SRI International awarded $6.2M contract for animal model development and efficacy testing of medical countermeasures

Contract Overview

Contract Amount: $6,242,374 ($6.2M)

Contractor: SRI International

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2027-09-29

Contract Duration: 729 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MEDICAL COUNTERMEASURES (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 $6.2 million to SRI INTERNATIONAL for work described as: ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MEDICAL COUNTERMEASURES (MCMS) Key points: 1. Contract focuses on critical research and development for medical countermeasures. 2. SRI International, a long-standing research institution, is the awardee. 3. The contract duration is approximately two years, indicating a focused research effort. 4. The award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. This contract supports the National Institutes of Health's mission to advance health and well-being. 6. The contract type is Cost Plus Fixed Fee, common in R&D where final costs are uncertain.

Value Assessment

Rating: good

The contract value of $6.2 million over two years for specialized R&D services appears reasonable. Benchmarking against similar contracts for animal model development and efficacy testing is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure suggests that the government will reimburse SRI International for allowable costs plus a negotiated fixed fee, which can provide cost control while allowing flexibility for research unknowns. The fixed fee component is a key element to assess for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of offers and potentially lower prices due to market forces.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and the broader public, through the development of new medical countermeasures. Services delivered include animal model development and efficacy testing, crucial steps in evaluating the safety and effectiveness of potential medical treatments. The geographic impact is primarily within California, where SRI International is located, but the ultimate impact is national and global through improved public health. This contract supports a highly skilled scientific workforce in the life sciences and biomedical research sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The specific efficacy metrics and success criteria for the animal models are not detailed, making performance assessment challenging.
Reliance on animal models, while standard, faces ongoing ethical and scientific scrutiny regarding translatability to human outcomes.

Positive Signals

Award to SRI International, a reputable research organization with a history of government contracting.
Full and open competition suggests a well-defined requirement and a competitive marketplace.
The contract supports critical R&D for medical countermeasures, aligning with national health security priorities.

Sector Analysis

This contract falls within the broader Research and Development (R&D) sector, specifically focusing on life sciences and biomedical research. The market for developing medical countermeasures is driven by government funding and the need for preparedness against various health threats. Comparable spending benchmarks would involve looking at other NIH contracts for similar R&D services, particularly those involving animal studies and efficacy testing, which are essential but costly components of drug and vaccine development.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of animal model development and efficacy testing, it is likely that larger, established research institutions like SRI International are best positioned to meet the requirements. Subcontracting opportunities for small businesses might exist for specific components or services, but the primary award is not directed towards them.

Oversight & Accountability

Oversight will likely be conducted by the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures will be tied to the achievement of milestones and deliverables outlined in the contract. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Medical Countermeasures (MCMs)
Biomedical Research and Development
Animal Research and Testing
National Institutes of Health (NIH) Contracts
Life Sciences Research

Risk Flags

Potential for cost overruns in CPFF contracts.
Scientific uncertainty inherent in R&D projects.
Translatability of animal model results to human efficacy.
Timeliness of research completion impacting public health preparedness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.2 million to SRI INTERNATIONAL. ANIMAL MODEL DEVELOPMENT AND EFFICACY TESTING OF CANDIDATE MEDICAL COUNTERMEASURES (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 $6.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-09-29.

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

SRI International has a significant history of receiving contracts from various federal agencies, including the NIH, for research and development services. Their portfolio often includes work in areas such as advanced materials, biotechnology, and medical research. Specific to animal model development and efficacy testing, SRI has demonstrated capabilities in preclinical research, which is essential for evaluating the potential of new medical countermeasures. Analyzing their past performance on similar cost-plus contracts would reveal their ability to manage project scope, control costs, and deliver results within the negotiated fee structure. Their established infrastructure and scientific expertise suggest a strong capacity to undertake complex R&D projects funded by the NIH.

How does the $6.2 million value compare to similar animal model development contracts?

The $6.2 million contract value for approximately two years of work in animal model development and efficacy testing is within a typical range for specialized biomedical R&D. However, direct comparisons are difficult without knowing the specific complexity of the animal models, the number of countermeasures being tested, and the required efficacy endpoints. Contracts for developing novel animal models or testing highly complex biologics can range from hundreds of thousands to several million dollars. The Cost Plus Fixed Fee (CPFF) structure also influences the perceived value, as the final cost is subject to actual expenses incurred, capped by the fixed fee. Benchmarking would ideally involve comparing the 'fixed fee' component as a percentage of total direct and indirect costs against industry standards for similar R&D efforts.

What are the primary risks associated with this contract?

Key risks include scientific uncertainty inherent in R&D, where research outcomes cannot be guaranteed. There's a risk that the developed animal models may not accurately predict human response, or that the efficacy testing yields inconclusive or negative results, potentially delaying or halting the development of critical medical countermeasures. Cost control under the CPFF structure is another risk; if research proves more complex or time-consuming than anticipated, costs could escalate, although the fixed fee provides a ceiling for contractor profit. Furthermore, reliance on animal testing carries ethical considerations and potential regulatory hurdles. Finally, the timely delivery of results is crucial for public health preparedness, and delays could impact response readiness.

How effective is animal model development and efficacy testing in advancing medical countermeasures?

Animal model development and efficacy testing are foundational steps in the development pipeline for most medical countermeasures, including vaccines and therapeutics. These models allow researchers to study disease pathogenesis, evaluate the safety and immunogenicity of candidate MCMs, and assess their effectiveness in a living system before human trials. While not perfect predictors of human response, well-validated animal models provide critical proof-of-concept data, help refine dosages, and identify potential adverse effects. Their effectiveness lies in providing essential biological context and reducing the risk associated with early-stage human testing. The NIH's investment in this area underscores its recognized importance in advancing public health security.

What are historical spending patterns for NIH's R&D in this specific area?

The National Institutes of Health consistently allocates a substantial portion of its budget to research and development, particularly in areas related to infectious diseases, biodefense, and emerging health threats. Spending on 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) has been robust, reflecting the agency's mission. Within this broad category, contracts specifically for animal model development and efficacy testing represent a critical, albeit niche, segment. Historical data would show a trend of increasing investment in these areas, driven by global health challenges and the need for rapid development of countermeasures. Analyzing NIH's specific solicitations and awards related to medical countermeasures over the past decade would reveal consistent funding streams for preclinical research activities like those awarded to SRI International.

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: $6,242,374

Exercised Options: $6,242,374

Current Obligation: $6,242,374

Actual Outlays: $341,592

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $89,619

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