HHS awards $5.5M for RADX Clinical Evaluation Services to L3 Healthcare, citing no competition
Contract Overview
Contract Amount: $5,476,186 ($5.5M)
Contractor: National Collegiate Inventors & Innovators Alliance, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-29
End Date: 2022-09-27
Contract Duration: 363 days
Daily Burn Rate: $15.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: RADX CLINICAL EVALUATION SERVICES CONTRACT TO7. L3 HEALTHCARE (PROJECT 2620 OTC) AND L3 HEALTHCARE (PROJECT 6658 OTC).
Place of Performance
Location: HADLEY, HAMPSHIRE County, MASSACHUSETTS, 01035
Plain-Language Summary
Department of Health and Human Services obligated $5.5 million to NATIONAL COLLEGIATE INVENTORS & INNOVATORS ALLIANCE, INC. for work described as: RADX CLINICAL EVALUATION SERVICES CONTRACT TO7. L3 HEALTHCARE (PROJECT 2620 OTC) AND L3 HEALTHCARE (PROJECT 6658 OTC). Key points: 1. Contract awarded to L3 Healthcare for clinical evaluation services under the RADX program. 2. The contract value is $5,476,185.98. 3. Awarded as a delivery order under an existing contract. 4. The procurement method was 'NOT COMPETED', raising questions about price discovery. 5. The North American Industry Classification System (NAICS) code is 541990 (All Other Professional, Scientific, and Technical Services).
Value Assessment
Rating: questionable
The contract was awarded without competition, making it difficult to assess pricing against similar services. Benchmarking is not feasible without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services.
Public Impact
Taxpayers may not have received the best value due to the absence of a competitive bidding process. The specific services provided are crucial for clinical evaluations within the RADX initiative. Transparency in government contracting is reduced when sole-source awards are utilized without clear justification.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
Positive Signals
- Supports critical RADX initiative
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services'. Spending in this sector can vary widely, but competitive bidding is generally expected to ensure efficiency.
Small Business Impact
There is no indication that small businesses were involved in this specific award, as it was a sole-source delivery order.
Oversight & Accountability
The lack of competition warrants further review to ensure the justification for a sole-source award was robust and that the pricing is fair.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Limited opportunity for small business participation.
- Need for detailed justification for non-competitive award.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, ma, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $5.5 million to NATIONAL COLLEGIATE INVENTORS & INNOVATORS ALLIANCE, INC.. RADX CLINICAL EVALUATION SERVICES CONTRACT TO7. L3 HEALTHCARE (PROJECT 2620 OTC) AND L3 HEALTHCARE (PROJECT 6658 OTC).
Who is the contractor on this award?
The obligated recipient is NATIONAL COLLEGIATE INVENTORS & INNOVATORS ALLIANCE, 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 $5.5 million.
What is the period of performance?
Start: 2021-09-29. End: 2022-09-27.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data states the contract was 'NOT COMPETED'. A full justification would typically detail why competition was not feasible or practicable, such as unique capabilities of the contractor, urgent need, or specific program requirements that only one entity could meet. Without this detailed justification, the rationale for bypassing competition remains unclear.
How was the fair and reasonable price determined without competition?
Determining a fair and reasonable price without competition is challenging. Agencies typically rely on historical pricing data, commercial price lists, or independent government cost estimates. However, the absence of competitive bids means there's no market validation, increasing the risk that the price paid is not optimal.
What is the expected impact of these clinical evaluation services on the RADX initiative's overall effectiveness?
The RADX initiative aims to accelerate the development, validation, and deployment of COVID-19 testing. Clinical evaluation services are a critical component, ensuring the accuracy and reliability of diagnostic tests. The effectiveness of these services directly contributes to the success of RADX in providing timely and trustworthy testing solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 VENTURE WAY STE 8, HADLEY, MA, 01035
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,476,186
Exercised Options: $5,476,186
Current Obligation: $5,476,186
Actual Outlays: $5,476,186
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75N92021D00008
IDV Type: IDC
Timeline
Start Date: 2021-09-29
Current End Date: 2022-09-27
Potential End Date: 2022-09-27 00:00:00
Last Modified: 2026-04-09
More Contracts from National Collegiate Inventors & Innovators Alliance, Inc.
- Innovation Funnel for Covid19 - Commercialization Center — $50.5M (Department of Health and Human Services)
- Radx Innovation Funnel for Covid-19 - Award Management — $42.5M (Department of Health and Human Services)
- Rapid Acceleration of Diagnostics (radx) for Itap Consultants and Infrastructure Support — $33.4M (Department of Health and Human Services)
- Radx Innovation Funnel for Covid-19 - Award Management — $24.8M (Department of Health and Human Services)
- Rapid Acceleration of Diagnostics (radx) Clinical Evaluation Services -Task Order 06 — $22.3M (Department of Health and Human Services)
View all National Collegiate Inventors & Innovators Alliance, Inc. federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →