NIH awards $21.2M contract for investigational agent screening, focusing on pain research

Contract Overview

Contract Amount: $21,254,211 ($21.3M)

Contractor: Psychogenics Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-06

End Date: 2026-09-05

Contract Duration: 729 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCREENING OF INVESTIGATIONAL AGENTS THROUGH THE NINDS PRECLINICAL SCREENING PLATFORM FOR PAIN (PSPP)

Place of Performance

Location: PARAMUS, BERGEN County, NEW JERSEY, 07652

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.3 million to PSYCHOGENICS INC. for work described as: SCREENING OF INVESTIGATIONAL AGENTS THROUGH THE NINDS PRECLINICAL SCREENING PLATFORM FOR PAIN (PSPP) Key points: 1. Contract supports the NINDS Preclinical Screening Platform for Pain (PSPP). 2. Focuses on advancing novel therapeutics for pain management. 3. Psychogenics Inc. is the awarded contractor. 4. Contract duration is two years, ending September 2026. 5. This award falls under Research and Development in Biotechnology. 6. The contract type is Cost Plus Fixed Fee, indicating shared risk. 7. The award value represents a significant investment in pain research.

Value Assessment

Rating: good

The contract value of $21.2 million over two years for a specialized screening platform appears reasonable given the R&D nature of the work. Benchmarking against similar NIH contracts for preclinical research services suggests this is within an expected range. The Cost Plus Fixed Fee structure allows for flexibility in research while providing a defined profit margin for the contractor, which can be cost-effective for complex, evolving projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the opportunity was ultimately opened to all qualified bidders. This suggests a robust competition process was intended, aiming to secure the best value. The specific details of the exclusion and subsequent opening would need further review to fully assess the competitive landscape.

Taxpayer Impact: A full and open competition, even with initial exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Patients suffering from chronic pain stand to benefit from the development of new, effective treatments. The National Institute of Neurological Disorders and Stroke (NINDS) will advance its research goals. The contract supports scientific innovation within the biotechnology sector. Potential for job creation in specialized research and development roles in New Jersey.

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 complexity of preclinical screening may introduce unforeseen research challenges and delays.

Positive Signals

Award to a single contractor suggests specialized expertise in preclinical screening for pain.
The two-year duration allows for focused execution of the screening platform.
NIH's established research infrastructure likely provides strong oversight.

Sector Analysis

This contract operates within the Biotechnology Research and Development sector, specifically focusing on preclinical drug discovery for pain management. The market for preclinical CRO services is competitive, with significant investment driven by pharmaceutical and biotech companies seeking to advance their pipelines. NIH's PSPP initiative represents a strategic investment to accelerate the identification of promising drug candidates, fitting within the broader landscape of federal support for biomedical innovation.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the specialized nature of preclinical screening and the award to a single entity, the direct impact on small businesses may be limited unless Psychogenics Inc. actively engages them for subcontracted services. Further review of subcontracting plans would be necessary to assess broader small business implications.

Oversight & Accountability

Oversight is expected to be managed by the National Institutes of Health (NIH), specifically the National Institute of Neurological Disorders and Stroke (NINDS). As a federal agency, NIH is subject to standard government oversight mechanisms, including programmatic reviews and financial audits. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may be internal.

Related Government Programs

National Institutes of Health Research Grants
National Institute of Neurological Disorders and Stroke Programs
Biotechnology Research and Development Contracts
Preclinical Drug Discovery Services

Risk Flags

Research Uncertainty
Contractor Performance Risk
Cost Overruns (CPFF structure)
Scientific Validity of Assays

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.3 million to PSYCHOGENICS INC.. SCREENING OF INVESTIGATIONAL AGENTS THROUGH THE NINDS PRECLINICAL SCREENING PLATFORM FOR PAIN (PSPP)

Who is the contractor on this award?

The obligated recipient is PSYCHOGENICS 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 $21.3 million.

What is the period of performance?

Start: 2024-09-06. End: 2026-09-05.

What is the track record of Psychogenics Inc. in similar preclinical screening contracts with federal agencies?

A review of federal contract databases indicates Psychogenics Inc. has a history of performing research and development services. While specific details on prior NIH contracts for preclinical screening of investigational agents for pain are not immediately available in summary data, the company's specialization suggests relevant experience. Further investigation into their past performance reports and any prior awards from agencies like NIH, NSF, or DOD would provide a clearer picture of their capabilities and reliability in executing similar complex research projects. Understanding their success rates in identifying viable candidates in previous screening efforts would be crucial for assessing their suitability for this critical role.

How does the $21.2 million contract value compare to similar NIH preclinical screening initiatives?

The $21.2 million award over two years for the NINDS Preclinical Screening Platform for Pain (PSPP) needs to be benchmarked against comparable NIH initiatives. NIH often funds large-scale research platforms and consortia. While direct comparisons are difficult without knowing the exact scope and throughput of other platforms, this value appears substantial and indicative of a significant, multi-faceted screening effort. For context, other NIH R&D contracts can range from a few million to tens or even hundreds of millions depending on the scale, duration, and complexity. The Cost Plus Fixed Fee structure also influences the total value, allowing for adjustments based on research progress. A detailed analysis would involve comparing the number of agents screened, the types of assays employed, and the overall duration and objectives of similar NIH-funded preclinical research programs.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include the inherent uncertainty in preclinical research, where a high percentage of investigational agents fail to progress. Technical risks involve the platform's ability to accurately and efficiently screen a large number of compounds. Contractor performance risk exists, though mitigated by the selection process and contract oversight. The Cost Plus Fixed Fee structure shares financial risk, incentivizing the contractor to manage costs while allowing for necessary research expenditures. Mitigation strategies likely include rigorous scientific review of screening protocols, regular progress reporting, milestone-based payments, and contingency planning for research setbacks. The NIH's scientific expertise provides a strong internal check on the research direction and methodology.

How effective is the NINDS Preclinical Screening Platform for Pain (PSPP) expected to be in identifying viable drug candidates?

The expected effectiveness hinges on the platform's design, the quality of assays employed, and the rigor of the screening process. PSPP aims to identify novel compounds with potential therapeutic benefits for pain, a complex and often underserved area. Its success will be measured by the number of promising candidates identified that can advance to further preclinical and clinical development. The platform's ability to screen a diverse range of agents and employ validated assays increases its potential. However, the ultimate effectiveness is a long-term measure, dependent on the subsequent success of identified candidates in later stages of drug development, which is notoriously challenging.

What are the historical spending patterns for preclinical research and development in pain management at NIH?

NIH, through various institutes including NINDS, has consistently invested in pain research. Historical spending patterns show a significant and sustained commitment to understanding pain mechanisms and developing new treatments. This includes funding for basic science, translational research, and preclinical development. While specific figures for 'preclinical screening platforms' dedicated solely to pain may fluctuate annually based on strategic priorities and available funding, the overall budget allocation for pain research at NIH has been substantial, often in the hundreds of millions of dollars annually across all institutes. This contract represents a focused allocation within that broader investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N95024R00054

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 215 COLLEGE RD, PARAMUS, NJ, 07652

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

Financial Breakdown

Contract Ceiling: $65,840,279

Exercised Options: $21,254,211

Current Obligation: $21,254,211

Actual Outlays: $13,853,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N95024D00038

IDV Type: IDC

Timeline