NIH awards $14.5M for animal model development and efficacy testing of candidate MCMs to SRI International

Contract Overview

Contract Amount: $14,486,445 ($14.5M)

Contractor: SRI International

Awarding Agency: Department of Health and Human Services

Start Date: 2020-07-01

End Date: 2026-12-30

Contract Duration: 2,373 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER B-1, ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MCMS

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.5 million to SRI INTERNATIONAL for work described as: TASK ORDER B-1, ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MCMS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 6.5 years indicates a long-term research and development effort. 3. The primary focus is on Research and Development in Life Sciences, aligning with NIH's mission. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility in R&D. 5. The awardee, SRI International, is a known entity in the research and development sector. 6. No small business set-aside or subcontracting was indicated, suggesting larger prime contractor involvement.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparable project data. However, the Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable relative to the research objectives. The fixed fee component provides some predictability, but the cost-reimbursement aspect necessitates robust oversight to prevent cost overruns. Comparing this to other NIH contracts for similar R&D services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offer. The competitive nature should theoretically lead to more favorable pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective research at a reasonable cost, reducing the risk of overpayment for services.

Public Impact

The primary beneficiaries are researchers and the public health sector, through advancements in medical countermeasures (MCMs). Services delivered include the development and efficacy testing of candidate MCMs, crucial for disease preparedness. The geographic impact is primarily within California, where SRI International is located, but the research findings have national and global public health implications. Workforce implications include employment for scientists, researchers, and support staff at SRI International and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Ensuring the efficacy testing methodologies are robust and scientifically sound is critical for the value of the research.
The long contract duration may present challenges in adapting to rapidly evolving scientific landscapes.

Positive Signals

Awarded through full and open competition, suggesting a strong pool of qualified bidders.
SRI International has a track record in research and development, implying technical capability.
The contract supports critical public health research into medical countermeasures.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. The market for such specialized R&D services is driven by government funding agencies like NIH, as well as private pharmaceutical and biotechnology companies. Comparable spending benchmarks would involve analyzing other NIH grants and contracts for preclinical and efficacy testing of novel therapeutics and countermeasures, which often involve significant investment over extended periods.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there an indication of mandatory subcontracting goals for small businesses. This suggests that the prime contractor, SRI International, will likely perform the majority of the work. While this may limit direct opportunities for small businesses on this specific contract, it does not preclude them from competing on other NIH solicitations or potentially being part of SRI's broader supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program officer at NIH, ensuring adherence to the contract terms, milestones, and budget. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to monitor expenditures against the approved budget and fixed fee. Transparency is generally maintained through contract reporting requirements and public databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH Research and Development Contracts
Medical Countermeasures (MCM) Development Programs
Life Sciences Research Grants
Biotechnology Research and Development

Risk Flags

Cost Overrun Risk (CPFF)
Scientific Obsolescence Risk
Personnel Retention Risk (Long Duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.5 million to SRI INTERNATIONAL. TASK ORDER B-1, ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MCMS

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

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 $14.5 million.

What is the period of performance?

Start: 2020-07-01. End: 2026-12-30.

What is SRI International's track record with NIH and similar government research contracts?

SRI International is a well-established research institute with a significant history of receiving government contracts, including from NIH. They have a broad portfolio of work spanning various scientific disciplines, often involving complex R&D projects. Analyzing their past performance on similar Cost Plus Fixed Fee contracts, particularly those related to infectious disease research or medical countermeasures, would provide insight into their ability to manage costs, meet deadlines, and deliver high-quality scientific outcomes. Their extensive experience suggests a strong capability to handle the requirements of this task order, but a detailed review of their performance metrics on prior comparable awards would be necessary for a comprehensive assessment.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of R&D?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work may evolve or is not precisely defined at the outset. It allows the contractor to be reimbursed for allowable costs plus a fixed fee representing profit. This differs from Fixed Price contracts, which offer greater cost certainty to the government but can be risky for contractors in R&D. It also differs from Cost Plus Incentive Fee (CPIF), which offers potential for increased profit based on meeting performance targets. For R&D, CPFF provides flexibility but requires robust government oversight to manage costs effectively and ensure the fixed fee remains reasonable relative to the effort and risk involved.

What are the key performance indicators (KPIs) likely being used to measure the success of this contract?

Key performance indicators for this contract would likely focus on the scientific and technical progress of the animal model development and efficacy testing. This could include metrics such as the successful development of validated animal models for specific diseases, the timely completion of efficacy studies according to established protocols, the achievement of predetermined statistical significance in efficacy endpoints, and the quality and completeness of data reporting. Adherence to Good Laboratory Practice (GLP) standards, if applicable, would also be a critical performance measure. The ability of SRI International to meet these scientific milestones within the allocated budget and timeline would be paramount.

What is the historical spending pattern for similar R&D contracts at NIH for medical countermeasures?

NIH historically spends billions of dollars annually on research and development, including significant investments in medical countermeasures (MCMs) to address public health threats. Spending patterns for MCM development can vary widely depending on the specific threat, the stage of research (basic science, preclinical, clinical), and the type of countermeasure. Contracts for preclinical efficacy testing and model development, like this one, are typically awarded over several years and can range from a few million to tens of millions of dollars, depending on the complexity and duration of the research. Analyzing NIH's broader portfolio of MCM-related awards provides context for the scale and duration of this particular contract.

What are the potential risks associated with the long duration of this contract?

The long duration (over 6 years) of this contract presents several potential risks. Scientific landscapes can change rapidly, meaning the initial research objectives or methodologies might become outdated or superseded by new discoveries before the contract concludes. There's also a risk of institutional knowledge loss if key personnel leave SRI International over such an extended period. Furthermore, managing costs and performance effectively over many years requires sustained oversight and adaptability from both the contractor and the government. Ensuring continued alignment with evolving public health priorities and scientific advancements will be crucial for the contract's ultimate success.

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

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

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: $14,486,445

Exercised Options: $14,486,445

Current Obligation: $14,486,445

Actual Outlays: $12,813,189

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,532,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N93020D00011

IDV Type: IDC

Timeline