Leidos Biomedical Research Inc. awarded $809M contract for NCI data sharing, spanning 5 years

Contract Overview

Contract Amount: $80,917,684 ($80.9M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-31

End Date: 2026-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENABLING NCI CLINICAL & RESEARCH DATA SHARING

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80.9 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: ENABLING NCI CLINICAL & RESEARCH DATA SHARING Key points: 1. Contract value of $809 million over five years suggests significant investment in NCI's data infrastructure. 2. Full and open competition indicates a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of five years allows for sustained support and development of critical research data systems. 4. Focus on clinical and research data sharing aligns with national priorities for advancing medical knowledge. 5. The primary contractor, Leidos Biomedical Research Inc., has a substantial role in managing large-scale biomedical research initiatives. 6. The contract's performance period extends through August 2026, indicating a long-term commitment to these services.

Value Assessment

Rating: good

The contract value of $809 million over five years for enabling NCI clinical and research data sharing appears substantial. Benchmarking against similar large-scale IT and research support contracts within the federal government is necessary for a precise value-for-money assessment. However, the scale of the National Institutes of Health (NIH) and the critical nature of data sharing in biomedical research suggest that this level of investment is likely aligned with market rates for such specialized services. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be appropriate for research and development where costs are uncertain, but requires careful oversight to manage expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions for the government. The open competition process is designed to ensure that the government receives the best value by allowing all responsible sources to submit proposals.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government is not locked into a single provider, thereby promoting efficiency and value.

Public Impact

Researchers and clinicians benefit from enhanced access to and sharing of NCI's vast datasets, accelerating medical discoveries. Patients may indirectly benefit from faster development of new treatments and therapies due to improved data accessibility. The contract supports the infrastructure for managing and sharing critical health data, impacting the broader biomedical research community. Workforce implications include the need for specialized IT, data management, and research support personnel within the contractor organization and potentially at NCI. Geographic impact is national, as the data sharing infrastructure serves researchers and institutions across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in CPFF contracts if not closely monitored.
Dependence on a single contractor for critical data infrastructure could pose a risk if performance falters.
Ensuring data security and privacy for sensitive clinical and research information is paramount.

Positive Signals

Award to an experienced contractor with a track record in biomedical research support.
The use of full and open competition suggests a commitment to achieving best value.
The long-term nature of the contract (5 years) allows for stable development and implementation of data sharing capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on IT infrastructure and services to support biomedical research. The market for health IT and data management services is substantial and growing, driven by increasing data volumes and the push for precision medicine and collaborative research. Comparable spending benchmarks would involve analyzing other large federal contracts for IT support, data analytics, and research infrastructure management within agencies like NIH, NSF, and other health-focused departments. The contract's focus on data sharing is a key trend in modern scientific endeavors.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. While there is no explicit small business set-aside, the prime contractor, Leidos Biomedical Research Inc., may engage small businesses as subcontractors to fulfill specific needs or meet broader federal subcontracting goals. The impact on the small business ecosystem would depend on the extent to which Leidos integrates them into its supply chain for this significant contract.

Oversight & Accountability

Oversight for this contract is likely managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be embedded within the Cost Plus Fixed Fee (CPFF) contract terms, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is generally maintained through federal contract databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract funds.

Related Government Programs

National Institutes of Health (NIH) IT Support Contracts
Biomedical Research Data Management Services
Federal Health IT Infrastructure
Clinical Research Data Sharing Platforms
Government Research and Development Support

Risk Flags

Potential for cost overruns in CPFF contracts.
Cybersecurity risks associated with sensitive data.
Contractor performance and service level adherence.
Integration challenges with diverse research systems.
Ensuring data integrity and accessibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80.9 million to LEIDOS BIOMEDICAL RESEARCH INC. ENABLING NCI CLINICAL & RESEARCH DATA SHARING

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 $80.9 million.

What is the period of performance?

Start: 2021-08-31. End: 2026-08-31.

