NIH awards $16.2M contract for rhesus monkey breeding and maintenance to Alpha Genesis Inc

Contract Overview

Contract Amount: $16,239,269 ($16.2M)

Contractor: Alpha Genesis Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-07

End Date: 2027-03-06

Contract Duration: 1,460 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BREED AND MAINTAIN FREE-RANGING MACACA MULATTA (RHESUS) MONKEYS

Place of Performance

Location: SAINT HELENA ISLAND, BEAUFORT County, SOUTH CAROLINA, 29920

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.2 million to ALPHA GENESIS INC for work described as: BREED AND MAINTAIN FREE-RANGING MACACA MULATTA (RHESUS) MONKEYS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 1460 days (4 years) indicates a long-term need for these services. 4. The primary contractor, Alpha Genesis Inc., will be responsible for breeding and maintaining the monkeys. 5. The National Institutes of Health (NIH) is the primary agency overseeing this contract. 6. The contract is categorized under 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The contract's value of $16.2 million over four years for breeding and maintaining rhesus monkeys appears to be within a reasonable range for specialized biological services. However, without specific benchmarks for the cost per monkey or per service, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure means the final cost could fluctuate based on actual expenses incurred by the contractor, plus a predetermined fee. This structure requires careful monitoring to ensure costs remain controlled and justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely invited 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 most advantageous offer. The open competition suggests that the market for these specialized services is not overly concentrated, and that qualified vendors could emerge.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery. It reduces the risk of overpayment and promotes a fair market for government contracting.

Public Impact

This contract directly supports biomedical research by ensuring a supply of rhesus monkeys, which are crucial animal models for studying human diseases and developing treatments. The services provided will benefit researchers across various scientific disciplines funded by the NIH. The geographic impact is primarily centered around the contractor's facilities in South Carolina, where the breeding and maintenance will occur. The contract has implications for the specialized workforce involved in animal husbandry, veterinary care, and research support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Reliance on a single contractor for a critical resource like research animals poses a supply chain risk.
The ethical considerations and welfare standards for laboratory animals require continuous oversight.

Positive Signals

Awarded through full and open competition, suggesting a robust market and competitive pricing.
The long-term nature of the contract provides stability for research planning.
The contractor's specialization in this niche area indicates potential for high-quality service delivery.

Sector Analysis

The market for specialized laboratory animal breeding and maintenance is a niche within the broader scientific services sector. This contract fits within the 'Professional, Scientific, and Technical Services' category, which is a significant component of federal spending supporting research and development. Benchmarks for similar contracts are difficult to ascertain without more specific details on the scope of services and animal care standards, but the overall value suggests a substantial operational requirement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses related to set-asides. The primary contractor, Alpha Genesis Inc., is likely a specialized entity, and its role does not inherently create opportunities for small business subcontracting unless specified in the contract's performance requirements.

Oversight & Accountability

Oversight for this contract will primarily be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures will be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance milestones and reporting requirements. Transparency is expected through contract award databases and potentially through public reporting on research outcomes that utilize these animals. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Services
Biomedical Research Support
Animal Model Development
Laboratory Animal Welfare
Scientific and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring for cost control.
Long-term reliance on a single contractor for critical research animals.
Ethical considerations and animal welfare standards require continuous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.2 million to ALPHA GENESIS INC. BREED AND MAINTAIN FREE-RANGING MACACA MULATTA (RHESUS) MONKEYS

Who is the contractor on this award?

The obligated recipient is ALPHA GENESIS 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 $16.2 million.

What is the period of performance?

Start: 2023-03-07. End: 2027-03-06.

What is the track record of Alpha Genesis Inc. in providing similar services to the federal government?

Information regarding Alpha Genesis Inc.'s specific track record with federal contracts is not detailed in the provided data. However, their selection for this significant contract by the NIH suggests they possess the necessary qualifications and experience. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be required to assess their past performance, contract history, any past performance issues, and their success in fulfilling previous government obligations. This would include reviewing any awards, terminations, or disputes associated with their prior federal engagements to gauge their reliability and expertise in animal breeding and maintenance.

How does the cost of this contract compare to similar federal contracts for primate breeding and maintenance?

A direct comparison of the $16.2 million cost for this contract to similar federal contracts is challenging without access to a comprehensive database of comparable agreements. Factors such as the specific species, number of animals, duration of care, health status requirements, and the scope of breeding programs can significantly influence costs. The Cost Plus Fixed Fee (CPFF) structure also means the final expenditure can vary. To benchmark effectively, one would need to identify contracts with similar animal models (e.g., other non-human primates), similar service durations, and comparable quantities. Analyzing the 'cost per animal per year' across different contracts would provide a more granular comparison point, but such data is not readily available in the provided summary.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for animal breeding?

The primary risk with a CPFF contract for animal breeding lies in potential cost overruns. While the fixed fee provides the contractor with a predictable profit margin, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the contractor's expenses are higher than anticipated due to unforeseen circumstances (e.g., disease outbreaks, increased feed costs, unexpected veterinary needs), the total cost to the government will increase. This structure can sometimes disincentivize aggressive cost control by the contractor, as their fee remains constant regardless of the actual costs incurred. Robust oversight and clear definitions of allowable costs are crucial to mitigate these risks.

What is the significance of using Macaca Mulatta (Rhesus Monkeys) in NIH research?

Macaca Mulatta, commonly known as Rhesus monkeys, are highly significant in biomedical research due to their physiological and genetic similarities to humans. They are widely used as animal models for a broad range of studies, including infectious diseases (like HIV/AIDS, Zika, and COVID-19), neuroscience, reproductive health, immunology, and drug development. Their complex social behaviors and cognitive abilities also make them valuable for behavioral and psychological research. The NIH's reliance on these primates underscores their critical role in advancing medical knowledge and developing potential therapies and vaccines for human diseases.

What are the historical spending patterns for primate breeding and maintenance at NIH?

Historical spending patterns for primate breeding and maintenance at the NIH are not detailed in the provided data. However, it is generally understood that the NIH has a long-standing and substantial investment in maintaining colonies of non-human primates for research purposes. This spending is often characterized by multi-year contracts and significant annual budgets due to the high costs associated with animal care, housing, veterinary services, and specialized staff. Analyzing past NIH budgets and contract awards for similar services over several fiscal years would be necessary to identify trends, fluctuations, and the overall trajectory of investment in this area.

What are the ethical considerations and oversight mechanisms for breeding and maintaining rhesus monkeys for research?

The breeding and maintenance of rhesus monkeys for research are subject to stringent ethical considerations and oversight mechanisms mandated by federal regulations and institutional policies. These include the Animal Welfare Act (AWA) and the Public Health Service (PHS) Policy on Humane Care and Use of Laboratory Animals. Institutions must have an Institutional Animal Care and Use Committee (IACUC) that reviews and approves all research protocols involving animals, ensuring that procedures are scientifically justified, minimize pain and distress, and adhere to the '3Rs' principle (Replacement, Reduction, Refinement). The NIH, as a funding agency and research institution, enforces these standards rigorously, requiring detailed protocols for animal husbandry, veterinary care, environmental enrichment, and euthanasia.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N93022R00032

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 95 CASTLE HALL RD, YEMASSEE, SC, 29945

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,824,409

Exercised Options: $16,239,269

Current Obligation: $16,239,269

Actual Outlays: $10,406,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline