HHS Awards $399M NCI Task Order to Leidos Biomedical for R&D Support

Contract Overview

Contract Amount: $398,925,093 ($398.9M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-28

End Date: 2025-08-30

Contract Duration: 336 days

Daily Burn Rate: $1.2M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NCI FY25 OPERATIONAL TASK ORDER

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $398.9 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: NCI FY25 OPERATIONAL TASK ORDER Key points: 1. Leidos Biomedical secured a significant $399M contract for NCI operational support. 2. The contract falls under R&D in Physical, Engineering, and Life Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The award is a delivery order under a larger contract, indicating phased execution.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D, allowing flexibility. The award amount of $399M for a 12-month period (FY25) appears reasonable given the scope of operational support for NCI.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order suggests that the overall contract vehicle was previously competed.

Taxpayer Impact: Taxpayer funds are being used for critical research and development support, aiming for efficient allocation through a competitive process.

Public Impact

Supports critical National Cancer Institute (NCI) operations. Funds advanced research and development in life sciences. Potential for advancements in cancer research and treatment. Ensures continuity of essential scientific support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
Reliance on a single contractor (Leidos) for operational support could pose continuity risks if not managed well.

Positive Signals

Awarded through full and open competition.
Supports a vital national health agency (NCI).
Clear period of performance for FY25.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The award amount is substantial for a single task order within this domain, reflecting the critical nature of NCI's operational needs.

Small Business Impact

The data indicates this award was not set aside for small businesses, and the prime contractor, Leidos Biomedical Research Inc., is a large business. There is no information provided on small business subcontracting goals or participation.

Oversight & Accountability

The award is a delivery order under a larger contract, implying that the parent contract likely underwent initial oversight. The specific oversight for this task order would depend on NIH's internal processes and contract management.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns with CPFF contract type.
Reliance on a single large business prime contractor.
Lack of specific small business participation details.
Scope of 'operational support' requires clear definition and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $398.9 million to LEIDOS BIOMEDICAL RESEARCH INC. NCI FY25 OPERATIONAL TASK ORDER

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 $398.9 million.

What is the period of performance?

Start: 2024-09-28. End: 2025-08-30.

What specific operational support services does this task order encompass, and how do they directly contribute to NCI's research objectives?

This task order likely covers a range of essential operational support functions for the National Cancer Institute (NCI), such as IT services, administrative support, data management, and potentially laboratory support. These services are crucial for enabling NCI scientists and researchers to focus on their core mission of advancing cancer research, treatment, and prevention, ensuring the smooth execution of research programs and initiatives.

Given the CPFF contract type, what mechanisms are in place to control costs and ensure value for money throughout the performance period?

Cost Plus Fixed Fee contracts require robust oversight to manage costs effectively. Mechanisms likely include detailed budget reviews, regular performance monitoring against milestones, strict adherence to the fixed fee agreement, and clear definitions of allowable costs. The government contracting officer and technical team must actively manage the contract to prevent scope creep and ensure that expenditures align with the defined objectives and expected outcomes.

How does the full and open competition process for the parent contract ensure that NCI receives the most innovative and cost-effective solutions for its R&D support needs?

Full and open competition allows any qualified vendor to submit a proposal, fostering a wide range of solutions and encouraging competitive pricing. This process aims to identify the offeror that provides the best overall value, considering technical merit, past performance, and price. By opening the field to all eligible entities, NCI increases the likelihood of securing cutting-edge technologies and efficient service delivery models, ultimately benefiting taxpayer investment in critical research.

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: $401,797,653

Exercised Options: $401,797,653

Current Obligation: $398,925,093

Actual Outlays: $354,785,101

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $66,545,036

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