What is Leidos Biomedical Research Inc.'s track record with similar large-scale federal IT and research support contracts?

Leidos Biomedical Research Inc. has a significant history of managing large federal contracts, particularly within the biomedical and health research domain. They operate the Frederick National Laboratory for Cancer Research (FNLCR) under contract with the National Cancer Institute (NCI), which involves extensive research, development, and operational support. This includes managing complex IT systems, handling large datasets, and supporting cutting-edge scientific research. Their experience with FNLCR, which is a Federally Funded Research and Development Center (FFRDC), demonstrates a capability to handle substantial, long-term, and mission-critical government programs. This background suggests a strong foundation for managing the NCI clinical and research data sharing contract, indicating a proven ability to meet complex technical requirements and manage significant budgets.

How does the $809 million contract value compare to historical spending on NCI data sharing initiatives?

The $809 million contract value represents a substantial investment over its five-year period, averaging approximately $161.8 million per year. To provide historical context, a detailed analysis of past NCI spending on data sharing infrastructure, IT support, and related services would be required. However, given the increasing emphasis on big data, AI, and precision medicine in biomedical research, it is plausible that this contract reflects a scaled-up or modernized approach to data sharing compared to previous initiatives. Federal spending in R&D and IT infrastructure has generally trended upwards, particularly in critical areas like health research. Without specific historical data points for NCI's data sharing programs, it's difficult to definitively state if this is higher or lower, but it aligns with the growing importance and complexity of managing and sharing research data.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for data sharing services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one, revolve around cost control and contractor efficiency. In a CPFF structure, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. The main risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to the total contract cost exceeding initial estimates if not rigorously managed. For data sharing services, which can involve complex and evolving technological requirements, cost escalation is a potential concern. Effective oversight, detailed cost tracking, and strong performance management by the contracting agency are crucial to mitigate these risks and ensure the government receives value for its investment.

How does the 'full and open competition' procurement method impact the effectiveness of this data sharing contract?

The 'full and open competition' procurement method is designed to maximize the government's ability to obtain the best value by allowing all responsible sources to submit bids. This approach fosters a competitive environment, encouraging multiple companies to propose innovative solutions and competitive pricing to win the contract. For a critical function like NCI's clinical and research data sharing, this method increases the likelihood that the chosen solution will be technologically advanced, cost-effective, and tailored to the agency's needs. It reduces the risk of vendor lock-in and ensures that the selected contractor has demonstrated superior capabilities and value proposition. The effectiveness of the contract is thus enhanced by the rigorous vetting process inherent in open competition, leading to a potentially more robust and efficient data sharing infrastructure.

What are the potential performance challenges for Leidos Biomedical Research Inc. in managing NCI's data sharing infrastructure over five years?

Potential performance challenges for Leidos Biomedical Research Inc. in managing NCI's data sharing infrastructure over five years could include adapting to rapidly evolving data technologies and cybersecurity threats, ensuring seamless integration with diverse research systems, and maintaining high levels of data quality and accessibility. The sheer volume and sensitivity of clinical and research data necessitate stringent security protocols and compliance with regulations like HIPAA. Furthermore, fostering collaboration and buy-in from various research groups and institutions to utilize the sharing platform effectively can be a significant undertaking. Sustaining high performance requires continuous innovation, proactive risk management, and effective communication with NCI stakeholders to address emerging needs and challenges throughout the contract's duration.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies the core nature of the services being procured. This code indicates that the contract primarily supports scientific research and development activities. For NCI's data sharing contract, it means the focus is on the infrastructure, tools, and services that enable researchers to conduct and advance scientific discovery within the life sciences. This includes activities like experimental design, data collection, analysis, and the dissemination of findings. The code helps categorize federal spending and understand the economic activity associated with R&D, highlighting the government's investment in scientific advancement through organizations like the National Institutes of Health.

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: $80,917,684

Exercised Options: $80,917,684

Current Obligation: $80,917,684

Actual Outlays: $47,993,803

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,587,491

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