NIH awards $343.5M contract for animal model development and efficacy testing to SRI International

Contract Overview

Contract Amount: $3,435,398 ($3.4M)

Contractor: SRI International

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2027-09-29

Contract Duration: 1,094 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING

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 $3.4 million to SRI INTERNATIONAL for work described as: ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING Key points: 1. Contract focuses on critical R&D in life sciences, supporting advanced research initiatives. 2. SRI International, a long-standing research organization, is the awardee. 3. The contract duration of nearly three years suggests a sustained need for these specialized services. 4. Awarded under full and open competition, indicating a broad search for qualified contractors. 5. The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve. 6. This award represents a significant investment in preclinical research capabilities.

Value Assessment

Rating: good

The contract value of $343.5 million over approximately three years for animal model development and efficacy testing appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in life sciences suggests that costs for complex biological research can be substantial. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research but requires careful monitoring of costs to ensure value. Without specific per-unit cost data for services rendered, a precise value-for-money assessment is challenging, but the overall investment aligns with the scope of advanced biomedical research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the National Institutes of Health (NIH) sought proposals from a wide range of qualified entities. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive process designed to identify the best technical approach and pricing. This level of competition generally leads to more favorable pricing for the government and ensures access to a broad spectrum of innovative solutions.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation from multiple sources, potentially leading to more efficient research outcomes.

Public Impact

The primary beneficiaries are researchers within the National Institutes of Health and potentially other government agencies requiring advanced preclinical testing. Services delivered include the development and validation of animal models for various diseases and the assessment of therapeutic efficacy. The geographic impact is primarily centered around SRI International's facilities in California, but the research outcomes can have a national and global impact on public health. This contract supports a highly specialized scientific workforce, including researchers, veterinarians, and laboratory technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts for R&D.
Reliance on a single contractor for a significant duration may limit flexibility if research needs pivot rapidly.
Ensuring continued innovation and avoiding complacency within the awarded contractor over the contract term.

Positive Signals

Awarded to a reputable research institution (SRI International) with a proven track record.
Full and open competition suggests a thorough vetting process and potential for high-quality service delivery.
The contract supports critical biomedical research, aligning with NIH's mission to advance health and well-being.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for animal model development and efficacy testing is specialized, serving pharmaceutical companies, biotechnology firms, and government research institutions. Comparable spending benchmarks in this area are difficult to establish precisely due to the bespoke nature of R&D projects, but significant government investment is typical for advancing preclinical research critical to drug discovery and development.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary focus was on full and open competition to secure the best capabilities. There is no explicit information on subcontracting plans for small businesses, which may be a missed opportunity to engage the small business ecosystem in specialized research support roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures are typically embedded within the CPFF contract structure through regular reporting, milestone reviews, and adherence to the fixed fee. Transparency is generally maintained through contract award announcements and public databases, though detailed project-specific progress may be subject to research confidentiality.

Related Government Programs

Biomedical Research Services
Contract Research Organizations (CRO) Services
Preclinical Drug Development
Life Sciences Research and Development
Animal Research Services

Risk Flags

Potential for cost overruns in CPFF contract
Reliance on a single contractor for specialized R&D services
Need for continuous monitoring of research progress and scientific validity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to SRI INTERNATIONAL. ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING

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 $3.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-09-29.

What is SRI International's track record with NIH and similar federal agencies for R&D contracts?

SRI International has a long history of performing research and development for government agencies, including NIH. They have a demonstrated capability in various scientific disciplines, often undertaking complex, multi-year projects. Their past performance with NIH likely includes numerous awards for research services, potentially in areas related to biomedical sciences, materials science, and engineering. A detailed review of SRI's contract history with NIH would reveal specific project successes, any past performance issues, and their overall reliability as a federal contractor. This specific award suggests NIH has confidence in SRI's ability to deliver on complex R&D requirements.

How does the Cost Plus Fixed Fee (CPFF) contract type impact value for money in R&D settings?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development where the scope of work may not be fully defined at the outset, or where innovation and flexibility are paramount. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While CPFF allows for adaptation to evolving research needs, it can present challenges in cost control. Value for money is achieved through rigorous oversight, clear performance metrics, and effective negotiation of the fixed fee. For taxpayers, it means ensuring that the fixed fee is reasonable and that costs are closely monitored to prevent unnecessary expenditures, balancing the need for flexibility with fiscal responsibility.

What are the primary risks associated with long-term R&D contracts like this one?

Long-term R&D contracts carry several inherent risks. Foremost is the risk of scope creep, where the project's objectives expand beyond the original intent, potentially increasing costs and timelines. There's also the risk of technological obsolescence, where the research focus or methods may become outdated before the contract concludes. Contractor performance risk is another concern; the awarded entity might fail to meet technical milestones or deliver the expected quality. Furthermore, changes in government priorities or funding availability could impact the project's continuation. Effective risk mitigation involves robust contract management, regular performance reviews, and contingency planning.

How does this contract align with the National Institutes of Health's strategic research priorities?

This contract for animal model development and efficacy testing directly aligns with the National Institutes of Health's core mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to extend healthy life and prevent, cure, and treat disease. Developing and validating animal models is a crucial step in preclinical research, enabling the study of disease mechanisms and the testing of potential therapies before human trials. Such work supports a wide array of NIH-funded research programs across its various institutes and centers, contributing to advancements in areas like cancer, infectious diseases, neurological disorders, and more.

What is the historical spending trend for similar animal model development and efficacy testing contracts at NIH?

NIH consistently invests significant resources into research and development, including services related to animal model development and efficacy testing. Historical spending data would likely show a steady or increasing trend in this area, reflecting the ongoing need for robust preclinical research to support drug discovery and biomedical innovation. The total dollar amount of this $343.5 million award suggests a substantial, multi-year commitment, indicative of the scale and complexity often associated with such R&D endeavors. Analyzing past awards of similar scope and duration would provide context on whether this contract represents a typical investment or a notable increase in spending for these specific services.

What are the implications of awarding this contract to a single entity for nearly three years?

Awarding a contract of this magnitude and duration to a single entity like SRI International implies a high degree of confidence in their capabilities and a need for continuity in specialized services. The primary implication is the potential for deep expertise and efficiency to develop within SRI as they focus on NIH's requirements over an extended period. However, it also means that NIH is reliant on SRI for these critical functions for the contract's duration. This structure can streamline project management but might limit opportunities for incorporating novel approaches from other potential vendors during the contract period. Careful performance management is essential to ensure continued high quality and innovation.

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: $3,435,398

Exercised Options: $3,435,398

Current Obligation: $3,435,398

Actual Outlays: $173,491

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