale of this award suggests it is a significant, potentially foundational, investment in the network. Federal agencies like NIH often fund research infrastructure and networks over multiple years, with spending fluctuating based on research phases and priorities. To understand historical patterns, one would typically examine prior contract awards or grant funding related to serological sciences research under NIH's purview, looking for trends in investment and the entities that received funding.

How does the annual average cost of this contract compare to similar large-scale R&D contracts at NIH?

The annual average cost of this contract is approximately $28.7 million ($143.6M / ~5 years). This figure is substantial but falls within the range of large, multi-year R&D contracts awarded by major federal research institutions like NIH. NIH funds numerous large initiatives in areas such as cancer research, infectious diseases, and neuroscience, many of which involve prime contractors managing complex research programs. Without specific comparable contract data, it's difficult to definitively benchmark, but the amount is consistent with significant federal investments in scientific advancement and infrastructure.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) for the SERONET contract. However, for a Cost Plus Fixed Fee R&D contract of this nature, KPIs would typically focus on research milestones, scientific output (e.g., publications, data generation), adherence to project timelines, effective management of resources, and compliance with ethical and regulatory standards. Performance is likely measured through the delivery order system, requiring Leidos Biomedical Research Inc. to meet specific objectives outlined in each order. Regular progress reports, scientific reviews, and potentially site visits by NIH program officers would form the basis of performance assessment.

What is Leidos Biomedical Research Inc.'s track record with NIH and similar federal agencies?

Leidos Biomedical Research Inc. has a significant track record of working with the National Institutes of Health (NIH) and other federal agencies on large-scale biomedical research projects. They are known for managing complex research programs, including operating national research facilities and supporting scientific endeavors. Their experience often involves areas like infectious disease research, cancer research, and the development of research infrastructure. This established presence suggests a familiarity with federal contracting processes, scientific research requirements, and the oversight mechanisms employed by agencies like NIH, making them a capable contractor for substantial R&D initiatives.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where scope can evolve, carry inherent risks. For the government, the primary risk is that costs could exceed initial estimates if the contractor's efficiency is low, although the fixed fee provides a ceiling on profit. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient. Mitigation strategies employed by NIH would include rigorous oversight of contractor expenditures, detailed progress reporting, clearly defined milestones within delivery orders, and potentially incentive structures tied to efficiency or performance. Strong project management and regular communication between NIH and Leidos are crucial for managing these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $143,577,599

Exercised Options: $143,577,599

Current Obligation: $143,577,599

Actual Outlays: $82,531,343

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $146,605,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N91019D00024

IDV Type: IDC

Timeline